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RWANDA - Solutions for food security: How the LuxAid Demonstration Fund supports a Rwandan business futureproofing fodder production
Are you curious about the impact of projects co-financed by the LuxAid Private Sector Engagement Funds? Meet UKC, a pioneering company supported by the LuxAid Demonstration Fund in Rwanda, as they tackle one of the country’s biggest challenges—land pressure and agriculture productivity.
A growing population, increasing pressure on agricultural land
With an area comparable to Belgium, Rwanda - often called the "Land of a Thousand Hills"- is a small, densely populated nation with limited arable land. With a population density of 445 people per square kilometer (1) and a growth rate of 2.2 % in 2023 (2), productiveagricultural land is becoming increasingly scarce each year. Around 80% of Rwandan households are engaged in agricultural activities (3), working on tiny, sometimes degraded plots. Those plots are generally too small to produce a marketable surplus to invest in future production. Industrial agricultural production is not well developed, making the country dependent on food imports.
In rural areas, most families grow staple crops while also rearing livestock. Since grazing has been limited, smallholder livestock mostly rely primarily on crop leftovers for feed. The lack of quality feed results in low productivity in smallholder animal husbandry. Commercial fodder is often too costly for many farmers.
Jackson Karara, UKC’s Managing Director
A low-tech innovation to solve a pressing problem
In response to this challenge, a group of young entrepreneurs introduced vertical farming to Rwanda in 2019 - a low-tech but highly effective solution to land scarcity. For the first time in the country, they pioneered hydroponic fodder production, offering an affordable, local alternative to imported animal feed. This innovative system requires minimal inputs: low water consumption, no fertilisers or pesticides, no soil, and minimal land space needed. The system is cost-effective, easy to install, and simple to maintain. By 2023, their enterprise, UKC, was already producing and selling 25 tonnes of fodder per week.
Scaling up: The role of the LuxAid Demonstration Fund
At a critical point in its growth, UKC needed investment to expand—installing new production units in remote areas, training staff, and rolling out an innovative fogging irrigation system. That’s when the LuxAid Demonstration Fund (LDF) stepped in with EUR 350,000 in co-financing, enabling the business to scale up.
“Thanks to the LDF’s support, we installed three new production units in 2024, nearly doubling our output to 48 tonnes of fodder per week” explains Jackson Karara, Managing Director of UKC. “The impact has been very promising. Milk production from cows now fed with our fodder has almost doubled - from 1,000 to 1,800 litres per week. Some farmers who used to bring their cows for milking once a day are now doing so twice, significantly increasing their income. Recognising these benefits, the government acknowledged the importance of hydroponics in Rwanda and has recently exempted related equipment from import taxes, making it more accessible. Additionally, our new fogging irrigation system has drastically improved our efficiency. We now need just 1.5 minutes of irrigation per day—compared to 45 minutes with conventional hydroponic systems. This not only saves water but also enhances crop growth, making the process even more sustainable.”
Transforming dairy farming in Rwanda: Ndemezo’s journey with hydroponic fodder
Christophe Ndemezo, a dairy farmer in Rwimbogo, Gatsibo District, Eastern Rwanda, shares how his farming journey took a transformative turn with the introduction of hydroponic fodder.
Like many smallholder farmers in Rwanda, he supplies milk to his local cooperative while collecting hydroponic fodder to feed his cows. His four milking cows now receive fresh fodder daily - a practice he adopted after visiting a hydroponic greenhouse and witnessing firsthand its benefits.
"I couldn't believe it was possible to grow animal fodder without soil! The technology amazed me, and I was eager to try it with my cows. The results were astonishing" he recalls. “After switching to hydroponic feeding, my cows’ milk production significantly increased. One cow’s yield rose from 8 to 12 liters per day, another from 6 to 12 liters, the third from 5 to 8 liters, and the last from 4 to 7 liters daily. This boost in production has increased my profits, helping me balance input costs while also allowing me to save and grow my income. Within a week, my daily milk supply to the collection center jumped from 45 to 65 liters.”
Ndemezo’s experience highlights the transformative impact of hydroponic fodder on livestock productivity and economic benefits for farmers.
Christophe Ndemezo, UKC staff, and Jackson Karara
What’s next?
“Looking ahead, UKC is gearing up for further expansion: First, investing in trucks to deliver fodder to remote areas. Then, supporting the installation of silos to improve fodder storage, reducing delivery frequency and expand into new regions” says Karara.
After one year of implementation, Karara emphasises that one of the key lessons learned is that hands-on demonstration remains the most effective way to drive adoption. “We frequently welcome visitors from across the sector who want to see firsthand how our innovation is transforming dairy farming in Rwanda. By scaling up and sharing our model, we hope to inspire wider adoption—contributing to a more sustainable and food-secure future for Rwanda.”
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