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1 NAEB Annual Report 2014 - 2015 2014-2015 ANNUAL REPORT Kigali, July 2015

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1NAEB Annual Report 2014 - 2015

2014

-201

5 ANNUALREPORT

Kigali, July 2015

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Foreword from the chairman of the board of directorsThe fiscal year 2014-2015 was significant for NAEB. It marked the fourth year of operation under the mandate of developing agricultural exports. With our partners, we took time to reflect on the past and the desired future and we were encouraged by the progress that will be highlighted through this report.

On this journey, we met opportunities and challenges that still need to be embraced with a core hand to keep always on the right track to achieve our goals.

NAEB is committed to remaining agile and flexible in pursuing and facilitating farmers to produce the best of possible qualities, but also in facilitating investors to engage in our sector development.

I extend my special appreciation towards the Minister of Agriculture and Animal Resources and her colleagues at the ministry. Their guidance, support and partnership that led our institution to this pace of export revenue growth over the last year are acknowledged. For the members of the Board, our development partners, the private sector and civil society partners’ day on day collaboration with us, we say thank you.This achievement would be intricate to make without dedication, commitment and passion of the entire staff board at NAEB over their different duties, their efforts fruited significant changes and results. I am grateful for them.

Last but not least, I take my gratitude to our principle stakeholders, the industrious farmers of Rwanda, who strive to improve their farms while sustaining our export growth. Your input for any of our achievements is always put into account.

We remain committed to our mission to facilitate the growth of business to diversify agriculture and livestock commodity export revenues by providing means and space for those supporting our vision to turn Rwanda into a world class agribusiness.

Prof. Jean Jacques MBONIGABAChairman, Board of Directors

Prof. Jean Jacques MBONIGABA

Chairman, Board of Directors

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This report shows achievements and progress made in 2014-2015 fiscal year. It is a compilation of activities carried out by different divisions and units of the Board as well as those carried out by our stakeholders and partners in different sectors that NAEB is working on. We hope this document will give the reader an overview of what has been achieved in our efforts to contribute to export development.

Through the fiscal year 2014-2015, NAEB facilitated the generation from agricultural exports of more than 272.46 million USD up from 217.62 million USD in 2013-2014. Those who contributed to the completion of this report are highly appreciated but above all we appreciate the guidance given by members of the Board of Directors under the ably chairmanship of Prof. Jean Jacques Mbonigaba.

May I take this opportunity to express our thanks to the Ministry of Agriculture and Animal Resources for its continued support and for providing NAEB with resources, guidance and feedback throughout the year and for having enhanced our ability to integrate important aspects of our annual plan into the MINAGRI performance contract.

We also wish to thank all of our stakeholders who have contributed so much to the work completed and who have shared our vision for agriculture export development. I would like to thank the agriculture exporters, stakeholders and agribusiness community and farmers for their contribution to our achievements.

Finally, I wish to thank the management and staff members of NAEB in different departments and divisions for their continued dedication and hard work in pursuit of our objectives of improving production and exports of agricultural products.

Amb. George William KAYONGAChief Executive Officer/ NAEB

Introduction by the Chief Executive Officer

Amb. George William KAYONGAChief Executive Officer/ NAEB

Executive SummaryThe National Agricultural Export Development Board (NAEB) commenced its role as the public institution responsible for development of agricultural export in May 2011. Agricultural export is one of the vital sectors for the country in terms of foreign exchange earnings , indeed its contribution to the national economy remains important. During the first year of operations, NAEB set its targets on different priority sectors, which are coffee, tea and horticulture. In line with the strategic plan for agricultural transformation (PSTA), EDPRS, Vision 2020 and different sector strategy, throughout the fiscal year 2014-2015, NAEB focused its interventions in production, processing, quality improvement and marketing products from the three priority subsectors.

During this year, production activities were oriented mainly on expansion of the area under priority crops.In order to increase acreage under tea and coffee production, seedlings were prepared and planted. For the coffee sub-sector, NAEB managed to plant an area totaling 3,311ha.

Coffee productivity was also enhanced by increasing the use of mineral and organic fertilizers. A total of 9,440 tons of organic fertilizers and 2,695 tons of mineral fertilizers were applied during the course of the fiscal year. The past year’s activities resulted in production of 16,936 metric tons of exportable coffee and generated a revenue of about 64 Millions USD. The prices of coffee were relatively good on world coffee markets with an average price of 3.9 USD/kg when compared to the previous year of 2013-2014 where by the price reduced from 2.7 USD per Kg .

The efforts in developing the tea sector yielded appreciable results especially in terms of increasing acreage under tea plantation and production. A total of 1,301 ha were planted including replacement of dead seedlings in existing fields. More than sixteen (16) million tea seedlings were prepared and are to be planted during season A 2015. The productivity of tea plantations was improved by stakeholders through the application of 6,902 tons of fertilizers. This year we realized an increase in made tea production. The achievements were more than 25,619 metric tons with total revenue of 61.8 million USD.

In the horticulture sector, NAEB focused attention to a few selected crops of both fruits and vegetables.Total area planted with vegetables during the fiscal year 2014-2015 reached 4,240 ha while the area planted with fruits totaled 856 ha and for pyrethrum the planted acreage was 309 ha. The horticulture exports generated more than 6 Million USD in the fiscal year 2014-2015 The exports of refined pyrethrum extracts was hampered by the lack of access to market and this resulted in exports of 9,864 kg which earned 1.8 million USD.

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Board Members

Amb. George W. KayongaChief Executive Officer

Ms. Alice TwizeyeBoard Member

Dr Mbonigaba. J. Jacques MuhindaChairman

Mrs. Beatrice UwumukizaBoard Member

Mrs. Camarade Immy Board Member

Mr. Jayase Kera VijithBoard Member

Mr. Jean Munyemana Board Member

Table of Contents Page

INTRODUCTION 8

COFFEE SECTOR 9Improving quality and value addition in coffee 13Coffee promotion and marketing 14

TEA SECTOR 15Tea Quality Improvement and Value Addition 17Tea Exports Performance 2014-2015 18

HORTICULTURE SECTOR 19Fruits Production 19Vegetable Production 20Flower Production 21Maintenance and calibration for naeb cold chain facilities 22Exports of fruits and vegetables 2014-2015 23

PYRETHRUM 24Seedling Preparation 24Development of New Export Chains 24Essential oils development 25Production of Geranium seedlings 25Export of Diversified Livestock and crops products 26

NAEB SUPPORT SERVICES 27

CONCLUSION 28

ANNEX 29

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INTRODUCTION

Traditionally, agriculture export commodities comprised of coffee, tea and pyrethrum. However, over the years the scope of agriculture export crops development has been expanded to include other crops like fruits and vegetables, flowers and new export value chains like livestock products, cereal, and grains to name a few. With the aim of increasing agriculture exports, NAEB along with its stakeholders continued implementing different interventions, on different priority value chains. The joint effort between NAEB and its partners resulted in the following achievements;

• In the coffee value chain, the 2014-2015 fiscal year registered a production of 16,924 MT and exports of 16,529 MT that generated an export revenue of 64.02 Million USD.

• During the same period June 2014- July 2015 the tea industry expected the annual production to increase beyond the current level of 24,000 tons as a result of new plantings and improvement in crop husbandry practices and operational of new tea factories. The cumulative tea production from July 2014 to June 2015 was 25,619 MT and the corresponding export was 24,848MT with an export revenue of 61.81 USD.

• The main quantities of horticulture production are sold on the domestic and regional markets through cross border and informal trade. During the period under review, the quantity of fruits and vegetables sold in the export markets was 23,418 MT and has been valued at 6.68 Million USD.

• Other exported commodities include pyrethrum, which generated a total of 1.79 Million USD through the export of a quantity of 9.9 MT.

Livestock products including beef, milk, live animals, hides and skins were among other new export commodities and generated a total of 63.62 Million USD , cereal & grains exported to regional markets generated 44.53 Million USD while roots & tubers, fish, banana, pulses generated 29.89 million USD.

EXPORT COMMODITY EXPORT VOLUME (KG) VALUE - MIL. USDCoffee 16,529,690 64.02Tea 24,848,877 61.81Horticulture 23,418,584 6.68Pyrethrum 9,864 1.79Livestock Product 34,445,346 63.62Cereal & Grains 70,161,034 44.53Others ( roots& Tubers, Fish, Banana, pulses ) 56,751,345 29.89Total Value 272.46

COFFEE SECTORNAEB has opted to avail planting materials for tea, coffee and fruits as incentives to farmers through its technical divisions. This is because farmers still do not have the adequate technical skills to develop their own planting material. Farmers were mobilized to plant developed seedlings on their farms using materials selected inputs that respond to the Market requirement

Coffee Expansion Interventions in the coffee value chain for the fiscal year 2014-2015 concentrated on increasing coffee area, productivity improvement through application of fertilizers, control of pests and diseases and supporting coffee cooperatives, especially in capacity building, accessing loans from banks, and showcasing the Rwandan coffee on international markets.

Coffee Seedling PreparationWith respect to the coffee expansion program, PRICE/ NAEB initiated the preparation of 8,625,000 coffee seedlings, which were to be planted on 3,000 ha. The process began with seedling preparation that was monitored on a daily basis, to keep them healthier for planting. At the end of June 2015, 3,311 ha were planted across the country.

Seedling Preparation and Monitoring

To achieve the vision and mission of NAEB, a Strategic plan has been designed and it is guided by the following strategic objectives.

• To increase farm production and productivity of the targeted agricultural export commodities.

• To enhance value and assure quality of agriculture export commodities to increase their demand and price on national, regional and international markets.

• To improve business operating environment through providing effective trade support services (Market information, trade finance, product development/diversification, trade promotion, and standard compliance) to enable export enterprises to operate better in international markets

• To enhance inter-institutional coordination and strengthen the capacity of NAEB and agricultural export support institutions to effectively provide adequate services to the sector

Strategic objective 1: To increase farm production and productivity of the targeted agricultural export commodities.The output targets for coffee to increase coffee productivity progressively from 2.4kg/coffee tree in 2013 to 3.65kg/coffee tree in 2018, expanding coffee area by 5000 ha annually, and increasing Fully Washed Coffee by 62% summarizes the strategies that are expected to give an average growth of 19% per year in the next 5 years.

Coffee New Sites Identification and MappingThe current coffee expansion program target is to plant 1,500 ha in 2015-2016. The activity to identify and map new coffee areas for planting was done in different districts, and the seeds for seedling multiplication have been acquired. By the end June 1,249 ha were mapped in the identified districts in the table below.

Site Identification and Mapping for Coffee Expansion 2015-2016

District Area to be Planted /Ha Expected Seedlings to be prepared Area mapped (ha)Kirehe 600 1,500,000 690.5Gakenke 300 750,000 155.5Rulindo 400 1,000,000 196.5Nyamagabe 200 500,000 206.7 TOTAL 1,500 3,750,000 1,249.2

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Mature Coffee Nursery to be transplanted Plantation development was done in an overall coffee expansion program, which aimed at area expansion and rehabilitation of old plantations. NAEB’s approach was to avail high quality coffee seedlings produced by contracted entrepreneurs to farmers who were willing to plant them.

Planting activity

Province Seedlings prepared and planted.

Areas planted (Ha)

Southern 2,281,149 912Eastern 2,802,898 1,121Western 975,969 390Northern 2,217,276 887TOTAL 8,277,292 3,311

NAEB 2015 Coffee Census The economic development strategy can only meet the

target when it relies on accurate data which leads to the sector’s future feasible prospects and projections. The recent data available was as a result of the 2009 National Coffee Census which was conducted to establish the general status of the coffee sector in terms of the number of coffee trees, area under coffee cultivation, number of coffee farmers, and number of Coffee washing Stations to mention a few.A coffee census is carried out in order to have a basis for all planning and projections for the coffee sector. For the efficiency of the activity, we adopted the use of local authority staff. The MoU between NAEB, the National Institute of Statistics of Rwanda and the Ministry of Local Governance was signed. The coffee census activity was conducted in the month of May and data analysis is being done under NISR.

Increasing export crops production and productivityEnhancing productivity per unit area in both traditional and non-traditional export crops was found more useful in improving export crop output as it allows an efficient

use of land and resources, realizes higher yields and net economic returns per unit area, and leads to easier canopy management suited for different cultural operations such as spray and weed control. There are a methods in achieving productivity these are the use of mineral or organic fertilizers, improved varieties, efficient use of suitable crop, pest and disease management. The paragraphs below summarize activities conducted to increase productivity in coffee, tea and horticulture value chains.

Coffee ProductivityThe productivity of coffee is estimated by the weight of cherries per tree per year. Today the biggest challenge in the coffee value chains is the low productivity in terms of the yield of cherries per tree. The average yield per tree in Rwanda is estimated at 2.6 kilos per tree per year. This could be explained by a lack or low usage of fertilizer, both mineral and organic, insufficient agronomic practices and diseases/ pests controls.In order to increase productivity, NAEB initiated different interventions such as the application of pesticides to control harmful pests and diseases in infested farms, the application of mineral and organic fertilizers, use of turnaround program to improve management, as well as governance support to private and cooperative-owned CWS so as to make profits.The application of fertilizers contributes to the maintenance of soil fertility and plant nutrients are supplied to an optimum level for sustaining the desired crop productivity.In a desire to increase the yield per tree, a fertilizer program involving NAEB, coffee growers, coffee washing stations and coffee exporters was initiated and fees were collected at export points. Fertilizer was bought and distributed to farmers. For the season 2015 A, 2,695 tons of mineral fertilizers were distributed and applied in collaboration with CEPAR and other stakeholders.

2015 MINERAL FERTILIZER DISTRIBUTION and APPLICATION

PROVINCE Quantity applied (MT)EAST 591 NORTHERN 326WEST 911SOUTH 818KGL 47TOTAL 2,695

Organic Fertilizer Production and Application

Coffee pulp, which is the reject from pulping coffee cherries, is composted to produce a very good organic fertilizer using Effective Microorganism Technologies (EM). This program involves the sensitization of washing station owners to compost coffee pulp and mucilage from coffee cherries.The overall objective is not only to have organic fertilizers, but also to clean the CWS environment by recycling the pulp and using organic fertilizer to improve the coffee productivity.At the end of May 2015, 9,440 tons of organic fertilizer was produced, exceeding the target of 9,000 tons, which was applied in the coffee farms. NAEB will continue the distribution of EM for composting the pulp from cherries collected and processed by CWS during the 2015 season.

Coffee Pest and Disease ControlCoffee pests and diseases have a very harmful effect on yield, quality and quantity of coffee cherries. Maintenance of coffee health is very important in order to achieve the desired yields. With the objective of protecting coffee quality and quantity, NAEB supports coffee farmers in controlling coffee pests and diseases by promoting IPM (Integrated Pest Management). The major pests and diseases for coffee in Rwanda are antestia, coffee berry borer, coffee leaf rust and coffee berry disease. During the month of March 2015 a survey was carried out in the western region, with emphasis on the Nyamasheke district, to gather information. Ultimately NAEB was able to assist farmers in controlling pests and diseases in the different locations where infestations occurred.

Diseases and Pest Severity

Sector Incidence (%) SeverityKanjongo 29 2Karambi 13 2Macuba 7 2Kagano 0 0Gikundamvura 5 1Nzahaha 11 2Nyakabuye 0 0

For the pest and disease management, 3,858 liters of imidacloprid insecticide was distributed and first applied to counteract the antestia bug. 5,400 kg of copper oxychloride was distributed to farmers in order to control coffee leaf rust and coffee berry disease.

Farmer Field School (FFS)

Organic fertilizer production

Province Cherries received ( MT) in season 2014

EM1 distributed. Organic fertilizer Produced Organic fertilizer applied

Western 30,744 1,315 5,355 5,355Southern 8,733 359 1624 875Eastern 9,073 365 1592 1592Northern 4,167 157 756 756Kigali 406 16 71 71 Total 53,122 2,212 9,440 9,440

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MT was produced from July to June 2014-2015. The table below summarizes the trends of coffee produced in Rwanda from July to June 2013-2014 compared to the same period during 2014-2015.

COFFEE PRODUCTION COMPARISON FOR THE FISCAL YEAR JULY-JUNE 2013-2014 & 2014-2015.

COFFEE TYPE 2013-14 (kg)

2014-15 (kg)

% change

Fully washed 6,185,810 7,496,529 21%Semi washed 8,931,100 7,022,420 -21%Triage 2,646,653 2,309,958 -13%Robusta 211,944 107,355 -49%Roasted 7,890 Total 17,975,507 16,936,262 -6%

The total coffee production for 2014-2015 was 16,936 MT, which shows an achievement of 73% of the annual target. However, in comparing between 2013-2014 and 2014-2015, there was a decrease in coffee production by 6%. This decrease is attributed to the heavy sunshine that was witnessed during the flowering period of coffee in 2014-2015.

Strategic objective 2: To enhance value and assure quality of agriculture export commodities to increase their demand and price on national, regional and international markets.This strategic objective will strive to add value and assure quality of the coffee export commodity so as to make it more competitive on regional and international markets.Diversify into roasted coffee and add more value to Rwandan coffee exports. This will enable Rwandan coffee fetch more profits and shield against price fluctuations on the international market hence improve farmers’ incomes.

Coffee Processing and CWSFrom February up until June, 2015 about 85,885 MT of cherries were processed by 216 coffee washing stations (wet mills), out of 245 CWS, at the capacity utilization rate of 95%. Unfortunately, 29 coffee washing stations were unable to operate this season due to the lack of working capital to finance the season

Improving crop husbandry practices requires improving farmers’ skills in coffee plantation management. This process suggests proximity extension services and practical training, especially those done on the fields. It was planned for FFS in coffee to benefit 72 400 farmers who would be enrolled at different intervals. For the first year 10 000 coffee farmers were trained under FFS while 25 000 more would be trained in the second phase using the same service provider, based on their performance, as it was stipulated in the contract. However, the renewal of the contract was not possible due to procurement procedures, and the project targets were reduced to 30 000 farmers following the project midterm review recommendation.

Coffee Cooperative DevelopmentCoffee cooperatives are important coffee stakeholders since they grow coffee, assist in extension services and process high quality coffee. As a government policy NAEB continued its commitment to support smallholder coffee growers’ cooperatives to improve their management and technical skills through innovative programs such as loan access, capacity building and the turnaround program, which assists in managerial and technical assistance while strengthening communities’ abilities to manage their businesses. During the fiscal year 2014/2015, a total of 20 new cooperatives were created, increasing the number to 235 cooperatives. Among them, 110 cooperatives own coffee washing stations (see Annex).

Coffee Production Performance 2014-2015The coffee industry continues to hold a good position in agricultural export commodities in acreage planted, as well as foreign exchange and domestic earnings. Produced coffee is estimated in terms of green coffee, which is obtained after transforming the fresh coffee cherries into clean green beans with 12% moisture content, ready for export or for roasting. This process involves the harvesting of red ripe cherries as well as, pulping, fermenting, washing, dry milling, hulling, cleaning, grading, storing and transporting green beans.During this fiscal year 2014-2015, the target was to produce 23,000 MT verses19, 573 MT produced previous year. Between January to December 2014 , , a production of 16,380 MT of green coffee was attained while 16,924

Provinces Total No, of CWS

Theoretical capacity of CWS (T) that operated

Cherries received (T) until 26/06/ 2015

Capacity utilization rate ( % ) of operated CWS

Total number of CWS that are operating in 2015

West 100 46,350 44,822 105 94South 74 25,150 14,955 75 58East 46 18,700 17,868 110 41North & Kigali City 25 11,650 8,240 79 23G/TOTAL 245 1,850 85,885 95 216

IMPROVING QUALITY AND VALUE ADDITION IN COFFEE

In an effort to have sufficient professionals in grading green coffee and have a pool of skills for different coffee shops and export companies, the Quality Assurance and Regulatory Unit Division organized training in cupping for Q graders and Baristas.The training was conducted at AVEGA Hall in the Rwamanagana District in three phases. The first and second phases were trained from 20th to 25th April 2015 while the 3rd group was trained between the 28th and 30th of April 2015 at the same location. This training has been provided to the coffee washing stations’ staff in charge of coffee quality control and production. Out of the 60 people invited to the training, 51, trainees attended of which 19 were women from CWS across the country.

Monitoring of Quality Standard Requirements Implementation

In maintaining the commitment to monitor coffee quality standards implementation, an inspection was done in the southern province in 58 CWS. This was done in an effort to help the coffee producers and CWS owners undertake the quality evaluation of coffee received at CWS through the coffee processing guidelines. During this visit we explained and advised of the necessary precautions and practices needed to ensure safety and the good quality of coffee from the field level to the CWS processing step. We helped and guided them on implementation of hygienic conditions at CWS during the coffee season period.

Coffee Laboratory Analysis

1,032 lots were cupped and certified this year. Fully washed (FW) accounted for 54.46%, and Semi washed (SW) accounted for 31.40%, LG 13.86%, and ROB 0.29%. This is done in compliance with established standards to ensure that Rwandan export commodities meet customers’ expectations. Of the total lots cupped, oldish and ferment defects dominated other defects due to the poor handling and processing of coffees.

Construction of Coffee Roasting Plant

In line with the National Export Strategy and the priority of the GoR to export value added products, NAEB has planned to embark on the exportation of value added coffee, especially roasted coffee. This is not only more profitable, but the product is also less exposed to price fluctuations on the international market. Through a public private partnership, a roasting plant was constructed and officially inaugurated by the Hon. Minister of Agriculture and Animal Resources in May 2015. The roasting plant has the capacity of 3000 MT per year

Tests of Basic tastes by using citric acid

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COFFEE PROMOTION AND MARKETING

Developing a national coffee brand that will act as a trademark for Rwandan coffee to improve awareness of Rwandan coffee in key markets, was one of the developed strategy. NAEB took up targeted communication initiatives. The entire communication effort was conceptualized on a basic strategy of creating a unique image for Rwandan coffee. In September the Rwandan coffee branding strategy was presented at the Specialty Coffee Association of Japan (SCAJ). This facilitated the participation of Rwandan coffee in different trade shows including the Private Sector Federation (PSF) Expo, Mulindi Agri Show, ASCA, and SCAJ.

Cup of Excellency 2014-2015 NAEB organized the 2014 Cup of Excellence competition in which the 28 best local coffees were picked and awarded out of 172 lots that were entered in the competition. In the same approach. Coffee Days were organized and covered all the four province of the country.

Coffee Exports Performance 2014-2015Rwandan coffee is predominantly an export-oriented commodity, with over 95% of the coffee produced in the country being exported, and the leftover being locally consumed. Exported coffee is firstly processed by wet mills into parchment, after which coffee is then processed into green beans by different dry mills.During the reporting period, exported volumes of green coffee decreased from 17,827 MT in 2013-2014 to 16,529 MT in 2014-2015. In terms of revenue, there was a general increase by 35% when comparing 2013-2014 and 2014-2015. This increase is normally attributed to favorable coffee prices in which the unit price per kilo in 2014-2015 was $3.9 in comparison to $2.7/kg in 2013-2014. Fully washed coffee revenue increased by 65.6% when compared to the last year and this is explained by the fact that volume of fully washed coffee increased.

Rwanda coffee export destinationsMost of the Rwandan coffees are exported to European countries whereby 42% of the coffee exported goes to Switzerland, 10% to Belgium, 15% to the United Kingdom, 19% to America, 8% to Uganda, 1% to Kenya and the remaining 5% goes to Asian countries and other importers. The following Diagram shows the major countries buying Rwandan coffee.

National Agricultural Export Development BoardP.o.Box: 104 Kigali, Tel:(250)252 575 600

Email:[email protected], www.naeb.gov.rw

Comparison between July to June 2013-2014 & 2014-2015 Coffee Exports

2013 - 2014 2014 - 2015

Coffee type Export (kg) Revenues (U$D) Average price/kg Export (kg) Revenues (U$D) Average price/kgFully-Washed (FW)

6,007,810 21,369,031 3.6 7,394,717 35,395,157 4.8

Semi-washed 8,913,900 22,694,430 2.5 7,351,620 25,218,404 3.4Triage 2,675,022 3,182,984 1.2 1,668,108 3,219,136 1.9Robusta 230,282 241,636 1 107,355 120,344 1.1Roasted 7,890 76,130 9.6TOTAL 17,827,014 47,488,081 2.7 16,529,690 64,029,171 3.9

PROJET Targets (ha)

Planted area(ha)

MUSHUBI 200 154.4MUGANZA-KIVU 255 234.3NSHILI 45 37.5KARONGI 300 310.2RUTSIRO 270 220.9NYABIHU 75 54.4Cooperatives & factories

355 289.82

TOTAL 1,500 1,301.5

Tea Seedlings Preparation

PRICE projected planned to prepare 16,101,065 seedlings for the year 2014-2015, of which 5,000,000 were meant to be used for gap filling and the rest (11,000,000) for expansion activities.However a total of 69,300,000 seedlings would have been needed in that 2014-2015 period in order to meet the expansion targets of 4,500 ha by the following period of 2015-2016. The prepared seedlings will be enough to plant 1,000 ha and do gap filling for 400 ha as COTHEGA produced more than the planned amount of seedlings.

Development of New Tea Sites for ExpansionReferring to the EDPRS II, PSTA III and the NES, the Government of Rwanda planned to develop 10,000 ha in which 5 new tea factories tobe built under phase II of the tea expansion program. This involves mobilizing the industrial bloc, which is estimated at 300-500 ha per site while farmer’s tea plantations are estimated at 1,500-1,700 ha per site.

TEA SECTORStrategic objective1: To increase farm production and productivity of the targeted agricultural export commodities.Increase in productivity and area under tea production are critical for reaching the set target for the medium term strategy that seeks to achieve export revenue of 147 Million USD by 2018.As stated in the EDPRS II, PSTA III and the NES, the government of Rwanda embarked on expansion of tea plantation by expanding the area for existing fourteen factories for about 3,862 ha, complete the on-going factory construction by 4,138 ha and create new 5 factories for a total of 10,000 ha. In this expansion, a total of 18,000 ha will be developed. NAEB will facilitate the establishment of mother nurseries, community nurseries with facilities to produce needed tea seedlings.

TEA EXPANSION

The Tea Expansion program 2012-2017 targets are to plant 18,000 ha of new tea plantations including 10,000 ha in new sites, 4,138 ha to complete the target of ongoing tea projects and 3,862 ha allocated to existing factories. At the beginning of the 2014-2015 year, NAEB target was to develop a tea plantation on 1,500 ha of land. Through NAEB/PRICE’s support, seedlings were provided farmers and mapping of new area was done by NAEB GIS department. . By the end of June 2015, the tea planted o covered 1,301.5 ha in Mushubi, Muganza, Nshili, Karongi, Rutsiro and Nyabihu.l Area Planted tea planted area

New tea plantation

Muganza kivu tea Nursery

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In order to expand tea plantation, three sites have been maintained. These are Rugabano in Karongi, and Munini and Kibeho in Nyaruguru. With the support of Southern province and Nyaruguru District together with security organs, the collection of land titles was done in those sites. 51.8% of the targeted land titles were collected and 36% of the land titles collected were paid for.

INCREASING TEA PRODUCTION AND PRODUCTIVITY

Enhancing productivity per unit area in tea plantation was found to be more useful in improving tea export crop output because it allows an efficient use of land and resources, realizes higher yields, increases net economic returns per unit area, and leads to easier canopy management suited for different cultural operations such as spray and weed control. There are different important methods in achieving productivity among different priority crops namely i) use of mineral or organic fertilizers ii) using improved varieties iii) efficient use of suitable crop management practices iv) pests and diseases management.

Management of Tea Plantation Nutrition through Fertilizer Application

Management of tea plantation productivity is mainly done through the improvement of tea crop nutrition. The harvested part of the tea, being mainly the leaf, requires a nutrition program to emphasize fertilizer formulation that improves the green leaf availability. For this, tea stakeholders have put a fertilizer fund in place through which the purchase of fertilizers is done. This fund helps stakeholders acquire fertilizers at a lower price by ordering in big quantities. Through the fertilizer fund NAEB helped organize the distribution of 6,902 Metric Tons during the year 2014-2015.

In addition to the 5,321 MT quantities of fertilizers purchased through fertilizer fund and applied, other private tea factories such as Shagasha, Mulindi and Reserve Forces applied 1,582 MT, meaning that the total realization was 115% of the target.

GREEN LEAF PRODUCTION 2014-2015

In Rwanda, tea is cultivated on about 24,000 ha mainly confined to the highland areas of the Southern Province, Western Province and Northern Province. However the productive areas are estimated to be 16,000 ha. The tea estates are predominantly held by small grower cooperatives that own approximately 75%. In 2014-2015 the Rwandan tea industry output in terms of green leaf was 108,366,744 kg compared to the 95,010,702 kg produced in 2013-2014. The increase is attributed to good

agricultural practices such as plucking, weeding, pruning and the application of fertilizers. The normal productivity levels of Rwandan tea is placed at around 6.8 MT/ha for green leaf during 2014-2015. The harvested green leaf produced was directly supplied to 14 operational tea factories for processing.

Made Tea Production 2014-2015

The annual production for the year 2014-2015 was 25,619 MT of made tea, which comprised of black CTC teas,

green tea and other specialty teas produced in Rwanda. The trend in tea production demonstrated an increase, in comparison to the production in the previous year. The increase was caused by earlier rainfall in combination with the increase of tea factories that were previously built. By the end of June 2015, the cumulative production of made tea was 25,619 MT, equivalent to 92% of the total target of the 2014-2015 fiscal year.

Tea Quality Improvement and Value Addition

Strategic objective 2: To enhance value and assure quality of agriculture export commodities to increase their demand and price on national, regional and international markets.

If the tea industry is to meet its 2018 objectives, Rwanda will therefore seek to increase added value products and reach export value added tea of 20 tons by 2018. By increasing its bulk tea exports by 37.5% and value added tea by 93% within a 5 year period, Rwanda tea sector would generate itself 160 Millions USD and achieve its target by 2018.Rwanda has the privilege of producing high quality teas in highland areas and on the upland plantations, but the share of upland production teas is still small. The quality improvement aims at promoting the high quality and uniqueness of Rwandan tea products. This is why the NAEB Quality and Regulatory Division has been implementing quality improvement programs targeting tea making processes.This was done through calibration training where tea makers from factories were going to transfer their acquired knowledge to the other tea makers in their respective tea factories.

Calibration Training for Tea Makers

The calibration training for tea makers was organized by NAEB. The training was mainly done to introduce the green tea processing techniques and share more views on how to improve on tea plucking, processing techniques and calibrate the tea makers in terms of understand the tea tasting.The training was conducted from the 20th – 22nd of October 2014, including a one-day visit to Sorwathe

Tea Factory and NAEB Headquarter Tea Laboratory where tea-tasting sessions, processing techniques and tea marketing was performed and discussed.

Production of Made Tea Grades

Primary grades are key factors determining what price the tea will be marketed for. 2014-2015 Rwanda tea production was distributed as follows: 81.44% is primary grades, 14.61% is secondary grades, 3.70% is orthodox tea and 0.06 % is green tea and special tea as illustrated in the chart below. Note that the predominant level of production of the grades PF1 and PD account for more than 59% of national production. We also note that there is a predominant level of F1 in the secondary grade category, which is 4.15%.

Tea Local SalesTea is consumed by the majority of the Rwandan population as a hot beverage on its own, or with milk and sugar. The tea consumed domestically is either branded or packaged by the tea processing factories (RTP, SORWATHE, PFUNDA, Highland Tea and GISOVU) or by private retailers who import the made tea (from Burundi) and blended tea (Mukwano and Rwenzori) for local consumption.In total, 348,609 kg of value added tea was consumed and generated revenue of 1,107,602,462 Frw which is equivalent of 1,476,803 USD.

Tea value addition is done by Sorwathe, Pfunda, Gisovu, Rwanda Tea Packers, and Highland Tea.The value added teas are mainly locally sold and include green tea (in tea bags and loose packs) and black tea (in tea bags and loose packs).From July 2014 to June 2015, the value addition achievement was at 1.3% of total made tea produced against the 2.5% that was targeted.Comparing companies that are involved in tea value addition, SORWATHE is producing more than 70% of all value added teas. More efforts are needed in order to increase value addition.

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Tea Exports Performance 2014-2015For the reporting period, tea has been the most significant contributor to agricultural export revenues. The export of tea during this period generated 61.2 M USD. The increase in revenue was due to an increase in the export of made teas as well as the world tea prices.The tea subsector was expected to generate a total of 68.6 Million USD from export. The total exported made tea was done through both direct contract sale and through auction to total 24,124 MT, which generated revenue of 61.2 Million USD from export at the average price of 2.49 USD/kg. The fiscal year performance of 2014-2015 by end of June is in the Chart below.

HORTICULTURE SECTOR

Strategic objective 1: To increase farm production and productivity of the targeted agricultural export commodities.

In the case of Horticulture, increasing productivity and production will be made through increasing area of flowers, fruits, and vegetables for export marketApart from the traditional export crops, horticulture has been identified as a promising subsector for increasing smallholder’s income as well as foreign exchanges for the national economy. One strategy adopted for increasing the horticultural output was to expand the area under floriculture, fruits and vegetables. Priority horticultural crops under this component were roses and summer flowers, a number of fruit species including avocado, banana, pineapple, passion fruit, tree tomatoes, and a variety of vegetables (French beans, chilli pepper, onions, snow peas, sugar snaps, etc.). The development of these crops will contribute to various facets of economic development such as reduction of the trade deficit, creation of new jobs and export diversification.Horticultural crops are an important part of the agricultural sector in Rwanda. In the fiscal year 2013-2014, horticulture accounted for around 5% of the country’s agricultural export earnings, though occupying only 6% of the total arable land and providing 8.3% of the total agricultural production. Production of horticultural crops may be labor-intensive, but several horticulture crops are able to offer viable economic alternatives for the grower, especially with the development of external markets for Rwandan horticulture produce. Today the development of commercial horticultural production is yet to take off, though is planned to contribute to the diversification of export production. The plan for 2014-2015 was to facilitate a farmer’s access to quality planting material, develop a flower park, facilitate investors in accessing irrigated sites and promote Rwandan products in both local and international trade fairs.

Increase of Production of Horticulture Crops Fruits ProductionDuring the reported year, NAEB put forth more effort to increase the area under plantation, especially for mangoes (95,560 seedlings that covered 477.8 ha) and avocadoes (75,755 seedlings that covered 378.7 ha). The mangoes are mainly meant for import substitution as the country is purely a net importer of this fruit, yet the

climate and soil condition can allow for good growth. Avocado is developed mainly for the EU and Middle East export markets. Other fruits that NAEB focused on include macadamia nuts and pineapples. Though important fruits like passion fruits and tamarillos have faced serious disease pressure, during the reported year NAEB supported their development by working with the private company FAIM that produces virus-free plantlets. Almost 10 ha were established in the Eastern Province and 9 demonstration plots were established in the Western and Northern Provinces. The results have shown that these newly introduced varieties adapted to conditions in the Eastern Province, while trials in the Northern and Western Provinces have shown mixed results, thus casting doubts on the adaptability of these varieties in those climates. Trials will continue on these two crops.

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Fruits Seedling DistributionDistrict Sector Site

Mango Avocado CitrusRUSIZI MUGANZA GAKONI 12,000 6,000 0RULINDO SHYORONGI 4,250 20,000 0KAYONZA RWINKWAVU NKONDO 6,500 6,600 2,974BUGESERA MAYANGE KAGENGE 6,000 4,400 0RUHANGO KINAZI BULIMA 4,052 3,000 0RUHANGO MBUYE NYAKAREKARE 5,039 1,000 0NYAGATARE RWIMIYAGA KIREBE 6,790 3,342 3,000RUHANGO NTONGWE NYAGISOZI 6,600 7,000 0GISAGARA SAVE GATOKI 8,600 5,600 8,000Total 56,831 60,342 13,974

Vegetable Production

During this fiscal year, the various activities were carried out in a vegetable cluster. In terms of vegetables production, the area planted with vegetables in season C 2014 and A&B 2015 reached 4,240.31 ha. The production from this area was estimated to be 70,080.45 MT. The cumulative area planted was 996.86 ha in season C 2014, 754.95 ha in early season A 2015 and 2488.5 ha in late season A and whole season B 2015.

The Summary of Vegetable Crops Planted

COMMODITY Q1 (season C 2014)

Q2 (early season A 2015)

Q3 (late season A &B 2015)

Total acreage (ha)

Yield (MT/ha)

Total production (MT)

ONION 419.9 239.5 400 1059.4 15 15891CARROTS 113.46 104.5 513 730.96 20 14619.2CABBAGE 147.86 146.5 619 913.36 20 18267.2FRENCH BEANS 60.7 69.5 56 186.2 5 931SWEET PEPPER 3.89 6 10 19.89 5 99.45EGGPLANT 122.8 106 482 710.8 20 14216TOMATO 114.8 76 405.5 596.3 10 5963HOT PEPPER 13.45 6.95 3 23.4 4 93.6TOTAL 996.86 754.95 2488.5 4,240.31 70,080.45

Distributed Seedlings

Flower Production

The Rwandan floricultural export sector is still in its early stage with a lack of knowledge and experience about production and technical and marketing issues related to flower export. NAEB exploring to improve activities related to flower production. The flower park project was established to facilitate investment in the floriculture industry. Gishari sector (Rwamagana District) was identified to have ideal conditions in terms of altitude, access to sufficient water and its prime location nearby Kigali. The project aims to be implemented in two phases on land estimated to be 35 ha.

Summer Flowers ProductionThere are cooperatives currently growing flowers in order to increase production for both the local and international markets. Summer flowers production was on 20 ha and the area has increased to 48 ha, mainly in the high altitude areas of the Northern, Western and Southern Provinces around the main districts of Rubavu, Rulindo, Musanze, Gicumbi, Huye, Nyanza and Gisagara.

Mapping New Area for Flower ProductionIn order to increase the area of flower production, NAEB will continue to sensitize flower growers on improving the use of clean flower planting materials. 5 varieties of flower planting materials will be distributed to the farmers to prepare the next flower shipment.To identify new areas for flower production, mapping of 17 ha was done in different areas of the country.

Gishali Flower Park Development The development of flower park infrastructure requires land leveling, infrastructure, a greenhouse, an irrigation and spray system, a post-harvest facility and other required facilities.

The major activities that are going on are civil works and building construction. It is estimated that the leveling of the site and construction of buildings is approximately at 81% of completion.In the flower subsector NAEB plans to develop the GISHALI flower park by completing the construction of green houses on 2 ha of land, producing 850,000 stems of roses and expanding production infrastructure to 10 ha of the 35 ha available. To do this, NAEB entered into a partnership with EAG to form a company registered under the name of Bella flower Ltd. These efforts are expected to achieve a turnover of 850,000 stems of flowers to be exported to the international market.

Farmer Field Schools in Horticulture With the support of FAIM Africa, training that involved 8 cooperatives was conducted and taught them how to properly manage fruits and vegetables in the field through practices such as pruning and fencing gardens in order to avoid contamination.

Value Addition Improvement for Horticulture Produce

Strategic objective 1: To enhance value and assure quality of agriculture export commodities to increase their demand and price on national, regional and international markets.

The main strategy to be implemented to achieve this objectives will be related to disseminate market information (price, quantities needed, quality, transport availability); developing a functional cold chain system ensuring cooling, grading, sorting and storing and facilitating and supporting investments in post-harvest and marketing infrastructure, new technologies, and promoting farming practices whichEnsures that the product pick-up and delivery are done in

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conditions that meet customers’ quality requirements and allow appropriate planning for planting.

The development of horticulture requires that the increase in productivity goes hand in hand with the post-harvest infrastructure in the country. The National Agriculture Export Development Board is providing technical and financial support for construction of post-harvest infrastructure such as collection centers, pack houses and cold rooms for horticultural crops.Currently, NAEB has 5 operational collection centers. In addition to cold rooms, the collection centers of Musanze and Kamonyi have been equipped with 5 grading tables, 2 waste bins, 2 hand pallets, 20 wooden pallets, a 50m long water suction hose and a 16kVa back up power generator for each. This equipment was supplied and installed through the PRICE budget line.A Memorandum of Understanding (MoU) has been signed between NAEB and the Districts of Musanze and Kamonyi for management responsibility. These respective districts agreed to introduce business operations through private partnership. Rulindo collection center is the latest to be completed, with basic equipment installed including a 10MT cold room, a 16kVa backup power generator and 5 grading tables. The District has already signed a 10-year contract with an Indian business company to operate the collection center, and organize a supply chain of fresh produce from nearby farmers to Kigali city markets. Soon the facility will start business operations when they have gained access to a line of tap water to be supplied by the district. This MoU was a tri-partite agreement between NAEB, Rulindo District and the Indian Investor.

MAINTENANCE AND CALIBRATION FOR NAEB COLD CHAIN FACILITIES In order to maintain safety and smooth operations for fresh products to be exported, cold chain facilities are very important in the logistical formation of the supply chain.

These facilities need to be serviced and maintained, to ensure safety on daily basis. For this purpose, an annual framework contract for the maintenance and calibration of cold chain facilities under NAEB was awarded to MBS Ltd. The contract was signed and they have delivered maintenance services since then, especially for the airport location. Concerning calibration, the service provider presented a work plan for June, July and August 2015, which was submitted to RSB, as an authorized institution to issue calibration certificate. Currently, one of the four cold rooms at the airport has been certified, while the others are undergoing the process. The calibration plan also includes the cold rooms at the horticultural collection centers.Since the contract was a service contract, the issue of the provision of spare parts, either for repair or replacement, is still a major constraint. A small store for emergency spare parts should be available at NAEB, to limit time spent during procurement procedures.

Horticulture Production and MarketingDifferent approaches have been attempted to market Rwandan produce, however, it has been noted that there is still much to be done in order for producers to meet the requested volumes and quality standards expected by exporters. Fruit and vegetable growers have not yet been able to sustain volumes requested by buyers as they produce under rain-fed conditions. Organizing the horticulture value chain, and progressively upgrading informal trading into formal trading, will help achieve and sustain volumes. During the fiscal year of 2014-2015, various promotional events were carried out to highlight horticultural products. These events included: IFTEX Holland, Rwanda Flowers Exhibition on Valentine’s Day, Rwanda Horticulture Day, Agri-tech Zambia, Rwanda’s Agri-show, and the Netherlands’ Horticulture Trade Mission. In the framework of negotiating farming contracts market linkages were created. The market linkages were initiated between avocado farmers in Bugesera and Muhanga with

the East Africa Company, and eastern avocado producers were linked with Continental Fresh Produce Ltd from Kenya. Unfortunately, the quantity and quality levels were unable to satisfy the market requirement

Fruits & Vegetable Export PerformanceFor the fiscal year of 2014-2015 NAEB planned to achieve 39,000 MT of exports which would generate 11.8 Million USD. In that time, NAEB made an effort to develop exports by concentrating on high value crops. Those include summer flowers, snow peas, sugar snaps, French beans and Asian vegetables. The exported volumes reached 21,668 MT, 56% of the target set.The majority of exported products were vegetables, which account for 93% of the total exported volumes. The table below summarizes the progress in terms of the export of horticultural products.

EXPORTS OF FRUITS AND VEGETABLES 2014-2015 Horticulture export July 2014-June 2015 Horticulture export July 2013-June 2014

Quantities in kg

Revenues in USD

Average price USD/kg

Quantities in kg

Revenues in USD

Average price USD/kg

July 838,270

375,581

0.45

2,021,912

1,241,947

0.61

August 1,000,706

344,135

0.34

2,224,221

1,148,991

0.52

September 965,713

334,715

0.35

1,803,836

591,934

0.33

October 895,700

813,811

0.91

1,803,494

1,044,498

0.58

November 654,802

309,976

0.47

2,600,355

1,139,453

0.44

December 673,914

336,310

0.50

4,199,840

1,299,445

0.31

Jan 2,761,158

691,538

0.25

3,410,581

401,016

0.12

Feb 2,466,581

497,214

0.20

1,173,093

477,236

0.41

March 4,118,906

864,821

0.21

862,477

394,727

0.46

April 3,877,067

762,718

0.20

955,422

476,408

0.50

May 3,415,699

731,228

0.21

1,065,120

452,689

0.43

June 1,750,067

615,165

0.35

1,146,070

392,038

0.34

Total 23,418,584

6,677,064

0.29

23,266,421

9,060,382

0.39

The export of horticultural crops from Rwanda for the period of June to July 2014-2015 registered a significant decrease in volumes and revenues. Collected data indicates that during the review period, the total fruits and vegetables exported decreased by 0.7% in volumes and 26% in revenues. The exported volumes totaled 23,418,584 kg and generated 6,677,064 USD.

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PYRETHRUMStrategic objective1: To increase farm production and productivity of the targeted agricultural export commodities.

Pyrethrum farming which has around 15,000 subsistence level farmers in the Northern Province, and can be enhanced through an initial focus on growers, rotation of pyrethrum with other CIP crops and their practices of drying and transport of flowers. The target is to increase the volume of the refined product from current 20 MT in 2013 to 105 MT in 2018 and increase export revenue from current 6, 200,000 USD to 28, 000,000 USD in 2018.The pyrethrum sector aimed to produce 30 MT of refined pyrethrum products and rejuvenate and rotate pyrethrum production with other crops on 3200 ha. The objective was also to expand pyrethrum production on 700 ha of land in the former Gishwati area with a nursery of 70 ha, and to achieve 9.4 Million USD in revenue from the sale of pyrethrum products. The main activities consisted of nursery preparation and the expansion of area under production.

Seedling PreparationSeedling preparation on 62.9 ha, mainly in Gishwati (26.7 ha), Kabatwa (20 ha), and Kinigi (5 ha) was done and the farmers were mobilized in the hors-paysanat to rotate Irish potatoes and pyrethrum. A study tour was organized for Gishwati farmers to visit and learn more about pyrethrum production from Kinigi Zone farmers, and to better understand its role in soil fertility improvement and its profitability.

ChallengesThe seedlings became overly mature in the nursery due to the resistance of Gishwati farmers to transplant them. This issue was exacerbated by the Irish potato prices falling, which caused farmers to keep Irish potatoes on their land while waiting for the prices to improve.

Pyrethrum Expansion• In total 309.81 ha of new land was planted (142.15 ha planted in Gishwati and 167.66 ha outside of the Gishwati Zone)• Farmers were mobilized and the cumulative rotated and planted area reached 3,337.26 ha in the existing pyrethrum production zones (paysanat)• 1,378 growers have been trained on pyrethrum production• 15 FFS were established in existing production zones

• Farmers were supported with 30 MT of Single Super Phosphate fertilizer to increase production and PY content

Pyrethrum Export Performance 2014-2015The performance of pyrethrum exports was affected by a

lack of market for the refined product, with only 9,864kg having been exported and 1,793,782 USD being generated in revenue from July to June 2014-2015. For pyrethrum, the annual export value target was not achieved due to the following reasons:• The prices on the international market fell from 250 USD to 185 USD/kg for Pyrethrum Extract Pale 50% w/w PBK which accounts for a lot of SOPYRWA’s exports.• Severe competition from other pyrethrum producers such as those in Australia.• Tough regulations to comply with to access the market such as product registration, market license, etc. To overcome this price-related challenge, SOPYRWA is working towards:• Value addition for local and regional markets. There is a range of new pyrethrum products that will pass through trials to test their efficacy in controlling pests and diseases.• Apply for the company’s product (labels) registration and aim to meet the requirements of the Environmental Protection Authority of USA.• Register the products in European markets.• Remodel the distribution channel to include the use of agents in the USA and European markets.

Development of New Export Chains.Land Mobilization and Expansion of Stevia• In the framework of land mobilization for Stevia planting, more than 539ha have been mobilized at various sites with irrigation facilities as illustrated by the table below.

Mobilized Sites, Preparation and Planting Process

Site District Base line/planted area (ha)

Available land per site (ha)

Cumulative Area prepared (ha)

Cumulative Area planted per site (ha)

Area prepared July 2014-June 2015 (ha)

Area planted July 2014-June 2015 (ha)

Ngoma Rulindo 42 100.0 62.0 52.0 20.0 10.0Nyamugari Kirehe 0 46.0 5.0 0.5 5.0 0.5Rurambi Bugesera 0 300.0 0.0 0.0 0.0 0.0Nyaruguru Nyaruguru 0 8.0 5.0 3.8 5.0 3.8Musha Rwamagana 0 3.5 3.0 2.0 3.0 2.0Nyamasambu Rwamagana 0 1.5 0.8 0.8 0.8 0.8Rwabicuma Nyanza 0 50.0 0.0 0.0 0.0 0.0Rusheshe Kicukiro 0 30.0 0.0 0.0 0.0 0.0TOTAL 43 539.0 75.8 59.1 33.8 17.1

The process of land mobilization is ongoing in order to reach 1,000 ha while emphasizing land preparation and the planting of the identified sites’ nucleus farms for STEVIALIFE LTD and out growers.

Essential oils development

Strategic objective1: To increase farm production and productivity of the targeted agricultural export commodities.Inputs and raw materials are one the major component of any production process. In Rwanda, there is an acute lack of quality inputs especially for already identified value chains as potential. These include Geranium, patchouli and Stevia crops. Developing capacities of multiplication of planting materials of these commodities is of vital roles in developing targeted crops.With the support of PRICE Project, the essential oil production for export was to increase from 440 kg to at least 1.5 T (essential oil from Geranium, Lemon grass, Patchouli, Tagetes and other potential oil crops).This would be achieved through the following support activities: production and planting of 660,000 Geranium and 500,000 Patchouli seedlings; acquisition of distillation facilities for essential oils; construction of drying sheds for patchouli and geranium; support to geranium organic certification (coaching services); support to extension services; training of farmers; Identification of other essential oils crops with export potentials.

Production of Geranium seedlingsThere are 510,000 Geranium seedlings produced by Ngoma Hills and planted in Nyamasheke District. 150,000 Geranium seedlings are produced by IKIREZI Natural Products Ltd and planted in Nyaruguru and Nyamasheke Districts.80.45% of total produced seedlings were planted in Rangiro sector of Nyamasheke while the remaining portion was planted in Ruheru sector of Nyaruguru district.

Production of 500,000 Patchouli seedlings

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Out of 500,000 patchouli seedlings that were planned to be produced and planted, only 184,000 seedlings were produced and planted:30,000 seedlings were produced by Patchouli community and planted in Rwimbogo sector of Rusizi district, 144,000 seedlings were produced by Patchouli Community in Rugera sector of Nyabihu while 10,000 seedlings were produced by Patchouli Community in Mpanga sector of KIREHE district. Some of the reasons of not producing all targeted number of Patchouli seedlings included limited availability of planting materials and limited financial capacity of most of involved farmers.

Production and export achieved Although, some of planned activities were not fully executed due to afore-mentioned delay and constraints, some interventions were carried in order to ensure postharvest handling of the harvested patchouli leaves. Also advice was provided for market linkages between farmers, local processor and exporters of Essential oil.

Export of Diversified Livestock and crops productsLivestock and crops products are also increasingly contributing to agricultural exports. Livestock products, cereals and grains are some areas of export diversification. Under livestock chain it was expected that products such as milk and dairy products, hides and skins, and meat generate 51 Million USD from exports. As it can be found in the figure below, export of livestock products contributed 64 Million USD in export earnings from July- June 2014-2015. The export of livestock products decreased by 0.6% when

compared to the previous year. In terms of revenues, the exports of diversified products are dominated by cereals which, as shown on the table below increased by 59%. The general increase of revenues from the new export crops is 60%.

Export Revenues of the other exportable products

Product July-June 2013-2014 Export (USD)

July-June 2014-2015 Export (USD)

%change

Cereals 28,065,669 44,533,549 59%Banana 566,332 1,025,168 81%Pulses 8,783,155 7,095,972 -19%Roots &Tubers 2,351,849 11,169,360 375%Total 39,767,004 63,824,049 60%

NAEB SUPPORT SERVICES Strategic objective 4: Coordination and strengthen the capacity of NAEB and agricultural export support institutions.The organization and coordination of the agricultural export industry at central and decentralized levels remain critical challenges to be addressed for the successful implementation of NAEB strategy. This call for NAEB to enhance its own capacity and that of the industry through: Provision of adequate short and long term trainings to staff and their development and strengthen the performance management framework, establish a sound monitoring and evaluation framework and enhance good corporate governance, Improve baseline data, and legislation to support agricultural export development

Status of NAEB staff

PARMANENT STAFF

CONTRACTUAL STAFF

TOTAL % Male % Female

NAEB 81 16 97 56% 44%NAEB/PRICE 13 13 54% 46%CFC PROJECT 1 1 100% TOTAL 81 30 111 55% 45%

During this financial year NAEB recruited 17 staffs where 13 are permanent staffs and 4 are contractual.

BUDGET EXECUTIONThe budget provided by MINECOFIN was realized at the rate of 73.32%, while NAEB own revenues were collected at 95.20%, and grants from CFC Project were 46.48% of annual targets. Internal revenues generated are principally composed of proceeds from Coffee export fees, and revenues from tea green leaf sales, house renting and other miscellaneous income. Green leaves sold are produced in Karongi Tea Project, Muganza Tea Project and Rutsiro Tea Project

BUDGET EXECUTION STATUS OF THE GOVERNMENT ALLOCATION 2014-2015

BUDGET LINES Budget 2014 - 2015 Execution July14-June 15 Execution in%Externally financed projects 85,791,140 39,874,843 46.481. CFC Project 85,791,140 39,874,843 46.48Transfers from MINECOFIN

5,109,081,578 3,746,198,761 73.32

Coffee Export fees 642,331,880 533,128,152 83.00Roasted Coffee 5,129,293 6,435,636 107.27Rent of residential houses 21,412,000 40,455,283 188.94Fixed assets disposal 120,000,000 80,445,540 67.04Other revenues and miscellaneous income

173,874,392 256,115,187 148.04

REVENUES BUDGETED 2014 - 2015

6,157,620,283 4,702,653,401 76.37

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ConclusionDuring this year, production activities were oriented mainly on expansion of the area under priority crops. In order to increase acreage under different export value chains, seedlings were prepared and planted. Increasing productivity was also enhanced by increasing the use of mineral and organic fertilizers in both tea and coffee, also land identification and mapping were done in both tea and coffee for new expansion.The exports of value chain during this year generated 272.46 million USD of which both coffee and diversified daily products accounts for 26% each. Currently diversified products are showing positive trend in terms of exports compared to traditional cash crops.During this fiscal year the market trend in terms of prices for coffee and tea were favorable where the average price for coffee was 3.9 USD/kg while tea it was 2.3 USD/kg, however the market for pyrethrum is still a challenge where the price dropped from 250 USD/kg to 185 USD/kg though much efforts are being done in collaboration with Sopyrwa.

ANNEX NAEB ACTION PLAN 2015-2016

Annual Output

Indicators

Baseline

Targets Activities to Deliver output

Budget (Rwf)

Increased co�ee production through increasing productivity from 2.4kg/tree to 2.6kg/tree,fully washed co�ee from 42% to 50% and acreage from 55,000ha to 56,500ha.

Volume of green co�ee produced

16,378 MT

26,363MT : Q1 :13,363MT Q2:13,000MT Q3: NA Q4: NA

Acquisition and application of 4500MT of mineral fertilizers

550,000,000

Control of pests and diseases (follow up and purchase of pesticides)

150,000,000

Capacity building of 20,000 co�ee farmers through FFS

774,859,600

Support co�ee research activities

106,000,000

Provide incentives to farmers and mobilize them in good co�ee husbandry

21,253,320

Additional acreage under co�ee plantation

55000 ha 56000 ha Q1: NA Q2:55,500 ha Q3:56,000 ha Q4: 56500 ha cumulatively

Produce co�ee seedlings to cover 1,500ha

216,680,000

Support the expansion program for co�ee plantations

752,147,000

Mobilize Farmers to plant seedlings

Increased fully washed co�ee from 42 to 50% and seek new market to generated export revenues of 76 Million USD

% of fully washed co�ee produced, -Revenues generated

Baseline: 59,677,998MUSD

Q1 -Q4:50% 76M USD Q1:29MUSD Q2:29MUSD Q3:10.MUSD Q4:8MUSD

Increase production of fully washed from 41.6 to 50%

21,055,560

Conduct turn around program for CWS cooperatives to improve their management and operations

406,717,000

support co�ee quality development and organic conversion process

73,517,000

Conduct promotional and marketing programs for Rwandan co�ee

50,121,359

OUTCOME ONE: Increased growth of co�ee exports by 28% to reach $ 76 million and tea by 43% to reach $ 73.4 million

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30 31NAEB Annual Report 2014 - 2015 NAEB Annual Report 2014 - 2015

Annual Output

Indicators

Baseline

Targets Activities to Deliver output

Budget (Rwf)

Support the promotion of new Rwandan co�ee Brand in export markets

90,923,000

Participate in co�ee international exhibition ( SCAJ,SCAA,AFCA)

97,000,000

support Value chain governance

87,326,000

Reward Cup of Excellence and Reward Cup of Excellence and CWS ranking

50,000,000

Export commodities pro�ling 50,000,000

Increase the local consumption of co�ee from 0.6 % up to 1%

Conduct market study and promotional programs

39,482,080

Subtotal Co�ee 3,507,079,919

Increased tea production through increasing productivity from 6.8MT/ha to 7MT /ha and acreage from25,500 ha to 26,500 ha

Volume of tea produced and exported (MT)

24779 31047MT Q1: 5,607 Q2: 8228 Q3:8,933 Q4:8,279

Monitor implementation of MOU’s between Cooperatives and Tea factories to increase productivity of plantations

0

Support cooperatives through provision of inputs for existing plantations and cooperatives and extension services

586,933,000

Technical support for research, innovation and value chain development

151,337,000

Capacity building of 4700 tea growers through FFS

176,750,000

additional acreage under tea plantation

25,500 26,500 ha Q1:NA Q2:26000 Q3:26,500 Q4:26,500 cumulatively

Facilitate cooperatives the distribution and planting of seedlings to cover 1000ha

1,793,857,999

Develop 15,400,000 seedlings for Gap �lling

545,105,000

Expropriate the land for tea planting on 816 ha in Munini and Kibeho sites and Rugabano on 438 ha in Rugabano and feasibility study for Cyato (1900 ha) .

3,479,993,259

Mobilize and support outgrowers to plant 3415 ha in Munini and Kibeho

0

Annual Output

Indicators

Baseline

Targets Activities to Deliver output

Budget (Rwf)

Resettlement of tea growers in new expansion zones for 290 households

1,217,368,595

Implement a livelihood program for resettled farmers for 290 families

315,000,000

Implemented promotional programs for Rwandan tea to seek new market to generated export revenues of 73 Million USD

Revenues generated from the Rwandan tea The Rwandan tea brand is available

Baseline: 51,758,341MUSD

73.4MUSD Q1:13.3MUSD Q2: 19.5 MUSD Q3: 21.1MUSD Q4:19.6 MUSD Q1 -Q4: Tea brand is launched

Calibration training for tea makers

25,000,000

Conduct promotional programs for Rwandan tea in export markets

34,930,715

Mobilize new tea shops for local market

19,095,306

Support Branding , innovation and organization Rwandan Tea

9,725,000

Subtotal Tea 8,355,995,874

An accelerating horticulture development initiatives in production poles to structure the supply resulting in consistency of volume and quality for fresh fruits and vegetables

MT of exported horticulture product exported (fruits, vegetables and �owers);

23,154MT

25,556 MT Q1:3700 MT, Q2:5,50 0 MT, Q3:8700 MT, Q4:4656 MT

Land acquisition for development of nucleus farms

533,000,000

Training of farmers on maintenance, prevention & control of Pest & disease.

16,000,000

Hiring international service provider to provide technical Assistance for innovation and strategic development

37,601,000

Prepare 200,000 seedlings of avocado to cover 1,000ha and 200,000 of mango to cover 1000 ha and summer �ower planting material

204,135,000

Support the Capacity building of farmers , cooperatives and companies

21,000,000

Support research linked with priority horticultural crops/value chains through MoU with research institutions

52,000,000

A promotional Number Baseline: 12 MUSD Facilitate access to logistics facilities and equipment

50,000,000

OUTCOME TWO: Increased growth of non-traditional exports by 34% to reach $ 12 million from Fruits and vegetables, $ 300,000 from �owers and 107 $ million from other agricultural export

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Annual Output

Indicators

Baseline

Targets Activities to Deliver output

Budget (Rwf)

campaign for Rwandan horticultural products results in 12 Millions of export revenues

of exporters facilitated to export

5,139,374MUSD

Q1: 2.0MUSD Q2: 2.9MUSD Q3: 4.6MUSD Q4:2.5MUSD

Capacity building of farmers , cooperatives and companies

5,600,000

Follow up and Development of out-grower schemes, Promote and support BPs involved in Export

20,493,000

Business development services (Hort. Production poles Facilitators, motorcycles, operating costs)

Market research, analysis and Participation in Trade fairs and exhibitions (WFP exhibition Dubai)

11,000,000

Development of Kigali wholesale market

560,000,000

Expertise, market promotion and multi-stakeholders engagement (study tours, postharvest equipments, packaging materials, extension materials)

25,300,000

Support to Rwanda Horticulture interprofessional organization, unions and federations in capacity building

34,015,000

Sub Total fruits, vegetables and summer �owers 1,570,144,000

Pilot �ower park manages to structure the production of �owers and demand resulting in export of 3,402,000 stems

Revenues generated from export of �owers and Number of produced stems of �ower

15000 stems

300,000USD Q1: 0 Q2: 0 Q3:132,451USD Q4:167,549USD 3,402,000 stems produced Q1:0 Q2: 0 Q3: 1,502,000 stems Q4:1,900,000 stems

Support the development and service of production farms for exports

360,000,000

Land acquisition (65 ha) and mobilization of investors

18,000,000

20 ha under production in Gishali (Bella Flowers)

10,000,000

Follow up 9,800,000

Subtotal 397,800,000 Sub Total Horticulture 1,967,944,000 Volume of Volume 1,100 36 MT Acquisition of seeds to prepare

50 ha of nursery 5,500,000

Annual Output

Indicators

Baseline

Targets Activities to Deliver output

Budget (Rwf)

exported pyrethrum products increased through expansion of acreage, a rotational program of pyrethrum with other crops and promotional activities

of re�ned pyrethrum products produced and revenues generated

MT Q1: 12 Q2: 12 Q3: 6 Q4: 6 USD 9.4 Q1: USD 3.1 M Q2: USD 3.4 M Q3:USD 1.35 M Q4: USD 1.6 M

Support farmers to produce seedlings to cover new 500 ha

75,000,000

land identi�cation and farmers mobilization

2,500,000

Sensitize and train farmers on good agricultural practices, seeds & seedlings production and crop management including crop rotation between pyrethrum and irish potato

5,000,000

Construction of two (2) dryers 35,300,000

Follow up and Monitoring of postharvest activities

Support Market research and promotion of re�ned and value added pyrethrum products

10,000,000

New agri-export products promoted through expansion of acreage under stevia and essential oil crops

Number of new ha planted with stevia

62.5ha 518 ha Q1:100 ha, Q2:150 ha , Q3: 143 ha, Q4 : 125 ha

Land and farmers mobilization for stevia crop

1,950,000

Support outgrowers/farmers to produce stevia seedlings

40,000,000

follow up, Monitoring and stevia crop awareness

1,000,000

MT of essential oil exported

1.03MT 1.3MT Q1:0.234 MT, Q2:0.351 MT, Q3:0.3575 MT, Q4:0.3575 MT

Land and farmers mobilization ; 0 Support producers to produce and acquire 700,000 patchouli seedlings and 700,000 geranium seedlings

44,110,000

Support producers, Capacity building and extension services for 9 cooperatives and 3 processors;

35,299,000

Support research and expertize development for essential oils

10,500,000

Support farmers to acquire distillation machines

10,800,000

Support farmers to establish �eld drying shades

8,702,000

support to quality tests through acquisition of GC's accessories & consumables

6,000,000

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Annual Output

Indicators

Baseline

Targets Activities to Deliver output

Budget (Rwf)

and maintenance

Market linkage 9,800,000

Organized

exporters of emerging animal and livestock products into umbrella organizations

1 umbrella organization

Q1 -Q4: 3 umbrella organizations

Organize exporters in commodity based organizations/umbrella

0

Support exporters on market research & linkages (Exploration, exhibitions, seminars, trainings, sending samples, etc) and marketing promotion

18,500,000

Preparation of Api-Expo 2016

136,950,000

Support to certi�cation and standards compliance

31,500,000

Monitor the exports procedures of non-traditional crop products export

5,000,000

Subtotal 497,911,000 Sub Total Diversi�cation/New value chains 844,055,000

Coordinated agricultural export activities Wages and Salaries 1,210,404,807 Operating costs 912,471,280 Sub Total Recurrent Budget 2,122,876,086

TOTAL BUDGET 16,450,807,229

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36 NAEB Annual Report 2014 - 2015

National Agricultural Export Development Board (NAEB)P.O. Box 104 Kigali – Rwanda, Phone: +250 0252 57 56 0

E-mail: [email protected], website: www.naeb.gov.rw