Determinants of Farmer Participation in the Vertical Integration of the Rwandan Coffee Value Chain: Results from Huye District

Abstract

This paper presents results on socio-economic factors influencing decision to participate in cooperative and intensity of coffee in Huye District of Rwanda. The analysis uses primary data collected from Huye district with representative sample size of 230 comprised both non-members and members of cooperatives. The study used Probit regression model to test the status of decision to participate and Tobit regression was used to determine the factors influencing the intensity of coffee. The results generally show that gender, education level, farm size, off-farm income, non-access to credits and non-record keeping are all important factors explaining decision to participate. On the other hand, off-farm income, no-access to credit, farm size, experience, farm under other crops cultivation and farm contract agreements found to influence the intensity. The paper concludes by suggesting strategic policy targeting to build stronger farmer' cooperatives. These should allow the farmers to have access on market, inputs, credit, farm contract, price stability and trainings. Thus improve coffee productivity in terms of quantity and quality in the study area.