Deal #1907

Land area

Intended size

8 000 ha

Size under contract (leased or purchased area)

[1998] 8000.0 ha
[2018, current] 6774.0 ha

Comment on land area

outgrowers operating over 12,000 hectares. Looking for expansion. It comprises two adjacent agricultural estates and sugar factories, Msolwa and Ruembe, situated on either side of the Great Ruaha River and linked by a low-level bridge. In 2018, 1226 ha were given back to the government for the development of the Magombera Forest

Intention of investment

[2018, current] Biomass for biofuels, Food crops, Renewable energy unspecified (6774.0 ha)

Negotiation status

[1998, current] Concluded (Contract signed)

Implementation status

[1980] In operation (production)
[2018, current] In operation (production)

Comment on implementation status

Previously state-owned operation

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

[current] 12000.0 ha

Comment on contract farming

Outgrowers supply around 42% of the company's output. Have provided credit, bulk inputs, transport, training to the outgrowers. In recent years, a mix of over supply plus lower yields have impacts certain outgrowers. data source #10 (Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania) lists in detail results of their study on the outgrower scheme and impact it has on local communities.