An Analytical Study of the Factors Influencing Maize Production in Rwanda: A Case Study of Gatsibo District

Abstract

In many countries, including Rwanda, non-farm chemical inputs play a large role in agricultural production for increasing output. Pingali(2001) stated that the declining trends on quantities of maize produced has been evident at the global and regional level. This research study has been conducted in agro-ecological zone according to the importance of maize production in a given zone. The broad objective of the study was to conduct the analysis of factors influencing maize production among farmers in Gatsibo district. A sample size of 70 respondents to be employed for the identified target population was scientifically computed through the Krejcie and Morgan (1970. A cob-Douglas production function has been used to estimate a relationship between inputs and outputs. The methods of analysis used were descriptive statistics, gross margin analysis and production function analysis using the Ordinary Least Square (OLS) criterion to estimate the parameters of the production function through SPSS and STATA software. The result of the regression analysis indicated that variables include land size, labors, organic fertilizer, chemical fertilizers, improved seeds, education level, farming experience and price of produce have a positive relationship with total output. However R-squared estimated as 0.66 shows that only 66% of variations in output used in the model were explained by the explanatory variables. Based on the gross margin and net return analysis, the most profitable maize variety in the study area was DH04 followed by ZM607which gave maximum yields of 4t/ha and 3.5t/ha respectively. This is supported by the gross margin of N270960/ha and the Net profit of N225960/ha both in last cropping season. Results showed that farm operation was in stage I of the production function with RTS estimated as 1(MPP = APP) at the end of I stage. The profitability was positively influenced by improved maize variety (DH04 and ZM607), use of both chemical and organic fertilizer in combination and market price of 180Rwf/kg that are all of them significant (at 1% and 5% respectively). The local seeds, none use of any fertilizer and lower price were the main factors influencing negatively the profitability of maize output. The study indicated that the best method of fertilizer use to maximize maize output per unit area is the combination of both chemical and organic fertilizer that has positive relationship and significance at (1% level) with output. The findings from study showed that the production of maize varies with the changes of prices. This also is supported by the law of demand and total revenue, which state that when the 0<Ep<1 and the price increase, so that a lot of revenue could be gained and respectively the total revenue also increase because of somewhat inelastic.