A challenging market entry for independent chilli farmers in Rwanda
The cultivation of chillies on a commercial scale and the chilli value chain are relatively new in Rwanda. Yet, especially non-perishable dried chillies or chilli oil have immense market potential and are in high demand worldwide.
Optimal climatic conditions in Rwanda allow chillies to be grown all year round. In addition, competitive labour costs make it an attractive sourcing country for organic produce. Some Rwandan producers have already tapped into the export market in India, others became the first African suppliers to debut on the Chinese dried chilli market in 2021. Outside Asia, the demand for chillies remains unsatisfied, especially in the steadily growing European market – the world’s second largest importer of dried chillies.
Despite the high potential, there are still few Rwandan farmers involved in chilli production. Those smallholders who do so cultivate small, fragmented plots, resulting in low production volumes and little bargaining power in the market.
Beyond that, poor infrastructure and inadequate knowledge on appropriate agricultural and post-harvest management and export practices affect chilli production, quality and sales. The lack of proper organisation also limits farmers’ access to agricultural inputs and extension services such as fertiliser, improved seeds, credit or technical advisory.
The formation of farmer-run organisations, such as producer cooperatives, can mitigate these challenges by pooling individual farmers’ resources, know-how and sales. However, newly established agricultural cooperatives often face difficulties in terms of administration, management, marketing or financing.
In Rwanda, strong farmer organisations and technical assistance to smallholders are needed to meet the growing international demand for dried chillies and to unlock the employment potential in the value chain.