Tea Production Response to Seasonal Rainfall Variability: Evidence from Rwanda

Tea is a very important cash crop in Rwanda, as it provides crucial income and employment for farmers in poor rural areas. From 2017 to 2020, this study was intended to determine the impact of seasonal rainfall on tea output in Rwanda while still considering temperature, plot size (land), and fertiliser for tea plantations in three of Rwanda’s western, southern, and northern provinces, western province with “Gisovu” and “Nyabihu”, southern with “Kitabi”, and northern with “Mulindi” tea company. The study tested the level of statistical significance of all considered variables in different formulation of panel data models to assess individual behaviour of independent variables that would affect tea production. According to this study, a positive change in rainfall of 1 mm will increase tea production by 0.215 percentage points of tons of fresh leaves. Rainfall is a statistically significant variable among all variables with a positive impact on tea output $Q_{it}$ in Rwanda’s Western, Southern, and Northern provinces. Rainfall availability favourably affects tea output and supports our claim. Therefore, there is a need for collaboration efforts towards developing sustainable adaptation and mitigation options against climate change, targeting tea farming and the government to ensure that tea policy reforms are targeted towards raising the competitiveness of Rwandan tea at local and global market.