Abstract: Milk production is one of the major income generating activities for smallholder dairy farmers in Rwanda but the sector is currently facing production and marketing challenges. Contract farming has been introduced as solution. However, low participation has hindered dairy farmers from getting optimum benefits accruing from contract farming not only low participation but the determinants of participation in contracting are still under research. The aim of this study was to analyze the determinants of participation in contract farming to the smallholder dairy farmers in Nyagatare District, Eastern Province of Rwanda. A multi stage sampling techniques were employed to select respondents. Structure questionnaires were employed to collect data from 211 .Probit model was used to determine factors influencing farmers ‘participation, results from the probit model suggests that factors influencing farmers participation mainly include; uncertainty related to price, farm size, herd size of cross breeds, distance to milk collection centers, distance to water source, experience in dairy farming and trainings in forage management. The study concludes that in order to increase participation in contract farming, there is need for diary policy to consider existing knowledge, assets of the farmers and decentralize milk Collection Centers.
Keywords: Contract farming, Probit.
Title: Determinants of Participation in Contract Farming Among Small Holder Diary Farmers in Rwanda
Author: Eric Ntaganira, Jaya Shukla, Robert Mbeche, Mbabazi Mbabzize, Kanuma Taremwa
International Journal of Thesis Projects and Dissertations (IJTPD)
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