The export market presents enormous opportunities for horticulture farmers in Rwanda. It not only opens up new avenues for sales, it also creates jobs along the agricultural value chain, and helps to professionalize local producers.
For the past five years, through IDH Rwanda, I have been helping more and more local producers get their fruits and vegetables into the export market.
I have seen the incomes of farmers grow in leaps and bounds as they master the qualities and quantities needed to tap into markets abroad. They are growing French beans, chili, passion fruits, avocadoes, among other crops for consumption in Europe, Asia and Middle East.
Their confidence to deliver in these markets has grown, and so has the support and infrastructure they have received to further commercialize their businesses.
In 2018, horticulture exporters in Rwanda were exporting between 6 and 10 metric tonnes of fresh produce per week. The current numbers show that they are exporting more than 160 metric tonnes per week. This is tremendous progress.
Still, the market demand keeps growing which means that there is space for many more Rwandan farmers to start producing for export.
Here are five things which local producers need to know:
Master the quality that the market is asking for
Unlike local and regional markets where quality standards are less stringent, it is not the case at global export markets. Quality is everything. It starts from the production point – the inputs used at the farm, certification for the produce on the farm, among others – to the transport logistics and the cold chain management until the fresh produce reaches the buyers.
Investments in infrastructure such as cold trucks, packhouses and others that allow this to happen have expanded over the years, and more are coming on board.
The market is yearning for reliable producers who are able to consistently deliver quality and volumes required by European companies.
This could further boost clients’ confidence in the local enterprises that are in this business, hence more orders of assorted horticulture products. This effectively opens up an opportunity for local producers to claim their share of the good profit margins that the market has to offer.
Smallholder farmers are key to meeting demand
Much as export companies have their own farms, they often struggle to meet the volumes that the market is asking for amid ever rising demand for fresh produce. Therefore, getting small holder farmers across the country to engage in commercial productions of these crops is key. This is also important for export crop diversification depending on Rwanda’s agroclimatic zones that are more favorable to different crops accordingly.
The good thing is that local export companies and partners are willing to offer agronomic support to smallholder farmers to help solve challenges around adoption of good agricultural practices to meet the export quality under contract farming.
The sourcing relationships with smallholder farmers see exporters meet their export quotas while allowing smallholder farmers to fetch premium prices from their produce compared to the price offered at the local market.
There is need to further translate what the market is looking for into interventions that help meet the market demand. It helps to diversify suppliers which allows a steady flow of produce in case adverse weather events hamper production in some parts of the country.
Timing is crucial
Much as horticulture products are in very high demand across parts of the globe, they are highly perishable. Without good timing in terms of planting, harvesting, and transport, one would easily miss a market window leading to food losses.
Timing is non-negotiable. For instance, harvesting on time and using the proper means of transport for fresh produce ensures extension of the produce shelf life and consistent supply to various markets. Missing these timings means losses that could derail a farmer’s business and eat into profits.
Certification is everything
Different markets require different product quality standards and certifications.
In Rwanda, exporters have secured different certifications for different markets, from Global Gap to the social compliance (ETI/SMETA) certificates, and their product brands are recognized on the European markets. This breeds product loyalty and has seen customer complaints reduce considerably over the years.
Farmers and export companies are doing their utmost possible to comply to set standards, and there is always room to do better. This business demands constant improvement; you are only as good as your last shipment.
Market opportunities are limitless
We are very far from satisfying the market demand for horticulture products. With the opening of the African Continental Free Trade Area (AfCFTA), the market is expected to expand even faster as regional markets feed the demand.
This means that the timing is ripe to invest in horticulture for export. If you are a farmer, form or join a farmers’ cooperative so you can pool your efforts and work towards a common goal. Don’t do it alone. If you are an export company, diversify your crops so you can expand your reach.
There is space for everyone and we are here to help make your export dreams a reality; walk with you as you navigate the complexities, and support you with the knowledge and skills you need.
The author is Country Manager of Stichting IDH Rwanda, and an African Food Fellow.