Rwanda’s Commercialization of Smallholder Agriculture: Implications for Rural Food Production and Household Food Choices

Rwanda has experienced exceptional economic growth since 2000 despite more than 60% of the predominately-agrarian population living on less than $1.25 a day. Approximately 76% of the country’s working population are engaged in agricultural production, which makes up about one-third of the national economy. Agriculture is also an important source of foreign exchange, making up about 63% of the value of Rwanda’s exports. An important component of household diets – food produced on subsistence agriculture parcels averaging 0.6 ha – faces the challenge by government and private sector development to replace subsistence farming with a value-creating market-oriented food sector. A complex set of relationships across public incentives and programs encourages participation in markets. Designed to promote wealth, the Crop Intensification Program (CIP) has increased access to land, inputs, extension services, markets, supply chains, etc. Wealth and access to land are the dominant predictors of the ability to participate in markets and the extent of participation. For example, smallholders producing a diversity of crops are more likely to sell in markets. Within the confluence of competing policy objectives and market forces, further research is necessary to understand the household-level tradeoffs of both producers and consumers along the food value chain.