Sugarcane outgrower schemes model: Friend or foe? A question for smallholder farmers in Mozambique. (September 2020)

• Record Type: Journal Article
• Authors: Dal Belo Leite, João Guilherme; Langa, Felix Mario; von Maltitz, Graham; Lima Verde Leal, Manoel Regis; Barbosa Cortez, Luís Augusto
• Is Part Of: World development perspectives. Number 19(2020)
• Publication Date: 2020-09
• Subjects: Rural development -- Contract farming -- Sub-Saharan Africa -- Agro-industry; Economic development -- Evaluation -- Periodicals; Economic assistance -- Evaluation -- Developing countries -- Periodicals; Developing countries -- Economic conditions -- Periodicals; 338.9105
• DOI: 10.1016/j.wdp.2020.100232
• Languages: English
• ISSNs: 2452-2929

Abstract

Highlights: Sugarcane fell short the benefits expected by smallholder farmers in Mozambique. Farmers' access to development services and irrigation for staple crops is uneven. Information asymmetry undermines the sustainability of the current outgrower model. Free, prior informed consent and transparency policies are urgently needed. 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.