Presentation that one of the producers of Kasinthula co-coperavive held visitng in Finland in October 2010.

1. Fairtrade sugar in Malawi

2. Malawi Sugar Industry
- Sugar is the third most important
export commodity after tobacco and
tea in Malawi.
- In Malawi sugar is grown in Dwangwa
(Central Region) and Chikwawa
(Southern region) areas.
- Sugar in Malawi is processed and
exported by Illovo Sugar Group.
- Kasinthula Sugar Cane Scheme is
the only sugar producer organisation
registered under Fairtrade in Malawi.

3. Kasinthula background
• Kasinthula was established with joint assistance from the Government of
Malawi and Illovo Sugar Group (initially called SUCOMA) in 1997.
• Previously farmers were growing rice on that same land but because rice
was not economically viable, the Government of Malawi proposed that
farmers shift from rice farming to sugar cane farming. The government
wanted farmers to be poverty alleviated and bring social development to
the surrounding community.
• There are currently a total of 282 farmers
• Kasinthula is expanding with help from EU-funding with 400 hectares of
land will be developed and 200 farmers are expected to join the scheme.

4. Sugar Cane Farming
• Each farmer has 3 hectares.
• The canes are harvested once a year,
between April and November.
• Every fifth to sixth year (depending on
the cane variety) the fields need to be
ploughed out and canes replanted.
• From 3 hectares a farmer can grow
about 270 tones of sugar canes.
• Kasinthula sugar cane is crushed into
sugar at the mill owned by Illovo which
is 30 km away from the scheme.
• From 1 ton of sugar cane you get 124
kg of processed sugar.

5. Illovo Sugar Mill

6. Fairtrade at Kasinthula
• Kasinthula got Fairtrade certified in
December 2003 and started receiving its
first premium in 2004.
• Kasinthula used to sell one quarter of its
sugar on the Fairtrade market but from
2008 on Kasinthula has been able to sell
all its sugar on the Fairtrade market.
• By selling sugar on Fairtrade market
Kasinthula receives $60 premium per
tonne. In total Kasinthula received
563 586 € in premium in 2009.

7. Premium
As indicated earlier on, Kasinthula received its first premium in 2004 and
since then the premium has been managed by farmers with assistance of the
Management of Kasinthula Cane Growers Limited. The premium is used in
three ways, namely:
Community Development (30%),
Plough out and Replant (30%) and
Farmers’ Development (40%)

8. Community Development
• Kasinthula has implemented
various Community Development
Projects.
• Such projects include drilling of
boreholes, building a clinic,
Chinangwa village electrification
project, tap water extension and
also donating computers and
printers to secondary schools.

9. • The picture shows the start of Chinangwa Junior
Primary School Project, which is being built using
Fairtrade Premium fund.

10. • Fourteen boreholes were drilled using Fairtrade Premium funds. The boreholes were drilled in
villages that surround Kasinthula. Before these boreholes people, especially women, were
drawing water in unsafe sources like rivers which is very infested with deadly crocodiles, other
were drawing in ponds and dams which were sources of water borne disease like bilharzia,
cholera.

11. • As indicated below the woman is trying to show off the once scarce
commodity now running freely in! Thanks to the support Fairtrade
provided to Kasinthula to establish communal taps. Women used to wake
early in search of after which is no longer the case this time.

12. • 36 household are now the beneficiary of Chinangwa Village electrification. In the normal
circumstance one could not expect electricity to this village taking in mind its location, but then
Fairtrade proved that with resources, development can reach everywhere regardless of its
position. The electrification process has now extended to other 52 households in the villages
surrounding Kasinthula.

13. • Taking into account the distance that people were traveling to get medical help
from the District hospital, the General Assembly agreed to build the Under five
Clinic below to help reduce infant mortality rate of the surrounding community.

14. • Before expansion the clinic below was only treating bilharzia cases because this
area was at a high risk due to unsafe water that the community were using. But
then the General assembly agreed to seek the District Health Officer’s permission
to expand this with funds from Fairtrade premium into a clinic after noting that
bilharzia cases were minimal and the clinic was idle.

15. • The house below was built for the Clinical Officer who will be working at
the above clinic.

16. • Six computers and three printers were bought with Fairtrade funds to be
donated to three surrounding secondary school that have electricity to
help students responding to modern technology and know how to operate
computers while at secondary school

17. Ploughout and replant
• Kasinthula improves its cane fields through ploughing
out and replanting.
• Plough out is carried out when cane fields are
producing low yields as a result of old ratoons, poor
soil structure and drainage and sometimes disease
infestation.
• As part of scheme development, 30% of Fairtrade
premium funds are used to finance these operations.
See pictures below.

18. • The picture show a field that has been ploughed using Fairtrade Premium
funds

19. • The man below is showing how cane is irrigated using siphons (furrow
irrigation) in a field which has been ploughed. As you can see the canes
are green and water is moving in its way. All these made possible with
Fairtrade Premium fund

20. Farmer Development
• In the beginning farmers at Kasinthula were facing many problems. In fact
most of the farmers used to be living in mud and glass thatched houses
and had difficulties in terms of transportation and paying school fees for
their children.
• Due to this, it was agreed during the Farmers’ General Assembly in 2004
that 40% of the premium should be used to purchase farmers and
employees’ developmental materials as well as paying school fees for the
farmers’ children.
• Since Kasinthula got certified farmers lives have greatly improved and
currently farmers are living in good houses. In addition, farmers have
access to safe and clean water.

21. • Below is an example of farmer
houses before Fairtrade Premium
come to their rescue.
• One of the houses that farmers now
own, thanks to Fairtrade Premium Fund
which has transformed farmers from
living in mud, glass thatched to this
beautiful house

22. Challenges
• Kasinthula has a huge debt amounting to 3,8 million
USD This is the scheme Development Loan which
was borrowed from Illovo Group Holdings Limited
(IGHL) and European Investment Bank (EIB) in order
to establish the scheme.
• High illiteracy level amongst farmers makes it difficult
for some of the farmers to understand some of the
Fairtrade Standards.
• Subcontracting the transport of sugar canes to sugar
mill is expensive

23. Future Plans
• Putting in place a Strategic Plan for proper
management of premium use.
• In addition, Kasinthula Fairtrade will introduce capacity
building programmes with an aim of improving the
literacy level of the farmers.
• More expansion both in land and number of farmers.
• Owning our own vehicles for transporting the sugar
canes to the sugar mill.
• Selling more sugar and maintain 100% Fairtrade.
• Promote Fairtrade in Malawi, by lobbying the
Government.

25. Reilun kaupan edistämisyhdistys
Paasivuorenkatu 2 A
00530 Helsinki
Puh. 09 5658 6820
www.reilukauppa.fi