INSTITUTE OF AGRICULTURE,
TECHNOLOGY AND EDUCATION OF KIBUNGO
(INATEK)
THE CONTRIBUTION OF COFFEE CROPS TO SOCIOECONOMIC
DEVELOPMENT OF KARENGE SECTOR IN RWAMAGANA DISTRICT.
CASE STUDY OF KOPAKAKA COOPERATIVE.
PERIOD:2008-2011.
By
EVARISTE NIYONSENGA
A dissertationsubmitted to the Faculty of Education, Department
of Economics and Management inpatial fulfilment of the requirements for the
award of Bachelor's Degree in Economics with
Education.
Supervisor: Dr THEODORE R.BUSORO
Ngoma, October2012
DECLARATION
I NiyonsengaEvaristehereby declare that the work presented in
the book titled: The contribution of coffee crops to socio economic development
of Rwamagana district in Karenge sector .case of KOPAKAKA cooperative. Is
original research and has never been presented elsewhere for academic
qualification. Where other people`s work is used references have been provided
and in some cases quotations made.
Student'ssignature:...........................................................................................
EvaristeNIYONSENGA
DEDICATION
To my wife and children
To my sisters and brothers
To my friends and relatives
ACKNOWLEDGEMENT
First and for most my profound thanks got to the almighty God
for his sustainability to me during all my life until this moment.I am highly
recognizing all INATEK lecturers who provide to me with the necessary knowledge
during my studies.
My heartfelt thanks go to my supervisorDr Théodore R.
Busorowho devoted his previous time in supervising this work; his impeccable
guidance toward the successful completion of this work can never be
challenged.
Finally I acknowledge with much gratitude the efforts of my
lady and friends who equipped me with all the life necessities as well as
advising me and guiding me throughout my quest for knowledge.
May the almighty God bless you always.
LIST OF ABBREVIATIONS AND
ACRONYMS
AC: After Christ.
BC: Before Christ.
BNR: Banque National du Rwanda.
COOPEC : Coopérative d'Epargne et de
Crédit.
DFID:Department for International Development.
EDPRS: Economic Development and Poverty reduction Strategy.
FAO:Food and Agriculture Organization of the United Nations.
GDP: Gross Domestic Product.
HIV: Human Immunodeficiency Virus.
ICT: Information and Communication Technology.
KC: Kansas City.
KG: Kilo Gramm.
KOPAKAKA:Koperativey'AbahinzibaKawabaKarenge.
KOZIBI:KoperativeZigamaBigufashe.
MINAGRI: Ministry of Agriculture and Animal Resources.
NAEB: National Agricultural Export Board.
NCSR: National Coffee Strategy Revised.
NGO: Nongovernmental Organization.
OCIR: Office des Cultures Industrielles du Rwanda.(National
Coffee BoardPlan for Agricultural Transformation)
PH: Potential Hydrogen.
PRSP: Poverty Reduction Strategy Paper.
PSTA: Plan Stratégique pour la Transformation de
l'Agriculture.(Strategic
RCDA: Rwanda Coffee Development Authority.
SACCO: Saving and Credit Cooperative.
UK: United Kingdom.
US: United States.
USAID: United State Agency for International Development.
USD: United State Dollars.
USDA:United States Department of Agriculture.
TABLE OF CONTENTS
DECLARATION
i
DEDICATION
ii
ACKNOWLEDGEMENT
iii
LIST OF ABBREVIATIONS AND ACRONYMS
iv
TABLE OF CONTENTS
v
LIST OF TABLES
viii
LIST OF FIGURE AND CHARTS
ix
ABSTRACT
x
CHAPTER ONE
1
GENERAL INTRODUCTION
1
1.1 Background of the study
1
1.2 Problem statement
2
1.3 Research question
4
1.4 Research Hypothesis
4
1.5 Research Objectives
4
1.6 Conceptual frame work
5
1.6.1 Independent variables
5
1.6.2 Dependent variables
5
1.7 Significance of the study
7
1.8 Scope of study
7
CHAPTER TWO
8
LITERATURE REVIEW
8
2.1 Definition and concepts
8
2.1.1 Coffee
8
2.1.2 Social
9
2.1.3 Economy
10
2.1.4 Socio-economics
10
2.1.5 Economic development
10
2.1.6 Cooperatives
11
2.2. Coffee over the world
11
2.2.1 Etymology of coffee
11
2.2.2 Cultivation of coffee
12
2.2.3 World Production
13
2.2.4. Roasting of green coffee
13
2.2.5 Storage of coffee
14
2.2.6. Commercialization of coffee
14
2.2.7. Faire trade coffee
15
2.2.8 Impact of coffee over the world
17
2.3 Coffee in Rwanda
18
2.3.1 Production
18
2.3.2 Evolution of coffee's quality in Rwanda
20
2.3.3 Prices of coffee of Rwanda
22
2.3.4 Marketing of coffee in Rwanda
23
2.3.5 Transport of coffee crops in Rwanda
25
2.3.4 Impact of coffee in economy of Rwanda
26
2.3.4.1 Contribution of coffee to
entrepreneurship
26
2.3.4.2 Contribution of coffee to reduction of
unemployment
27
2.3.4.3 Contribution of coffee to national
incomes
28
CHAPTER THREE
30
METHODOLOGY
30
3.1 Methods and techniques of the research
30
3.2 Area of the study
30
3.3 Research design
30
3.4 Population
30
3.5 Sample size
30
3.6 Source of data
31
3.6.1 Primary data
31
3.6.2 Secondary data
31
3.7 Data collection instruments
32
3.7.1 Questionnaire
32
3.7.2 Interviews
32
3.7.3 Observation
32
3.8 Data processing procedures
33
3.8.1 Editing
33
3.8.2 Coding
33
3.8.3 Tabulation
33
3.9 Limitations of the study
33
CHAPTER FOUR
34
PRESENTATION, ANALYSIS AND INTERPRETATION OF
FINDINGS
34
4.1Field of study description
34
4.1.1 Presentation of Rwamagana district
34
4.1.3 Presentation of cooperative KOPAKAKA
36
4.2 Identification of respondents
37
4.2.1 Identification of respondents by
profession
37
4.2.2 Identification of respondents by sex
37
4.2.3 Identification of respondents by age
38
Source: primary data
38
4.3 Socio- economic contribution of coffee
38
4.3.1 The number of productive coffee trees per
farmers
38
4.3.2 The income of farmers before and after
becoming coffee farmers
39
4.3.3 The meal taken by farmers before and after
becoming coffee farmers
40
4.3.4 The health insurance that have farmers before
and after becoming coffee farmers.
41
4.3.5 Contribution of coffee in field of
housing
42
4.3.6 Contribution of coffee to field of
infrastructure
43
4.3.7 Contribution of coffee to investing
activities
44
4.3.8 Contribution of coffee to saving
45
4.3.9 Contribution of coffee in education
47
4.4 Summary of the finding
47
CHAPTER FIVE
49
CONCLUSION, SUGGESTIONS, AND RECOMMENDATIONS
49
5.1 General conclusion
49
5.2 Recommendations
50
5.3 Suggestions for the further research
50
BIBLIOGRAPHY
51
APPENDICES
54
LIST OF TABLES
Table 1: Production of coffee in Rwanda
2
Table 2: Evolution of coffee prices
22
Table 3: Export development (Value in million of
USD, Volume in Tons)
28
Table 4: Representations of respondents by
profession
37
Table 5: Representations of members by sex
37
Table 6: Distribution of farmers by age
38
Table 7: Coffee trees that hold farmers
39
Table 8: Comparison of income before and after
becoming coffee farmers
40
Table 9: Comparisons of times that farmers take
meals per day
41
Table 10: Comparison of health insurance of farmers
before and after becoming coffee farmers.
42
Table 11: The achievement of farmers in field of
housing
43
Table 12: The achievement of farmers in field of
infrastructure
44
Table 13: The achievement of farmers in the
investing activities
45
Table 14: The annual saving of coffee farmers
46
LIST OF FIGURE AND
CHARTS
Figure 1: Linking KOPAKAKA Cooperative with the
socioeconomic development
2
Chart 1: Production of coffee in Rwanda
20
Chart 2: Evolution of coffee price
23
ABSTRACT
In the economy, the coffee is important. According to
publications of OCIR-Café, by 2000, coffee process in Rwanda was a
traditional way because there were only three washing stations. The traditional
process decreased the production quality and quantity and the price of coffee
was suffering the consequences. It waited for the month of October 2002 when
the Rwandan government has adopted a new policy whose aim was to leave the
regular coffee from no washing stations for high quality coffee and specialty.
The subject, we wanted to give our participation in a study entitled
«Contribution of coffee crops in socio economic development case of
Rwamagana district Karengesector: 2008-2011.
To achieve the exploration of KOPAKAKA cooperative
contribution and test the relationship between phenomenonsobserved, we are
equipped with a questionnaire to identify the activities of coffee farmers of
KOPAKAKA cooperative in improving the production of coffee and check the impact
of the coffee farmers of the above cooperative in improving the
socio-economic sector of the population of Karenge sector.
The answers provided by respondents and observations enabled
us to achieve the following results: The KOPAKAKA cooperative activities play
great contribution in socio conditions improvement, it rise the rate of
entrepreneurship by investing in cultivation of coffee ,by building coffee
washing station, by commercialization of coffee crops thus it contributes in
reduction of unemployment ; it contributes also in the life conditions such as
the improvement of times that farmers take food per day;the contribution in
health insurance of coffee farmers ; it helps in the economic development such
as building and rehabilitation duelling houses ,it helps them in the
achievement of infrastructures,in the investing activities and it increases the
saving rate.
We ended our work while recommending to NAEB to motivate
people of favourable areas to maximize cultivation of coffee; to encourage
investors to increase washing stations as cultivation of coffee increase;to
motivate yearly coffee farmers who yield out great production of coffee
crops.
CHAPTER ONE
GENERAL INTRODUCTION
1.1 Background of the
study
Our country Rwanda is a land locked countrywhose land area is
26,338km2. Its location is between 1-3 degree of latitude, in South
and 29-31 degree of longitude in East. 75 miles from equator.Its surface
cultivated is shared as following: 47% for crops land; 20% for forest; 18% for
pasture and 13% for others.The GDP is 400 USD per yearwhen the target is 900
USD per year.
National policy of science and technology and innovation is to
transform Rwanda's currently agriculture based economy to knowledge based
economy by year 2020. (MURENZI R. www.uis.unesco.org)
Our country as many other developing countries focus on
economic development programs.One among them is to develop industrial culture.
The coffee has been and it remains the important source of foreign currencies
for Rwanda. For increase the production coffee and exportation revenues,
political leaders supported by the agricultural institutions,promoted the
culture of coffee by increasing a number of trees of coffee and instauration of
washingstations of coffee.
Coffee has been grown in Rwanda since its introduction by
German Missionaries in 1904. The crop was mainly kept by the colonial
administration to respond to the need for coffee that they cherished but also
to support the economy of the country. Coffee growing was then made compulsory
and the number of coffee producers grew progressively and consequently, the
number of coffee trees and the plantation area considerably increased. Office
des cultures industrielles du Rwanda (OCIR) was created in 1945, with the
mandate of fixing the qualitative norms and classification systems, generating
and diffusing information pertaining to the coffee sector and establishing an
environment of cooperation between different stakeholders that are engaged in
the coffee sector.
In 1998, coffee production occupied around 6.3 percent of the
total cultivated land (OCIR 1998). Meanwhile as production increased, private
operators started setting up coffee processing factories.
The motivation of choosing this topic is to resort some
results from the fact of increasing the number of coffee' trees, the production
proportional to the number of coffee trees; revenue proportional to the numbers
of trees; impact of revenue to the education, consumption, health, saving and
investment
In order to incite the Rwandan citizens and the foreigners to
invest more in the culture of coffee, the economic development plan and social
of Rwanda were characterized by increasing national enterprises. Whose aim is
to improve the quality of coffee.
1.2Problem statement
In general, the central and southern areas of Rwanda are
moderately suitable for coffee growing with the yield varying from 200 to 900
kg of dry coffee per hectare. The highland region in the Northern Province is
unsuitable for coffee because of very low temperatures. The lowland region of
the eastern province is also not suitable for coffee growing due to
insufficient rainfall and longer dry season; the soil fertility is too low for
the coffee crop (OCIR 1998, MINAGRI 2000) almost all produced coffee is
exported as its domestic consumption is quite low.
Apart from productions recorded during the period in the
1980's and some scattered peak years (1991, 1999, 2002 and 2004) the country's
coffee production and exports declined specially since 1990. In 1992 farmers
had started neglecting coffee.
Some of the causes which led to the fall of production are
poor fertility of coffee plantations and poor performance of coffee extension
activities. This degradation is also associated with genocide of 1994: many
coffee producers were killed while others went into a prolonged exile; coffee
extension workers were very few, which resulted in a lack of follow-up and
supervision for coffee producers to care for the crop. Research on coffee was
also disrupted following the shortage of necessary means (OCIR 1998). It is in
the present decade that the crop is again taking off. In terms of quantity, the
average production of coffee is now of 26,100 tons per year (OCIR 2005).
External factors are also important. These include the big
reduction in coffee priceson the international market maintained on a low level
due to overproduction of coffee in countries like Brazil and Vietnam. Since the
competitiveness of Rwanda coffee is being based solely on the price, the
consequences of the fall in the market price have had a huge impact on Rwandan
coffee sector. Rwandan coffee producers continue to receive very low prices
(OCIR 2005).
The quality of coffee depends on the maintenance of coffee
trees in the cultivation stage. Other problems include inefficient systems of
quality control in processing, insufficient price differentiation in relation
to quality and excessive competition among factories and exporters
(MINAGRI2004). The methods used by farmers in processing are traditional
(depulping by stone) and were quite adequate when the quantity was low.
However, with increasing quantity the traditional system failed andquality
deteriorated. There were only a few washing stations which also lacked the
appropriate equipment.
To meet the above challenges, since 1998 the Government,
through OCIR Café, hasundertaken a promotional program me of investing
in coffee production. The changing trends include the replacement of old
varieties by more performing varieties, improving the general plantations'
condition (weeding, mulching, pruning), using inputs (fertilizer, pesticides
against diseases and pests), as well as the restructuring of the producers'
environment (establishment and support given to producers'associations) in
order to progressively take care of all the activities pertaining to output's
increase (MINAGRI 2006).
The coffee quality is also being improved through making
growers sensitive to producing high-quality coffee, strengthening the
cooperative spirit within coffee producers' associations for the establishment
of washing stations and encouraging private entrepreneurs to invest in the
sector (MINAGRI 2006).
Results have started to show as the overall coffee production
is now being revitalized in the different coffee producing regions of the
country. Coffee production increased from 14,268 tons of green coffee in 1998
to 29,000 tons in 2004 (MINAGRI 2004); and the overall quality of
coffee production has improved with high-quality coffee rising from 19.2
percent in 2000 to 45 percent in 2005 (OCIR2005).
For Rwamaganadistrict, and Karenge sector in particular; the
previous problems revealed related to the degradation of quality and the great
reduction in coffee prices, lead to the reduction of areas of coffee plantation
in Karenge sector.
During that period the conditions of Karengecitizensdeclined
and their contribution to the development of their region decreased. But in
2005, when MINAGRI started to improve the quality and strengthening the
cooperative spirit within coffee producers and establishment of
washingstations;the coffee farmers of Karenge sector launched KOPAKAKA
cooperative with aim of improving the quantity and the quality of coffee crops
and increasing the areas on which coffee is cultivated.And improvesocio
economic development of Karenge sector.
1.3 Research question
Is therea causeand effect relationship betweenthe KOPAKAKA
cooperativeand socioeconomic developmentof Karenge sector?
1.4Research Hypothesis
Hypothesis of research is to state the relationship between
phenomenon observed. It is conception temporary of reality from the problem of
study based on the reality and explorations made; we formulated the following
hypothesis:
Based on the facts observed; it appears that KOPAKAKA
cooperative contribute significantly to the improvement of socioeconomic
development of Karenge sector.
1.5 Research Objectives
The research objective is to explore the contribution of
cooperative KOPAKAKA activitiesin the improvement of socioeconomic development
ofKarenge sector of Rwamagana District in Eastern province.
1.6 Conceptual frame
work
After formulating the hypothesis, we developed research
methods allows us to verify it. This work was to select items that can be
modified and will be subject to direct manipulation. These are called
"variables".
1.6.1 Independent
variable
This is a factor that is selected and manipulated and is
totally independent of behaviour observed.The independent variables of our
subject are "KOPAKAKA Cooperative and its activities." Our research has
investigated the activities of Cooperative in order to detect his contribution
on socioeconomic development of members. By assessing the following
indicators:
- Culture of coffee
- Farmers training
- Socio welfare facilities
- Job creation
1.6.2 Dependent
variable
It is a measurable behaviour observed in a subject
which is influenced by the independent variable. The dependent variables of our
subject are "improvements in socio-economic situation of the population. Our
research has used the appropriate methods and techniques to see the
improvements shown by the members in the socio-economic development of Karenge
Sector. By asking questions on the following points:
Socio development
- Education
- Health insurance
- Meals
Economic development
- Income
- Savings
- Investment
- Dwelling house
Figure 1: Linking KOPAKAKA
Cooperative with the socioeconomic development
Cooperative KOPAKAKA activities
- Culture of coffee
- Farmers training
- Socio welfare facilities
- Job creation.
Socio development
- Education
- Health insurance
- Meals
Economic development
- income
- savings
- investment
- Dwelling house.
Improvement of socioeconomic development of Karenge sector.
Independents variables
Dependents variables
Independent variables:
1.7 Significance of the
study
This research believes that it will contribute substantial for
a numbers of people including researchers, government, and policy makers and
myself as researcher.
To the researchers, the study will acts as a future reference
who will require information about study. It will help to them to acquire
skills and knowledge about the contribution of culture of coffee in
socio-economic development, to the society; it will provide information on
coffee crops, some recommendations provided by the researcher offer the
founding. To the researcher, the study will help himtoacquire skills about the
contribution of coffee crops in the socio economic development in Rwamagana
District Eastern Province.
1.8Scope of study
The study conducted in Karenge Sector, in Rwamagana district
where operates KOPAKAKAcooperative. My works consists in collection of data on
the culture of coffee. For the best analysis and interpretation of data, the
work is demarcated in space, in time and in domain.In time, the work is
demarcated during the period of four years: from 2008 to 2011.In the domain,
our study is in the economic domain.
CHAPTER TWO
LITERATURE REVIEW
«Traditionally, agriculture and forestry were central to
rural life. They were the major employers of labour, the main sources of income
within the rural economy and indirectly had a powerful influence on traditions,
power structures and life styles» (Lane
1994,www.jcu.edu.au/business/public/groups/.../jcudev_012907.pdf, May 20,
2012)
This chapter attempts to review areas and various literature
related to the culture of coffee, cooperatives and their values inrelation to
socio-economic development. This section has a variety of resources to refer to
the researcher restricted herself to only those sources that will directly to
the study.
2.1 Definition and
concepts
2.1.1 Coffee
According to the Wikipedia, free encyclopaedia (
www.en.wikipedia.org/wiki/coffee),
Coffee is a brewedbeverage with a bitter, acidic flavour prepared from the
roasted seeds of the coffee plant. The beans are found in coffee cherries,
which grow on trees cultivated in over 70 countries, primarily in equatorial
Latin America, Southeast Asia, South Asia and Africa. Green (unroasted) coffee
is one of the most traded agricultural commodities in the world. Coffee can
have a stimulating effect on humans due to its caffeine content. It is one of
the most-consumed beverages in the world.
Coffee has played a crucial role in many societies. The
energizing effect of the coffee bean plant is thought to have been discovered
in the northeast region of Ethiopia, and the cultivation of coffee first
expanded in the Arab world. The earliest credible evidence of coffee drinking
appears in the middle of the 15th century, in the Sufi shrines of Yemen in
southern Arabia. From the Muslim world, coffee spread to India, Italy, then to
the rest of Europe, to Indonesia, and to the Americas. In East Africa and
Yemen, it was used in religious ceremonies. As a result, the Ethiopian Church
banned its secular consumption, a ban in effect until the reign of Emperor
Menelik II of Ethiopia. It was banned in OttomanTurkey during the 17th century
for political reasons, and was associated with rebellious political activities
in Europe (
www.en.wikipedia.org/wiki/coffee).
Coffee berries, which contain the coffee seeds or "beans", are
produced by several species of small evergreen bush of the genusCoffea. The two
most commonly grown are the highly regarded
CoffeaArabica, and
the "Robusta" form of the hardier
Coffeacanephora.
The latter is resistant to the devastating coffee leaf rust (
Hemileiavastatrix).
Once ripe, coffee berries are picked, processed, and dried. The seeds are then
roasted to varying degrees, depending on the desired flavor. They are then
ground and brewed to create coffee. Coffee can be prepared and presented in a
variety of ways.
2.1.2 Social
The term social refers to a characteristic of living organisms
as applied to population's humans and other animals. It always refers to the
interaction of organisms with other organisms and to their collective
co-existence, irrespective of whether they are aware of it or not, and
irrespective of whether the interaction is voluntary or involuntary. The word
"Social" derives from the Latin word socii ("allies"), it is particularly
derived from the Italian Socii states that historically allied with
the Roman Republic, though they famously rebelled against Rome in the Social
War of 91-88 BC.
In the absence of agreement about its meaning, the term "social"
is used in many different senses and regarded as a fuzzy concept, referring
among other things to:
Attitudes, orientations, or behaviours which take the
interests, intentions, or needs of other people into account (in contrast to
anti-socialbehaviour) have played some role in defining the idea or the
principle. For instance terms like social realism, social justice, social
constructivism, social psychology and social capital imply that there is some
social process involved or considered a process that is not there in regular,
"non-social" realism, justice, constructivism, psychology, or capital.
In contemporary society, "social" often refers to the
redistributive policies of the government which aim to apply resources in the
public interest, for example, social security. Policy concerns then include the
problems of social exclusion and social cohesion. Here, "social" contrasts with
"private" and to the distinction between the public and the private (or
privatized) spheres, where ownership relations define access to resources and
attention (http://en.wikipedia.org/wiki/Social).
2.1.3 Economy
An economy consists of the economic systems
of a country or other area; the labor, capital and landresources; and the
manufacturing, production, trade, distribution, and consumption of goods and
services of that area (
www.en.wikipedia.org/wiki/economy).
A given economy is the result of a process that involves its
technological evolution, history and social organization, as well as its
geography, natural resource endowment, and ecology, as main factors. These
factors give context, content, and set the conditions and parameters in which
an economy functions.
2.1.4 Socio-economics
According to Gustav Cassel (1932),Socio-economic or social
economics is an umbrella term with different usages. 'Social economics' may
refer broadly to the "use of economics in the study of society. More narrowly,
contemporary practice considers behavioral interactions of individuals and
groups through social capital and social "markets" (not excluding for example,
sorting by marriage) and the formation of social norms. In the latter, it
studies the relation of economics to social values.
2.1.5 Economic
development
According ASSIMWE, H.M. (2006), economic development is a
sustained improvement in people's standard of living and welfare. It is a
measure of quality of life of people. Economic development involves an
improvement in the availability in the basic needs, an increase in the per
capita income, an improvement in the variety of socio-economicindicators such
as an increase in literacy rate, higher life expectancy, and reduction in
poverty level, improved health, more education and others. Development
incorporates a measure of human welfare.
2.1.6 Cooperatives
According to International Cooperative Alliance cited by
www.en.wikipedia.org/wiki/-cooperative, «a cooperative ("coop"),
co-operative ("co-op"), or coöperative ("coöp") is an autonomous
association of persons who voluntarily cooperate for their mutual social,
economic, and cultural benefit».Cooperatives include non-profit community
organizations and businesses that are owned and managed by the people who use
its services (a consumer cooperative) and/or by the people who work there (a
worker cooperative).
A cooperative is a collectively-owned firm established to
further the wellbeing of its members. In contrast to investor owned firms,
co-op members are not primarily interested in financial return on investments
but in the maintenance of services provided by the co-op. By definition, co-ops
are firms that are not tradable (Markus, H., 2005:6).
According to DFID (2008) cited by Suleman A.C. (2009:3), the
definition of co-operatives is built on four major catch words; first, they are
formed by groups of people, who have a specified need or problem. Second, the
organization is formed freely by members after contributing to its assets.
Thirdly, the organization formed, is governed democratically in order to
achieve desired objectives on equitable norms, and fourth, it is an independent
enterprise promoted, owned and controlled by people to meet their needs (DFID:
2008). It is about peoples' organization to capture different opportunities in
the economy where they can address their economic needs and aspirations. By the
same token therefore, cooperatives can be formed in any sector of the economy
of a country such as agriculture, minerals, industries and service sectors.
2.2. Coffee over the
world
2.2.1 Etymology of
coffee
The first reference to "coffee" in the English language is in
the form chaoua and dates to 1598. In English and other European languages,
coffee derives from the Ottoman Turkish kahve, via the Italian caffè.
The Turkish word in turn was borrowed from the Arabic: `qahwah'. Arab
lexicographers maintain that qahwah originally referred to a type of wine, and
gave its etymology, in turn, to the verb ÞåÇqaha, signifying
"to have no appetite",since this beverage was thought to dull one's hunger (
www.en.wikipedia.org/wiki/coffee).
2.2.2 Cultivation of
coffee
a) Planting
The traditional method of planting coffee is to put
20 seeds in each hole at the beginning of the rainy season; half are
eliminated naturally. A more effective method of growing coffee, used in
Brazil, is to raise seedlings in nurseries that are then planted outside at six
to twelve months. Coffee is often intercropped with food crops, such as corn,
beans, or rice during the first few years of cultivation (James A., 1983).
The two main species grown: Arabica coffee is generally more
highly regarded than Robusta coffee.Robusta tends to be bitter and have less
flavour but better body than Arabica. For these reasons, about three-quarters
of coffee cultivated worldwide is C. Arabica. Robusta strains also contain
about 40-50% more caffeine than Arabica. For this reason, it is used as an
inexpensive substitute for Arabica in many commercial coffee blends. Good
quality Robusta beans are used in some espresso blends to provide a full-bodied
taste, a better foam head (known as crema), and to lower the ingredient cost
(Belachew M., 2003:763).
However, Coffeacanephora is less susceptible to disease than
coffeeArabica and can be cultivated in lower altitudes and warmer climates
where coffeeArabica will not thrive. The robusta strain was first collected in
1890 from the Lomani River, a tributary of the Congo River, and was conveyed
from Zaire to Brussels to Java around 1900. From Java, further breeding
resulted in the establishment of Robusta plantations in many countries. In
particular, the spread of the devastating coffee leaf rust (Hemileiavastatrix),
to which coffee. Arabica is vulnerable, hastened the uptake of the resistant
robusta. Coffee leaf rust is found in virtually all countries that produce
coffee (Waller J.M. and all, 2007:171).
b) Pests of coffee crops
Over 900 species of insect have been recorded as pests of
coffee crops worldwide. Of these, over a third arebeetles, and over a quarter
are bugs. Some 20 species of nematodes, 9 species of mites, several snails and
slugs also attack the crop. Birds and rodents sometimes eat coffee berries but
their impact is minor compared to invertebrates.In general, Arabica is the more
sensitive species to invertebrate predation overall. Each part of the coffee
plant is assailed by different animals. Nematodes attack the roots, and borer
beetles burrow into stems and woody material,the foliage is attacked by over
100 species of larvae (caterpillars) of butterflies and moths
(www.en.wikipedia.org/wiki/coffee).
c) Management of the pests
Mass spraying of insecticides has often proven disastrous, as
the predators of the pests are more sensitive than the pests
themselves.Instead, integrated pest management has developed, using techniques
such as targeted treatment of pest outbreaks, and managing crop environment
away from conditions favouring pests. Branches infested with scale are often
cut and left on the ground, which promotes scale parasites to not only attack
the scale on the fallen branches but in the plant as well (Idem).
2.2.3 World Production
According to USDA (2009), in 2009 Brazil was the world leader
in production of green coffee, followed by Vietnam, Indonesia and Colombia.
Arabica coffee beans are cultivated in Latin America, eastern Africa, Arabia,
or Asia. Robusta coffee beans are grown in western and central Africa,
throughout Southeast Asia, and to some extent in Brazil.
Beans from different countries or regions can usually be
distinguished by differences in flavor, aroma, body, and acidity. These taste
characteristics are dependent not only on the coffee's growing region, but also
on genetic subspecies (varietals) and processing. Varietals are generally known
by the region in which they are grown, such as Colombian, Java and Kona (Castle
T.J., 1991:158).
2.2.4. Roasting of green
coffee
According Kummer (2003:37), coffee is usually sold in a
roasted state, and with rare exceptions all coffee is roasted before it is
consumed. It can be sold roasted by the supplier, or it can be home roasted.The
roasting process influences the taste of the beverage by changing the coffee
bean both physically and chemically. The bean decreases in weight as moisture
is lost and increases in volume, causing it to become less dense. The density
of the bean also influences the strength of the coffee and requirements for
packaging.
The actual roasting begins when the temperature inside the
bean reaches approximately 200 °C (392 °F), though different
varieties of beans differ in moisture and density and therefore roast at
different rates. During roasting, caramelisation occurs as intense heat breaks
down starches in the bean, changing them to simple sugars that begin to brown,
changing the colour of the bean (Kummer, 2003:261).
Sucrose is rapidly lost during the roasting process and may
disappear entirely in darker roasts. During roasting, aromatic oils and acids
weaken, changing the flavour; at 205 °C (401 °F), other oils
start to develop. One of these oils is caffeol, created at about 200 °C
(392 °F), which is largely responsible for coffee's aroma and flavour
(Dobelis, I.N., 1986:370-371).
2.2.5 Storage of coffee
Once roasted, coffee beans must be stored properly to preserve
the fresh taste of the bean. Ideally, the container must be airtight and kept
in a cool, dry and dark place. In order of importance: air, moisture, heat, and
light are the environmental factors responsible for deteriorating flavour in
coffee beans.
Folded-over bags, a common way consumers often purchase
coffee, are generally not ideal for long-term storage because they allow air to
enter. A better package contains a one-way valve, which prevents air from
entering
In 1931, a method of vacuum packed cans of coffee was
introduced, in which the roasted coffee was packed, ninety-nine percent of the
air was removed and the coffee in the can could be stored indefinitely until
the can was opened. Today this method is in mass use for coffee in a large part
of the world. (Brown A. www.foodnetwork.com)
2.2.6. Commercialization of
coffee
Coffee is bought and sold by roasters, investors and price
speculators as a tradable commodity in commodity markets. Coffee futures
contracts for Grade 3 washed arabicasare traded on the New York Mercantile
Exchange under ticker symbol KC, with contract deliveries
occurring every year in March, May, July, September, and December.Coffee is an
example of a product that has been susceptible to significant commodity futures
price variations.
Higher and lower grade Arabica coffees are sold through other
channels. Futures contracts for Robusta coffee are traded on the London
International Financial Futures and Options Exchange and, since 2007, on the
New York Intercontinental Exchange. Coffee has been described by many,
including historian Mark Pendergrast, as the world's "second most legally
traded commodity (Pendergrast M, 2009:38-41).
The coffee industry currently has a commodity chain that
involves producers, middlemen exporters, importers, roasters, and retailers
before reaching the consumer. Middlemen exporters, often referred to as coffee
"coyotes," purchase coffee directly from small farmers. Large coffee estates
and plantations often export their own harvests or have direct arrangements
with a transnational coffee processing or distributing company. Under either
arrangement, large producers can sell at prices set by the New York Coffee
Exchange.
Green coffee is then purchased by importers from exporters or
large plantation owners. Importers hold inventory of large container loads,
which they sell gradually through numerous small orders. They have capital
resources to obtain quality coffee from around the world, capital normal
roasters do not have. Roasters' heavy reliance on importers gives the importers
great influence over the types of coffee that are sold to consumers
(www.globalexchange.org).
According FAO (2003), behind petroleum, coffee is the second
most traded product in the world. Worldwide, 6.7 million metric tons of coffees
were produced annually in 1998-2000, and the forecast is a rise to seven
million metric tons annually by 2010.
2.2.7. Faire trade
coffee
According to the World Fair Trade Organization and the other
three major Fair Trade organizations (Fair-tradeLabelling Organizations
International, Network of European World shops and European Fair Trade
Association), the definition of fair trade is "a trading partnership, based on
dialogue, transparency and respect, that seeks greater equity in international
trade". The stated goal is to offer better trading conditions to marginalized
producers and workers. Fair trade organizations, along with the backing of
consumers, campaign for change in the rules and practice of conventional
international trade. However, not all coffee producers are happy with the
methods or results.
Fair Trade organizations promote a trade environment in which
the coffee importer has a direct relationship with the coffee producer,
excluding the middlemen. Coffee importers provide credit to certified farmers
to help them stay out of debt with coffee traders so they can develop
long-lasting trade relationships. Producer organizations are paid a floor price
(Fair-trade Minimum Price) of US$ 125 cents per pound for Fair-trade certified
washed Arabica and US$ 120 cents for unwashed Arabica, or the market price, if
higher. The free trade price of coffee rose above this minimum in September
2007, but due to recent economic events, the free trade price dropped back
below this minimum in October 2008. The fair trade price for (conventional
natural Robusta) coffee has been $1.01 since June 2008. The price of
conventional commodity coffee was also over $1 in 2008, but about $0.70 in 2009
(www.fairtrade.net)
Coffee was incorporated into the fair-trade movement in 1988,
when the Max Havelaar mark was introduced in the Netherlands. The very first
fair-trade coffee was an effort to import a Guatemalan coffee into Europe as
"Indio Solidarity Coffee".(Rice R.A., 2001:39-66)
Since the founding of organizations such as the European Fair
Trade Association (1987), the production and consumption of fair trade coffee
has grown as some local and national coffee chains started to offer fair trade
alternatives.For example, in April 2000, after a year-long campaign by the
human rights organization Global Exchange, Starbucks decided to carry
fair-trade coffee in its stores.Since September 2009 all Starbucks Espresso
beverages in UK and Ireland are made with Fair-trade and Shared Planet
certified coffee (DePelsmacker and all, 2005:363-385).
A 2005 study done in Belgium concluded that consumers' buying
behavior is not consistent with their positive attitude toward ethical
products. On average 46% of European consumers claimed to be willing to pay
substantially more for ethical products, including fair-trade products such as
coffee. The study found that the majority of respondents were unwilling to pay
the actual price premium of 27% for fair trade coffee (Idem).
2.2.8 Impact of coffee over
the world
The coffee sector played a seminal role for the economic and
social modernization of Latin America. It was the main dynamic factor for the
economies of many countries and a pivotal element of social transformation. It
was, perhaps, the principal force behind the introduction of free labor in many
Latin American countries. Today, at the beginning of a new century, the coffee
sector continues to play an important role in the social and economic coffee
sector played an important role in many countries such as Brazil, Colombia,
Costa Rica,and a bit later and to a lesser degree in other countries in South
and Central America. To be sure,the coffee sector grew during that period to
become a catalyst for the economic and socialmodernization in those
countries.
On the economic side, coffee was one of the most important
export items, generatinghard currency and having a major impact on the gross
domestic product. The coffee sector wasone of the pillars of the economy. For
example, around 1925, coffee represented around seventypercent of Brazil's
total exports and around eighty percent of Colombia's total exports.
As Werner Baer states in his book «The Brazilian
Economy», coffee had many secondaryeffects on the economy such as
employment of free immigrant labor, foreign investment ininfrastructure,
capital accumulation of coffee growers, and the derived growth of industry.1
Additionally, the demand for free labor led many coffee
producers in Brazil to join the campaignfor the abolition of slavery.
Similarly, Roberto Junguito and Diego Pizano in their book«Production de
Café en Colombia» reminds us that the economic relevance of coffee
was notlimited to its impact on growth via increased exports.2 They suggest
that coffee has had a clearlink with the development of other sectors and with
the overall development process ofColombia. Among other impacts they stress the
links between coffee production withemployment and the social situation given
the activity's high demand for labor, its relation withpublic finances, its
impact on industrial, regional, and institutional development and its role in
national politics.
Coffee production also stimulated the insertion of Latin
American economies in the world trade. In this period, given its high level of
dependence on external markets, the price of coffee was the principal factor in
guaranteeing equilibrium in the balance of payments and, as a consequence,
guaranteeing macroeconomic stability and economic growth. Income generated by
coffee production and exports created domestic demand in the industrial sector
in many countries, allowing for the diversification of their economies.In other
words, domestically, social development was highly dependent on the jobscreated
and sustained by the production and export of coffee. There is no doubt that
coffee was adynamic factor in many countries of Latin America in the early
twentieth century.
Income generated by coffee exports had an important role in
creating demand for the domesticmanufacturing sector, and, according to some
analysts, export tax revenues helped thegovernment to support the industrial
development in many countries of the region. It is clear that coffee is on the
base of the economic and social development in manyareas of our region. At its
peak, the coffee sector generated thousands of jobs and allowed forsome social
mobility of people involved in the activity. Jobs, wages, freedom, migration,
andsocial mobility were the elements of the coffee economy in such countries as
Brazil, Colombia,El Salvador, and Guatemala.
2.3 Coffee in Rwanda
2.3.1 Production
Coffee has been grown in Rwanda since its introduction by
German Missionaries in 1904. The crop was mainly kept by the colonial
administration to respond to the need for coffee that they cherished but also
to support the economy of the country. Coffee growing was then made compulsory
and the number of coffee producers grew progressively and consequently, the
number of coffee trees and the plantation area considerably increased. The
National Coffee Board (OCIR) was created in 1945, with the mandate of fixing
the qualitative norms and classification systems, generating and diffusing
information pertaining to the coffee sector and establishing an environment of
cooperation between different stakeholders that are engaged in the coffee
sector. In 1998, coffee production occupied around 6.3 percent of the total
cultivated land (OCIR, 1998). Meanwhile as production increased, private
operators started setting up coffee processing factories.
Rwanda produces Arabica coffee of bourbon
and typicalspecies. In general, the coffeetree grows well and
gives a sufficient production in regions with altitude between1400 and 1900
meters, rainfall between 1500 and 1600 mm, temperature between 18°C and 22° C
and soils with acidity levels (pH) between 4.5 and 6, which are fertile,fragile
and quite permeable (MINAGRI, 2004). Even though coffee is interspersed inall
parts of the country, regions of suitability to its cultivation were identified
relativeto the above characteristics (OCIR 1998). For instance the shores of
Lake Kivu in the Western province of the country are suitable for coffee
growing with very goodproductivity. The rich volcanic soils, rainfall
distribution and clement yearlongtemperatures favour the slow maturation of the
coffee bean which is good for thecoffee taste. The productivity per hectare
varies between 1100 and 1600 kg of drycoffee.
In general, the central and southern areas are moderately
suitable for coffee growingwith the yield varying from 200 to 900 kg of dry
coffee per hectare. The highlandregion in the Northern Province is unsuitable
for coffee because of very lowtemperatures. The lowland region of the eastern
province is also not suitable forcoffee growing due to insufficient rainfall
and longer dry season; the soil fertility istoo low for the coffee crop (OCIR
1998, MINAGRI, 2004). Mulch, manure andsometimes chemical fertilizer are used
to maintain soil fertility. Coffee is harvestedbetween the months of March and
July (MINAGRI, 2004).
According to the research done by NAEB during 2011, Rwanda has
about 90 million coffee trees with over 400,000 coffee farmers operating on an
estimated area of about 35,000 hectares. The production recorded from 2008 is
represented in the following table below.
Table 1: Production of
coffee in Rwanda
Year
|
Production in tons
|
2008
|
21, 000
|
2009
|
16,000
|
2010
|
19,000
|
2011
|
16,371
|
Source: NAEB, Annual report 2011.
Chart 1: Production of coffee
in Rwanda
Source: NAEB, Annual report 2011.
The above table shows that the production of 2008 was
21000tons ,the production of coffee was decreased in 2009 until 16000 tons a
decrease was 5000 tons which is 23.8% ;in 2010 the production was increased up
to 19000tons an increase was 3000tons which is 18.7% ,where as in 2011 the
production has been 16371 tons here the production was decreased to 2629tons
then it was decrease of 13.29% this report shows that the production of coffee
is fluctuated; means that if the production was high in the previous year it
fall in the following year.
2.3.2 Evolution of coffee's
quality in Rwanda
Rwandan coffee is among the top rated coffees in the US,
European and the Asian coffee markets. This coffee is raising the coffee
industry's profile in its awareness creation campaigns. The taste of Rwandan
coffees has outperformed many of the coffees that are delivered to different
international coffee events because of its balanced flavor, aroma and fruity
tastes (www.naeb.gov.rw).
This positive rating has boosted the industry's ongoing
branding efforts and has ultimately raised demand for Rwandan coffee as
consumers increase their uptake. However, the biggest part of Rwandan coffee
usually go to blenders who mix it with the produce from other countries before
the final product is bought by the consumer. Rwandan coffee can still obtain a
high intrinsic value as a single origin for the end users and branding it for
the country can provide an opportunity to penetrate various niche markets
(www.naeb.gov.rw).
The coffee buyers from all over the world recognize Rwanda for
the ability to provide the type of beans they require to make their coffee
businesses a success.
- Arabica coffee: Arabica coffee represents more than 98
percent of all the coffees produced from Rwanda.
- Robusta beans: The Robusta market represents less than two
percent of all coffee produced in Rwanda.
- Value added coffees: These are coffees that are roasted and
packaged. Approximately 2% of the total coffee produced is sold in a value
added form.
The quality of coffee depends on the maintenance of coffee
trees in the cultivation stage. Other problems include inefficient systems of
quality control in processing, insufficient price differentiation in relation
to quality and excessive competition among factories and exporters (PSTA,
2004). The methods used by farmers in processing are traditional (depulping by
stone) and were quite adequate when the quantity was low. However, with
increasing quantity the traditional system failed and quality deteriorated.
There were only a few washing stations which also lacked the appropriate
equipment.
To meet the above challenges, since 1998 the Government,
through OCIR Café, has undertaken a promotional programme of investing
in coffee production. The changing trends include the replacement of old
varieties by more performing varieties, improving the general plantations'
condition (weeding, mulching, pruning), using inputs (fertiliser, pesticides
against diseases and pests), as well as the restructuring of the producers'
environment (establishment and support given to producers' associations) in
order to progressively take care of all the activities pertaining to output's
increase (MINAGRI, 2006).
The coffee quality is also being improved through making
growers sensitive to producing high-quality coffee, strengthening the
cooperative spirit within coffee producers' associations for the establishment
of washing stations and encouraging private entrepreneurs to invest in the
sector (MINAGRI, 2006).
Results have started to show as the overall coffee production
is now being revitalized in the different coffee producing regions of the
country.
2.3.3 Prices of coffee of
Rwanda
Price is the money to pay in exchange for goods or services;
it is also a value of an item in money term.(ASIIMWE, H.M., 2006:139) The
following table presents the prices of coffee of Rwanda from 2008 until
2011.
Table 2: Evolution of
coffee prices
Year
|
Unit price USD/kg
|
2008
|
3.62
|
2009
|
3.47
|
2010
|
3.96
|
2011
|
4.78
|
Source: NAEB, annual report 2011.
Chart 2: Evolution of coffee
price
Source: NAEB, 2011.
This graph represents the price of coffee from 2008, where the
price was 3.62 u s dollars. The price has increased in 2009 up to 3.47 us
dollars, in 2010the price has increased once again up to 3.96. And in 2011 the
price raised up to 4.78 us dollars. The word coffee price increased
significantly leading to the overall increase of coffee prices. Lower
production in some central Mercian countries and Columbia
andunfavorableclimatic conditions in several coffee producing countries
attributed to this(from co annual review 2008/2009)
2.3.4Marketing of coffee in
Rwanda
In many developing countries, governments are heavilyinvolved
in the agriculture sector, and that certainly holdstrue in Rwanda, where coffee
has been a major export fordecades. The Belgian government as well as the two
independent,pre-genocide governments controlled importantaspects of the coffee
trade for their political and financialgain. Through compulsory production,
export taxes, and amonophony export control agency, these regimes capturedthe
profits of mostly poor coffee farmers, and used thefunds to help maintain
political power (Bates 1981). Producershad little incentive to invest in the
production ofhigh-quality coffee, and so for decades Rwandans produced a small
volume of low-quality coffee.Significant government involvement in Rwanda's
coffeesector began in the 1930s, when the Belgian colonial governmentlaunched a
series of «coffee campaigns.» Governmentauthorities built nurseries
and supplied seeds, butthey also required Rwandan farmers to plant coffee
trees(Dorsey 1983). The government also introduced pricerestrictions, imposed
mandatory quality guidelines, andissued special licenses that allowed only some
firms to purchasecoffee. Export taxes were imposed on coffee sales,
andindividual income taxes were imposed on producers, which helped support
them and the colonialgovernment.
Following Rwanda's independence, from 1962-1973, the
government retained most of these policies becauseit had limited alternatives
for raising revenue. A governmentMarketing board (OCIR, subsequently
OCIR-Café),together with a monophony export company, Rwandex,purchased,
and then sold on world markets, the vast majorityof coffee grown in Rwanda. The
farm gate price was set bythe government.3 Middlemen bought beans from
farmersand sold them to Rwandex, which in turn sold them toforeign buyers. The
locations where smallholders broughttheir beans for purchase acted as «the
economic arm of theGitarama (Verwimp 2003).Heavy government involvement in the
coffee sector continued from 1973 to 1994.Duringthe 1970s and 1980s, as world
coffee prices rose, coffeeexports provided between 60 and 80 percent of
Rwanda'sexport revenue (Berlage, Capéau, and Verwimp 2004).The
government ensured control of these importantrents by appointing relatives and
political supporters.
Today, the Rwandan government is less directly involved inthe
coffee sector. Farmers have more choice about what togrow, to whom to sell
their beans, and how to market theirproduct. Private sector investment in the
sector is rising. Thisincreased openness is part of a larger government effort
toimprove economic growth in the country. Rwanda's Vision2020 is a strategic
plan for economic change. This plan has,since 2003, provided a guideline for
sectoral policy settingwith Rwanda's ministries (MINECOFIN, 2007).
The goals created by Vision 2020, together with
Rwanda'sPoverty Reduction Strategy Paper (PRSP) and the subsequentEconomic
Development and Poverty Reduction Strategy (EDPRS), include improving the
institutional environmentto allow for increased private sector developmentand
infrastructure improvements, focusing on good governance(including
democratization, national reconciliation,political stability, and security),
improving agriculturalproductivity, improving human capital through
investmentsin health and education, creating a service-basedeconomy with a
focus on ICT (information and communicationtechnology), reducing external
support, relying more export and promoting regional integration (MINECOFIN,
2007).
Some progress has been made toward achieving the Vision2020
goals. Real GDP growth has been strong for more thana decade: 10.8 percent over
1996-2000 and 6.4 percent over2000-06 (MINECOFIN, 2007), reaching a high of
11.2 percent in 2009 (althoughit was estimated to fall to under 5 percent for
2010). With an emphasis on private-sector-ledgrowth and improvements in the
environment for doingbusiness, the economy is diversifying, merchandise trade
levels are rising, and the service sector is expanding. Particularlyfor rural
Rwandans, reform in the coffee sector isplaying an important part in helping
thousands of farmersincrease their incomes, by creating jobs and
providingopportunities for new skills training. The reform measuresare also
strengthening human and social capital and, in theprocess, may also be
generating valuable social benefits.
Commercialization contribute to the improvement of socio
conditions because from the harvest of coffee cherries of farmers to the world
market ,it passes to many categories of traders who gain from it and improve
their socio life conditions
2.3.5 Transport of coffee
crops in Rwanda
Rwanda as a landlocked country with limited paved roads in
rural areas where most coffee is grown, transport costs in Rwanda are high.
Diop, Brenton, and Asarkaya (2005) argue that Rwanda's smallholder subsistence
farmers are disconnected from markets as a result of «extremely high»
transport costs. The authors estimate that transport costs from farm gates to
the export port of Mombasa were 80 percent of the producer price.20 Transport
within Rwanda itself was estimated at 40 percent of the producer price. If
transport costs were reduced, through the development of better rural
infrastructure and, in particular, more effective rural transport routes,
access to markets would improve and poverty levels would likely be reduced. The
authors find that a 50 percent reduction in the transport costs in rural areas
would lead to a 20 percent increase in producer prices for coffee, which in
turn would reduce poverty levels among coffee farmers by more than 6 percent.
Given the continued emphasis on coffee production as a strategy to alleviate
rural poverty, improving the rural transport system will be an important way to
connect farmers to markets and to increase their household income.Transport of
coffee contribute to the social conditions improvement ,the coffee cherries
harvested from farmers need many workers for transporting this one to the
industries of transforming coffee .thus these workers earn from this transport
of coffee.
2.3.4 Impact of coffee in
economy of Rwanda
2.3.4.1 Contribution of
coffee to entrepreneurship
Entrepreneurs are investingin building coffee-washing
stations, where cherries areprocessed for sale. Rural communities are forming
cooperatives,some of which also build washing stations and processcherries.
Exporters are competing for opportunities to sellRwanda coffee to foreign
buyers. Other entrepreneurs haveestablished cafés that feature local
coffee. In other words,along a value chain, Rwandans are benefiting from
theopportunity to produce and sell specialty coffee.At the production level,
thousands of Rwanda's smallholderfarmers are benefiting from higher coffee
prices forfully washed specialty coffee.
NGOs have helped farmers establish cooperatives andhave
trained co-op members in quality control, processing,and marketing efforts. To
date, more than 100 washing stationshave been built around the country with the
supportof the government, donors, NGOs, and the private sectoras a result,
Rwanda is producing more high qualitycoffee and demand for the country's
specialty coffeeis increasing.Rwanda's coffee industry is that more of the
farmers(approximately 500,000) who grow coffee have an opportunityto sell their
beans for higher prices. The price thatcooperatives and private sector
coffee-washing stations arepaying farmers for cherries rose from between 60 and
80Rwandan francs in 2004 to between 160 and 180 Rwandanfrancs in 2008 (MINAGRI,
2008).
OneStudy finds that farmers who sell coffee cherries to
washingstations increase their annual expenditures by 17 percentcompared with
farmers who sell lower-quality parchmentcoffee (MUREKEZI and LOVERIDGE, 2009).
The samestudy indicates that since reform, coffee farmers haveincreased their
food consumption and their overall householdexpenditures, leading to improved
food security andto generally improve economic conditions for coffeefarmers.
2.3.4.2 Contribution of
coffee to reduction of unemployment
As of 2006, 4,000 jobs had been created at
coffee-washingstations (USAID publication 2006). Though many of theseare
part-time jobs during the harvest season, others arefull-time positions
managing stations and cooperatives.Co-op and washing-station employees are
learning valuablebusiness skills: accounting, marketing, and negotiating.An
estimated 100 Rwandans have learned to cup coffee 12at milling operations and
at exporters, other Rwandans sortbeans, operate milling equipment, and prepare
beans forshipment. And as the new coffee culture grows in Rwanda,jobs are
starting to be created in retail outlets such as thepopular Bourbon Café
in Kigali.
Although Rwanda has made good progress in the specialtycoffee
sector, stakeholdersrecognize that more mustbe done to consolidate these gains
and to direct attentionto the most pressing problems in the sector. To
refocusattention, the Rwandan government issued a revisedNational Coffee
Strategy (NCSR) in 2009. The NCSR createda modified strategy for the coffee
sector; one thatbuilds on lessons learned implementing the 2002 strategy.It
sets a new, lower production target of 33,000 tons ofcoffee by 2012, 19,000
tons of which is to be fully washed.The government anticipates revenues of $115
million ifthis much coffee is produced (Rwanda Ministry of Agricultureand
Animal Husbandry and Ministry of Trade andIndustry 2008).The new policy
identifies five target projects: improvingfarming techniques, providing support
to make washing (MINAGRI 2008)
The new policy identifies five target projects improving
forming techniques providing support to make washing stations more profitable,
helping private exporters improvemarketing and sales, conducting a census of
all coffee-growingareas, and partnering to do toll roasting in China and
theMiddle East.13 In an effort to add more value locally, theRwanda Coffee
Development Authority (RCDA) has partneredwith the Hunter Foundation to build a
factory to roastand package coffee locally. The hope is that this effort
willproduce more than 100 full-time jobs and another 2,000indirect jobs.14
While coffee production cannot, by itself,solve the many problems faced by the
poor in Rwanda,changes in the industry are helping coffee farmers and
otherworkers in the industry better cope with poverty, and thesechanges also
seem to be generating positive social benefits.
The coffee from its cultivation necessarily need workers `,
its harvest need workers, its transportation provide labour, its
commercialization provide also labour, the washing station need workers. All
these above process provide employment from it, socio conditions are improved;
and then great part of society gain good conditions of live from coffee.
2.3.4.3 Contribution of
coffee to national incomes
The Rwandan exports remained dominated by traditional export
products (coffee, tea and minerals) representing 60.2% of the total export
earnings in 2010. Tea exports have continued to perform better in both value
and volume increasing by 15.2% and 15.5% respectively, resulting mainly from
stable international prices.Coffee exports also performed better than 2009
increasing highly by 50.4% in value and by 21.6% in volume as a result of
improvement in domestic production and high international prices. Driven by
overall upward trend of prices on international markets for minerals, the
Rwanda mining exports value increased by 22.4% despite a decline in volume by
10.3% in 2010 compared to 2009. The increase in prices is mostly attributed to
tin whose prices rose by 62.3% from an average of USD 6.69/kg in 2009 to
10.86/kg in 2010.
Table 3: Export development
(Value in million of USD, Volume in Tons)
|
2009
|
2010
|
Change
|
Coffee
|
14992.36
|
37.29
|
18235.85
|
56.08
|
22%
|
50%
|
Tea
|
18689.30
|
48.24
|
21528.48
|
55.71
|
15%
|
15%
|
Minerals
|
6093.54
|
55.43
|
5466.35
|
67.85
|
-10%
|
22%
|
Others
|
|
93.98
|
|
111.63
|
|
25%
|
Total exports
|
|
234.94
|
|
297.28
|
|
27%
|
Source:BNR, Statistic Department, 2010.
The value of other exports including re-exports representing
38% of the total export earnings in 2010 has increased by 18.6%, when taking
into consideration cross border survey data. Other export products are
dominated by a set of products such as bovine and cattle, wheat flour, beans,
hides and skins, pyrethrum etc... Re-exports are dominated by Tin with a share
of 69% of total re exports.
Compared to 2009, coffee exports increased by 50% in 2010 from
37.3 million USD to 56 million of USD. The situation resulted from large
increase in volume by 22% from 14,992 tons in 2009 to 18,235.8 tons in 2010.
The international prices also recorded an increase of 23.7% during the period
under review.
The volume of fully washed coffee exported increased from
3,209 tons in 2009 to 3,957 tons in 2010. Its exports value represented 28% of
the totalvalue of coffee exported in 2010. Despite the progressive increase,
the proportion of the fully washed coffee exported remains Low compared to the
objective of transforming 85% of the production into fully washed coffee in
2012.
Compare to 2009, tea exports value recorded good performance
with an increase of 15% in 2010 resultingessentially from the increase of
volume by 15% from 18,689 tons to 21,528 tons while the unit price was quite
stable from 2.58 USD/KG to 2.59 USD/kg in 2010.
Mining sector benefited from overall upward trend of prices
minerals on international markets. Rwanda mining exports value increased by 22%
despite a decline in volume by 10.3% in 2010 compared to 2009. The increase in
prices is mostly attributed to tin whose prices rose by 62.3% from an average
of USD 6.69/kg in 2009 to 10.86/kg in 2010. Nevertheless, in 2010, the
overallmineral production increased by 9.3%; especially due to Tin with a share
of 80.2% and which increased by 25.6% whileColombotantalite and Wolframdeclined
by 43.0% and 12.2% respectively. The rise in the volume of tin was prompted by
the increase in price compared to 2009. But mineral exports volumedeclined by
10% due to the time Lag between the production-processing and exports periods
as well as the required time of building enough quantity to export.
The above data illustrate that the coffee contribute more in
increasing of national income, it rise this one proportionally to the quantity
of tons exported ,if the quantity is high,national income from coffee increase
also proportionally to the word price .thus if the quantity of coffee to export
increase national income from coffee will increase too.
CHAPTER THREE
METHODOLOGY
This study was carried out in Rwamaganadistrict of eastern
province in Karenge sector Therationale behind choosing this area is that
coffee production is successful inthe former area due to its natural soil
endowment while the latter is known for itscooperative thrive in the coffee
sector This was viewed as giving representativeness of impact of coffee in
socio economics development in Ramayana district.
3.1 Methods and techniques
of the research
Several techniques were used to get the data required such as
literature research, discussion with key informants, survey and observation. An
explanation of how eachwas performed follows below.
3.2Area of the study
Due to financial and time constraints, this research was
conducted in Karenge sector,Rwamagana district, Eastern province of Rwanda
3.3Research design
In order to acquire accurate and concurrent research findings,
the researcher used qualitative and quantitative methodologies and also the
questionnaires and interviews are used in data collection as research
techniques.
3.4Population
The population of this research was 1020members of cooperative
KOPAKAKA.
3.5Sample size
In this research, the researcher used random and
systematically sampling techniques in order to select the appropriate sample
size. According to Grinnell and William (1990:118) defined the population as
the totality of persons or objectives which the study is concerned.The
population of this research will be composed of members of cooperative KOPAKAKA
living in Karenge sector Rwamagana District. From the targeted of respondents,
a simple size of 102 from 1020beneficiaries will be targeted by using
systematic random sampling frame, a starting point is chosen at random, and
thereafter at regular intervals.
1020:102=10. So every 10th beneficiaries is chosen
after a random starting point between 1 and 10 if the random starting point is
10, then the beneficiaries selected are 10,20,30,40,50,60....1020.
Due to aim of having a successful study, the information was
collected from one hundred and two respondents both females and males who
were aged twenty one (21) and above years old.
3.6 Source of data
In view of gathering useful data, the researcher used data
from both primary and secondary source of data
3.6.1 Primary data
According to Kakooza, (1990), Primary data is the unprocessed
information that is found from the field (during process of interviewing and
questioning the respondents.)
The primary data was collected through arrangement of formal
and informal discussions, questionnaire and interviews
3.6.2 Secondary data
This is the source data which the researcher used to collect
the information from documents, publications, government reports, textbooks,
magazines, convention reports, libraries in order to be documented in matters
of the research topic. So, the researcher visited different libraries,
e-library, annual reports and so and so on.
3.7 Data collection instruments
In collection of data, the researcher used only three research
instruments which include questionnaire, and interview and observation.
3.7.1 Questionnaire
According to Kakooza (1996), questionnaire is
an instrument that consists of a set of questions to which the subject responds
in writing. Like any good test, questionnaires must ask for information that
Hundred and two (102) respondents can follow without
assistance.
This technique helped the researcher to collect primary data
through a survey based on self-administered questionnaires with both open-end
and close-end questions.
3.7.2 Interviews
According to Cambridge international dictionary English
standard, (Blackman, 1998), an interview is a series of
questions in formal or informal situation, usually in order to obtain
information about different themes, an interview is face-to-face communication
between interviewers and interviewees that is why the researcher asked prepared
and none prepared questions to three respondents(Representative of cooperative
KOPAKAKA, Agronomist of sector Karenge and Agronomists of Rwamagana district)
with view of knowing their reactions about the role of coffee in their socio
economics development.
3.7.3 Observation
Observations made during interviews or when travelling around
the rural areas andfarms are also important in explaining certain findings. For
instance, farmers madereflections on the many problems they faced in the past
and how they used to dealwith them. This provided an understanding of the
cooperatives benefits that were notmentioned in any document.
Through visits of farmers in their homes, observations were
made as to how the coffee farmers live in their home; how their houses are
built; their infrastructures and the economic development of Karenge sector.
3.8 Data processing procedures
Data processing referred to the categorization of responses
into meaningful information in order to carry out their patterns.
3.8.1 Editing
It is a process that was carried out after data collection
process in order to ensure that the information collected from the respondents
was accurately recorded. The researcher edited the recorded responses in
respect of cross checking all collected questionnaires to ensure that all wrong
entries were corrected.
3.8.2 Coding
This was consisted of translating edited responses into
numerical figures or terms.A complete coding schedule was done to ensure that
various responses obtained were classified into meaningful forms so as to bring
out those essential patterns of interest
3.8.3 Tabulation
According to Alton, (1971), once data is edited and coded the
following step is to put together them in same kind of table and may undergo
some other forms of statistical analysis. This kind ofstatisticaltables show
the number of occurrences of responses to particular theme.
3.9 Limitations of the study
In processes of carrying out this research the researcher
faced the following constraints:Conducting out research, while studying and
working was a limiting factor for the success of this research; therefore, the
researcher visited many times the supervisor, members of cooperativeKOPAKAKA
and agronomists of Karenge sector and Rwamagana district.
CHAPTER FOUR
PRESENTATION, ANALYSIS AND
INTERPRETATION OF FINDINGS
This chapter attempts to present, analyze and interpret the
various research findings in order to relate it with the study objectives. The
research dealt with coffee cropsin socioeconomic development. To raise the
information, the researcher used questionnaires, interviews and observation as
tools of data collection from the farmers as well as the staff of Karenge
Sector and KOPAKAKA cooperative.
4.1Field of study
description
4.1.1 Presentation of
Rwamagana district
According to monograph of Rwamagana,around 80%Ramagana's
populationpractices agriculture and thiscontributes in the economy of the
District. In this District, farmers are classified into two categories: the
first composed of the people who practices agriculture only;include, those who
combine agriculture with other activities such as traders and civilians
servants.Coffee is a main industrial culture comparatively to the others
cultivated in Rwamagana District.It is less cultivated in
Kigabirosector,Mwurire sector, Munyaga sector. Whereas in the others Sectors
such as Karenge,Nzige,Muyumbu and Nyakaliro; the coffee plantation covers a
great area.
4.1.2 Presentation of Karenge sector
According to Monographic of Karenge Sector(2007), Karenge
sector has63.19km, 7 cells and 36 villages compound it with 19682
people.Karenge sector is located in south of Rwamagana district toward the
EASTof Kigali city.Karenge sector presents the following borders:Insouth there
is Mugesera and Rukumberi sector of Ngoma district;inNorth thereis Nzigesector;
In EAST there is Rubona sector In West there isNyakaliro and Juru sectors.
A. Socio-economic situation of Karenge
sector
Around 90% of the population of Karenge Sector practice
agriculture and this one play a great importance in the economy of Karenge
sector.Inthis sector there is two categories of farmers: Farmers whopractice
agriculture only and farmers who mix agriculture with others works.In Karenge
sector the land starts to loose its productive capacity because of more
exploitationsand effects of erosion.The agriculture in this area is dominated
by provisional culture and industrial culture.
- Provisional culture:according to the
economic development and occupation of superficies the culture follow the
following order: banana tree 45%Market gardener 15%; cereal 5%.
- Industrial culture:Karenge sector is the
best productive of coffee in the areas of Rwamaganadistrict,now days there is
1265000 productive coffee trees and 85000 non productive coffee trees ;both
cover 540ha;in this sector,they expect to plant coffee on 280ha in 2012;in this
sector one plant of coffee produces 9kg of crops per year,there is also three
washing stations which are Nyamatete coffee center,kopakabi and Rwacof
-Karenge.The other industrial cultures such as macadamia,moringa,and vanilla
are not more expended.(from documentation of Karenge sector)
B. Vision of karenge sector
According to Monographic of Karenge sector(2007) the
development of Karenge sector is based on the agriculture and breedthus this
sector has target for achieving the great agricultural output particularly for
culture of coffee, banana tree, pineapple and tomatoes. In the domain of stock
farming,Karenge sector has target for increasing quality and quantity of
livestock, with objective ofstrengthening the artificial insemination system
for cows and promoting the project «one cow,one family». The
objective of developmentof millennium and vision 2020 is to allow to Karenge
sector to overcome the state of under development and poverty for the economic
development.These are expressed by the socio indicators. Karenge sector has set
the following objectives:
- To reduce poverty at 50%.
- To strengththe primaryeducation.
- To strength the fight against HIV, malaria and others
epidemics.
- To reduce the children mortality rate to two over three and
maternal mortality to three overfour.
- To maintainenvironment protection for long life
development.
4.1.3 Presentation of
cooperative KOPAKAKA
KOPAKAKA cooperative has been created in 2005.It comprises 62
members only;withan objectiveof improving the economic capacity the members
(farmers of coffee of Karengesector) and to improve the quantity and the
quality of coffee crops. Nowadays, it is comprises 1020 members ; All of these
members sell their coffee crops in the washing station called
RWACOF-KarengeThese members of cooperative benefit great advantages from it
;such as:
- Training coffee farmers (members of cooperative).
- To receive new plants of coffee with target of improving the
number of coffee trees.
- The coffee farmers receive the funding through their
cooperative such as: chemical fertilizers, insecticide products.
- The funding for education of their children.
- The coffee farmers are helped by the cooperative in the
payment of health insurance. (From documentation of cooperative KOPAKAKA).
In conclusion,this cooperative plays great importance in the
development of its members and then in the development of the area (Karenge
sector); in payment of taxes, in contribution to building of the schools, to
entertain roads and others.
4.2 Identification of
respondents
4.2.1 Identification of
respondents by profession
Table 4: Representations of
respondents by profession
The following table shows the repartition of members by
profession
Profession
|
Effective
|
Percentage
|
farmers
|
72
|
70%
|
teachers
|
17
|
17%
|
Agents of cooperative
|
13
|
13%
|
Total
|
102
|
100%
|
Source:primary data
The coffee farmers of cooperative are subdivided in to two
categories: the farmers who practices agriculture only and the others who mix
agriculture with the others professions. Here in cooperative we have 72 farmers
who practice agriculture only or 70% and 30 farmers who mix agriculture with
the others professions such as teaching, the teachers are 17 or 17% and
services in the cooperative are 13 or 13%.
4.2.2 Identification of
respondents by sex
The following table represents the repartition of members by
sex.
Table 5: Representations
of members by sex
sex
|
effective
|
percentage
|
female
|
34
|
33%
|
male
|
68
|
67%
|
Total
|
102
|
100%
|
Source: primary data
According to the above table, thenumbers of respondents are
102 combined with female and male where female are 34 or 33% and male are 68 or
67%.
4.2.3 Identification of
respondents by age
The following table represents the repartition of respondents
by age
Table 6: Distribution of
farmers by age
Age
|
Effective
|
Percentage
|
30-40
|
34
|
33%
|
40-50
|
25
|
24%
|
50-60
|
30
|
30%
|
60-70
|
13
|
13%
|
Total
|
102
|
100%
|
Source:primary data
4.3Socio- economic
contribution of coffee
According to the income earned from coffee crops, I
investigated how farmers satisfy their needs. I asked the question to the
farmers with a target of how many productive coffee trees owned by farmers.
4.3.1The number of
productive coffee trees per farmers
The first question had a target ofgetting out the number of
productive coffee trees that hold respondents .Thequestion was to know how many
productive coffee trees each respondent has?
Table 7: Coffee trees that
hold farmers
Number of coffee trees
|
effectives
|
percentage
|
Less than 200
|
4
|
4%
|
200-400
|
8
|
8%
|
400-600
|
17
|
17%
|
600-800
|
30
|
29%
|
Over 800
|
43
|
42%
|
Total
|
102
|
100%
|
Source:primary data
According to Asiimwe H.M(2006)» Production refers to the
process of converting inputs in to out puts, the out puts can be goods or
services.» Based on the above citation, the productive coffee tree of
KOPAKAKA cooperative produces the primary production. The coffee crops needed
directly in the washing station which is their market.Each member of KOPAKAKA
earns from the productive coffee trees that he has. According to the above
table, which represent number of coffee trees that hold coffee farmers, a great
part of members have the number of coffee tree which is over 800 there are 43
or 42%; 30members have between 600-800 coffee trees or 29%. 17 members have
between 200-400 coffee trees or 8% and 4 members have less than 200 coffee
trees or 4%.
4.3.2The income of farmers
before and after becoming coffee farmers
The second question had a target of getting out the income
that holds farmers before and after becoming coffee farmers.
Table 8: Comparison of
income before and after becoming coffee farmers
Level of income
|
Effective of farmers before becoming coffee farmers
|
Effective of farmers after becoming coffee
farmers
|
Effective
|
percentage
|
Effective
|
percentage
|
Less than 200,000
|
26
|
25%
|
0
|
0%
|
200,000-400,000
|
55
|
54%
|
17
|
17%
|
400,000-600,000
|
17
|
17%
|
25
|
25%
|
600,000-800,000
|
0
|
0%
|
26
|
25%
|
Over 800,000
|
4
|
4%
|
34
|
33%
|
Total
|
102
|
100%
|
102
|
100%
|
Source: primary data
Basing on the above table the farmers of KOPAKAKA cooperative
have increased their income in comparison to what they earned before. After
becoming coffee farmers, 34 farmers or 33% gain over 800,000 per year whereas
before becoming coffee farmers 4 farmers only or 4% gained over 800,000 per
year. 26 farmers or 25% earn between 600,000-800,000 after becoming coffee
farmers whereas before they were 17 farmers or 17% who earned such amount of
money. 17 farmers or 17%earn between 200,000-400,000 after becoming coffee
farmers whereas before they were 55 farmers or 54% who gained such amount of
money. Zero or zero per cent earn less than 200,000 whereas before they were 26
members or 25% who gained less than 200,000 Rwandan francs per year. Therefore
coffee plays a great role in the augmentation of income of coffee farmers.
4.3.3The meal taken by
farmers before and after becoming coffee farmers
The third question had a target offinding out how much time
the farmers took meals before and after becoming the coffee farmers.
Table 9:Comparisons of
times that farmers take meals per day
The time that farmers take
meals
|
Effective of farmers before they become coffee
farmers
|
Effective of farmers after they become coffee
farmers
|
Effective
|
Percentage
|
Effective
|
Percentage
|
Once
|
9
|
9%
|
0
|
0%
|
Twice
|
85
|
83%
|
9
|
9%
|
Three time
|
8
|
8%
|
93
|
91%
|
Total
|
102
|
100%
|
102
|
100%
|
Source:primary data.
According to ASIIMWE, H.M. (2006:138), «consumption
depends on income» no one can consume without capacity to pay consumption,
more capacity of payment increase more consumption capacity increase. According
to thetable above, related to the number that farmers take meals per day, the
members of thecooperative increased. The number of taking meals per dayafter
becoming coffee farmers in comparison with the number of times they took meals
before. 93 farmers or 91% take meals three times per day after becoming coffee
farmers whereas 8 farmers or 8% took meals per day before becoming coffee
farmers 9 farmers or 9% take meals two times per day after becoming coffee
farmers whereas 85 farmers or 83% took meals per day before becoming coffee
farmers. Zero farmers or zero percent take meals one time per day after
becoming coffee farmers whereas 9 farmers or 9% took meals per day before
becoming coffee farmers. Thereforecoffee contributes more in taking meals per
day of coffee farmers of the KOPAKAKA cooperative.
4.3.4The health insurance
that have farmers before and after becoming coffee farmers.
The fourth question had a target of getting out the health
insurance of farmers before and after becoming coffee farmers.
Table 10: Comparison of
health insurance of farmers before and after becoming coffee farmers.
Kind of health insurance
|
Effective of farmers before becoming coffee
farmers
|
Effective of farmers after becoming coffee
farmers
|
Effective
|
Percentage
|
Effective
|
Percentage
|
No health insurance
|
17
|
17%
|
0
|
0%
|
Obtain drugs hardly
|
42
|
41%
|
0
|
0%
|
Mutual health
|
26
|
25%
|
85
|
83%
|
Others (RAMA,MMI)
|
17
|
17%
|
17
|
17%
|
Total
|
102
|
100%
|
102
|
100%
|
Source: primary data.
According to the table above, coffee contributes to payment of
health insurance of coffee farmers.85 farmers or 83% pay health insurance after
becoming coffee farmers (mutual health) whereas 26 farmers or 25% only paid
such insurance. Zero or zero percent of farmers hardlypay drugs after becoming
coffee farmers whereas 42 farmers or 41% hardly paid drugs before becoming
coffee farmers. Zero farmers or zero percent of farmers do not have capacity to
pay health insurance after becoming coffee farmers whereas 17 farmers or 17% of
members did not have capacity to pay health insurance.
By observation, in health, there is improvement by comparison
of the situation before 2005 and the actual situation where before they were
disease related to malnutrition whereas nowadays there is no disease related to
malnutrition. Therefore Coffee crops have a great contribution to payment of
health insurance.
4.3.5 Contribution of
coffee in field of housing
The fifth question had a target of getting out the achievement
in field of housing after becoming coffee farmers.
Table 11: The achievement
of farmers in field of housing
Kind of achievement in the field of housing
|
Effective of farmers
|
percentage
|
Constriction of dwelling house
|
55
|
54%
|
Rehabilitation of dwelling house
|
47
|
46%
|
No thing
|
0
|
0%
|
Total
|
102
|
100%
|
Source: primary data
According to the above table, coffee crops contribute more in
the achievement of the field of housing.47 farmers or 46% have done the
rehabilitation of dwelling house after becoming coffee farmers; 55 farmers or
54% of coffee farmers have built the duelling house.
By observation a researcher seen that coffee crops contributes
in reduction of unemployment in Karenge sector. In comparison of the actual
socio economic situation and the previous before 2005; there is a great
difference. The actual socio economic development of Karenge sector has shifted
toward the positive side. On the point of rehabilitation and building dwelling
houses there is a great difference between comparisons of the situation before
2005 and the actual situation.
On the point of karenge market, before 2005 the buildings of
Karenge market, were not in the good state but nowadays the market is well
built and the warehouses are rebuilt in cadastre plan; this explains the
development of Karengesector. Therefore coffee crops play a great importance in
the achievement of field of housing of coffee farmers'members of KOPAKAKA.
4.3.6 Contribution of
coffee to field of infrastructure
The sixth question had a target of getting out the achievement
in the field of infrastructure after becoming coffee farmers.
Table 12: The achievement
of farmers in field of infrastructure
Kind of achievement in the field of
infrastructures
|
Effective of farmers
|
percentage
|
Water supply
|
8
|
8%
|
Electricity supply
|
9
|
9%
|
Supply in biogas
|
0
|
0%
|
Supply in water and electricity
|
64
|
63%
|
Nothing at all
|
21
|
20%
|
Total
|
102
|
100%
|
Source: primary data
Based on the above table, coffee crops contribute to the
achievement of field of infrastructure .64 farmers or 63% have water and
electricity in their home, 9farmers or 9% have electricity in their houses, 8
farmers or 8% have water in their home,21 farmers or 20% neither water nor
electricity.There are no coffee farmers who have biogas in their homes
By observation, there is improvement in infrastructures such
as water supply and electricity supply; at this point; the infrastructure level
was very low before 2005 but nowadays the infrastructure is at the sufficient
level. Therefore coffee crops contribute more in water and electricity supply
in the coffee farmers of cooperative COPAKAKA.
4.3.7 Contribution of
coffee to investing activities
Theseventh question had a target of getting out the
achievement in the investing activities of farmers after becoming coffee
farmers
Table 13: The achievement
of farmers in the investing activities
Kind of investing activities of coffee
farmers
|
Effective of farmers
|
percentage
|
Modern agriculture
|
93
|
91%
|
trade
|
9
|
9%
|
transport
|
0
|
0%
|
crafts
|
0
|
0%
|
Nothing
|
0
|
0%
|
Total
|
102
|
100%
|
Source: primary data
Based on the above table coffee crops contribute to the
investing activities of coffee farmers.93 farmers or 91% invest in the
activities related to agri-livestock modern.9 farmers or 9% invest in trade. In
the coffee farmers of KOPAKAKA no one invest in transport and crafts.
By observation, On the point of transport, the number of cars
and motorcycles which were in Karenge before 2005 were few by comparison of the
number that there are nowadays in Karenge sector. This means that the sector of
transport has increased. Therefore coffee crops contribute to the investing
activities of coffee farmers.
4.3.8 Contribution of
coffee to saving
The eighth question had a target of getting out the annual
saving capacity before and after becoming coffee farmer.
Table 14: The annual
saving of coffee farmers
Annual saving
|
Effective of farmers before becoming coffee
farmers
|
Effective of farmers after becoming coffee
farmers
|
Effective
|
Percentage
|
Effective
|
Percentage
|
Less than 50,000
|
9
|
9%
|
0
|
0%
|
50,0000-100,000
|
38
|
37%
|
4
|
4%
|
100,000-200,000
|
25
|
25%
|
13
|
13%
|
200,000-400,000
|
26
|
25%
|
38
|
37%
|
Over400,000
|
4
|
4%
|
47
|
46%
|
Total
|
102
|
100%
|
102
|
100%
|
Source:primary data
According to Asiimwe, H.M. (2006:139), «saving is the
part of income that is set aside for future use. «The coffee farmers earn
amount of money from coffee crops; one part of income has to be saved for
future use to satisfy the future plans. According to the above table coffee
crops contribute to the increase of capacity of saving. 47 farmers or 64% save
over400,000after becoming coffee farmers whereas before they were 4 farmers or
4%;38 farmers or 37% save between 200,000-400,000 after becoming coffee farmers
whereas they were 26 farmers or 25% before becoming coffee farmers,13 farmers
or 13%save between 100,000-200,000 whereas they were 25 farmers or25% before
they become coffee farmers,4 farmers or 4%save between 50,000-100,000 after
becoming coffee farmers whereas before they were 38 farmers or 37%.There
arezero farmers or zero percentthat save less than 50,000 whereas they were 9
farmers or 9% before becoming coffee farmers.
By observation a researcher seen thatOn the point of saving;
before 2005, there was only one cooperative of saving and credit called KOZIBI
KARENGE whereas nowadays there are others four financial institutions which are
COPEC INGASHYA; VISION FINACE COMPANY; URWEGO OPPORTUNITY and UMURENGE SACCO
KARENGE. This explains the improvement of saving capacity of Karenge people.
Therefore coffee crops play a great partof increase of saving capacity of
members of KOPAKAKAcooperative.
4.3.9 Contribution of
coffee in education
The ninth question had a target of getting out the involvement
of coffee in the education of farmer's children.
Table15: The role of coffee in education domain
Kind of involvement of coffee in education
|
Effective of farmers
|
percentage
|
To receive findings from cooperative
|
102
|
100%
|
To receive school materials
|
0
|
0%
|
Nothing at all
|
0
|
0%
|
Total
|
102
|
100%
|
Source: primary data
According to Dirk
Van.Damme.(http://www.oecd.org/fr/sites/educeri/38446921.pdf)
«L'enseignement est la clé du progrès économique,
environnemental et social.» Education is on the base of development, the
coffee farmers of cooperative are interested ineducation of their children then
they receive either the findings or school materials from cooperative to
support them in that important activity.
102 farmers or 100% of members of cooperative receive the
findings from KOPAKAKA cooperative. Therefore all members of cooperative
receive any amount of money as credit to pay without interest for payment of
school fees or school materials thus coffee crops play a great support to
education of the children of KOPAKAKA members.
4.4 Summary of the
finding
The findings revealed that coffee crops contribute positively
to socio condition improvement, to the improvement of the farmer's economic
development and to national income.
The findings revealed that coffee crops, in comparisonwith the
other export products such as tea and minerals, it performed better according
to the quantity exported and the international price. Thus coffee crops
contributesto the increasing of national income; otherwise, in the domain of
improving quality of coffee crops,there were creation of washing station which
contribute more in entrepreneurship and those one contribute to the national
income because when they earn by providing taxes to the country .
The findings revealed that coffee crops contributes in socio
condition improvement, it rises the rate of entrepreneurship by investing in
cultivation of coffee, building coffee washing station, by commercialization of
coffee crops thus it contributes in reduction of unemployment; it also
contributesto the life condition such as the improvement of time that farmers
take food per day.91%of the coffee farmers take food three time per day. Coffee
crops contribute in health insurance of farmers where 83%of farmers have mutual
health. The findings revealed that coffee crops contribute in the improvement
of farmer's economy. It helpsbuild and rehabilitation of the duelling house
where 54% of coffee farmers built their house and 46% of the coffee farmers
rehabilitate their duelling house. It helps in the achievement of
infrastructure field where 63% of coffee farmers have water and electricity, 9%
have electricity and 8% have water in their houses. It helps investing in
activity where 91% of coffee farmers invest in the activities related to modern
agriculture .it contributes to the increasing of saving rate where 46%of coffee
farmers save over 400,000 Rwandan francs; 37% of coffee farmers save between
200,000 and 400,000 Rwandan francs and 13% of coffee farmers save between
100,000 and 200,000 Rwandan franc . Coffee crops contributes toeducation, where
100% of coffee farmers receive the findings from cooperative of coffee farmers
.therefore coffee crops play a great importance to the improvement of the socio
conditions ,to coffee farmers `economic development and then to national
income.
CHAPTER FIVE
CONCLUSION, SUGGESTIONS,
AND RECOMMENDATIONS
5.1 General conclusion
In conclusion, all of the findings stated above, lead us to
agree that the contribution of coffee crops is very remarkable. According to
Cousin,Tracey L. (June 1997) «coffee has become a vital cash crops for
many third world countries.Over one hundred million people in developing
countries have become dependent on coffee as their primary source of income.It
has become the primary export and back bone for African countries
like,Uganda,Burundi, Rwanda and Ethiopia, as well as many central American
countries».It contributes to reduction of unemployment through different
sections of entertaining preparing and commercialisation of coffee, and then it
contributes to entrepreneurship of Rwandans .according to the findings, coffee
crops contribute to the improvement of socio life conditions such as numbers of
taking food per day, payment of health insurance of household's coffee farmers.
It contributes also to the economic development of coffee farmers such as
contribution to the achievement of the field of housing, contribution to the
achievement of field of housing, contributionto the achievement of field of
infrastructure, contribution to the investing activities, contributionto the
increasing of saving capacity and intervenes in the findings to contribute to
education. Thus, coffee crops play a crucial role in increasing national income
in our country.
Despite good economic growth and real benefits of liberalizing
the coffee sector, more remains to be done to move Rwanda toward its Vision
2020 goal of becoming a stable, middle-income country. Most Rwandans of rural
areas coffee farmers leave from the poverty state toward the modern state.
5.2 Recommendations
Considering the importance of coffee crops; I would recommend
NAEB to motivate people who own appropriate land for coffee plantation to
maximize the cultivation of coffee in order to increase the quantity of coffee
crops.
- NAEB should encourage the investors to build washing
stations in the areas favourable for coffee in order to increase quality of
coffee and reduction of unemployment. It shouldalsomotivate yearly the coffee
farmers who yield out great production of coffee crops giving them the
rewards.
- I would recommend MINAGRI to train regularly coffee farmers
inthe entertainment of coffee for increasing the quality and thequantity, and
then the value of Rwandan coffee crops.
- I would recommend to the coffee farmers that it could be
better to prepare an area of straw for covering coffee trees and keeping them
in safe conditions.
5.3 Suggestions for the
further research
The researcher suggests that further research should be
carried out on the reduction of fluctuation of coffee crops in order to
maintain the increasing of production of coffee crops.
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9. Kummer, C. (2003), The Joy of
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11. Maslow A. (1954),Motivation and
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APPENDICES
Questionnaire to sample of members of
KOPAKAKA
I. IDENTIFICATION Age:
.............. Gender: Female Male Occupation
............................
II. INSTRUCTIONS
a. Do not write your name. b. Choose the answer by putting the
x in the box. c. Read the question carefully before answering.
III. QUESTIONS
1) How many productive coffee trees do you
have?
- Less than 200 - 200 - 400 - 400 - 600 - 600 -
800 - Over 800 2) A) How many meals did you take a day before
becoming a coffee farmer? - Once - Twice - Three
B) How many meals do you eat per day after becoming a member a
coffee farmer? - Once - Twice - Three 3) A)
What is health insurance did you have before becoming the coffee
farmer? - No health insurance - Obtain drugs hardly - Mutual
Health
- Other (specify) ........................................
B) What is health insurance do you have after becoming
the coffee farmer? - No health insurance - Obtain drugs
hardly - Mutual Health
- Other (specify) ........................................
4) Howthe coffeeis involved inthe education of
yourchildren? - We receivefunding fromthe cooperativeKOPAKAKA. -
We receiveschool material
- Nothing at all 5) What are your achievements in the
field of housing after becoming a coffee farmer? - Construction of
a dwelling house - Rehabilitation of the dwelling house - Nothing
6) What areyour achievements inthe field of
infrastructure? -Water supply -Electricitysupply -Supply
ofbiogas -Nothing at all
7) A) what was your annual income before becoming a
coffee farmer? - Less than 200,000 - 200,000-400,000 -
400,000-600,000 - 600,000-800,000 - Over 800,000 B) What is
your annual income after becoming a coffee farmer? - Less than
200,000 - 200,000-400,000 - 400,000-600,000 - 600,000-800,000 -
Over 800,000 8) How are you investing activities after becoming a
coffee farmer? - Agri-livestock modern - Trade - Transport
- Crafts - Nothing 9) A) What was your annual savings
capacity before becoming a coffee farmer? - Less than 50,000
-50,000-100,000 - 100,000-200,000 -200,000-400,000 - Over 400,000
B) What is your annual savings capacity after becoming a coffee
farmer? - Less than 50,000 -50,000-100,000 -
100,000-200,000 -200,000-400,000 - Over 400,000
Interview guide with chairman of KOPAKAKA
cooperative
1 About creation of KOPAKAKA cooperative. 2. Aboutthe founders
of KOPAKAKA cooperative. 3. The objectives of KOPAKAKA cooperative. 4.
About the members of KOPAKAKA cooperative
5. About the profit that members earn from KOPAKAKA
cooperative.
Interview guide with an agronomist of Karenge
sector
1. Aboutthe area of Karenge covered by coffee. 2. About
the number of coffee tree. 3. About the production of coffee during the
period 2008-2011.
4. About the contribution of coffee crops to the economic
development ofKarenge sector.
IBIBAZO BIGENEWE ABANYAMURYANGO BA
KOPAKAKA
I. IDENTIFICATION
Imyaka: .............. Igitsina: GoreGabo Umurimoakora
............................
II. AMABWIRIZA
a.
Kuriururupapurontamazinaashyirwaho. b. Hitamoigisubizoushyiraakamenyetso x
mu kazukabugenewe. c. Soma nezaikibazombereyogusubiza.
III.
IBIBAZO
1)
Mufiteibitibyakawabishoboragutangaumusarurobingahe?
- Munsiya 200 - 200 - 400 - 400 - 600 - 600 - 800 -
Over 800 2) A) Mwashoboragagufataifungurokangahe mu
munsimberey'ukomutangiraguhingakawa? - Rimwe - Kabiri -
Gatatu B) Ahomubereyeabahinzibakawa,
mushoboragufataifungurokangahekumunsi? - Rimwe - Kabiri -
Gatatu
3) A) Ni
ubuhebwishingizibwokwivuzamwarimufitemberey'ukomubaabahinzibakawa? -
Ntabwo -Kwiguriraimitibingoye - Mutuweri
- Ubundibwishingizi (sobanura)
........................................ B)
Ahomubereyeabahinzibakawaniubuhebwishingizibwokwivuzamufite? -
Ntabwo -Kwiguriraimitibingoye - Mutuweri
- Ubundibwishingizi (sobanura)
........................................ 4) Hariicyoikawazimara mu
bijyanye no kurihiraabanaamashuri? -
HariinguzanyotubonaivamuriKoperativeKOPAKAKA. -
Duhabwaibikoreshoby'ishuri
- Ntacyo. 5) Hariicyomwagezeho mu
bijyanyen'imyubakireahomubereyeabahinzibakawa? -
Nibuyakiyeinzu - Nasannyeinzu - Ntacyo
6) Hariicyomwagezeho mu
bikorwaremezoahomubereyeabahinzibakawa? -Nashyizeamazi mu
rugo -Nashyizeamashanyarazi mu nzu -Nubatsebiyogazi -Ntacyo
7) A)
Mberey'ukomubaabahinzibakawamwashoboragakwinjizaamafarangaangahe mu
mwaka? - Munsiya200,000 - 200,000-400,000 - 400,000-600,000
- 600,000-800,000 - Hejuruya 800,000
B) Ahomubereyeabahinzibakawa,
mushoborakwinjizaamafarangaangahe mu mwaka? - Munsiya200,000 -
200,000-400,000 - 400,000-600,000 - 600,000-800,000 - Hejuruya
800,000 8) Ni
ibihebikorwabindiwashoyemoimariahoutangiriyegusarurakawa? -
Ubuhinzin'ubworozibwakijyambere - Ubucuruzi - Ubwikorezi no
gutwaraabantu - Imyugan'ubukorikori - Ntacyo. 9) A)
Utarabaumuhinziwakawawashoboragakuzigamaamafarangaangahe mu
mwaka? - Munsiya 50,000 -50,000-100,000 -
100,000-200,000 -200,000-400,000 - Hejuruya 400,000 B)
Ahoubereyeumuhinziwakawaushoborakuzigamaamafarangaangahekumwaka? -
Munsiya 50,000 -50,000-100,000 -
100,000-200,000 -200,000-400,000 - Hejuruya 400,000
Localisation de la zone d'étude dans le
District de Rwamagana
Source : MINITRACO, CGIS-NUR, 2002
3.1.2. Historique de la COOPEC INGASHYA
Source : Monographie du District de
Rwamagana, 2007.
Source:Monograph of Rwamagana District
NIYONSENGA Evariste
LEARNER AT INATEK
TEL: 0788581620
Karenge, April 16, 2012
DIRECTOR OF NAEB.
KIGALI
Subject: Request authorization for
research.
Sir,
As part of exploring the contribution of culture of coffee in
socioeconomic development, we are conducting a research entitled "The
contribution of culture of coffee in socio-economic development." We would
benefit from your information and advice.
Hoping a favorable response, we guarantee that they will be
collected only for purposes of research.
Yours faithfully
NIYONSENGA Evariste
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