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An Economic Analysis of the Factors Influencing Avocado Production, Profitability and Sustainability in Rwanda: A Case Study of Burera, Gicumbi, and Musanze Districts

Received: 27 June 2021     Accepted: 9 July 2021     Published: 29 December 2021
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Abstract

Agriculture plays a fundamentally important role in the economic growth and development prospects of a vast majority of developing countries including Rwanda where this sector is a main source of livelihood, providing direct employment. The aim of this study was to analyze the factors influencing avocado production, profitability and sustainability in Rwanda. A case study of Burera, Gicumbi, and Musanze Districts. A multistage sampling technique was employed in this study. Data were collected using a structured questionnaire where a sample size of 108 farmers was used. A Cobb Douglas production function and gross margin analysis were used to estimate the profitability of avocado fruits production for smallholder farmers sampled. Hass is the most cultivated avocado tree followed by fuerte, Ettinger, and traditional respectively. The profitability analysis of avocado farming in three districts indicated that fuerte generated more than other varieties followed by Hass and lastly traditional avocado for the tress aged between 3-10 years in study area. While the Net Farm Returns for avocado trees aged 11 years and above showed that Ettinger generated more than other varieties followed by fuerte and lastly Hass avocado for the tress aged between 11 years and above. This indicates that farmer should gain 26108 Rwf from 1 fuerte avocado tree per season and 22838 Rwf for the Hass tree aged between 3-10years. However, farmer should gain 34368Rwf from one fuerte avocado tree per season and 42313Rwf from ettinger aged 11years and above. Comparing the area occupied by one avocado tree and other crops like beans, maize, wheat, Irish potato and others, for example one fuerte and ettinger avocado tree should generate more than 1.2 and 1.7 times for maize respectively. Moreover, they should generate 2.5 and 3 times than beans crops in study area. With these results, it economically easy to say that avocado fruit is more profitable than all other crops grown in study area. The results indicated that gender of respondents, avocado yield, farm-gate, and price, access to extension services, education level, and land size had a positive effect on profit margin. With this result, avocado fruits trees should be promoted in area as they have a successful business.

Published in International Journal of Finance and Banking Research (Volume 7, Issue 6)
DOI 10.11648/j.ijfbr.20210706.14
Page(s) 164-173
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Economic Analysis, Factors Influencing, Avocado, Production, Profitability, Sustainability

References
[1] Albertin and Nair, (2004). Farmers' Perspectives on the Role of Shade Trees in Coffee Production Systems: An Assessment from the Nicoya Peninsula, Costa Rica.
[2] Bergh, B. and Ell strand, N. (1989). Taxonomy of the Avocado. California Avocado Yearbook. 135-145.
[3] Durand, B. J., (1971). Introduction to avocado growing in South Africa: Institute for Subtropical and Tropical Crops.
[4] FAOSTAT (2005). Last accessed in (2005): http://faostat.fao.org/.
[5] FOASTAT (2013). Avocado production, marketing and consumption: A global perspective World Avocado Congress. Peru.
[6] Gosh, S. P. (2001). Avocado production in India. In: FAO. 2001. Avocado production in Asia.
[7] Government of Rwanda (2011) Rwanda National Export Strategy, March 2011.
[8] Izekor, O. and Olumese, M. (2010). Determinants of yam production and profitability in Edo State, Nigeria. African Journal of General Agriculture. 6, 205-210.
[9] Kirby and Potvin, (2007). Variation in carbon storage among tree species: Implications for the management of a small-scale carbon sink project.
[10] Lusike Wasilwa, Vincent Ochieng, Miriam Otipa, Ruth Amata, Boniface Oduor and Paul Omolo Kenya (2018). Avocado production. Agricultural & Livestock Research Organization.
[11] Masuku, M. (2011). Determinants of Sugarcane Profitability: The Case of Smallholder Cane Growers in Swaziland. Asian Journal of Agricultural Sciences, 3, 210-214.
[12] MINAGRI (2013) Nutrition Action Plan 2013-2018, draft, 23 July 2013.
[13] MINAGRI (2013) Strategic Plan for the Transformation of Agriculture in Rwanda: Phase III, July 2013.
[14] MINAGRI, NISR and WFP (2012) Comprehensive Food Security and Vulnerability Analysis (CSVA) and Nutrition Survey, December 2012.
[15] NAEB (2014). Baseline Report on the Rwanda Horticulture Organisations Survey, Final Report, March 2014.
[16] NAEB (2014C) Rwanda Horticultural Marketing Strategy (RHMS), Optimal Agricultural Business Systems, Final Report 28 April 2014.
[17] Nguyen Minh Chau and VO the Truyen. (2001). Avocado production in Vietnam In: FAO. 2001. Avocado production in Asia.
[18] NISR (2014). Rwanda Seasonal Agricultural Survey Report 2013.
[19] NISR, (2013). Statistical Yearbook 2013.
[20] Soto, R. C. (2001). Avocado production in the Philippines. In: FAO. 2001. Avocado production in Asia.
[21] UNCTAD/DITC/COM (2003). Organic Fruit and Vegetables from the Tropics.
[22] World Bank (2012) “Agriculture and Environmental Services” Agribusiness indicators: Tanzania Washington Dc.
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    Ntabakirabose Gaspard, Tuyisenge Jean Claude, Musoni Protais, Ndaruhutse Felicien, Majuga Jean Claude Noel, et al. (2021). An Economic Analysis of the Factors Influencing Avocado Production, Profitability and Sustainability in Rwanda: A Case Study of Burera, Gicumbi, and Musanze Districts. International Journal of Finance and Banking Research, 7(6), 164-173. https://doi.org/10.11648/j.ijfbr.20210706.14

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    ACS Style

    Ntabakirabose Gaspard; Tuyisenge Jean Claude; Musoni Protais; Ndaruhutse Felicien; Majuga Jean Claude Noel, et al. An Economic Analysis of the Factors Influencing Avocado Production, Profitability and Sustainability in Rwanda: A Case Study of Burera, Gicumbi, and Musanze Districts. Int. J. Finance Bank. Res. 2021, 7(6), 164-173. doi: 10.11648/j.ijfbr.20210706.14

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    AMA Style

    Ntabakirabose Gaspard, Tuyisenge Jean Claude, Musoni Protais, Ndaruhutse Felicien, Majuga Jean Claude Noel, et al. An Economic Analysis of the Factors Influencing Avocado Production, Profitability and Sustainability in Rwanda: A Case Study of Burera, Gicumbi, and Musanze Districts. Int J Finance Bank Res. 2021;7(6):164-173. doi: 10.11648/j.ijfbr.20210706.14

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  • @article{10.11648/j.ijfbr.20210706.14,
      author = {Ntabakirabose Gaspard and Tuyisenge Jean Claude and Musoni Protais and Ndaruhutse Felicien and Majuga Jean Claude Noel and Izamuhaye Jean Claude and Hakizimana Fidèle and Joshua Otieno Ogweno},
      title = {An Economic Analysis of the Factors Influencing Avocado Production, Profitability and Sustainability in Rwanda: A Case Study of Burera, Gicumbi, and Musanze Districts},
      journal = {International Journal of Finance and Banking Research},
      volume = {7},
      number = {6},
      pages = {164-173},
      doi = {10.11648/j.ijfbr.20210706.14},
      url = {https://doi.org/10.11648/j.ijfbr.20210706.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20210706.14},
      abstract = {Agriculture plays a fundamentally important role in the economic growth and development prospects of a vast majority of developing countries including Rwanda where this sector is a main source of livelihood, providing direct employment. The aim of this study was to analyze the factors influencing avocado production, profitability and sustainability in Rwanda. A case study of Burera, Gicumbi, and Musanze Districts. A multistage sampling technique was employed in this study. Data were collected using a structured questionnaire where a sample size of 108 farmers was used. A Cobb Douglas production function and gross margin analysis were used to estimate the profitability of avocado fruits production for smallholder farmers sampled. Hass is the most cultivated avocado tree followed by fuerte, Ettinger, and traditional respectively. The profitability analysis of avocado farming in three districts indicated that fuerte generated more than other varieties followed by Hass and lastly traditional avocado for the tress aged between 3-10 years in study area. While the Net Farm Returns for avocado trees aged 11 years and above showed that Ettinger generated more than other varieties followed by fuerte and lastly Hass avocado for the tress aged between 11 years and above. This indicates that farmer should gain 26108 Rwf from 1 fuerte avocado tree per season and 22838 Rwf for the Hass tree aged between 3-10years. However, farmer should gain 34368Rwf from one fuerte avocado tree per season and 42313Rwf from ettinger aged 11years and above. Comparing the area occupied by one avocado tree and other crops like beans, maize, wheat, Irish potato and others, for example one fuerte and ettinger avocado tree should generate more than 1.2 and 1.7 times for maize respectively. Moreover, they should generate 2.5 and 3 times than beans crops in study area. With these results, it economically easy to say that avocado fruit is more profitable than all other crops grown in study area. The results indicated that gender of respondents, avocado yield, farm-gate, and price, access to extension services, education level, and land size had a positive effect on profit margin. With this result, avocado fruits trees should be promoted in area as they have a successful business.},
     year = {2021}
    }
    

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    DO  - 10.11648/j.ijfbr.20210706.14
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
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    PB  - Science Publishing Group
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    VL  - 7
    IS  - 6
    ER  - 

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Author Information
  • Ministry of Agriculture and Animal Resources, Kigali, Rwanda

  • Musanze District, Ministry of Local Government, Kigali, Rwanda

  • Musanze District, Ministry of Local Government, Kigali, Rwanda

  • Department of Agricultural Engineering, Integrated Polytechnic Regional College (IPRC) Huye, Kigali, Rwanda

  • Department of Agricultural Engineering, Integrated Polytechnic Regional College (IPRC) Musanze, Kigali, Rwanda

  • Department of Crop Research and Technology Transfer, Rwanda Agriculture and Animal Resources Development Board, Huye, Kigali, Rwanda

  • Department of Traditional Commodities, National Agriculture Export Development Board, Kigali, Rwanda

  • Department of Crops, Horticulture and Soil, Egerton University, Nairobi, Kenya

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