Deal #1338

Land area

Intended size

120 000 ha

Size under contract (leased or purchased area)

[current] 50000.0 ha

Size in operation (production)

[2013, current] 5.0 ha

Comment on land area

Only 5ha are farmed with seeds being sold. pilot farm of 100 Hectares has 100,000 trees, the company also has plans to expand further on to more of the 50,000 hectares it manages in partnership with three villages in Ghana. The company is looking to establish 300+ ha seed unit and associated facilities. The 70,000ha area has not been used and usufructuary rights might have lapsed

Intention of investment

[current] Biomass for biofuels, Food crops

Comment on intention of investment

The company gave up on jatropha due to the falling global prices. It subsequently decided to grow maize. In 2019 it expressed it wanted to go into a seed multiplication.

Nature of the deal

Lease

Comment on nature of the deal

The chief allocated land to the company in the year 2000. The nature of the deal is unknown, but is likely to be a lease. Earlier it was reported that the company only had usufructuary rights.

Negotiation status

[2000, current] Concluded (Contract signed)

Comment on negotiation status

The chief allocated land to the company in the year 2000.

Implementation status

In operation (production)
[2007] Project abandoned
[2019, current] In operation (production)

Comment on implementation status

According both the farm manager and the two former employees, the company went into financial problems and could barely pay even staff. As a result the company halted operations in 2007. The company changed its name to Paragon Farms and is now undertaking maize farming.

Leasing fees

Comment on leasing fee

Small annual fee to be paid to the chief

Contract farming

Yes

On leased / purchased

Yes

Comment on contract farming

farmers grow jatropha under profit sharing lease agreements with the company. In 2019 the company issued a feasibility study to (among others) a smallholder programme