Bumper harvest: why farmers should think outside the box

FARMERS SAY weather conditions have been extremely good. As a result the second season harvest for crops such as maize, potatoes, beans as well as vegetables has been exceptionally good and will even get better as the rain season gradually eases out. Indeed, as is usually the situation in a bumper season, food prices have been on the decline since December 2013—much to the joy of urban consumers who can now take home more for every Franc spent; and to the central bank officials whose worries about macro-economic stability have eased thanks to the low inflationary pressure that comes with declining food prices.For farmers however, instead of this bumper harvest bringing joy in anticipation for more income, the high yields have turned out to be a source of misery as they helplessly watch prices continue to nosedive.On Thursday, this newspaper reported that in western and northern parts of the country, maize farmers have been thrown into a state of anxiety with some fearing that they may not recoup their costs at the current market prices.An average cob of fresh maize is said to be going for a paltry Rwf50 while one kilogramme of dry maize fetches as little as Rwf200. There are genuine fears that the price could slide to as low as Rwf150 per kilogramme!Unfortunately for the farmers, there is nothing they can do to influence the price because at play are the forces of demand and supply, interwoven by what economists call the Cobweb theory. That theory is based on the reality that many times farmers make future plans based on the present situation.For example, the decision by most farmers to invest heavily in maize was influenced by last season’s market price which was relatively high because at that time there was short supply. Now, the price has tumbled amidst glut, leaving farmers counting losses. So, there is a possibility that those who will lose money this season, will naturally scale down their investment in maize next season. As a result, the market will be under supplied and prices will go up again. This, together with unpredictable weather, makes farming extremely unpredictable in itself.Case for value additionThe current high yields farmers are getting across the country are not due to abundant weather alone. There have been several interventions by the ministry of agriculture—ranging from research into improved seeds, irrigation and use of fertilizers—whose outcomes have significant increase in yields.Now the challenge is, what will farmers do with the massive harvests? Will they eat all? The answer is NO. Will they sell everything locally to urban markets at a competitive price? Again the answer is NO.Perhaps the solution should be a deliberate policy to strengthen cooperatives not only to produce more, but to add value to whatever they produce. For the case of maize, value addition should not only be limited to milling grain for maize bread or posho.There is need for research into other products that can be made from maize and are capable of higher returns to farmers. In other words, maize or tomatoes should be used as raw materials in the manufacturing of high-end products.Alternatively, farmer cooperatives should also be empowered to add value to their produce by diversifying uses. For example, instead of selling maize grain to millers at throw-away prices, cooperatives could consider using excess produce as feeds for poultry, piggery and dairy businesses.Diversifying use of farm produce will not only help farmers get more from their produce but will also empower farmer cooperatives to take full control of the market by only releasing what the market can absorb and retaining the excess for other profitable uses.In the past, there has been a tendency to rely on regional markets but as it has turned out, these two are unreliable because they depend on political stability of those countries for which Rwandan farmers have absolutely no control.The writer is an editor at The New Times Publications Sarl

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Bumper harvest: why farmers should think outside the box