The types of support provided to the sugar cane growers include the following:
Type of outgrower support
Description
Seed cane incentives
Funds for planting on new, uncultivated land and seed for replanting.
Transport subsidies
Supplementary payments to outgrowers located more than 50-60 km from
Illovo’s mills.
Small-scale grower development
costs
Supplementary payments to small growers for purchasing fuel and other
inputs that compensate for lack of bargaining power.
Other supplementary payment
Amounts paid to outgrowers to guarantee a steady supply of cane to Illovo’s
mills.
Cane ripener subsidies
Subsidies for chemical ripeners which accelerate cane maturity and increase
sucrose content.
Training schemes
Extension service, training and mentorship schemes for outgrowers, including
technical assistance and business management support. . Illovo has also
appointed established commercial growers as mentors to help/guide/teach
emergent growers in various aspects of sugarcane farming. The role of
mentors also includes succession planning and training of potential, mostly
family, candidates. Illovo, along with development partners and experts
provides comprehensive civic education, agricultural and business capacity
building to its outgrowers in addition to a wide range of extension services
provided across the group.
Guaranteed purchases
Illovo signs cane supply agreements with outgrower associations and
smallholder schemes, through which it guarantees the price and quantity of
sugar cane which it buys.
Access to inputs
Illovo provides seed, fertilisers and other inputs to smallholders to allow them
to benefit from bulk discounts.
Access to finance
Illovo helps smallholders gain access to finance, including coordinating with
local banks and in some cases providing loans directly to farmers. It has
assisted with identifying and supporting donor funding opportunities. Illovo
has achieved considerable success as a conduit for development by
obtaining grant funding on behalf of outgrowers to develop new and/or
improve existing smallholder schemes.
Access to infrastructure
Outgrowers often benefit from infrastructure funded by Illovo, including roads
and irrigation. They may also have access to schools and hospitals opened
by Illovo, usually for free.
Support small scale outgrowers
with their own food security
Outgrowers grow food crops on farms adjacent to cane and access water for
irrigation. In some cases the growing of maize by Illovo also complements
governments’ food security initiatives. In most of the new outgrower
schemes being developed by Illovo, food crops are an integral component of
the farm with some schemes diversifying beyond solely food security.
DEVELOPMENT PROJECTS
Due primarily to our successful track record in designing and delivering community development
projects, particularly in relation to our on-going capacity building of local community farmers, a number of
development partners and financing organisations are keen to engage with our operations when
providing funding for community projects. Our technical and project management skills are able to assist
these organisations and governments to deliver their development objectives in an efficient and
sustainable fashion. Highlighted below are a number of the projects being carried out across our
countries of operation.
