Kasinthula producers

benefitting cane growers in Malawi

In 1996 in an attempt to alleviate poverty in the Southern region of Malawi and provide more sugar cane to the nearby sugar-processing factory, a cane project was initiated. The project was collaboration between the government and the Nchalo factory in Southern Malawi. The idea was to convert largely uneconomic land over to sugar cane and thus provide an income for its owners – poor subsistence farmers who were barely growing enough food to eat.

Since the beginning, the success of the project has been threatened by enormous and escalating debts. The initial investment to convert the land to sugar cane and provide irrigation seemed manageable. But with foreign creditors, owed money against a dramatically devalued local currency and interest rates of over forty percent, the amount of their initial investment quickly duplicated itself several times over.
 

“Fairtrade gives us the security of a stable price for our crop, a premium to invest in schools, clinics and safe drinking water, and because we can refine the sugar ourselves our income will grow.”

- Brian Namata, a member of the Kasinthula co-operative’s management committee

After three years when the cane was ready to harvest – the proceeds would not cover interest repayments let alone reduce the capital amount. However, over time and with good management in place Kasinthula Cane Growers Association (KCGA) started to make headway in paying back the money they owe. With high yields from their cane and with outside financial help they began to carve away at their debts, which slowly became manageable. Although still a long way from turning a profit or breaking even, the farmers are paid themselves around £250 a year. This put further strain on their debt but just about allowed them to put food on the table.

However the future is looking brighter for the KCGA. In 2002 they became Fairtrade accredited and from 2005 we have been sourcing Fairtrade Sugar from them.

Our initial contract of 600 tonnes brought potentially life changing benefits to the Kasinthula Cane Growers’ co-operative in Malawi. By paying a Fairtrade price, our initial order returned an additional £87,000 to the co-operative and also enabled development of its refining business, which had longer-term benefits.

Since the beginning the Fairtrade premium has provided much needed support. In 2006 the Fairtrade premium went to the Kasinthula Housing Project to provide much needed cement to improve housing for over 300 families. The Kasinthula Health Project provided much needed anti-bilharzia drugs at the local clinic.

Today Fairtrade premiums are continuing to help the communities of Kasinthula. For example during 2009 21 boreholes were constructed or repaired, construction of sanitation facilities commenced and over 1,300 adults and school pupils received hygiene education.

Please, people of the United Kingdom, continue to buy our Fairtrade sugar from The Co-operative shops because it gives us so much assistance. We are ready to produce more sugar for you since this is very beneficial for us.

- Robert Dzikieni, sugar farmer, KCGA