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ROLE OF TERIMBERE- MUHINZI COOPERATIVE IN LINKING SMALLHOLDER TOMATO FARMERS TO HIGH PRICE MARKETS: RWAMAGANA DISTRICT-RWANDA
Thesis submitted in partial fulfilment of the requirements of the Degree of Master in Agriculture Production chain Management
Specialisation: Horticulture Chains
Epaphrodite Mukasekuru
Van Hall Larenstein University of applied Sciences Velp, The Netherlands
September 2018
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Acknowledgements
First and foremost I would like to express gratitude to the Nuffic Fellowship Programme (NFP) for their financial support I received during the study.
My special thanks go to my supervisor, Dr. Ir. Rik Eweg for his continuous support and intellectual guidance with critical comments during the preparation of this whole thesis. Further, my sincere thanks go to all the lecturers and staffs for their valuable support provided during my study period at Van Hall Larenstein.
I acknowledge my gratitude to Aimable MURERA, Rwamagana district staffs especially, Jeanne UMUTONI, Jean de Dieu NIYITANGA and Felicien BIKORIMANA for support to collect data for this research. I would also like to express my special thanks to Leonidas DUSENGEMUNGU for his kind help and invaluable support and cooperation during data collection. In addition, I could not forget Gaspard NIZEYIMANA the President of Terimbere- Muhinzi cooperative, all farmers/members of cooperative and all stakeholders for their kind cooperation for my fieldwork.
My appreciation goes to fellow students in professional Masters, especially colleagues in Agriculture Production Chains Management, for their encouragement, friendship, cooperation and sharing of information during the study period. Lastly, but not least I want to acknowledge with appreciations to Catherine Wankio and my family for their moral support and encouragement.
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Dedication
This thesis is dedicated to Almighty God for divinely enabling me to complete my study, to my beloved husband Aimable MURERA and my daughter Roxane Ineza MURERA who endured a year without motherly love, to my entire family brother and sisters and especially to my lovely mother and mother in law for your prayers and encouragement during the difficult times of my studies. I love you all.
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Table of contents
Acknowledgements ... i
Dedication ... ii
Table of contents ... iii
List of tables ... vi
List of figures ... vii
List of photo ... vii
List of annexes ... viii
Abbreviations ... ix
Abstract ... x
CHAPTER 1: INTRODUCTION... 1
1.1. Background of tomato production in Rwanda ... 1
1.2. Tomato subsector ... 1
1.2.1. Seasonality of tomato production ... 2
1.2.2. Input supply and production ... 2
1.2.3. Challenges faced by smallholder farmers in production and supplying of tomatoes ... 3
1.2.4. High price markets in tomato value chain in Rwanda ... 3
1.3. Description of Rwamagana District ... 4
1.4. Terimbere-Muhinzi Tomato cooperative ... 5
1.5. Responsibilities of Terimbere- Muhinzi cooperative ... 5
1.6. Research Problem ... 6
1.7. Problem Owner... 6
1.8. Objective of the research ... 6
1.9. Research questions ... 7
1.9.1. Main research question 1 ... 7
1.9.2. Main research question 2 ... 7
1.10. Definition of concepts ... 7
1.11. Organisation of thesis ... 8
CHAPTER 2: LITERATURE REVIEW ... 9
2.1. Value chain analysis ... 9
2.2. Value Chain Development ... 9
2.3. Value chain upgrading strategies ... 10
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2.4.1. Inclusive business ... 12
2.4.2 Inclusive trading relationships ... 12
2.5. Challenges of smallholder farmers’ participation in high price Markets ... 13
2.5. Cooperatives ... 13
2.5.1. The cooperative movement in Rwanda... 13
2.5.2. Cooperative governance structure ... 13
2.5.3. Core activities of cooperatives ... 14
2.5.4. Marketing strategies of cooperative ... 15
2.5.5. Cooperative principles ... 15
2.5.6. Factors influencing performance of cooperatives ... 16
2.6. Possible challenges encountered by cooperatives ... 18
2.8. Business Canvas Model ... 19
2.9. Quality attributes of tomato... 19
2.10. Conceptual Framework ... 19
CHAPTER 3: RESEARCH METHODOLOGY ... 21
3.1. Criteria and indicators for cooperative evaluation in performance and inclusive trading relationships ... 21
3.1.1. Criteria and indicators for cooperative performance evaluation ... 21
3.1.2. Criteria and indicators for cooperative evaluation in inclusive trading relationships ... 21
3.2. Research framework ... 22
3.3. Research design and strategy ... 23
3.3.1. Desk study... 23
3.3.2. Case study (field research) ... 23
3.3.3. Survey ... 25
3.3.4. Third focus group discussion with stakeholders ... 25
3.4. Data processing and analysis ... 25
3.4.1. Data analysis for survey ... 25
3.4.2. Data analysis for interview ... 26
3.4.3. Data analysis for evaluation on inclusive trading relationships ... 26
3.5. Limitations of the Research ... 26
CHAPTER 4: RESULTS ... 27
4.1. Focus group discussions ... 27
4.1.1. Existing Terimbere-Muhinzi cooperative tomato value chain map in Rwamagana district ... 27
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4.1.3. Chain relations ... 31
4.1.4. Tomato production costs ... 32
4.1.5. Value shares of actors in tomato value chain of Terimbere-Muhinzi cooperative in Rwamagana district ... 34
4.1.6. Business model canvas of Terimbere- Muhinzi cooperative ... 35
4.1.7. Gender based activities in tomato production ... 39
4.1.8. Evaluation of gender inclusiveness and youth ... 39
4.2. Results from interview with executive committee of the cooperative and stakeholders ... 40
4.2.1. Evaluation of internal organization of the cooperative ... 40
4.2.2. Evaluation of production activities of the cooperative ... 41
4.2.3. Evaluation of market activities of the cooperative ... 41
4.2.4. Total performance of Terimbere-Muhinzi cooperative ... 42
4.3. Members’ cooperative performance evaluation ... 43
4.3.1. Socio- economic characteristics of respondents ... 43
4.3.2. Membership base ... 46
4.3.3. Governance, leadership and internal democracy ... 46
4.3.4. Management of financial resources ... 47
4.3.5. Service provision to members ... 48
4.3.6. Stakeholder collaboration and network ... 49
4.3.7. Entrepreneurial skills ... 50
4.3.8. Tomato production ... 51
4.3.9. Costs and marketing ... 52
4.3.10. Overall performance of Terimbere- Muhinzi cooperative ... 53
4.3.11. Identified problem priorities matrix in functioning of the cooperative ... 55
4.3.12. Existing and new proposed high price markets of tomato production ... 57
4.3.12. SWOT analysis... 58
CHAPTER 5: CONCLUSION AND DISCUSSIONS ... 59
5.1. The existing high price markets ... 59
5.1.1. Quality attributes preferred in the high price markets ... 59
5.1.2. Arrangements and terms preferred in the high price markets ... 59
5.2. The existing market channels of smallholder tomato farmers ... 59
5.2.1. Function of different actors and supporters in the current tomato value chain of Terimbere-Muhinzi cooperative and their relationships ... 60
5.2.2. Cost benefit of smallholder farmers in tomato value chain ... 60
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5.3. Challenges smallholder tomato farmers encounter when accessing the high price markets ... 61
5.4. The actual functioning of the cooperative ... 61
5.4.1. Internal organization ... 61
5.4.2. Production activities ... 63
5.4.3. Market activities ... 64
5.4.4. Inclusive trading relationships ... 64
5.5. Strategies to improve the functioning of cooperative in relation to link to high price markets... 65
CHAPTER 6: Recommendations ... 67
6.1. Chain upgrading through ... 67
6.2. Cooperative functioning through ... 67
References ... 69
ANNEXES ... 73
List of tables Table 1: Seasonality of tomato production ... 2
Table 2: Domestic production of tomato since 2005 up to 2016 ... 2
Table 3: Trend of quantities of tomato collected at cooperatives: From 2012 to 2017 ... 5
Table 4: Break down of the respondents ... 22
Table 5: Stakeholders matrix for the Tomato value chain map in Rwamagana district ... 29
Table 6: Tomato production costs/ kg ... 32
Table 7: Value shares of actors in tomato Value chain smallholder farmer -cooperative-wholesaler-retailer in Rwamagana district (Rwf/kg) ... 34
Table 8: Business model canvas of smallholder tomato farmers (with red letters which showed the new proposed components) ... 36
Table 9: Business model canvas of Terimbere- Muhinzi cooperative (with red letters which showed the new proposed components) ... 38
Table 10: Gender based activities in tomato production ... 39
Table 11: In internal organization of the cooperative ... 39
Table 12: In different functions of the cooperative ... 40
Table 13: In network and relationship of the cooperative ... 40
Table 14: Evaluation of internal organization of the cooperative ... 40
Table 15: Evaluation of production activities of the cooperative ... 41
Table 16: Evaluation of market activities of the cooperative... 41
Table 17: Age ... 43
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Table 19: Gender ... 43
Table 20: Land size ... 44
Table 21: Identified problem priorities matrix in functioning of the cooperative ... 55
Table 22: Existing and new proposed high price markets identified ... 57
Table 23: SWOT analysis for smallholder tomato farmers/members of Terimbere-Muhinzi cooperative in tomato value chain in Rwamagana ... 58
List of figures Figure 1: Horticultural map of Rwanda. Source: RHODA, 2006 ... 4
Figure 2: Maps of Rwanda showing the position of Rwamagana district, Eastern Province in Rwanda. ... 5
Figure 3: Value chain analysis model. Source CIAT, 2012. ... 9
Figure 4: Value chain upgrading strategies ... 10
Figure 5: Link methodology framework. Source: CIAT, 2012 ... 11
Figure 6: Elements for inclusive business models. Source CIAT, 2012. ... 12
Figure 7: Cooperative governance structure. Source: Penrose Buckley 2007. ... 14
Figure 8: Tomato value chain analysis conceptual framework ... 20
Figure 9: Research framework of the study ... 22
Figure 10: Existing Terimbere Muhinzi cooperative tomato value chain map in Rwamagana district ... 28
Figure 11: Venn diagram showing actors and supporters chain relations ... 32
Figure 12: Value shares of actors in tomato value chain of Terimbere-Muhinzi cooperative in Rwamagana district ... 35
Figure 13: Terimbere- Muhinzi cooperative structure ... 41
Figure 14: Total performance of Terimbere-Muhinzi cooperative ... 42
Figure 15: Use of pesticides ... 45
Figure 16: Services offered by cooperative to members for solving challenges in tomato production ... 45
Figure 17: Scores on membership base ... 46
Figure 18: Scores on governance, leadership and internal democracy ... 47
Figure 19: Scores on management of financial resources... 48
Figure 20: Scores service provision to members ... 49
Figure 21: Scores stakeholder collaboration and network ... 50
Figure 22: Scores on entrepreneurial skills ... 51
Figure 23: Scores on tomato production ... 52
Figure 24: Scores on costs and marketing ... 53
Figure 25: Overall performance of Terimbere- Muhinzi cooperative ... 54
Figure 26: New proposed Terimbere – Muhinzi cooperative tomato value chain in Rwamagana district . 66 Figure 27: Theory of change analysis for the recommended advice’s on improving cooperative functioning and chain upgrading in relation to link to high price markets ... 68
List of photo Photo 1: Executive committee of Terimbere- Muhinzi cooperative and stakeholders helped the researcher to draw chain map... 28
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Photo 2: Farmers filling in Business Canvas Model ... 37
Photo 3: Interview conducted with CEO of Mayaga Processing Company (MPC) and wholesaler. ... 42
Photo 4: Tomato field of smallholder farmers ... 44
Photo 5: Researcher filling questionnaires during survey ... 54
Photo 6: Terimbere- Muhinzi executive members and stakeholders discussing on problem priorities matrix in functioning of the cooperative ... 57
Photo 7: Researcher presenting the existing and new proposed high price markets of tomato production discussed in sub group to be approved during FGD. ... 58
List of annexes Annex 1: Summary of data, data source and tools ... 73
Annex 2: Business model canvas ... 74
Annex 3: Checklist interview questions for first FGD ... 75
Annex 4: Checklist interview questions for FGD with farmers ... 78
Annex 5: Checklist for cooperative executive committee, stakeholders, and supporters ... 79
Annex 6: Third Focus group discussion with stakeholders ... 86
Annex 7: Transcript of Terimbere-Muhinzi cooperative performance evaluation by stakeholders ... 86
Annex 8: Transcript of women and youth inclusive ... 90
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Abbreviations
ACED Agricultural Competitiveness and Enterprise Development Project AGM Annual General Meeting
BDF Business Development Fund CEO Chief executive officer
CIAT International Centre for Tropical Agriculture FAO Food Agriculture Organization
FAOSTART Food and Agriculture Organization Statistics FGD Focus Group Discussion
GAP Good agricultural practices GDP Gross Domestic Product HPM High price market
ICA International Cooperative Alliance
IRR International Institute of Rural Reconstruction KIT Royal Tropical Institute
MIDCA Metacognitive Integrated Dual-Cycle Architecture MINAGRI Ministry of Agriculture and Animal Resources MINECOFIN Ministry of Finance and Economic Planning MINICOM Ministry of Trade and Industry
MPC Mayaga Processing Company
NAEB National Agricultural Export Development Board NFP Nuffic Fellowship Programme
NISR National Institute of Statistics of Rwanda NGO Non-Governmental organization
QMS Quality Management System RAB Rwanda Agriculture Board RBS Rwanda bureau of standards RCA Rwanda Cooperative Agency
RHODA Rwanda Horticulture Development Authority Rwf Rwandan Francs
SHTF Smallholder tomato farmer
SMAP Smallholder Market-Oriented Agriculture Project SWOT Strengths, Weaknesses, Opportunities and Threats VCA Value chain analysis
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Abstract
This research has been carried out as part of the research of the professorship sustainable agribusiness in metropolitan areas. The main objective was to evaluate the performance of Terimbere-Muhinzi cooperative in order to come up with viable options to link smallholder tomato farmers to high price markets. Both qualitative and quantitative data collection approaches were used. Desk research to obtain secondary data and field research through the use of survey and case study were valuable sources of both secondary and primary data. The survey involved 30 farmers/members of Terimbere- Muhinzi cooperative to whom questionnaires with well-structured questions were administered so as to record the data pertaining the perception of smallholder tomato farmers on performance of the cooperative. Three focus group discussions were done. In the first FGD chain map and stakeholder matrix were used for analysis while the business model canvas for the cooperative was used to get an overview of stakeholders on the tomato production business of the cooperative. During the second FGD, the business model canvas for farmers was also filled in order to come up with sustainable business model. Finally the third FGD was used to validate and complement the information gathered (mainly on high price markets and their demand in tomato value chain, strategies that can be adopted to improve the functioning of Terimbere- Muhinzi cooperative in relation to linking Terimbere- Muhinzi cooperative to high price markets. Interviews were also performed to evaluate the performance of the cooperative. A checklist extracted from the MIDCA tool was used to guide the discussions with the stakeholders.
The Existing high price markets identified during the research were Frulep supermarket, Hiltop hotel, Nyabugongo and Kimisagara open markets while the proposed high price markets were Simba and Nakumatt supermarkets, Marriot and Lemigo hotels, Fantastic Restaurant as well as Kimironko and Kicukiro open markets. In the high price market the price of 1 kg of tomato varied from 400--600 Rwf. The smallholder farmers of Terimbere-Muhinzi cooperative were selling tomatoes through 3 major channels (sales to wholesalers through cooperative at 200-300 Rwf, sales to collector traders at the farm gate level at 160-250 Rwf and also direct sales to retailers at the local markets in Rwamagana district at 150-200 Rwf per kg, then to end consumers). Farmers had the highest value share of 55.1% in the chain reflecting the high amount of costs and risks that they have to put in the production compared to the other actors. The cooperative had the lowest value share of 0.5 % reserved to the collection activities. 60% of the production goes through collector traders while 40% of the production goes through the cooperative because of limited number of customers.
On the evaluation of the performance of the cooperative, it was also found that, membership base, financial management and sales and marketing were weak respectively with 33%, 40% and 48% scores. The performance was positive average in relationship with stakeholders, product, service provision, staff capacity, long-term perspective respectively with 68%,64%,60%,60% and 53% scores. Women inclusion was positive average in functioning of the cooperative with 58% scores while youth inclusion was low with 49% scores. The recommendations were therefore centred on strategies to improve functioning of the cooperative in relation to linking smallholder tomato farmers/members on high price markets.
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CHAPTER 1: INTRODUCTION
1.1. Background of tomato production in Rwanda
Rwanda is a landlocked country with more than 90% of the population engaged in subsistence agriculture (Dijkxhoorn et al., 2016). The surface area is 26338 square kilometres with an estimated population of 12 089 721 population density with 459 inhabitants per km2 (NISR, 2018). In Rwanda the agriculture sector is a large contributor to the national economy. Whilst the share of agriculture decreased from 37.3% to 31.2% of GDP between 2001 and 2012, the sector remained the backbone of the Rwandan economy in terms of employment and income generation for the majority of households (Stryker et al, 2014).
A significant share of this contribution is coming from horticultural sector which comprises among others the production of fresh fruits, vegetables and flowers (Van Dijk et al., 2014). Sustainable development of the horticultural sector in Rwanda is important to realize food security, reduce poverty and sustain the environment. The development of a commercial horticultural sector has been identified as a priority by the Rwandan government with a dual focus of increasing the production and simultaneously supporting the trade and export (Dijkxhoorn et al., 2016).
Widely, tomato is a high-value vegetable crop that is consumed fresh or processed and grown in almost every country of the world (Naika et al., 2005). Tomatoes are an important and prominent horticultural crop in Rwanda which is grown for both home consumption and the domestic market. Tomatoes are produced on a total area of 6,800 ha, primarily in the open field. The production of tomatoes in rural areas of the country has improved farmers’ livelihoods and employment (Dijkxhoorn et al., 2016).
According to FAOSTATS (2018), the national tomato production increased from 30,000 tonnes in 2005 to 118,774 tonnes in 2016. In terms of production, Eastern Province is the largest producer accounting for 66% (46619 tonnes). Among all districts, Rwamagana is the largest producer of tomatoes (37322 tonnes) from an area of 3022.494 ha. Tomato production is bound by seasonality thus; Rwanda is a net importer of tomatoes, mainly from neighbouring countries, such as Uganda and Democratic Republic of Congo.
1.2. Tomato subsector
Tomato (Lycopersium esculentum) is one of the most important vegetable grown throughout the country. It is estimated that 239,000 households are involved in tomato production (Dijkxhoorn et al, 2016). It is nutritionally important as a source of vitamin A and C as well as calcium and potassium. The fruits are used for soup, salad, pickles, ketchup, puree, sauces and many other ways.
Tomato farming in Rwanda has significant potential due to favorable soils, climatic conditions and good government policies towards horticulture. However, tomato production in Rwanda is difficult to measure, because there are so many individual small growers.
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1.2.1. Seasonality of tomato production
As indicated below, tomatoes can be produced in Rwanda during seasons A, B and C as shown in table 1 below.
Table 1: Seasonality of tomato production
Season/Month J F M A M J J A S O N D J F M
Season A Season B Season C Source: Author
Seasons A and B correspond to the two rainy seasons in Rwanda, and therefore tomato production primarily takes place in hillside areas, while production during season C primarily takes place in marshland areas.
1.2.2. Input supply and production
Farmers obtain their inputs from various sources, in particular private agro-dealers supplying chemicals, fertilisers, seeds, spraying equipment, hoes, plastic basins, etc. However, farmers can also buy fertilisers for tomato production from One Acre Fund (Tubura) through cooperative.
Table 2: Domestic production of tomato since 2005 up to 2016
Year Production (in MT) 2005 30,000 2006 35,000 2007 40,000 2008 41,035 2009 129751 2010 135,000 2011 102,501 2012 115,000 2013 123,000 2014 119,194 2015 121,016 2016 118,774 Source: FAOSTAT, 2018.
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1.2.3. Challenges faced by smallholder farmers in production and supplying of tomatoes
There is still potential to develop the sector using modern practices of farming in order to increase both productivity and quality of products, development of value addition, and initiatives of export-oriented agriculture (FAO, 2006). However, inadequate organization of supply, high transport cost and lack of market information threatens the profitability of tomato production.
KIT and IIRR (2008) specifies the main challenges that agricultural (mainly horticultural) marketing in Africa usually encounters such as: prices volatility on the market of produces and inputs, weakness in market integration due to poor infrastructure, and limited access to financial services such as loans and insurance. Inputs supplies have been also identified as another challenge because of farmers’ incapability to pay back inputs they were given as loans due to natural hazards (floods and drought).
Yet, at the moment tomato production is facing challenges with tomato leafminer (Tuta absoluta) and Fusarium wilt root knot nematode complex that cause serious damage on tomato production in Rwanda. ACED, 2011 indicated that the main threat on tomato value chain is over-dependency on rainfall and climate variability.
1.2.4. High price markets in tomato value chain in Rwanda
In Rwanda as in many developing countries, access to formal and guaranteed markets is one of the main challenges for smallholder tomato farmers. Smallholder farmers participate mostly in local markets. However, these markets have characteristics of instability. According to Al-Hassan et al., (2006), the national markets are relatively more stable; but they are inaccessible among smallholder farmers without specific links.
The high-end markets mostly are found in Kigali where the number of hotels is increasing as well as the number of big supermarket and restaurants. The leading tomato markets in the capital are Nyabugogo and Kimisagara in Nyarugenge district (Dijkxhoorn et al.2016).
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Rwamagana
Figure 1: Horticultural map of Rwanda. Source: RHODA, 2006 1.3. Description of Rwamagana District
Rwamagana District is one of the seven districts that constitute Eastern province. It forms part of Akagera River Basin and touches Lake Mugesera in the South and Lake Muhazi in the north. It is separated by the districts of Kicukiro and Bugesera by the river Nyabarongo. The district has a total population of 310,238 people and sits on a surface area of 691.6 km2. It is situated between 1°57’2, 7’’of south latitude and 30°26’8’’of longitude, it experiences a moderate tropical climate with four seasons of which: two are rain and the rest dry. It experiences relatively higher rainfalls (910 – 1120 mm/year) especially in the months of April-May and October-December of every year. The average temperature ranges between 19° and 30°C and it is constant all over the year (Rwamagana, 2013).
The district is characterized by lowly undulating hills separated by valleys some of which are swampy and wet. This kind of topographical layout constitutes an important potentiality for modern irrigation system and mechanized agriculture. Its economy is based on agriculture, crop and livestock farming, which is generally traditional and thus affecting negatively on its economic development (Rwamagana, 2013). Rwamagana district has very fertile soils almost in all its sectors. Most of the soils are loamy while the rest are sandy with loam mixture. In some wet areas, clay soil may are found. The soils support the production of most types of foods such as tomato, banana, maize, cassava, beans, coffee, pineapples and rice to mention but a few. However, production is generally traditional which affects the economic development of the district (Rwamagana, 2013).
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Figure 2: Maps of Rwanda showing the position of Rwamagana district, Eastern Province in Rwanda.
Source: www.minaloc.gov.rw
1.4. Terimbere-Muhinzi Tomato cooperative
The cooperative is located in Kagamba cell, Karenge sector, Rwamagana district. It has 210 members (125 males and 85 females). This cooperative was formed in the year 2006 and registered in 2009 with Rwanda cooperative Agency. The main reason for creating the cooperative was to increase tomato production and to help members to find markets. The table 3 below summarizes the trend of Tomato collected quantities by cooperative from 2012 to 2016.
Table 3: Trend of quantities of tomato collected at cooperatives: From 2012 to 2017
Cooperative Year 2012 2013 2014 2015 2016 2017
Terimbere Muhinzi
Production (T) 420 450 420 450 550 608
Average price/ kg (Rwf) 84 88 50 175 175 250
Source: Cooperative reports in Rwamagana district 1.5. Responsibilities of Terimbere- Muhinzi cooperative
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Terimbere -Muhinzi cooperative have the following responsibilities in the tomato value chain: Production:
Availability and affordability of recommended inputs: This may involve bulk procurement of inputs such as seed or fertilisers or negotiate with input suppliers to integrate farmers into a voucher system. The cooperative facilitates tomato production, disease and pest control by availing inputs and high yielding varieties.
Productivity
To organise the farming population so that production and marketing of agricultural outputs can be facilitated.
Functioning
Farmers have been organized under cooperative and given various forms of support like advocacy and training and protecting interest of members. The cooperative is involved in collecting production (through the collection center).
1.6. Research Problem
Smallholder tomato farmers of Terimbere Muhinzi cooperative in Rwamagana district face difficulties in accessing formal markets at national level that pay better prices than the local informal markets in the district. On one side, this is caused by tomato quality, seasonality and price fluctuation. High supply on the other side dramatically reduces prices received per kilogram. Low prices and lack of high price market discourage tomato farmers from continuing with the crop.
The outcome of this research will give advice on how to link smallholder tomato farmers to high price markets. In addition to this, the recommendations of this research will be useful to the cooperative for the improvement of their performance.
Key words: Terimbere-Muhinzi cooperative, smallholder tomato farmers, linking, high price markets. 1.7. Problem Owner
The problem owner is Terimbere- Muhinzi Cooperative.
1.8. Objective of the research
To evaluate the performance of Terimbere- Muhinzi Cooperative in order to come up with viable options to link smallholder tomato farmers to high price markets.
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1.9. Research questions
1.9.1. Main research question 1
What are the potential high price tomato markets that can be accessed by smallholder tomato farmers of Terimbere-Muhinzi cooperative?
Sub-questions
1.1. What are the existing high price markets?
1.2. What are the existing markets channels of smallholder tomato farmers?
1.3. What challenges do smallholder tomato farmers encounter when accessing the high price markets?
1.9.2. Main research question 2
What is the performance of the cooperative in linking smallholder tomato farmers to the high price markets?
Sub-questions
2.1. What is the actual functioning of the cooperative?
2.2. What strategies can be adopted to improve the functioning of the cooperative in relation to link to high price markets?
2.3. What could be the criteria and indicators to evaluate the functions of the cooperative?
1.10. Definition of concepts
Smallholder farmers: are those owning small plots of land on which they grow subsistence crop and one
or two cash crop. Their integration in global value chains is an important step towards poverty reduction.
Cooperative: A “co-operative is an autonomous association of persons united voluntarily to meet their
common economic, social, and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise” (ICA, 2009).
Linkage (horizontal or vertical linkages): A business relationships and interactions between tasks and
functions or organisations that exist between two parties of a value chain that promotes the flow of information, products or integration in achievement of shared objectives.
High price market: Aggregate of prospective buyers with the same needs who perceive the full value of a
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Value shares: The percentage of the final, retail price that the actor earns (KIT and IIRR 2008).
Stakeholders: The individuals or groups who has the power to affect the future of an organisation
(Bryson 2004).
Chain actors: Are individuals or groups involved in producing, processing, trading and consuming a
particular product such as tomato. They include direct actors, which are commercially involved in the chain (producers, traders, retailers, consumers)
Chain supporters: Are external actors or organizations (public or private) that are not included in the
value chain’s core stages but occupy a critical role in the functioning of the business and enable the chain to operate efficiently.
1.11. Organisation of thesis
This thesis consists of six chapters. The first chapter is the introduction, consisting of background information on tomato in Rwanda, Tomato subsector in Rwanda, case description, problem statement, problem owner, research objective, research questions, definitions of terms and organisation of the thesis. In the second chapter a literature review is provided. In the third chapter the theories of the methodology used during the study are presented. The results of the study are presented on chapter four. In chapter five conclusion and discussion on the performance of Terimbere-Muhinzi cooperative in tomato value chain, high price markets and their demands are provided. Recommendations are presented in chapter six of the document.
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CHAPTER 2: LITERATURE REVIEW 2.1. Value chain analysis
Value chain analysis (VCA) is a method for accounting and presenting the value that is created in a product or service as it is transformed from raw inputs to final product consumed by end users. It is mostly related about identifying the full set of economic cost along the value chain, to determine where, how much value is added and what the relative importance of different actors is. Then have a good look also at the available services and the supporting institutional framework (CYE, 2009).
The smallholder tomato farmers’ value chain in Rwamagana district is made up of input suppliers, producers, traders, retailers and consumers. Tomato value chain analysis was conducted to come up with sustainable strategies for linking producers to high price markets. Lundy (2008) stated that mapping the value chain is one possible starting point for the inclusion of smallholder producers. It is especially helpful when starting from scratch and when participants do not share the same level of information about market chain and the context in which it is embedded. A visual map of the value chain facilitates an understanding of the system‘s dynamics and has the capacity to reveal:
Actors, enabling and disenabling factors, inter-relationships and roles. Information flow , money flow, product flow and services
Linkage points, gaps or blockages between actors.
Common stages in the context of agricultural smallholder producers include activities of preproduction, production, post-harvest, processing, selling and retailing, but can be subdivided further if required.
Figure 3: Value chain analysis model. Source CIAT, 2012. 2.2. Value Chain Development
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Value Chain Development describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business, those that are directly concerned with creating and delivering a product. According to FAO (2010), the value chain identifies the set of actors and activities that bring a basic agricultural product from production in the field to ultimate consumption, where at each phase value is added to the produce.
2.3. Value chain upgrading strategies
Value chain upgrading is one that allows poor people to access viable value chains to improve their position in existing value chains. Mitchelle et al., 2009 describe also upgrading as a means of acquiring technological, established and market competences that allow resource-poor rural communities to improve their competitiveness and move into higher-value activities. The figure 4 below shows different chain upgrading strategies.
Figure 4: Value chain upgrading strategies Source: Herr and Muzira (2009)
Vertical coordination: the producers form longer-term inter-nodal relations with traders or processors
like in contract farming. This strategy can result in certainty about the future but requires building of trust relations between partners for strong contractual commitment.
Horizontal coordination: Producers come together for achieving economies of scale and reduce
transaction costs under set regulations and quality management.
Functional upgrading: Producers can take up more functions like processing to add value. This is often
picked up by horizontally coordinated institutions like cooperatives. Processors can also take up production functions.
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Process upgrading: This involves improving value chain efficiency by increasing output volumes or
reducing costs for a unit of output for example by applying good agricultural practices for improved quality.
Product upgrading: Changing the form of the product to the requirements of the market like packaging
and branding to be more competitive.
Inter-chain upgrading: Use of skills and experience developed in one value chain to productively engage
with another (usually more profitable) value chain.
Upgrading the enabling environment: Improvements in support, services and institutional, legal and
policy framework, in which chains operate by development agencies.
2.4. Link methodology
The Link methodology helps understand the current functioning of the market chain and key business models, design innovations that empower producer groups to engage more effectively and buyers to act in ways more amenable to smallholder farmers. This method seeks to build bridges between the often disparate worlds of smallholder farming in the developing world and emerging market opportunities both in the global south as well as developed economies (CIAT, 2012). Figure 5 below shows the link methodology framework.
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2.4.1. Inclusive business
Defined as a profitable core business activity that also tangibly expands opportunities for the poor and disadvantaged in developing countries. An economically profitable, environmentally and socially responsible entrepreneurial initiative. Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners at various points in the value chain (CIAT, 2012).
2.4.2 Inclusive trading relationships
Inclusive trading relationships are the result of business models that do not leave behind tomato smallholder farmers include women and youngsters in this case and in which the voices and needs of those actors in rural areas in developing countries are recognized (Seville et al., 2010). Figure 6 shows the elements for inclusive business models
Capable farmers
(skills, capacity and
organisation)
Willing buyers
(private sector
policies)
Enabling environment
(public and donor
policies)
New businessmodels for sustained trading
relationship
Figure 6: Elements for inclusive business models. Source CIAT, 2012.
Women and youth (all people aged 18 to 30 years old) contribute immensely to the agriculture and hence are important economic actors at the grassroots level and in value chains. They are directly involved in farming activities through planting, weeding, livestock keeping and harvesting.
In many countries youth integration in agricultural activities is important for the development of agricultural sector (Daudu, 2009). This is because the youth who constitute about 35.5 percent of the population have the potential to overcome some major constraints in agriculture development as they are more open to new ideas and practices than older farmers.
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2.5. Challenges of smallholder farmers’ participation in high price Markets
Some previous studies has attempted to identify challenges that make difficult for smallholder farmers to enter high value chains. The barriers can value from case to case. Van der Heijden & Vink (2013) stated that there are some important factors creating barriers for smallholder farmers’ participation in high price markets. Important factors creating barriers for smallholder farmers’ participation in high price markets in developing countries are limited and poor access to market information, a low bargaining position in market place, limited production assets, poor basic infrastructures in rural areas, lack of financial capital and lack of trust between buyers and producers.
2.5. Cooperatives
McTigue-Floyd (2000) and the ICA (2009) defined “cooperative as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically-controlled enterprise according to internationally recognized co-operative values and principles.
2.5.1. The cooperative movement in Rwanda
According to Wanyama et al (2009), cooperatives were first introduced in Rwanda in 1953 by the Belgians in the colonial period as instruments for driving the agenda of the government’s socio-economic goals.
After 1994, Cooperatives in Rwanda acted as one of the vehicles for reconciliation and played an important role in reducing poverty and in addressing vulnerability.
In 2005, the Government of Rwanda recognized cooperatives as a tool for reducing poverty, and realized that it was important to work with the organizations of farmers to help them access the market for their produce. Among the active cooperative entities about 2.400 are agricultural cooperatives (MINECOFIN, 2007). Agricultural cooperatives are mostly in the coffee, maize and horticulture subsectors.
2.5.2. Cooperative governance structure
Governance in a cooperative is simply defined as involving decision-making processes and the capacity to implement decisions (Chibanda et al., 2009), which should represent the interest of the group of people.
Penrose-Buckley (2007) stated that most cooperatives have a two-level governing structure but in small and newly formed cooperatives almost every member will be involved in the management of business operations and this kind of management does not apply to a large cooperative with many members.
Two-level governing structure: First level- this level comprises all cooperative members with all the
authority vested in decisions approved at the general meeting which is usually conducted at least once a year, and hence often called the Annual General Meeting (AGM). Decisions are made at AGM by voting
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and in most cooperatives including traditional ones, each member has an equal vote and votes are proportional to each member’s level of investment in the cooperative.
Second level: This level comprises the leaders also called board of directors elected at the AGM to
manage a cooperative for a limited term. Each cooperative elects its own leaders to represent it at the next level in multi-level cooperatives. Other than providing leadership and governing the cooperative’s affairs cooperative boards may also invite external people to work with and advise the board. The external experts do not vote they are only there to advise board members in aspects such as marketing and business. Figure 7 illustrates the structure that most cooperative in developing countries adopt.
Board of Directors
Members General Meeting
Professional Managers appointed by the board
Rep
ot
in
g
El
ect
in
g
ReportingFigure 7: Cooperative governance structure. Source: Penrose Buckley 2007. 2.5.3. Core activities of cooperatives
According to Penrose Buckley (2007); a cooperative can provide both business oriented and social oriented services to members, once they have enough money from their marketing activities to take care of the social aspects. The services are the following:
Input supply: Cooperative often buy input in bulk, at lower prices and supply them to their members. This can help small-scale farmer to get better inputs at cheaper price.
Production services: Small-scale farmers generally have limited assets and skills to perform activities that require expensive equipments. Cooperative can help their members to improve the quality of their produce and productivity by providing extension services and access to equipment such as seeds, fertilizers and pesticides.
Financial service: Since small producers do not have strong financial resources to improve the quality and productivity of the product. Access to credit facilities is a very important service
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provided by many cooperatives. Often these services are managed by an independent structure, where most of the current members are also members of a savings and credit cooperative. ➢ Implementing quality assurance program: In order to meet the required quality and food safety
standard of some markets, Cooperatives need to monitor and control the quality of the final product they sell. Not only for the quality and safety standard, but they also need retain their market.
Training: In order to help the small producers to manage their activities well and improve the quality of their product, extension training in new technology and managerial aspects are provided by the cooperative.
Processing: Some cooperatives engage in processing activities in order to add value to their produce and accessing the market.
Co-coordinating production: to take advantage of different market opportunities and respond to the needs of buyers, cooperative have to coordinate the individual production of their members.
Output marketing: marketing members’ produce is the core service provided by most cooperatives. To do this successfully, cooperative have to perform a range of tasks, including analyzing market information, identifying market opportunities, negotiating sales, collecting, storing and transporting produce, and, of course, paying members.
Trading: some cooperatives function as traders, buying and selling produce from producers other than just their own members, in order to meet the quantity, variety, or consistency of supply demanded by certain markets
Retailing: occasionally, some cooperatives get involved in retailing activities
2.5.4. Marketing strategies of cooperative
Warman and Kennedy, (1998) defined a marketing cooperative as a “business organization owned by farmers to collectively sell their products” They explain that, as farmers generally have very little power in the agricultural products market, collective action is a way to increase their influence. Cooperative would give priority to objective of organization in output marketing to satisfy both the need of producers and consumers.
There are mainly two strategies in cooperatives for marketing produce:
The buy/sell method: means that when the farmers deliver their produce to the cooperative they get paid directly. The cooperative resells the produce and return eventual profits to the farmers on a regular basis. This means that farmers receive profits for selling together during the time that dividends are paid which might be annually.
The pooling method: Here cooperative members bulk their produce and receive an average price from selling directly from the buyers.
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According to ICA (2011) cooperatives have principles and these guide them to put their values into practices. The principles of cooperatives are:
Voluntary and open membership: Cooperatives are voluntary organizations open to all persons able to use their services without any discrimination on gender, social, racial political or religious discrimination.
Democratic member control: Activities of a cooperative are carried out in conformity with the principle of democracy and controlled by their members. Every member has one single vote that is equal to the vote of another member (equal voting rights).
Member Economic Participation: Members contribute equitably to, and democratically control, the capital of their co-operative.
Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members.
Education, Training and Information: Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives.
Co-operation among Co-operatives: Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.
Concern for Community: Cooperatives work for the sustainable development of communities through policies and programs accepted by their members.
2.5.6. Factors influencing performance of cooperatives
Cooperatives are affected by internal and external factors in the measurement of their success. Markelova and Mwangi (2010), in an analysis of literature on natural resource management groups, identified Institutional arrangements and external environment factors that influence the performance of the groups. Koopmans (2006) recognized these two factors externally affecting cooperatives performance. Thus, the prevailing and future market conditions and opportunities defines to a level the success or failure of a cooperative. Nonexistence of legal, organizational or political barriers for farmer groups to elect their leaders democratically also plays a part in the success of a cooperative. In this study, these factors will be used as criteria and indicators to assess the functions of cooperative.
2.5.6.1. Cooperative membership base
Penrose-Buckley (2007) indicated that cooperative members should be in charge of cooperative and avoid being controlled by external owners or avoid joint ownership by private companies and NGOs for them to be successful.
Shiferaw et al (2006) stated that collective action occurs when individuals voluntarily cooperate as a group and coordinate their behaviour in solving a common problem. In line with this Koopmans (2006),
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also asserted that committed and motivated members thus motivated farmers committed and interested in an economic initiative to solve a common problem is also essential for cooperative success.
2.5.6.2. Cooperative governance, leadership and internal democracy
Cooperative should be composed by internal democracy, leadership be elected and responsibility of leaders well documented. Democratic control is generally considered to be one of the pre-requisites of performing cooperative (Stockbridge et al. 2003). For a cooperative to operate effectively, it needs good leadership.
FAO (2012), stated that a good leadership of cooperative has knowledge about target commodity markets, transparent financial management and operational system.
Every member of the organization take part in electing leaders, have a voice and at least one vote (Bijman 2007). Each member of the cooperative should be aware of his/her responsibilities, duration and mandate of a leadership position well defined, good collaboration between members and regular meetings for the organisation.
2.5.6.3. Management of Financial Resources
Good financial management is a characteristic of any cooperative to be trusted by members. Members of the cooperative should be able to contribute to keep strengthening the financial standing of the organization. Bijman (2007), points out that several factors influence the success of cooperatives in their attempt to improve their position in the supply chain and one of the factors include finance thus capital investments into production and postharvest processes to meet customer requirements. The cooperative should be able to function financially without outside support. All procurement by cooperative should be in agreement with all members. A treasurer of cooperative should submit regular financial report to members as set in the constitution.
2.5.6.4. Entrepreneurial Skills
Stockbridge et al. (2003) stated that leaders of cooperative should have good communication skills, treasurers need good numeracy skills, and secretaries should possess minimum levels of literacy. Leadership and members of cooperative must be specialist in the field and must be able to identify market opportunities; with the expertise, cooperative must be able to identify risks and opportunities for members.
According to Bijman (2007), corporate governance problems also affect the successes of cooperatives in their attempt to improve their position in the supply chain. Conflict of interest may arise as to whether to serve the interest of members or customers; may experience difficulty in decision making on high risk investment needed for the cooperative success; functional switch between cooperative board and management.
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2.5.6.5. Relationship with Stakeholders
One of the main reasons for formal cooperation between farmers is to manage the relations between farmers and the wider world. The external relations of a cooperative (as well as its internal relations) determine its capacity to act as an autonomous self-sustaining unit (Stockbridge et al., 2003). Cooperative should work together with local authorities, exchange ideas from other Organization and create a favorable link between producers and buyers. The linking of members to banks and input supplies also makes cooperative more efficient. According to Markelova et al. (2009), some degree of outside assistance, both financial and in capacity building is often required for cooperatives to form and operate successfully, but this can introduce problems with sustainability versus dependency of the organizations.
2.5.6.6. Marketing and Product
According to Penrose-Buckley (2007), cooperatives can improve their marketing strategy and business income by the following: Raise the volumes of sales, that is to produce and sell more of the same product, add value to the product, that is improving the quality of the product; Process and deal directly with buyers of the processed product; differentiation, that is giving the products a unique identity, which differentiates their product from others in the market, diversify into high value products and also develop the market, that is influencing the perceptions and attitudes of buyers and consumers to demand more of their products.
2.5.6.7. Services provision to members
Most cooperatives assist their members in adapting product quality to market needs, by providing extension service and a support structure to exchange experience and knowledge among members (Bijman, 2007). Bijman further stated that cooperatives support members to make proper production choice (by setting requirements and providing technical support). According to FAO (2012), to retain and recruit farmers, Cooperative membership must be perceived as being valuable by providing high-quality services, some of which may be subcontracted. These services include documentation of market outlets, storage and transport provision, bulk input purchases and distribution, financial services, training, technical assistance and advice.
2.6. Possible challenges encountered by cooperatives
There are many potential problems which disrupt the function of cooperatives. Koopmans, (2006) pointed the following as the potential pitfalls of the cooperative: lack of leadership, lack of clearly identified objectives and strategy, failure to use experienced advisers, inadequate planning, lack of competent management, failure to identify and minimize risks, lack of member commitment, lack of financing, poor assumptions, inadequate communication and lack of transparency
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2.8. Business Canvas Model
The business Canvas model is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm’s value proposition, infrastructure, customers and finances. Formal descriptions of the business become the building blocks for its activities (Osterwalder, 2004). With his business model design template, a producer organisation like Terimbere can easily describe their business model (See annex 2).
2.9. Quality attributes of tomato
Worldwide, Tomato is known as one of the most popular fruit. Tomato quality is very important to the producer, as well as to the consumer. Tomato quality attributes include size, shape and harvesting condition (no damage and no deterioration). Flavor and skin color are the two most important attributes of tomato for customer evaluation (Domis and Papadopoulos, 2002). Whilst, the total soluble solids 'TSS' plays a role to the overall flavor of tomatoes (Lenucci et al., 2008), the lycopene (C40H56) is a pigment that imparts the deep red color of a ripe tomato. Thus, TSS and lycopene contents are widely used as a maturity index and assessing tomato quality (Anthon et al., 2011). Relatively, the texture must be firmness, mealiness, juiciness with a slice integrity. It is also a rich source of fiber, vitamins A & C, aroma volatiles, vitamins and an excellent source of healthy nutrients.
Customer satisfaction can be determined by understanding tomato quality preferences. If preferences are associated with identified tomato quality attributes, they help in continuous product quality improvement so as to meet and exceed customer expectations. Quality according to Hutchings (2002) is that which directs food selection and it is governed by the total appearance of the product and the utility expectations derivable from its utilization.
2.10. Conceptual Framework
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CORE CONCEPT DIMENSION ASPECTS
Potential of high price markets
Identification of existing HPM
Identification of existing market channels of SHTF
Identification of bottlenecks
Criteria and indicators to evaluate the functions of the cooperative
Strategies to improve functioning in relation to link to high price markets Actual functioning of cooperative
Actual performance of cooperative
HPM and their demands
Stakeholders and their functions, value shares, margin and chain
relation
Challenges of SHTF
- Management structure, services and marketing strategies - Stakeholders opinions about
financial resources, service provisions, stakeholder collaboration, entrepreneurial skills,
market and production services -Staff capacity, financial management, long-term
perspective
membership base, Product, services sales and marketing, relations with
stakeholders - Stakeholder opinions and satisfaction level of farmers
Solutions
EFFECTS
High price markets access thus Profitability of SHTF
Improving cooperative functionning
Figure 8: Tomato value chain analysis conceptual framework
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CHAPTER 3: RESEARCH METHODOLOGY
3.1. Criteria and indicators for cooperative evaluation in performance and inclusive trading relationships
3.1.1. Criteria and indicators for cooperative performance evaluation
To evaluate the performance of Terimbere-Muhinzi cooperative, the MIDCA model tool (Angel, 2013) was used after discussing with executive committee of the cooperative and different stakeholders. The criteria and indicators of this tool helped to analyze three categories of information:
-Internal organisation: this category was evaluated by using the following criteria: staff capacity,
financial management and long term perspective
- Production: to evaluate the production activities of the cooperative, the criteria such as membership base, product and services were used.
- Market: sales and relationships with stakeholders were the criteria used to evaluate this category. The indicators used for both categories were the opinions of stakeholders and executive committee of the cooperative. They served as performance indicators for cooperative evaluation to score which parts of the cooperative are performing well and where the gaps are. The indicators were scored from 1 to 5 scores to monitor individual parts’ performance and an average score reflects the overall cooperative performance level. Details of the scoring can be found in annex 5.
3.1.2. Criteria and indicators for cooperative evaluation in inclusive trading relationships
Seville et al., 2010 described inclusive trading relationships as the result of business models that do not leave behind smallholder tomato farmers include women and youngsters. After discussing with Executive committee of the cooperative and different stakeholders we came up with the criteria and indicators that used to evaluate inclusive women and youth in the categories below:
- Internal organization: Inclusive women and youth in this category was evaluated by using two criteria: governance structure and financial resources management
- Functions of cooperative: to evaluate inclusive women and youth in this category, three criteria were
used: activities, services provisions and production
- Network and relationship: collaboration with stakeholders was the criteria used to evaluate inclusive
women and youth in this category.
The indicators for both categories were the satisfaction level of the farmers who were members of cooperative. The indicators were scored from 1 to 5 scores. The total scores of the indicators were summed up and converted into percentages. Details of the scoring can be found in annex 4.
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3.2. Research framework
The research framework is formulated based on the research objective and research question showing the steps to be taken in order to achieve the research objective (Verschuuren & Doorewaard, 2010) as shown in figure 9. Research title Research problem Research objective Research questions Survey for Smallholder tomato farmers 3rd FGD for stakeholders Discussion & Conclusion Recommendations Interview for stakeholders Case study Analysis of results - 1st FGD for stakeholders -- 2nd FGD for SHTF Performance of the cooperative in linking SHTF
to high price markets Potential of high
price markets
Desk study
Literature review on value chain analysis, link methodology, cooperative structure, activities and marketing strategies, criteria and indicators
for evaluating functioning of cooperative
Figure 9: Research framework of the study
The breakdown of the respondents from our sample was distributed respectively.
Table 4: Break down of the respondents Method of data collection for both research questions
Type of respondent Number of
respondents
Three focus group discussions for research question 1 and 2
First and third FGD: Stakeholders in Tomato value chain 9
Second FGD: Farmers 15
Interview with key informants for research question 2
Executive committee of Terimbere-Muhinzi cooperative
3
Wholesaler 1
Processor 1
Sector Agronomist 1
Rwanda Agriculture Board (RAB) 1
Cash Crop Officer 1
SMAP officer 1
Survey using a questionnaire for research question 2
Smallholder tomato farmers of Terimbere-Muhinzi cooperative
30
Total Number Respondents 63
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3.3. Research design and strategy
The strategy involved desk research to obtain relevant information related to the research and field research through survey, focus group discussions and semi structured interviews (see annex 1).
3.3.1. Desk study
Desk research was carried out to get secondary data from the existing literature. It was done in order to gather information on tomato value chain analysis, tomato high price markets in Rwanda, link methodology, challenges of smallholder tomato farmers when accessing markets and cooperative performance. This information is necessary to lay the basis of the research and understand the concept related to the study. Sources of data for the desk study were articles in journals, books, internet sites and publications. The literature review was also used to answer research questions and compare results with what has already been researched.
3.3.2. Case study (field research)
The case study (field research) was involved in gathering primary data through semi structured interviews and focus group discussion. The semi-structured interviews was conducted face-to-face process. A checklist was used as the tool to conduct semi structured interviews and group discussions.
3.3.2.1. First focus group discussion with stakeholders
The participants for this focus group discussion were selected purposely from the chain actors and supporters such as Terimbere Muhinzi cooperative executive committee, processor, wholesaler, agriculture extension & research officer (RAB), cash crop officer, sector agronomist officer, SMAP officer. The first FGD with different actors and supporters consisted in three steps:
1. Description of the case study to actors and supporters of the tomato value chain which was done by the researcher.
2. Evaluation by the actors and supporters of the situation of tomato value chain to link smallholder tomato farmers on high price markets.
3. Identification of the actors and supporters in tomato value chain, value chain map, value shares, of the chain and identification of high price markets and their demand.
Six participatory appraisal tools were used during the discussion for getting important information from various actors. The tools that were used are:
- Stakeholder matrix which was used to identify the actors and supporters and their roles in the chain including the constraints that are encountered.
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- Value chain map for mapping the tomato value chain of Terimbere-Muhinzi cooperative in Rwamagana district for identification of product flow, information flow and the overlays of the chain.
- Value share analysis to indicate how the tomato value shares are distributed among the various actors in the chain and calculation of tomato production cost.
- Venn diagram for indicating the chain relations among the actors in tomato value chain in Rwamagana district
- Business model canvas tool was used to give an overview of stakeholders on the tomato production business of the cooperative.
3.3.2.2. Second Focus group discussion with farmers
Focus group discussion with smallholder tomato farmers was conducted to get information on their views and activities. The checklist of questions focused on problems they face in marketing their products, the benefits of being in cooperative and how they co-ordinate in terms of volumes, quality, quality issues, cost, selling price (business model canvas) and inclusive of women and youth in cooperative functions.
The business model canvas representative for average farmers was done with farmers in order to come up with sustainable business models.
3.3.2.3. Interview
For this field research, different stakeholders of the tomato value chain were interviewed face to face using a checklist to gather relevant information on the over view of tomato value chain and linking smallholder tomato farmers to high price markets. During the field research, nine interviews were carried out and were conducted with the following expert and informants: Interviews with the executive committee of cooperative, wholesaler, processor, sector agronomist officer, Extension & research officer (RAB), cash crop officer and SMAP officer
The executive committee of cooperative, actors and supporters were interviewed to understand the internal organizational, market and production performances of the cooperative. A checklist extracted from the MIDCA tool was used to guide the discussions with the stakeholders.
Sampling procedures
Sampling for this case study (9 respondents for interview, 24 participants in first, second and third FGD) was done purposely since the respondents were chosen having in consideration the type of information the researcher want to get. These selection criteria were based on the Oliver (2008) suggestions that in a purposive sample the research identifies certain respondents as being potentially able to provide significant data on the research subject.
