Deal #4433

Land area

Intended size

6 159 ha

Size under contract (leased or purchased area)

[2006, current] 6159.0 ha

Size in operation (production)

[current] 6159.0 ha

Comment on land area

Illovo obtained the land from Lonrho Sugar (original contract signed in 1979).

Intention of investment

[current] Food crops

Nature of the deal

Lease

Negotiation status

[1997] Concluded (Contract signed)
[2006] Concluded (Change of ownership)
[2006, current] Concluded (Contract signed)

Comment on negotiation status

In 1997 Illovo acquired Lonrho Sugar Corporation Limited, with sugar assets in Malawi, Swaziland, Mauritius and South Africa and in 2006 Associated British Foods plc, a company listed on the London Stock Exchange, acquired a 51 percent controlling stake in Illovo.

Implementation status

[2006, current] In operation (production)

Comment on implementation status

Originally in production in 1979.

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

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

[2014, current] 5000.0 ha

Comment on contract farming

Opened the outgrower scheme in 1995. Outgrowers from organizations like Kasinthula Cane Growers Limited in Chikwawa and Dwangwa Cane Growers Limited in Nkhotakota. Over 90 percent of Illovo’s outgrower cane is produced by 1,888 smallholder farmers and the remaining 10 percent is produced by the Community Development Trust, an initiative of the Nchalo Business Linkages Project. Outgrowers supplying Illovo in Malawi occupy over 5,000 hectares of land.