NAEB unveils new strategy to boost agricultural exports

Revenue from agriculture exports is set to increase, thanks to a five year strategic plan by the National Agricultural Export Board (NAEB) to increase productivity and value addition along the value chain. The strategy targets to increase annual growth of agricultural exports across all sectors, according to George William Kayonga, NAEB’s Chief Executive officer. The strategy seeks to achieve an average annual growth rate of 24% in tea exports with consequent annual tea export receipts of $94,900,000 by 2018 from $ 65,717,000 in 2013. For coffee exports, the plan is to achieve at least an average annual growth rate of 29% in coffee exports to achieve annual coffee export receipts of $ 104,300,000 by 2018 from $60,887,640 in 2013. Likewise, the strategy targets receipts from horticulture exports to increase to a tune of $129,625,000 by 2018 from $10,725,000 in 2013. “We have been facilitating the development and growth of agriculture exports through coordinating and regulating intervention in production, productivity, processing, quality, marketing and promotion as well as facilitation to access investment capital for private sector investment; The plan therefore is to ensure sustainability while developing and sensitizing stakeholders to invest in export crops and providing key information on production, exports, expansion, season production and prices on export commodities,” Kayonga told Business Times The idea is therefore to be able to facilitate effective and independent regulation, improve competitiveness, and begin to improve the quality of agriculture export services and products, Kayonga added. Tea sector In the tea industry, the plan is to increase the area under tea from the current 25,308 ha to 38,000 ha and increase the average yields from 6.7 metric tonnes to 9 MT/ha for fresh leaves. Currently tea is cultivated on 24000 hactres and feeds 13 operational tea factories. Tea rakes in about $60million in exports per year. However, to increase this revenue, NAEB wants to develop, coordinate and support 3 more new tea expansion projects in Munini, Kibeho (both in Nyaruguru) and Rugabano in Karongi that will add another 6,000 hactares. Another 2000 hactres of tea is expected to be grown in Cyato and Nyamasheke. Coupled with farmer field schools, cooperative capacity building, and stronger collaboration between factories and Cooperatives for increased fertilizer use, there is optimism that the tea exports will increase tremendously, he added. Horticulture In 2013, Horticulture accounted for an estimated 3.2 percent of the national GDP and 9.7 percent of agricultural GDP. This is despite the fact that the production of fruits and vegetables took only an estimated 6.4 percent of the country’s cultivated land. The sector has been generating between 5 and 10 Million dollars in horticulture exports. However, the challenge now is how to develop this subsector so that it could equally make a substantial contribution to the national economy. Dr. Ndambe Nzaramba, NAEB’s deputy director general in charge of exports and market operations, says achieving annual receipts of more than $129625000 by 2018, will be through public private sector investments partnerships. “And there are plans to foster these partnerships in both fruits and vegetable sectors like it has been the case with Gishali flower Park through Bella flowers.” The partnership is also expected to develop 20 hectares of land in Gishali sector, Rwamagana district and production on 10 ha is expected by December 2015. According to market players, developing cold chain and other logistics infrastructure and processes is another strategy that should not be underestimated. But also ensuring availability of land to investors is critical, for export development, Eric Rukwaya, the sales and marketing manager, Rwanda Farmers coffee company, said . A process has already started to map and profile suitable land for horticulture and will be made available for any interested horticulture investors from 2016. The target is to have at least 2000 ha dedicated for horticulture export by 2018. Coffee sector According to the strategic plan, NAEB will now focus on Investing in coffee roasting, productivity. This will see the fertilizers fund which was established to allow farmer’s access subsidized price reinforced to benefit more coffee farmers. Capacity building in this sector is expected to reach around 45, 000 farmers by 2017. The aim is to increase productivity from 2.4kg per coffee tree in 2013 to 3.1kg per tree by 2018. Additional land of about 3000 ha will be secured to increase productivity while reemphasizing the need for increasing fully washed coffee up to 71% by 2018. Development of new export value chains The export body plans to increase the contribution of nontraditional export commodities such as animal products, cereal, to a tune of 42% by 2018 down from 26% in 2012. This will include organizing the value chain of each specific commodity and fast tracking the development of stevia crop as an alternative export crop. It is expected that this particular crop will be grown on 1000 ha of land and likely to fetch more than $140millon per year. Government last year signed agreements with export stake holders to increase productivity and exports.

News

NAEB unveils new strategy to boost agricultural exports