Please note: you are viewing an old version of this deal. The current version can be found here: Deal #4757

Deal #4757 Version #69286

Tanzania
Created at
2015-09-01
Last update
2020-10-28
Last full update
2023-03-10

Land area

Intended size
2 000 ha
Size under contract (leased or purchased area)
  • [2013-03-11, current] 1999.11 ha
Size in operation (production)
  • [2015] 1000.0 ha
  • [2016] 1025.0 ha
  • [2019, current] 1456.0 ha
Comment on land area
Another source states 1,200 ha, while another states 2,000 hectares with 829 hectares have been set aside for conservation. 1000ha are under production in 2015 (farmland grab article 28September- 2200ha planted between #3840 and #4757). DLIP allocated size is 1999.11ha.

Intention of investment

Intention of investment
  • [2013-03-11, current] Food crops, Conservation (1999.0 ha)
Comment on intention of investment
Arabica coffee

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
  • [2011] Intended (Expression of interest)
  • [2013-03-11, current] Concluded (Contract signed)
Comment on negotiation status
404ha of the land was previously owned by a private large scale investor from 1985.

Implementation status

Implementation status
  • [2014] In operation (production)
  • [2019, current] In operation (production)
Comment on implementation status
Olam has flagged the coffee plantation in Tanzania as non-core asset and is looking to divest from this activity, as mentioned in the company's 2019 annual report.

Leasing fees

Annual leasing fee
5 000 000
Tanzanian Shilling
for specified area
Annual leasing fee area
1 999 ha
Comment on leasing fee
Lease fee from DLIP (official source but not widely known information)

Contract farming

Contract farming
Yes
Not on leased / purchased (out-grower)
Yes
Not on leased area/farmers/households (out-grower)
  • [current] 1665
Comment on contract farming
Over the next five years (until 2019) Aviv will supply three million coffee plants to 2,000 farmers free of charge.The company is training outgrowers to inter-crop sesame and beans, and then purchasing their produce. In addition, a local partner will promote bee-keeping to 735 farmers. The company is also working with upstream rice farmers to improve their yields. Email from Olam comm officer states 1665 farmers (beginning of 2017).