Characterization and Determinants of Smallholder Dairy Farmers in Rwanda

Dairy farming enhances food security and drives economic growth in Rwanda. While existing literature on dairy farming has primarily examined its production factors and the challenges associated with it, there is a gap in the literature in understanding the characteristics of dairy farmers and the factors that determine dairy farming in Nyabihu District. Using cross section data of 205 dairy farmers in Nyabihu District, Rwanda, we employed Principal Component Analysis and Cluster Analysis to characterize dairy farmers and identify determinants of dairy farming. Results show that dairy farmers are grouped in two clusters low resource endowed and low production and high resource endowed and high production categories. Clusters of dairy farmers are shaped by experience in dairying, age, monthly farming cost, milk produced per month, Herd size, Land size, and the number of dairy trainings received. The study suggests the need to train best practices in dairy farming to increase their efficiency and returns. Through training, well informed farmers make better decisions along all factors of production. Also, more investment in herd management and farm land allocation potentially increases productivity.