Answer to Question #281321 in Economics for DORCAS

Question

In Rwanda local farmers manage small plots of land for subsistence farming. However, some have benefited by selling pineapples at an agreed fixed price to an exporter. The exporter provides finances, training, fertilizers and machinery and even building materials for the farmer’s homes. Explain the benefits which may be gained by the local community in Rwanda from the project.

Answer 1

By partnering with an exporter local farmers benefit in terms of their own capacity building and decreasing production costs.