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Integrating smallholder growers into competitive sugarcane production.

The Government of Swaziland has made a significant investment in irrigation infrastructure development to encourage smallholder farmers to engage in commercial farming and increase productivity for poverty alleviation. An example is the Maguga Dam Project, a collaboration between Swaziland and the Government of the Republic of South Africa, which supports the development of about 6 000 hectares of land under the Komati Downstream Development Project (KDDP). A further example is the development of infrastructure for the Lower Usuthu Irrigation Project (LUSIP) in the southern lowveld of the country, which has recently been completed to cover 11 500 hectares under irrigation. Sugarcane farming is one of the most strategic crop options for the smallholder growers, given the success of the industry and the confidence of the agriculture credit service providers in the industry. Currently, 7 000 hectares of the total 57 000 hectares under cane are farmed by smallholder associations, with land areas ranging up to 50 hectares per association. However, the inept performance of the existing sugarcane smallholders under the KDDP has required a re-examination of the operation and efficiency of these associations. A key challenge is the unsustainably high level of debt owed to local financial institutions, which may be the result a combination of factors including smallholder management practices, the constitution of the farmer associations, the rapidly increasing cost of production inputs and a suppressed sugar price. Analysis indicates that under optimal management conditions smallholder cane growing can provide significant returns that can contribute to improved livelihoods for the communities and enhance the competitiveness of the industry by increasing throughput. To achieve this, a Model has been developed to improve the viability of these growers, using lessons learnt from the KDDP and integrating industry practices to enhance the commercial content of the growers’ operations. New entrant growers, particularly from the LUSIP, and the existing growers will be the beneficiaries. The concept of this Model is to rationalise technical and governance issues to optimise industry production and the transition of the grower entities to mainstream commercial operations. A group of schemes within the same proximity will pool their resources to hire a professional farm manager, who will work closely with the sugar mills and the financiers to enhance productivity and minimise production costs. This will entail establishing a strong alliance between the grower, the miller and the financier, the creation of a Ratoon Management Fund (RMF) and the support of a Central Procurement System through the mills. The financiers are optimistic about this Model. Malaza S et al Proc S Afr Sug Technol Ass (2009) 82: 405 408