Risk analysis of vegetables marketing in Rwanda. A case of carrots and cabbages produced in Northern Province, Rubavu District and supplied across the country

Abstract

Due to the perishable nature and biological nature of the production process there is difficulty in scheduling the supply of vegetables to market demand. The vegetables are subjected to higher prices and quantity risks with changing consumers’ demand and production conditions. The core focus of this study was to reach, measure, and analyzing the marketing risk level of vegetables produced in Rubavu District, Rwanda. The study based on a survey of 90 vegetable sellers. At least 30 couple of wholesalers and middlemen visited Rubavu District to trade the vegetables for various retails. Primary data collected through structured questionnaires and secondary data sources used. A Five-point Likert associated with the bivariate analysis was used to rank the risk level while the full model of Linear Regression Analysis and factor analysis were used to identifier the majors’ factors associated with the risk in vegetable marketing in Rwanda. The mean score results derived based on Likert-Scales, indicated that “low seasonal product prices, weak market channels, poor logistics, and market communications, poor product handling and packaging, lack of storage and higher perishability’ identified to be the most important sources of risk. Therefore, the use of forwards’ contracts; getting market information, sell at crude prices due to perishability, contractual arrangements, maintaining good relationships and restoring the storage network system were of significant concerns for overcoming the recognized risks.
 
 Keywords: Risk, Risk analysis, Likert Scale, Marketing risk, Vegetable Marketing risk, and Risk Management.