Sugarcane outgrower schemes model: Friend or foe? A question for smallholder farmers in Mozambique

João Guilherme Dal Belo Leite, Felix Mario Langa, Graham von Maltitz, Manoel Regis Lima Verde Leal and Luís Augusto Barbosa Cortez

World Development Perspectives, 2020, vol. 19, issue C

Abstract: For decades, economic development has been a major challenge for scientists, policy makers and NGOs in sub-Saharan Africa. Among the alternatives, agro-industries have been acknowledged as a way to catalyze foreign investment and kick-start agricultural development through the engagement of smallholder farmers. In Mozambique, the outsourcing of sugarcane production to smallholders gains momentum as an alternative to the traditional plantation model for sugarcane production. International development programs, such as the EU initiatives, and local stakeholders believe that sugarcane can be a steppingstone for better access to infrastructure, employment and social services (e.g., health clinics and schools). In this paper, we explore the relationship between a sugarcane mill and smallholder farmers in Maputo province, Mozambique. Our main goal is to investigate key characteristics of the sugarcane outgrower scheme and the implications for sustainable local development. In October 2017, we interviewed 115 farmers from 17 sugarcane farmers’ organizations (out of 23 total) in the districts of Manhiça, Magude and Moamba (Maputo province), together with two managers from the sugar mill. Despite promising, our assessment shows that sugarcane fell short the benefits expected by farmers and development practitioners. Frustration is largely rooted in information asymmetry between farmers and the sugar mill. There is certainly a need to review the current production model to implement policies able to ensure farmers with trustworthy information throughout the sugarcane value chain (from field to market) and buffer strategies to cope with market instability and social vulnerability.

Keywords: Rural development; Contract farming; Sub-Saharan Africa; Agro-industry (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wodepe:v:19:y:2020:i:c:s2452292920300539

DOI: 10.1016/j.wdp.2020.100232

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