Rwanda adds chili taste to the tip of Chinese tongues

A market deal reached by a Rwandan farm with a Chinese food factory would serve as an answer to fluctuating product prices on the international market, the farm manager said.

Rwanda's Gashora Farm secured a half-year contract to supply chili oil to Kaijiang Tasty Food Factory in Dazhou city, southwest China's Sichuan province.

The deal worth $2 million was reached at the first China International Import Expo (CIIE), which concluded on Nov 10 in Shanghai.

The contract starts in Nov 2018 and ends in May 2019, said Dieudonné Twahirwa, managing director of Gashora Farm.

"It is a win to the farm. We have been supplying different types of dry chili whose prices fluctuate on international market. This deal will ensure price stability for our product," he said.

The real winners, according to Twahirwa, could be Rwandan farmers because the deal requires that the farm have a supply of raw materials from farmers to maintain production.

The farm works with about 1,500 farmers growing crops on about 200 hectares of land in Bugesera district, eastern Rwanda.

"It means we are going to give supply contracts to farmers on fixed price and amount. Farmers can use these contracts to secure loans from the bank because there will be a reliable buyer of their produce," he said.

The deal comes at a time Chinese President Xi Jinping said China is opening its growing consumer market to the world.

The signed contract shows the deal was entered into between the parties concerned on the basis of "equality and mutual benefit to develop business on the general terms and conditions mutually agreed upon."

Rwandan agriculture ministry has congratulated the farm, saying it has showed how agribusiness can be a goldmine for young people.

Asked how he secured the market, Twahirwa said at the exhibition his product passed the necessary tastes, after which Chinese factory procurement officials and company lawyer returned to seal the deal.

"Certainly, it will help propel us. To sustain supply means increased production capacity, rebranding among other things," he said.

Still, the deal will contribute to Rwanda's efforts to reduce the import-export gap, he added.

Twahirwa applauded the China International Import Expo which he said is key in opening doors to big Chinese market.

"It offered a very good experience because we met different willing buyers there. I find the expo very interesting because people there have purchasing power," he said.