Deal #4748

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

[current] Food crops, Industry

Comment on intention of investment

Sugar Mill

Nature of the deal

Pure contract farming

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

[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

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.