Economic Analysis of Growth Performance of Various Grains Crops During Agricultural Reform in Rwanda

Abstract

The grain crops have been the main staple food crops in Rwanda, by complementing or substituting root-tubers and plantains in everyday diet. As agriculture is considered as backbone of country’s economy, its transformation was thought to be engine of economic development. Using the time series data of 15 years, the present paper intends to analyse growth performance in area, production and productivity of grains crops during agricultural reforms in Rwanda. The results of study showed that a positive and significant growth rates were recorded in the case of cultivated area and production of wheat, rice, maize, millet, beans, peas and groundnut. Being among prioritized crops during reforms, wheat, rice and maize experienced the highest positive growth rates in cultivated area, production and productivity with high significant level (p<0.001) for all growth rates, except a non-significance case of productivity growth rate in maize. The soybeans reported a positive non-significant growth rates in area, production and productivity while sorghum undergone a negative significant growth rate (p<0.001) in area, a negative non-significance in production growth rate, but a positive significant growth (p<0.01) in productivity. The area under cultivation, production and productivity of maize, wheat, rice and soybeans were highly unstable regarding to other grains crops. The cultivated area was generally the major contributor for change of grains crop production. The influence of both area and productivity on production was highly remarkable for wheat, maize and sorghum. This study concludes that generally, the agricultural reform has had tremendous positive impact on growth rates of grain crops in Rwanda but it suggests policy implications to increase productivity of some grain crops.

Keywords: Growth rates, Instability, Component Analysis, Grain Crops, Agricultural Reform, Rwanda