TZW
The agreement dubbed ‘Cane Supply Agreement’ (CSA) regulates the business relationship between Kilombero Sugar Company and Kilombero cane growers on fundamental issues such as cane delivery guidelines, cane quality, purchase price and other significant matters.
It will be supervised by the government through the Sugar Board of Tanzania (SBT). Kilombero Sugar Company Director of Operations, Stuart Watson said at the signing ceremony in Kilombero yesterday that the CSA was introduced in efforts to ensure that the interests of Kilombero growers were protected and both parties are satisfied and benefit from this business relationship.
“Kilombero growers are the most important partners of our business they supply 40 per cent of our annual cane demand, this is why it is in our best interest to value their contribution and that being the case, we are keen to see them prosper from this arrangement,” he said.
The Sugar Company works with over 8,000 growers from Kilombero and Kilosa districts. He added, “As we investigate for a possible future expansion,it is our hope that the relationship with Kilombero growers will further grow as we work towards creating a thriving community,” The CSA which is supervised by the government through the Sugar Board of Tanzania (SBT) regulates the business relationship between KSC and Kilombero growers on fundamental issues such as cane delivery guidelines, cane quality, purchase price and other significant matters.
The Acting Director General of the Sugar Board of Tanzania (SBT), Mirajis Kipande hailed KSC for designing a workable framework that looks out for the interest of small scale growers, noting that the SBT is keen to support all initiatives that aim at growing cane farming and the sugar industry.
“As directed by the minister of Agriculture, Food Security and Cooperatives, the SBT will take initiatives to address challenges facing cane farmers, as well as build capacity for members of Cooperatives to have a basic understanding of contracts,” he said.
The Head of Corporate Affairs for KSC Joseph Rugaimukamu said the contract was first introduced in 2006 and gets reviewed every three years. “It is obvious that privatization of Kilombero Sugar has been a timely economic opportunity for the people of this valley and many have embraced cane farming after seeing the benefits.
Right now, some cane is grown more than forty kilometers from here, in places such as Mfilisi, Muhenda and Kiberege,” he said.