Potato market in Rwanda (Musanze); Courtesy Rwanda New Times
Deal between Rwanda potato farmers and traders to stabilize prices
Prices of Irish potatoes in Rwanda are likely to stabilise following a new agreement between farmers and City of Kigali traders to establish mutually beneficial cooperation.
The deal, spearheaded by the Ministry of Trade and Industry, was reached on Friday between three cooperatives of Irish potato dealers in Kigali City districts and 13 Irish potato farmers’ cooperatives from the North and Western Province districts.
The contract aims at setting stable and fair prices for both dealers and farmers.
Currently, the farm prices for Irish potatoes are between Rwf55 and Rwf70 per kilogramme, which farmers claim leaves them counting losses of up to Rwf40 per kilogramme compared to Rwf97 required for the production of one kilogramme.
And the market price in Kigali varies between Rwf100 and Rwf120.
Jean damascene Kwizera, an Irish potatoes farmer in Nyabihu, said farmers were losing interest in growing the crop due to unfair prices.
“Some of us had started thinking of doing other businesses because we were not benefitting from growing Irish potatoes,” he said.
Another farmer, Felicien Semarembo from Burera District said the low prices had discouraged him from growing Irish potatoes.
But under the new agreement, prices deemed fair will be established for both farmers and dealers. New farm gate prices would vary between Rwf115 and Rwf120.
The contract fixes prices for produce from Kinigi at Rwf124 per kilogramme considering its production cost per kilogramme which stands at Rwf115.
For retailers in Kigali, the agreement requires retail traders not to charge more than Rwf150.
The new prices will come into force on December 11, starting from Nyabihu District.
Thirteen farmers’ cooperatives will be supplying 75 tonnes of Irish potatoes daily to the dealers in Kigali. Emmanuel Hategeka, the permanent secretary at the Ministry of Trade and Industry, said the contract was in response to market survey which showed that farmers were being exploited by unscrupulous middlemen.
The survey showed that prices of Irish potatoes varied between Rwf100 and Rwf180 per kilogramme but this was benefiting middlemen.
He said plans were underway to open a common market for potatoes dealers at Gisozi, Kigali next year in order to streamline potato business.
He added that a similar market study will be conducted for all other crops to counter exploitation.
The contract that was signed between the two parties is renewable and season-based.
Parties to the contract include farmers’ cooperatives from Musanze, Nyabihu, Rubavu and Burera districts with dealers from one cooperative for each of the districts that make up the City of Kigali-Kicukiro, Gasabo and Nyarugenge.
Rwanda has over 70, 000 potato farmers grouped in 30 cooperatives that produce over 19, 000 tonnes monthly during the harvesting season.
Isaac Nzabarinda, the president of the Irish potato farmers federation known by its French acronym as Fecopporwa, said farmers are optimistic that processing plants being built in Nyabihu and Musanze districts would add value to their produce so as to fetch more prices.
The deal, spearheaded by the Ministry of Trade and Industry, was reached on Friday between three cooperatives of Irish potato dealers in Kigali City districts and 13 Irish potato farmers’ cooperatives from the North and Western Province districts.
The contract aims at setting stable and fair prices for both dealers and farmers.
Currently, the farm prices for Irish potatoes are between Rwf55 and Rwf70 per kilogramme, which farmers claim leaves them counting losses of up to Rwf40 per kilogramme compared to Rwf97 required for the production of one kilogramme.
And the market price in Kigali varies between Rwf100 and Rwf120.
Jean damascene Kwizera, an Irish potatoes farmer in Nyabihu, said farmers were losing interest in growing the crop due to unfair prices.
“Some of us had started thinking of doing other businesses because we were not benefitting from growing Irish potatoes,” he said.
Another farmer, Felicien Semarembo from Burera District said the low prices had discouraged him from growing Irish potatoes.
But under the new agreement, prices deemed fair will be established for both farmers and dealers. New farm gate prices would vary between Rwf115 and Rwf120.
The contract fixes prices for produce from Kinigi at Rwf124 per kilogramme considering its production cost per kilogramme which stands at Rwf115.
For retailers in Kigali, the agreement requires retail traders not to charge more than Rwf150.
The new prices will come into force on December 11, starting from Nyabihu District.
Thirteen farmers’ cooperatives will be supplying 75 tonnes of Irish potatoes daily to the dealers in Kigali. Emmanuel Hategeka, the permanent secretary at the Ministry of Trade and Industry, said the contract was in response to market survey which showed that farmers were being exploited by unscrupulous middlemen.
The survey showed that prices of Irish potatoes varied between Rwf100 and Rwf180 per kilogramme but this was benefiting middlemen.
He said plans were underway to open a common market for potatoes dealers at Gisozi, Kigali next year in order to streamline potato business.
He added that a similar market study will be conducted for all other crops to counter exploitation.
The contract that was signed between the two parties is renewable and season-based.
Parties to the contract include farmers’ cooperatives from Musanze, Nyabihu, Rubavu and Burera districts with dealers from one cooperative for each of the districts that make up the City of Kigali-Kicukiro, Gasabo and Nyarugenge.
Rwanda has over 70, 000 potato farmers grouped in 30 cooperatives that produce over 19, 000 tonnes monthly during the harvesting season.
Isaac Nzabarinda, the president of the Irish potato farmers federation known by its French acronym as Fecopporwa, said farmers are optimistic that processing plants being built in Nyabihu and Musanze districts would add value to their produce so as to fetch more prices.
