L14 - Example of a Large Scale Agricultural Development

• the development project is called the kilombero plantations limited in the kilombero valley
• the kilombero plantations are located in tanzania, africa
• tanzania is a low income country in east africa
• The kilombero valley is a fertile strip of land in Tanzania and is one of the best rainfed sites in Eastern Africa
• The Kilombero valley lies to the south of the capital of Dodoma and to the south west of the main city of Dar es Salaam
• agribusiness is the range of processes involved in modern food production (agricultural chemicals to prevent pests destroying crops, seed to supply plants)
• agribusiness involves profitable large scale farming systems. large scale farming has increased in the UK and is growing in the developing world
• agria manages KPL and in 2008 it acquired a 5818 hectare farm located near mngeta in the kilombero valley
• the farm owned by Kilombero plantations limited (KPL) was cleared to grow rice crops, process and storage facilities were built alongside it
• tractors, planters and combine harvesters are in use and the company has invested in a biomass plant (organic material which comes from living or recently lived organisms that can be used to generate electricity)
• the company has renovated a small hydro-electricity (generating electricity from running water) station
• most of the business is all in one place and essentially self sufficient
• 32000 tonnes of rice are produced and 4500 tonnes of beans each year
• social advantage: kpl supplied local smallholder farmers with training and seeds to help them to improve rice yields this is called SRI (system of rice intensification) this has improved harvests for over 4000 families and helped them to improve their lives
• social advantage: agrica have provided work for young adults in the area and the company employ local people and focus on younger people with difficulties finding employment
• social advantage: KPL built 82 houses for families that have been displaced as a result of the new farm, they also constructed school rooms, healthcare facilities, water pipes and new roads
• economic advantage: KPL spends $700,000 a year on wages and healthcare for locals
• environmental advantage: KPL are contributing to sustainable energy supplies in the area and their biomass plant has a 500KW capacity and their mini hydro-electricity power station has a 320KW capacity
• social disadvantage: KPL farm covers land that was originally farmed by 230 household these displaced families were moved from their homes and paid monetary compensation
• economic disadvantage: many farmers are now in debt. the SRI improved yields but lead to farmers borrowing money to pay for new seeds and equipment. in some cases farmers have to sell possessiona to meet repayments
• economic disadvantag: many locals say that the alternative land is less than what families originally had and the cost of renting exceeds the compensation
• environmental disadvantage: local farmers claim that chemical run off from the KPL farm pollutes their land and their harvests have been ruined, causing families to go hungry