Deal #4748

Kenya
Created at
2015-08-24
Last update
2019-07-01
Last full update
2019-07-01

Land area

Size under contract (leased or purchased area)
  • [current] 0.0 ha
Comment on land area
Outgrowers provide sugarcane to the mill. Mill on 28 hectares.

Intention of investment

Intention of investment
  • [current] Food crops, Industry
Comment on intention of investment
Sugar Mill

Nature of the deal

Nature of the deal
Pure contract farming

Negotiation status

Negotiation status
  • [2010] Concluded (Contract signed)
  • [2015] Concluded (Change of ownership)
  • [2015, current] Concluded (Contract signed)
Comment on negotiation status
Alteo acquired a stake in the project in 2015, the project was operational since 2010.

Implementation status

Implementation status
  • [2015] In operation (production)
  • [2018, current] Startup phase (no production)
Comment on implementation status
Outgrowers have been growing sugarcane before the start of this project. Outgrowers stopped supplying the company towards the end of 2018 and beginning of 2019 due to the low buying price of sugar cane. The company and outgrowers are in negotiations.

Contract farming

Contract farming
Yes
Not on leased / purchased (out-grower)
Yes
Not on leased area/farmers/households (out-grower)
  • [current] 14000.0 ha
Comment on contract farming
Community surrounding the sugar mill. the company giving extension services, harvest and transport services from field to mill. 14,700 outgrowers of the region on an estimated area of 14,000 hectares to the Transmara factory. the company provides planters’ relations that include, irrigation, fertilization, harvest and transport facilities from the fields to the factory. In March 2019 the outgrowers stopped supplying cane to the factory because of the low cane prices.