Abstract:
Agricultural transformation is key to poverty reduction and food security in sub-Saharan
Africa (SSA). In Rwanda, this transformation has focused on shifting subsistence-based
production to market-oriented farming. Over the last one decade and a half, major
emphasis has been placed on the intensification of production systems, promotion of
farmers’ cooperatives, and enhancement of farmers’ access to markets. Although the
country recorded an increase in food crop commercialization, subsistence farming is still
prevalent amongst smallholder farmers. Yet, in the few studies conducted on agricultural
transformation, smallholder commercialization has received scanty attention. As the
country aims to achieve commercialized agriculture, there is a need to understand what
factors can influence farmers’ decisions to participate in the output markets. This study
analyses the levels of market participation and drivers of output commercialization, using
a sample of 256 Common bean farmers from northern Rwanda. A double-hurdle model
was used to analyse the data. Results indicated that 30% of the farmers participated in
the market with an average commercialization index of 0.42. Land size, agricultural
training and group membership of household head had a positive effect on households’
participation to bean market. The distance to the nearest access road that can be used
throughout the year reduces the probability of commercialization at household level. The
degree of market participation was positively influenced by price, education level of the
household head and livestock income. On the other hand, distance to key markets had a
negative effect on the degree of households’ commercialization. The findings of this
paper show that participation in bean markets is still low, with disparities in the
commercialized quantities amongst those who participate. Female-headed households
were more likely to participate in bean markets, selling higher volumes than male-headed
households. This gender difference suggests that bean production can be an important
source of income for women smallholder farmers. The study recommends more efforts
in improving road networks connecting to key markets, facilitating cross-border trade
and increasing agricultural training amongst the farmers. Additionally, the use of
improved inputs in bean production as well as income diversification through livestock
rearing should be encouraged. All the interventions should be gender-sensitive so as not
to deny women their source of livelihood through bean production and marketing.
Key words: Agricultural transformation, Commercialization, Markets, Gender, Doublehurdle,
Smallholder farmers, Beans, Rwanda
