KPL - Large Scale Agricultural Development Example

What is the name of the development project?

KIlombero Plantations Limited in the KIlombero Valley.

What country is it located in?

Tanzania, Africa.

Describe exactly where it is, using compass directions and names of places.

Tanzania is an LIC in East Africa. The Kilombero Valley, the example, is a fertile strip of land in Tanzania. It’s one of the best rained sites in Eastern Africa.

The valley lies to the south of the capital of Dodoma and to the South-West of the main city of Dar es Salaam.

What is agri-buisness?

Describes the range of processes involved in modern food production (eg. The harvesting and selling of crops.) Agri-buisness involves profitable, large-scale farming systems.

These are being increasingly used in the UK and is growing in the developing world.

What UK based company manages KPL?

Agrica

What did agrica aquire in 2008?

A 5815 hectare farm located near Mngeta in the Kilombero Valley.

What did KPL do?

The farm owned by KPL was clear to grow rice crops. Processing and storage facilities were built alongside it.

Tractors, planters and combine harvesters are in use and the company has invested in a biomass plant.

They’ve also renovated a small hydro-electricity station.

This means most of the business is all in one place and essentially self sufficient.

What is a biomass plant?

Organic material which comes from living or recently lived organisms, including animals/human waste that can be used to generate electricity.

What is a hydroelectricity station?

When electricity is generated from running water.

How many tonnes of rice and beans are produced each year?

32,000 tonnes of rice.

4,500 tonnes of beans.

Advantages: What is the SRI project?

KPL supplied local small holder farmers with training and seeds to help them improve rice yields - this is the SRI programme.

Stands for ‘System of Rice Intensification.’

This has improved harvests for over 4000 families, improving their lives.

Advantages: how have agrica provided work?

They’ve provided work for young adults in the area and aim to employ younger locals who often have difficulty finding employment.

Advantages: How have KPL helped with housing? What about other facilities?

KPL built 82 houses for families that had been displaced as a result of the new farm.

They also constructed school rooms, healthcare facilities, water pipes and new roads for local people.

Advantages: How much money does KPL spend a year on the wages and healthcare of locals?

$700,000

Advantages: How are KPL contributing to sustainable energy in the area?

Their biomass plant has a 500KW capacity and their mini hydroelectricity power station has a 320KW capacity.

Disadvantages: What was the area the farm was on originally used for?

It was originally farmed by 230 households who were displaced. These families were moved from their homes and given alternative land and paid monetary compensation.

Disadvantages: How are farmers now struggling financially?

Many are now in debt - the scheme improved yields but lead to farmers borrowing money to pay for new seeds and equipment. In some cases, farmers have had to cell possessions to meet repayments on their loans.

Disadvantages: What do locals say about the land they now live on?

It is less than the families originally had and the cost of renting farmland exceeds the compensation payed.

The amount of land available has decreased as a result of KPL and his has further increased rental prices.

Disadvantages: Why have some of the locals’ new land been polluted?

They claim the chemical run off from the KPL farm pollutes their land and their harvests have been ruined, causing some families to go hungry.

Chemical run off is also bad for wildlife and habitats in the environment.