Farm Operation Management Assignment – 2nd Group. PVH

FACULTY OF AGRICULTURE DEPARTMENT OF CROP SCIENCE FARM OPERATION MANAGEMENT COURSE 2nd Year & Ing. 1 Classes

SUBJECT: Input supply system for Flower cultivation

2nd Group

Farm Operation Management Assignment – 2nd Group. PVH

1. HABINEZA Jean Claude 06/175312. HAKIZIMANA Emmanuel 07/199183. HARERIMANA Polyphile 08/212424. HAVUGIMANA Ernest 07/196095. HAVUGIMANA Théodore 07/204726. HIRWA Sandrine 06/178137. HIRWANDAME Celestin 06/170578. IRADUKUNDA Yvette 08/217599. ISHIMWE Rodrigue 08/2114210. ITURINDE Marie Aimée 08/21210

Lecturer: Mr. SINDAMBIWE Pierre

Horticulture (Latin hortus,”garden”; cultura,”cultivation”), science and art of growing fruits, vegetables, flowers, shrubs, and trees. Horticulture originally meant the practice of gardening and, by extension, now means the cultivation of plants once grown in gardens. In contrast, the term agriculture, by derivation, referred to more open forms of culture such as the production of grains and grasses, known as agronomic crops, which are cultivated on a large scale. The original distinctions have been so blurred that many crops formerly considered either agronomic or horticultural are now categorized sometimes in one field, sometimes in the other, depending on the intended use of the crop. Thus a plant grown for home consumption may be called horticultural; the same plant cultivated for forage is regarded as an agronomic crop.

Horticulture includes the growing of fruit (especially tree fruits), known as pomology; production of vegetable crops, called olericulture; production of flowers, termed floriculture; and ornamental horticulture, known also as landscape gardening, which includes the maintenance and design of home grounds, public gardens and parks, private estates, botanical gardens, and recreational areas such as golf courses, football fields, and baseball diamonds. (Encarta, 2008)

In its Vision 2020 plan, Rwanda set ambitious goals for its development. Between 2000 and 2020, the country would like to grow its per capita GDP from $250 to $900, which implies that the overall economy needs to expand by over 600%. Given its potential to contribute to Rwanda’s export diversification, horticulture has been identified as a priority export sector.

Horticulture is a job-intensive and investment-attracting industry and this will generate jobs to a large proportion of Rwandans and provide foreign currencies to the country. Besides economic receipts and jobs, other horticulture related benefits include improving people’s nutrition situation, creating a better image for Rwanda, encouraging Private-Public Sector partnerships in horticulture-related industries, and generating public awareness for the industry.

In this assignment, we are going to limit ourselves on the production of flowers as it is our subject. The input supply theory and its description are going to be viewed with all categories of transaction, activities and items involved and based on constraints and opportunities available, craft competitive strategies to make value addition and increase the profitability of flowers on the markets by improving its supply management.

The input supply theory which involves the contribution to something, especially comments or suggestions and efforts made to the well performance of the flowers cultivation without forgetting the financial status involved inside, all is going to be detailed in the following pages.

The main part of horticulture which is going to be dealt with here is the floriculture on the side of

Farm Operation Management Assignment – 2nd Group. PVH

INTRODUCTION

Exploration of input supply theory and description of flower cultivation

exportation purpose of growing step because this one is the most important one which has got more opportunities and has got social economic impact in any given country.

Here follows the different methods that someone can use in order to grow flowers.

1. Preparation of the soil. Whether you are direct-seeding an outdoor flower bed, transplanting seedlings, or starting seeds indoors, you need to prepare your soil thoroughly. To start seeds indoors, this may be as simple as buying a good quality potting soil and scooping it into little compartments in a seedling tray. For an outdoor bed, you'll need to remove the sod, if necessary, then dig (and double-dig) the soil until it is fine and loose. Next, add a generous amount of compost or organic fertilizer and work it into the top few inches of soil. This step is particularly important for perennial flowers, because they will be living in the same soil for many years.

2. Knowing the requirements of flowers. Some flowers become quite large, and so you must space them some distance apart in your flower bed. Others don't mind being crowded, and can be planted very closely. Flowers also differ in the amount of sunlight they prefer. Plant impatiens in a flower bed that receives direct sunlight for eight hours a day, and you'll have very unhappy plants. On the other hand, plant sunflowers in the same spot, and you'll have eight-foot-tall giants in a matter of weeks. Some flowers may also have preferences regarding the type of soil in which they are planted -- clay vs. silt, silt vs. sand, etc.

3. Plant, or transplant, carefully. When you've chosen an appropriate spot for your flowers and have prepared the soil, dig a hole that is slightly bigger and deeper than the root ball of your plant. Gently tease out the roots of the plant if they are root-bound. Place the plant in the prepared hole, then fill in the reserved soil around it. Tamp it down firmly, but don't pack it. Add more soil, if needed, until the root ball of the plant is planted just a bit deeper than it was in the pot. If you're planting seeds, dig a hole that is the recommended depth, then place the soil over the seed and firm it slightly. If the seeds need light to germinate, do not cover them with soil -- just press them into the soil lightly.

4. Water thoroughly. Once you've planted your seedlings or seeds, give them a good drink of water. A watering can with a rose attachment is ideal for this task. It delivers a good amount of water, but doesn't dislodge the seeds.

5. Fertilize regularly. If your plants are heavy feeders, they may thrive with a regular application of a liquid or powder fertilizer. Most fertilizers that are formulated for flowers are heavy on nitrogen, which promotes top growth. If this doesn't seem to help your plants, try a general purpose fertilizer.

6. Deadhead when necessary. In order to keep your flowers looking tidy and blooming for as long as possible, you'll need to deadhead them. This means to remove spent flowers. If the dead flowers are left on the plant, it will signal the plant to begin producing seeds, which terminates the flowering process.

7. Troubleshoot. If your plants are not growing well, the first step is to look for pest or disease issues. You can usually see pests or at least, the evidence that they leave behind. If your

Farm Operation Management Assignment – 2nd Group. PVH

How to grow flowers

flowers have holes in the leaves, or you see a sticky residue on the undersides of the leaves, it's a sure sign that you have a bug problem. There are many organic pesticides on the market, which are very effective at eliminating pests. Diseases also leave obvious signs behind -- deformed stems and misshapen leaves usually signal a disease problem. For severe disease problems, you may need to remove the affected plants. If the leaves on your flowers are yellow, it usually means that they have been overwatered or received too much nitrogen. Try watering less frequently and reducing the strength of the fertilizer you use. (http://www.a3741-how-to-grow-flowers.com/html)

Growing flowers in raised flower beds

Growing your flowers in a raised bed is ideal for gardeners with limited space. It's also a great alternative for those who have poor soil since drainage or pooling water can cause big problems for growing plants.

Needed materials: Constructed flower bed, Flower seeds or plants, Garden hose with a sprayer end, Landscape fabric, Dirt, Top soil, Compost.

STEPS

1. Step 1. Lay down landscape fabric on the bottom of the raised bed if it does not have a bottom. This will keep the weeds from coming up through the bed.

2. Step 2. Fill the raised flower bed half full with regular dirt if it is a large bed. Fill smaller beds or the top half of large beds with top soil or flower soil that you purchase at a home and garden center.

3. Step 3. Mix some compost into the soil. Use a tea compost or one that is not too harsh if you are planting delicate seed flowers. Choose flowers that are compatible with the amount of sun and water they require.

4. Step 4. Plant seeds and water liberally. Keep the seeds damp until they start to sprout and then water every other day unless it's very hot and dry.

5. Step 5. Plant bulbs once the seedlings start to sprout. This way the stronger bulb flowers will not hide the seedlings and keep them from getting sun.

6. Step 6. Plant flowering plants last. Once the seedlings and bulb flowers are tall enough to get sun around any plants, you can plant the flowering plants. Keep the flower garden watered and as they grow they will fill in the entire bed.

7. Step 7. Add a small amount of new compost to the soil once a month to keep the soil full of nutrients for the flowers. (http://www.how_4894219_grow-flowers-raised-flower-beds.html)

Growing flowers in a green house

Growing flowers in a green house is the easiest way to start seedlings. Not only can you plant hundreds of flowers for the outdoor gardens, the expense is so much lower than buying plants and flowers that were grown in a commercial green house. It is very easy to start flowers from a seed. There is no need to spend hundreds of dollars on flowers when starting a flower in a green house is easy to do.

Needed items: Green house, soil, vermiculite, starter cups or some other containers, flat tray, seeds.

Farm Operation Management Assignment – 2nd Group. PVH

STEPS:

1. Step 1. Growing flowers in a green house will require some necessary supplies. The starter cups, seeds, soil, vermiculite and a tray to hold the cups is required to start the flowers. The starter cups can be little plastic yogurt containers or cup trays from a gardening shop. The containers need to have drainage. If using the yogurt containers, punch holes in the bottom for drainage.

2. Step 2. Place the soil and vermiculite into the containers and add at two to three seeds per container. The soil should be rich in nutrients such as potting soil or a starter kit for seeds that can be found at a garden shop. Make sure the soil reaches the tops of the containers. The depth that the seeds are planted will be found on the seed package. Lightly water with a spray bottle. Keep the seeds wet until they germinate.

3. Step 3. Place the containers in a brightly lit area where they will have sunlight or artificial light. Grow lights will work in a green house on the darker sides of the house. The best place for the new seedlings is on the sunniest sides of the greenhouse.

4. Step 4. Keep the temperature of the green house between 68 and 70 degrees. Turn the containers daily as the seed start to grow. This will ensure that the flower grows straight up and not off to the side where the sun is hitting it.

5. Step 5. When the seedlings reach two inches, transplant into different containers to grow larger or thin out the exiting container so the healthiest flower can grow. Continue to keep the temperature of the green house warm and turn flowers daily until ready to plant outside. (http://www.how_2312445_grow-flowers-green-house.com/html).

A picture showing a greenhouse were flowers can be grown for export purpose

Before discussing specific objectives and strategy, it is important to provide a detailed overview of Rwanda’s horticulture potential, current situation, constraints and opportunities.

Overview of Rwanda Horticulture Assets With a blessed climate, fertile soils and an abundant, hardworking labor force, the industry in Rwanda certainly exists. Rwanda is able to produce many exotic fruits and vegetables that are currently sought out by the international community – passion fruit, apple bananas (desert bananas), Japanese plums; Bird’s Eyes Chilies are just a few examples that are interesting as high-value export crops. Many others also have the potential to be grown in

Farm Operation Management Assignment – 2nd Group. PVH

Current situation overview of Rwanda

Rwanda’s fertile and diverse terrain. The details are indicated in table 2. Because of the wide range of potential fruits & vegetables that can be grown in the country, the future development of the industry will not just rely on fresh exports. Interesting opportunities also exist with processed fruits & vegetables, such as dried tropical fruit as a snack food for export to western markets as well as juices for exporting regionally.

The fact that potential exists is undeniable; but equally undeniable is the fact that little or nothing has been done as yet to develop the full potential of Rwanda’s horticulture. Market fruits & vegetables should be contributing much more to the economy and export receipts, as well as to the livelihood of rural farmers, than they currently do.

The growing of flowers in Rwanda is one of the new activities in the economy. Some famers grow flowers on small scale like sun flowers and rose flowers that are grown in East Province. However the highland flowers project at Nyacyonga is presently the largest project in Rwanda that grows flowers and export them to foreign markets. (RWIGEMA MINEGA, 1999)

Activities involved in floriculture in Rwanda

At the site the numbers of activities are performed including: - Cutting flowers and taking them into refrigerated rooms- Grading and packing flowers- The flowers are transferred at the airport on a particular days for transporting them to the

final destination.Highland flowers is a three hectare projected located about five kilometers on Kigali-Byumba road at Nyacyonga and employs about 80 workers who are both skilled and some skilled for the unskilled are first trained before they can work on the project site.

The workers at the project site can be put into three categories and these may be:- The first is the professional agriculturist and officers which include the production manager

and his assistant and commercial manager- The second is that of regular workers who till the land using some small tractors- The third category is of those who do the cutting, grading and packing of flowers who are

trained before being employed and are always supervised while working.Three quarter of the employees at the site is women for they are regarded to be more careful than men in preparing flowers. It is normally recommended that not less than 2 hectares of such a project is established and also need enough capital in million of US dollars. However, within two to three years initiators may recover from all the expenses.

Types of flowers grown and exportedThe only type of flowers grown at highland flowers project are rose flowers with different varieties that include:- first red, - Orange unique, -Yellow unique, - Frisco, - Renee.All these varieties are grown uniformly and roofed under the same sheetings that break wind from

Farm Operation Management Assignment – 2nd Group. PVH

The particularity of Rwanda regarding floriculture

entering. The sheetings are placed after every three years. Apart from wind, flowers are also prone to deseases and pests.

RevenuesThe revenue from exporting flowers is quite substantial. It was found out that the price per stem is US $ 0.16 and that when it is in summer in Europe the business falls because they grow their own flowers cheaply and so the price per stem fall to 0.09 US $. It was said that at times prices may go up to 0.50 US $. However, the most stable price is that of US $ 0.16.Showing monthly export earnings from flowers of highland flowers in us $

1ST WEEK 2ND WEEK 3RD WEEK 4TH WEEKQuantity Value Quantity Value Quantity Value Quantity Value

MON 60,000 stems

9,600 US$

10,000 stems

16,000 us $

60,000 stems

9,600 US $

60,000 stems

9,600 US $

SAT 60,000stems

9600 US $

20,000 stems

3200 us$

60,000 stems

9,600US $

60,000 stems

9,600US $

Table.1

The table above depicts the amount of flowers that are exported in terms of stems by highland flowers project and the value of export earnings that are got in US $ dollars monthly. There are cases when the numbers of flowers that may be exported are less than 30,000 stems and in case of such a situation they compensate the number on the next day of exporting. The total export earnings monthly in terms of US $ is 76,800 which is around 27,648,000 Rfw. The above revenues can be big percentage on the GDP of the economy if there were a good number of similar projects.

Conclusion

Considering the performance of the highland flowers project therefore, it is evident that if there were proper government policies and strategies in exportation on top of non-traditional cash crops and mainly flowers in Rwanda by diversifying the export base, the economic growth of Rwanda’s economy could increase.

As a matter of fact, water is one of the requirements of putting up such a flower project, and since there are a lot of marshlands that are uncultivated then may similar projects can be set up and enough products expected in the economy for higher foreign exchange earnings.

Constraints With its natural advantages, the potential benefits and the recent success of neighboring countries in this industry, it makes sense to ask why horticulture in Rwanda has not grown here as it has in other countries. What is holding the industry back? The answer is explained by the concept of the LILI loop (“Limited Investment, Limited Interest”). As horticulture is an industry that requires significant investments up front (from both the private sector and the public sector) the LILI loop serves as a mechanism to explain the continued under-development of the industry: 1 The source of this table is the RWIGEMA MINEGA Jean Bosco’s own data.

Farm Operation Management Assignment – 2nd Group. PVH

Constraints, concerns and interventions

Rwanda needs to break the cycle of the LILI Loop in order to ensure the take off of the horticulture industry. Simultaneous commitment and investment from both the government and the private sector is needed to achieve this goal. The investments needed to break the cycle cover the entire production and export chain. An overview of the current constraints at each stage of the industry value chain can be summarized as followsInputs- Limited specialized extension services- Lack of access to financing - Limitation in seed quality control - Low use of fertilizers - Limited efforts allocated to Research & Development

This following figure shows in summary,

Figure 1 Source: Rwanda Horticulture Workgroup

Farm Operation Management Assignment – 2nd Group. PVH

Institutional and coordination constraints

Constraints and LogisticsFreight:- High freight rates &fuel surcharges increase cost of production and reduced

competitiveness- Off loads during peak periods(especially for smaller farmers)

Skills:- Low levels of professional skills in logistics- Limited training facilities

Cold Chain Management:- Complex- Highly technical- Differential handling by personnel- Capital intensive and high maintenance cost.

Transport inland

Poor state of roads leading to:- Delays- Damaged products and loss of quality- High cost of maintenance of vehicles

Distance between farms and exit pointsCostly and unreliable transport(small to medium growers)

Access and Handling Facilities

Limited capacity in the regionInefficient due to lack of requirements (perishable and awareness of handlers on the unique sector specific quality sensitive product)Facilities are expensive especially for the small to medium growers in terms of fiscal cost and psychological distance e.g. Rwanda growers who need to transit through other airports and carriers.Delays due to inspection requirements and work environment.

As next steps, key industry stakeholders-Entrepreneurs, Government and Donors-have to work on the following programs

Sensitive government and donor leaders on the value of horticulture for wealth creation in rural areas and major foreign exchange earnings (e.g., Kenya)Provide adequate capital to create a level playing field: freight costs, certification, supply chain equipment, etc.Articulate financial products matching entrepreneurs’ needs especially with reasonable conditions (i.e. terms, guarantees, low interest rates, etc.)Create and provide a one-stop financing and assistance network for the horticulture industry (i.e., 60% of time is lost on administration and seeking assistance)Donors to ensure that EU monitors the extent and constraints of involuntary requirements

Farm Operation Management Assignment – 2nd Group. PVH

(i.e., PD in Holland, Audits required from some buyers, etc.) Launch a private-public monitoring mechanism to ensure effective implementation

Marketing Related Desired InterventionsSupport joint regional promotional initiatives e.g. inward and outward floriculture fairs and exhibitions.Support for missions and visits to destination marketsDevelop institutionalized mechanism for market information sharing through AssociationsSupport for development of sector directories and or catalogues.

Even if Rwanda has got some limitations of funds, there are some opportunities that we cannot ignore which are:

Political stability Investment incentives and government support Geographical position – market access Good climatic conditionsAbundance of labor ,and - Reasonable Infrastructure

Here follows what can be the interventions that can be carried in the horticulture on the side of flowers in Rwanda:

Matchmaking for joint venturesAccessibility to affordable credit-lines (grants or soft loans)Strengthening the regional promotion agencies to undertake policy advocacy with governmentsEnhance regional infrastructure developments e.g. cross border road networks, communications, etc.Unlock existing development funds by reviewing current procedures and requirements e.g. thresholds, counterpart contributions and collaterals in terms of guarantees.Funding support should be used to eliminate supply side constraints to increase competitiveness in global market

Three factors – strategy, investment, skills – are required to incubate successful horticulture entrepreneurs in East Africa/COMESA

Source: RWANDA FLORA PILOT Pioneering Initiatives Linking Outgrowers to Trade

So far, East African countries have mostly focused on strategy and skills.

Farm Operation Management Assignment – 2nd Group. PVH

Available Opportunities – Investment Security

Desired intervention

If Rwanda succeeds in developing a differentiated positioning in growing flowers, it can replicate recent successes currently experienced by neighboring countries. In East Africa, horticulture is Kenya’s largest export industry, generating more than $400 million in receipts, surpassing even coffee and tea. In Uganda, horticulture exports in 2004 totaled $45 million. Ethiopia has managed to grow a horticulture industry that generates more than $30 million in exports in just 4 years.

In order to achieve this vision, some of the above suggestions can be adopted.

Bibliography(n.d.). Retrieved from http://www.a3741-how-to-grow-flowers.com/html

RWIGEMA MINEGA, J. B. (1999). Exportation of non-traditional cash crops in Rwanda as an alternative strategy towards economic development. A case study of floriculture. Huye: Submitted as memoire for the obtention of the grade of Bachelor's degree in Economics.

Encarta, M. (2008). Microsoft ® Encarta ® 2009. © 1993-2008 Microsoft Corporation. Redmond, Washington, USA.

Farm Operation Management Assignment – 2nd Group. PVH

Conclusion

Farm Operation Management Assignment – 2nd Group. PVH