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Analysis of Perceived Competitive Forces Influencing Tree Tomato Value Chains in Rwanda

Author

Listed:
  • Mutamba, A.
  • Odoul, J.
  • Dushimimana, D.
  • Mugunga, C.
  • Mukularinda, A.
  • Niyitanga, F.
  • Muthuri, C.

Abstract

The globalization of economies has added many new challenges to global agriculture. Agriculture not only needs to compete in foreign markets but also in domestic markets. The production and export of tree tomatoes remain extremely weak in Rwanda despite horticulture sector-specific economic policies in favour of the production and export of horticultural crops by the government of Rwanda. The goal of this study was to analyse the competitive performance of Rwanda's tree tomato value chain to shape the tree tomato industry in Rwanda for the benefit of smallholder farmers and the Rwandan Economy. One hundred twenty (120) respondents were surveyed for this study using a semi-structured questionnaire and focus group discussions. Participants were stratified into groups as traders (80), institutional consumers (12), and household consumers (28) all from Bugesera, Nyabihu, Rubavu districts and Kigali markets (Nyabugogo, Nyarugenge and Kimironko). Key enablers (International Centre for Research in Agroforestry, Rwanda Agricultural Board, National Agricultural Export Board, and Ministry of Commerce and Financial institutions) provided useful information related to the tree tomato value chain in Rwanda. The findings of this study show that factors that hamper the tree tomato value chain competitiveness in Rwanda are related to bargaining power. Overall 63% of respondents who were tree tomato suppliers and 58.43% of respondents who were tree tomato buyers agreed that the bargaining power of suppliers and buyers hamper the competitiveness of the value chain. The study found that 70% of traders and 57% of consumers and institutional consumers preferred the tree tomato. Therefore, tree tomato is highly linked to consumers, traders, and institutions than banana which is the 38th fruit highly scored. The severity of the threat to the tree tomato industry is new entrants into the tree tomato industry, the intensity of rivalry in existing key competitors, and the severity of the threat of substitutes. The strategies proposed to improve on the competitiveness of the tree tomato industry comprise of improving collaboration of tree tomato chain actors. This study found that 75.69% of the sampled key actors agree that the highest criteria to be considered are the product quality, and 64.74% of the sampled key actors settled on product quality as the least criteria.

Suggested Citation

  • Mutamba, A. & Odoul, J. & Dushimimana, D. & Mugunga, C. & Mukularinda, A. & Niyitanga, F. & Muthuri, C., 2024. "Analysis of Perceived Competitive Forces Influencing Tree Tomato Value Chains in Rwanda," African Journal of Food, Agriculture, Nutrition and Development (AJFAND), African Journal of Food, Agriculture, Nutrition and Development (AJFAND), vol. 24(6), June.
    • Handle: RePEc:ags:ajfand:347802
    DOI: 10.22004/ag.econ.347802
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    References listed on IDEAS

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    1. Eckhard Siggel, 2006. "International Competitiveness and Comparative Advantage: A Survey and a Proposal for Measurement," Journal of Industry, Competition and Trade, Springer, vol. 6(2), pages 137-159, June.
    2. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
    3. Sanghoon Ahn, 2002. "Competition, Innovation and Productivity Growth: A Review of Theory and Evidence," OECD Economics Department Working Papers 317, OECD Publishing.
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