Effects of farm cooperatives on farmers' incomes and welfare: empirical analysis from Vunga Coffee Washing Station in Nyabihu District, Western Rwanda

This paper assesses the impacts of Vunga Coffee Washing Station (VCWS) on coffee growers’
incomes and their welfare as well as on coffee plantations. Data were collected from 86 coffee growers
selected randomly from VCWS members in September 2015. Data were analyzed using both
descriptive statistics and paired-samples T-test. The results from the paired-samples t-test show that
the coffee growers’ incomes after the construction of VCWS in 2009 were higher than their annual
incomes before the station was constructed, and the number of coffee trees after VCWS was set up
was also more than earlier given the significance value which is less than 0.05. Further, VCWS also
contributed to job creation, acquisition of new farming technology and the creation of non-farm
activities. These results are good indicators of VCWS’s positive impact on coffee growers’ incomes,
the coffee plantation and to the welfare of coffee growers. Therefore, it is recommended that (1) the government should enhance the fair trade between coffee producers and foreign consumers to help coffee growers sustain their livelihoods, and (2) VCWS should organize trainings for its members specifically trainings in how to save and adoption of new technologies for coffee farming.