Financial Feasibility and Factors that lead to Profitability for Small-Scale Farmers in Rwanda.

This study will analyze small-scale poultry farming in the Musanze district of Rwanda. Poultry farming offers a source of protein and economic subsistence for households in this region but studies suggest that the smallholder farmers need training for effective production of broiler for these purposes. To this end, a project - Feed the Future Tworore Inkoko, Twunguke (TI) - funded by the United States Agency for International Development (USAID) and the African Sustainable Agriculture Project (ASAP) Foundation, and led by the University of Tennessee Institute of Agriculture (UTIA) and Zamura Feeds Ltd., was initiated to help the smallholder broiler farmers be technically and economically efficient. The progress the farmers made since the inception of the program in 2017 to its end in 2020 is evaluated using capital budgeting analysis and simulation methods in this study.

The program uses a private extension model to train poultry farmers, supply them quality resources, provide micro-loans for initial investments and recurring expenses, provide technical support and marketing support services while also providing a guaranteed buy-back after each cycle of 100 bird have been completed. The why of this program includes but is not limited to earning of subsistence for the smallholder farmers, and increased supply of meat for the purpose of supplying protein based nutrition.

This study will analyze data obtained from the 2020 Rwanda Broiler Production database from the TI program. This data source contains about 2200 flock/farmer observations collected from more than 499 farmers from different areas of Musanze district in Rwanda over three years and 8 months (January, 2017 – September, 2020). Production costs, revenue, investment cost, and other demographic and production parameters were collected by technicians who provide extension support to the smallholder TI broiler farmers. Capital budgeting simulation is used to determine the profitability and the risk implications of these small-scale broiler farmers. This study will be a continuation of previous studies but with more updated data.