The Outgrower Programme is an essential part of the Agro EcoEnergy Bagamoyo project. Agro EcoEnergy has intentionally designed the sugar mill with a major overcapacity that provides an opportunity for people in the surrounding villages and communities to become commercial sugarcane Outgrowers.
The people will be empowered to set up, own and operate independent commercial outgrower companies, each company farming sugarcane on approximately 75-150 ha of land. Some 25-35 companies will be supported in the process to produce and supply 300,000T – 400,000T sugarcane per year to the Agro EcoEnergy Mill.
Outgrower Programme Components
The outgrower programme comprises of three components:
Under the bulk infrastructure component, the outgrower areas will be provided with the infrastructure, which is required for commercial sugarcane farms. More specifically this relates to:
Training and capacity building
Through the training and capacity building component the approach as explained in OUTGROWER DEVELOPMENT APPROACH will be implemented. Through the training and capacity building approach the outgrowers will be empowered to develop their own business plans and to access funding for their in-farm development.
In-farm development component
Each outgrower company will access funding through the development of a business plan for the development of their farm. This development relates to capital expenditures and operational expenditures until they start to generate their own revenues. The capital expenditures are for irrigation equipment, land clearing and preparation etc. Operational expenditures would also include wages to themselves during the first 1.5 years until the farm receives its first income.