Posted on November, 11, 2024 at 10:49 am
The deployment of cold trucks will help reduce post-harvest losses for vegetables, fruits and flowers and thus contribute to the generation of $1.981 billion agricultural exports by 2029, according to the National Agricultural Export Development Board (NAEB).
The agricultural exports target was $1 billion in the financial year 2023/2024 which ended on June 30 but fell short and generated $839.2 million.
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Over the past five years, Rwanda exported 261,636,526 Kilogrammes of vegetables, fruits and flowers which generated $233.6 million.
The report shows that 86,459,793 Kilogrammes of fruits worth $79.5 million , 170,842,040 kilogrammes of vegetables worth $128.5 million were exported.
According to the report, Rwanda exported 4,334,692 Kilogrammes of flowers worth $25.4 million over the past five years.
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Claude Bizimana, the Chief Executive Officer of the National Agricultural Export Development Board (NAEB) said that there are still challenges hampering agricultural exports due to lack of enough post-harvest loss handling facilities and equipment.
He said that nine Rwandan private exporters, through Feed the Future Rwanda Kungahara Wagura Amasoko project, recently received new refrigerated trucks that will help them to ensure Rwandan produce travels safely and reaches new international markets in top shape.
The project covered 60% of the cost, and the exporters covered the remaining 40%.
Thanks to this model, Rwandan exporters will soon have a total of 14 new refrigerated trucks to enable the high-value agricultural export sector to enhance cold chain logistics, reduce post-harvest losses and increase the overall competitiveness and resilience of the sector.
"We were counting post-harvest losses which affect agricultural exports due to lack of cooling facilities from farm level to the market. Farmers are in need of post-harvest handling.
We are committed to supporting exporters through quality infrastructure, capacity building and market linkages to ensure our products reach their destinations in optimal condition," Bizimana said.
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The refrigerated trucks to transport fresh produce cost about Rwf1 billion to strengthen cold chain logistics, reduce losses and boost Rwanda's horticultural export competitiveness.
Marie Ange Claudine Ingabire, a horticultural export, who exports 82 tonnes of vegetables and fruits such as chilli, passion fruits, avocado and others every week said that they were counting losses due to lack of post-harvest handling facilities.
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"Cold rooms are needed to reduce post-harvest losses especially for chilli and french beans. I could harvest five tonnes of chilli and save only one tonne and the rest becomes a huge loss as the export market can not accept it. The refrigerated trucks will solve that problem," she explained.
She said over the past 30 days, she saved Rwf1 million for chilli only thanks to cooling equipment she acquired.
The government is set to implement a five-year agriculture strategic plan expected to need an estimated Rwf6.988 trillion (or approx. $5.4 billion) to achieve the set targets to increase sector growth, address malnutrition, and double the country’s agricultural export revenues, among other outcomes.
Of that funding, the government (with financing including loans) is expected to contribute more than Rwf3.3 trillion or 47 per cent of the total amount, while the private sector and grants will contribute 53 per cent, or more than Rwf3.68 trillion, according to information from the Ministry of Agriculture and Animal Resources.
The fifth Strategic Plan for Agriculture Transformation (PSTA 5) which is expected to focus on building resilience and sustainable agri-food systems in Rwanda, runs from the fiscal year 2024/2025 which will commence on July 1 through 2028/2029.
Among other outcomes, it projects to achieve an annual agriculture output (GDP) growth of 8.2 per cent from a baseline of 2 per cent [in 2023].
It also seeks to increase agricultural export revenues to $1,981 million from $857 million (in 2022/2023), which is the baseline.
The strategic plan also envisages the creation of more than 644,000 off-farm jobs in agri-food systems, from 400,000, to contribute to addressing unemployment especially in the rural areas and among young people.
The strategy was designed around three priority areas. They include the modernisation of agriculture and animal resources production for climate-resilient food systems, which is estimated to need Rwf3.56 trillion (approx. $2.75 billion) to be implemented.
Others are inclusive markets and post-harvest management for sustainable agri-food systems whose budget is estimated at Rwf1.8 trillion (approx. $1.4 billion; and strengthening agri-food systems enablers for effective and efficient delivery, with an estimated outlay of Rwf1.6 trillion (approx. $1.24 billion).
The outputs also include enhancement of export value chains to accelerate growth and farmer prosperity, strengthening post-harvest handling for reduced losses, food safety and quality, demand-driven research, implementing customised and comprehensive extension services, digital innovation in agriculture value chains, and increased access to formal agriculture finance, as well as scaling up the national agriculture insurance scheme to make sure actors in agri-food systems are cushioned against potential losses.
Source: The New Times