From low yields to market opportunity: addressing the soybean gap

Rwanda is scaling up its soybean sector through public-private-producer partnerships known as 4P models designed to close productivity gaps and improve coordination between smallholder farmers and agribusinesses.

Despite growing demand, national soybean yields remain low averaging around 0.6 tonnes per hectare constraining supply to processors and eroding farmer income potential.

To bridge this gap, the Food and Agriculture Resilience Mission – Pillar 3 (FARM P3) - an initiative under the International Fund for Agricultural Development (IFAD) - works alongside the Rwanda Agriculture and Animal Resources Development Board (RAB) through the Kayonza Irrigation and Integrated Watershed Management Project Phase II (KIIWP II), connecting farmers directly with private-sector buyers to boost production and expand market access.

From market diagnosis to investment: building the business case

The effort began with the development of a soybean inclusive business case, carried out jointly by FARM P3 and IDH. The analysis identified key constraints in inputs, productivity, and structured demand and proposed a public-private supply model to address them.

This model is now being implemented through direct sourcing arrangements, with local processor Africa Improved Foods (AIF) entering into agreements with cooperatives supported under KIIWP II to purchase soybeans.

Turning the 4P model into practice 

The model combines productivity support with direct market linkages.

On the production side, FARM P3 and RAB have established eight demonstration plots showcasing improved soybean varieties and updated agronomic practices. To date, 4,450 farmers have received training on production techniques and market requirements, while cooperatives have also undergone training in climate-smart agriculture and participated in exchange field visits.

On the input side, AIF introduced input pre-financing, enabling farmers to access certified soybean seeds earlier in the planting season. In Season B 2026, 11,700 kg of certified soybean seeds were multiplied through Top Quality Seed Ltd and distributed to 20 cooperatives planted on 195 hectares of land. 

AIF has also deployed field teams to establish contract farming agreements with cooperatives and providing technical support, particularly on produce handling to improve produce quality to meet market requirements. To date, 20 cooperatives have signed contracts, pledging to supply more than 200 metric tonnes of soybean harvest to AIF.

These agreements improve supply predictability for processors and increase farmers' incomes through structured offtake arrangements, strengthening planning and coordination across the value chain.

Farmers are also receiving clearer signals on demand volumes, quality requirements, and pricing- a shift that is pushing production toward more market-oriented decision-making.

Scaling collaboration through a soybean platform

To broaden collaboration, KIIWP II and FARM P3 have jointly established a Soybean Multi-Stakeholder Platform (MSP), bringing together cooperatives, off-takers, financial institutions, and public and development agencies. With the platform now operational and one initial meeting already held, the MSP provides a structured forum to discuss contract farming, quality parameters, local sourcing models, and trading plans, and to build on the success of the 4P model.

By linking productivity improvements with structured offtake, the initiative is reinforcing supply chain reliability and deepening commercial coordination across the soybean value chain.

As production expands, the model is expected to draw further private investment into aggregation, processing, and input supply while delivering greater income stability for smallholder farmers.

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KIIWP II

The Kayonza Irrigation and Integrated Watershed Management Project II (KIIWP II), managed by the Rwanda Agriculture and Animal Resources Development Board (RAB) and the Ministry of Agriculture and Animal Resources (MINAGRI), aims to reach at least 40,000 rural households with improved food security and strengthened climate resilience. The project trains farmers in good agricultural practices with a focus on enabling infrastructure.

FARM P3 globally

Launched by France under the EU Council Presidency and hosted by IFAD, FARM P3 supports opportunities in Rwanda, Senegal, Sierra Leone, and Zimbabwe within existing investment projects where private-sector involvement and collaboration with development partners adds value in priority value chains. For more information, visit the FARM P3 webpage.

Private Sector Engagement

Private sector engagement is central to FARM P3's approach, which identifies opportunities and co-creates inclusive business models within projects like KIIWP II where private investment can expand impact.

AIF

Africa Improved Foods (AIF) is a social enterprise and public-private partnership involving Royal DSM, the Government of Rwanda, IFC, CDC Group, and FMO. Since December 2016, AIF has been providing solutions to malnutrition through local production of highly nutritious foods and affordable commercial products for the mass market. AIF currently sources 30,000 metric tonnes of grade-1 maize, of which approximately 50% comes from Rwandan farmers.