Minister of Trade and Industry, Prudence Sebahizi, has outlined measures to address market inefficiencies facing agricultural cooperatives, including issues in production tracking, limited investment in processing industries, and access to local and international markets.
He detailed the measures during a parliamentary session where he responded to concerns about cooperatives management and issues related to the Business Development Fund (BDF) on April 1.
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MP Belyne Uwineza highlighted challenges faced by cooperatives due to a lack of market access.
She mentioned specific cases, including the cassava farmers’ cooperative COMBU in Ruhango District, which struggled to sell its produce as the Kinazi Cassava Plant only purchased half of their produce.
A bag-making cooperative in Karongi District and fish farmers in Ngororero District
reported similar difficulties.
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Sebahizi explained that the ministry closely monitors agricultural production in collaboration with the Ministry of Agriculture and the Ministry of Local Government.
He said they are tasked with collecting data on key crops such as maize, rice, and beans before they are harvested. The information is then shared with large-scale buyers to ensure timely purchases and prevent market disruptions.
“In cases where produce does not reach the market on time, we investigate the underlying causes,” Sebahizi stated.
“For example, last year, we discovered that some buyers were dissatisfied with the prices the government had set and chose not to purchase the produce. To address this, we allowed the market to dictate prices, which led to all produce being sold.”
He also emphasised the role of the E-Soko, an online platform that provides daily updates on crop prices.
“Through E-Soko, anyone in the country can access real-time market data. This allows farmers and traders to anticipate price fluctuations and make informed decisions,” he said.
Collaborations and industrial support
Sebahizi said the ministry works closely with local authorities, cooperative unions, and federations to gather market intelligence and support cooperatives in accessing sustainable markets.
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He noted that the revised industrial policy and National Strategy for Transformation (NST2) recognise industries that process agricultural products as a priority sector in a bid to encourage investment in agricultural processing facilities.
“Many cooperatives, especially those involved in maize and rice farming, have partnered with factories for efficient and rapid supply chains,” the minister noted.
“However, some factories previously struggled with inefficiencies, affecting farmers.
A case in point was the Kinazi Cassava Plant, which has since undergone management reforms and now exports its products internationally.
To incentivise investors, subsidies are prioritised for agricultural processing industries. Additionally, industrial parks in Nyabihu and Nyagatare have been established specifically for agricultural production.
Infrastructure and market expansion
Sebahizi detailed infrastructure investments aimed at improving agricultural market access. These include rural road construction, storage facilities, and collaboration with RwandAir to facilitate agricultural exports.
“Farmers who export at least one tonne of produce benefit from reduced transport fees,” he explained.
The government also supports investors in participating in international trade exhibitions.
“These events provide exposure and help cooperatives secure large orders beyond their current production capacities,” he said.
He added that efforts are underway to help local producers meet international standards to access high-end markets, including hotels and export destinations.
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Storage and post-harvest management
To prevent post-harvest losses, the government has constructed 512 drying shelters for maize, rice, and beans and 225 storage facilities capable of holding up to 300 tonnes. Farmers also receive support to acquire drying equipment in partnership with the private sector.
In the dairy sector, 132 large milk collection centres and 150 smaller ones have been set up. Farmers benefit from electricity subsidies, ensuring lower operational costs compared to general electricity consumers.
He added that 127 modern butcheries have been established, and efforts continue to integrate agricultural products into the school feeding programme, providing a guaranteed market for local farmers.
He explained that the government is working with investors in storage facilities where farmers store produce, and they are given documents that enable them to secure loans while waiting for market opportunities.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
