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Kasinthula Cane Growers Limited Summary
Malawi: Kasinthula Cane Growers Cooperative
Kasinthula Cane Growers Cooperative KCGL is Malawi’s second biggest sugar cooperative involving 282 farmers, and it is the world’s first non-organic cane sugar company to be certified by Fairtrade Labelling Organizations International (FLO). Growing commodity sugarcane is always hard work, but it’s especially true in Kasinthula in southern Malawi, where the region is plagued with perpetual drought and sudden flooding. Despite these challenges, sugar is one of Malawi’s top three exports. KCGC’s mission is “to grow quality cane for sugar production and earn increased returns with the aim of not only improving the farmers’ livelihoods but also those of the people within the greater Kasinthula area in line with government’s initiative to reduce poverty among rural communities.”
KCGL is an “operative company” founded and governed by the Shire Valley Cane Growers Trust. The Trust leases 755 contiguous hectares of sugarcane land from the Malawian government, and KCGL manages the land on behalf of the Trust. In partnership with Illovo, one of the world’s biggest sugar exporters, the Trust owns 95% of KCGL, while Illove owns the remaining 5%.
Each of the cooperative’s farmers (one third of which are women) is guaranteed a plot of land (2.7 hectares on average), which is subleased from the Trust for 25 years. The cost of operating the Trust is shared by the farmers and deducted from their revenues. The farmers work their own plots, though some employ additional labor. In the peak production season (April-November), KCGL employs nearly 900 people. The company operates with a commitment to transparency, regularly communicating to farmers how much sugarcane has been cut and how much more is needed, so farmers can balance supply and demand effectively. The company also assists farmers with a significant operating infrastructure, including irrigation systems, pumping stations, and reservoirs. Illovo processes the sugarcane into sugar and handles all the marketing and most of the sales.
Illovo now sells 100% of KCGL’s sugar internationally under a variety of labels including Fair Trade Golden Granulated, Cooperative Fair Trade White Sugar in the United Kingdom, and Wholesome Sweeteners in the United States.
