Introduction to the training and value chain concepts

Farmers are intensifying existing patterns of production and diversifying their farm enterprises in an attempt to improve their livelihoods. Technical expertise is not enough. In order to be competitive and take advantage of the new opportunities that are arising farmers increasingly have to adapt their farm business to market changes and improve efficiency, profitability and income. The growth of consumer market both at the local and international level, coupled with the rising incomes for the middle class in many developing countries offer opportunities for smallholder producers to operate in emerging national and international markets.

Text Box: Farming should be looked at as a business by all farmer organizations and cooperatives  The desire to increase income by taking advantage of market opportunities requires farmers to become better decision makers and better at competing in this new environment. The emphasis on the market and the need of farmers to be competitive, calls for better farm management skills. Marketing and farm management have rapidly gained predominance globally over the last two decades.

Farm business management skills and knowledge is recognized as important for farmers to effectively respond to present day farming challenges. However, expanding markets pose a great challenge to smallholders in terms of production and value chain management. Farm management advice helps farmers to make the right choice between crop enterprises according to individual levels of financial, labour and land endowments and at their level of risk adversity. This means that producers must gain better control over production, trade and distribution in order to guarantee the quality and value added of their products and operate in a cost-effective way.

Objectives of Horticulture Farming as a business module are:

  1. To develop sustainable horticulture based small businesses for Small holder farmers in Rwanda
  2. To promote prospective entrepreneurs, particularly women and youth, who are interested in starting their own businesses and create employment
  3. To develop growth oriented SMEs which have potential to create and develop into formal business sectors