Rwanda plans 4,500ha beef enterprise

The project aims at increasing beef production and enhancing the livestock value chain in general.

In an interview with East African Business Week, Rwanda’s State Minister for Agriculture, Tony Nsanganira said, “The project aims at integrating forage production, cattle and goat rearing – on a sustainable commercial basis”.

“The key output will be the growth of quality meat production for local consumption and for export. Cross border trade in live cattle and goats will be a key component of the project,t but value addition activities including meat production, hides and skins and leather goods manufacturing for local and export markets will also be critical for the project’s viability,” Nsanganira said.

This is consistent with the goals of the country’s agriculture transformation strategy of moving Rwandan livestock sector from a largely subsistence status to a market oriented status.

 “This project will start as soon as the government reaches an agreement with the various private investors who are expressing interest in the project. Both local and foreign investors are expressing interest,” Nsanganira said.

He said “To facilitate the soon starting project, government is currently preparing the area and putting in place some initial infrastructures such like roads.”

Currently in Rwanda there is an increasing demand for quality meat from a significant number of expatriates, tourists and an evolving middle class who have the ability to pay premium prices for meat which is currently being imported from Kenya and South Africa, among other sources.

“Rwanda can take advantage of her comparative advantage (geographical location) to become an alternative source of high quality meat products when the project starts, to serve the markets of Eastern Democratic Republic of Congo, Congo Brazzaville and Gabon.

These are currently being served by imports from as far as France, but also South Africa, Kenya, a dn so on” Nsanganira said.

When fully operational, the Gako beef project will provide new opportunities for growth and competitiveness of the livestock sector and will create jobs for skilled and unskilled manpower along the value chain.

“There will also be better prices for cattle and goat farmers who will have direct access to the market. Thus, the project will contribute to the improvement of the livelihoods of many players in the meat industry,” Nsanganira said.

“The initial number of start-up livestock will be decided at a later stage. However, the maximum number of animals that can be kept at the site without harming the environment is around 70,000 cattle or 98,000 small ruminants (goats),” Nsanganira said.

Speaking on the currently high beef prices in the country and how the new project will have an effect on the situation, the State Minister said: “Rwanda enjoys a liberalized beef market. However, operationalizing this project will mean the entry of a key player in the market, signifying consumer benefits through a widened consumer choice and variety”.

“Normally, increased beef supply should also be accompanied by a price reduction, as a result of the supply’s price elasticity,” he said.

To make sure that the project is viable and sustainable, an initial economic analysis has been conducted showing that the project has a huge economic potential, with critical success factors being the source/type of cattle breeds and animal feeds. Four key investment areas have been identified as forage production, cattle production and fattening, goat production and fattening and the establishment of a modern abattoir.

“The management model for the project will be determined through discussions between government and the private sector. Management may take various forms from being a jointly owned project between government and the private sector through a joint venture arrangement to a purely private owned business but which would consider public investments in infrastructure as well as ownership of the land, which would necessitate a land lease arrangement” Nsanganira said.

Rwanda looks at considerably increasing its exports over the coming years (at an average annual growth of 28% over the EDPRS 2 period) and the coming in of this new project will certainly contribute to fast tracking achievements of the set targets.