Blog | August 07, 2023
Egg Collection Centers Crack the Code to Sustainable Income in Rwanda
A poultry farmer-led company has shifted the egg market in Northern Rwanda and make a significant, sustainable impact on rural income and regional economic development.
This post was originally published on Agrilinks by David Byiringiro, Vivekan Jeyagaran, and Straton Fatahose. David Byiringiro and Vivekan Jeyagaran are market systems development (MSD) and learning advisors at MarketShare Associates. Straton Fatahose is the intervention portfolio manager at Land O’Lakes Venture37.
 

Practitioners of MSD strive to remain humble, listen deeply to the affected communities’ needs and ideas, and amplify their innovations — without overly prescriptive and linear models of economic development.

Subsistence farming is often the backbone of local economies in rural areas, and finding innovative ways of taking product to market can be a game changer for household income. One solution to bolster food security and livelihoods lies in the establishment of egg collection centers. With facilitation by the Feed the Future Rwanda Orora Wihaze Activity, Gakenke Collection of Poultry Resources Company (GACOPROCO Ltd.) — a poultry farmer-led company — has been able to shift the egg market in Northern Rwanda and make a significant, sustainable impact on rural income and regional economic development.

Pandemic Market Challenges Led to Innovation 

In 2020, COVID-19 lockdowns limited the movement of people and goods, decimating the vital role of market days for Rwandan poultry farmers. With market days no longer an option, farmers in the Gakenke district were unable to tap into their usual market: individual buyers and small-scale aggregators who took their eggs to larger cities, both domestic and export markets.

At the time, Orora Wihaze facilitated Producer Platforms that convened producers from specific value chains to discuss and share experiences or ideas. Faced with COVID-19 lockdown challenges, one of the Orora Wihaze Producer Platform meetings empowered several large poultry farmers to set up a temporary collection and storage facility while they waited for clients to buy their product.

Collaboration with Orora Wihaze

This collaboration among Orora Wihaze and farmers eventually led to an established egg collection center and limited share company — GACOPROCO Ltd.

Building on the existing network of founders, and their involvement in the Gakenke poultry sector, the Orora Wihaze Activity worked with GACOPROCO to:

  • Leverage existing investment.
  • Strengthen the flow of information. 
  • Provide tricycles, egg shelves and linkages to market.
  • Offer business development training and services.

This was facilitated by mobilizing local authorities who were a central and important source of information for egg producers. After some time, what was once a temporary storage arrangement soon became known as the district’s centralized hub where local farmers brought their eggs, received better prices and accessed safe storage for their otherwise fragile products.

Enhanced Product Quality Unlocked Market Access

With an increasing supply of eggs, the collection center realized that they had enough product to negotiate better prices with wholesalers and retailers and started looking for higher-end markets, including export for eggs.

GACOPROCO egg shelves and egg collection center facilities
GACOPROCO egg shelves and egg collection center facilities. Photo Credit: Rosalie Rizinjirabake. 


GACOPROCO’s egg aggregation center played a crucial role in maintaining product quality standards. It ensured that eggs were properly graded, cleaned and packaged. This quality assurance enabled farmers to meet the requirements of larger and higher-value markets, including export, supermarkets, restaurants and hotels. As a result, poultry farmers in the Gakenke district have secured a stable market, reducing the risks associated with volatile market conditions. Additionally, demand for and consumption of eggs in the district was stimulated through district-level awareness campaigns and Village Nutrition Schools.

Creative Partnerships Strengthened the Business Model

As COVID-19 slowed down and the markets opened back up, GACOPROCO was then confronted with how to maintain (and increase) their supplier base of egg farmers. They recognized that their egg collection center was located near animal feed depots, and that they were already using the tricycles provided by Orora Wihaze to travel deeper into villages and collect eggs. Seeing an opportunity, the company opted to strengthen existing relationships with farmers and provide free animal feed transportation service to farms whenever they visited.

GACOPROCO innovated their model by adding in an informal backhauling tactic, a modality that is often used by sophisticated distributors. This helped them build strong relationships with farmers in addition to the premium price they receive, cementing their competitive advantage as a preferred buyer for poultry farmers in Gakenke district.

The Ripple Effect of GACOPROCO’s Egg Collection Center

Almost three years since they started, and amidst a looming egg market crisis induced by COVID-19 lockdowns, GACOPROCO is now able to aggregate and sell (on average) 8,000 egg trays every week and has sold over 72 million Rwandan francs (RWF) (about $62,000) in product this quarter.

They have also expanded and set up a second collection and retail center closer to the villages they work in and are continuing to source from rural farmers, linking them with high-end markets and premium prices while also increasing local egg sales and consumption. GACOPROCO continues to act as a learning beacon among other aspiring poultry farmers across Rwanda, hosting field visits for those who want to set up a similar business in other regions; for example, poultry producers in Kayonza district also set up their own egg collection center after visiting GACOPROCO. 

The establishment of egg collection centers like GACOPROCO holds tremendous potential for increasing sustainable income in rural areas. By leveraging economies of scale, enhancing market access and promoting sustainable practices, these centers empower farmers to break free from the cycle of low-income agriculture. Moreover, the economic benefits ripple through the entire community, fostering growth, prosperity and a brighter future for rural areas.  

Grassroots development that created local demand was a key trademark of this partnership. Poultry producers in cooperation with one another established innovation tailored to the needs of their communities during a major system shock, district-level officials played a role in the dissemination of information and now the community itself is sharing its learnings and know-how with others.  

View the original post on Agrilinks

By David Byiringiro, Vivekan Jeyagaran, and Straton Fatahose 08/07/2023 #Blog