Analysis of the profitability of avocado-based agroforestry value chain in the eastern province of Rwanda

Abstract

This study analyzes the profitability of avocado-based agroforestry value chain in the eastern province of Rwanda. This was aimed at investigating the degree to which it is lucrative for the value chain actors. Primary data were collected from 214 producers, 20 traders and 9 consumers. Descriptive statistics and net profit margin (NPM) were used to determine to what extent the avocado-based agroforestry is profitable along its value chain. The study’s results show that most of the existing avocado-based agroforestry fruit trees accounting for 86.50% were traditional non-improved varieties that had originated from fellow farmers. The use of fertilizer inputs remains less among the producers where the majority of them (84.30%) don’t apply it. The avocado-based agroforestry value chain is lucrative for all involved actors (producers, rural collectors, wholesalers, and retailers). Though avocado is a perennial crop with consecutive investments and returns across years, the study only dealt with the profitability analysis within one year of 2022 for matching the producers’ market supply with other value chain actors within the same channels in the same period. Designing and implementing the policies concerning the efficient use of agro-inputs in avocado-based agroforestry production and well-organized market integration will scale up the profitability for producers and traders and improve consumers’ needs along the value chain. This study provided useful information for subsequent studies with regard to fruit-based agroforestry value chains.