Market Cost Factors Affecting Marketing of Small Holder Coffee Producers in Rwanda

Abstract

Coffee is the world's most consumed drink next to water and second most traded commodity to oil. It is first GDP earner and employs over 65% in Rwanda. Coffee production is dependent on various factors. This study examined market cost factors affecting small scale coffee production in Nyaruguru district, Rwanda. The establishment under study was small-scale coffee farmers in Nyaruguru District. A multi stage sampling techniques were employed to select respondents. Primary data was collected using structured questionnaire where as secondary data included review of reports and publications. The sample size was 194 respondents and data analysis comprised both qualitative and quantitative using econometric models and descriptive statistics. The key findings from the study revealed that the cost of transportation, distance to road, distance to coffee washing station and revenues from coffee production statistically affected market access of coffee producers at 5% significant level. As recommendations, Ministry of Agriculture and Animal Resources, Stakeholders and Cooperative societies involved in coffee value chain need to improve the variables that affected market access in the study area.