Summary of action

Illovo, a subsidiary company of ABF, is dependent on outgrowers for cane to maintain its status as Africa’s largest sugar producer. The threat of water scarcity has led Illovo to fund various projects, including R&D and water infrastructure, as well as the Sustainable Sugarcane Farm Management System (SUSFARMS) initiative. The implementation of SUSFARMS principles has resulted in US$6.8million savings annually.

Program rationale

Over half of the cane processed by Illovo is produced by independent outgrowers, who vary in size from extensive farms to smallholders. Drops in cane supply from outgrowers can significantly impact Illovo’s productivity. Maintaining and developing outgrower supply remains a key area of focus for Illovo, and Illovo actively engages outgrowers on this issue. Customers, funders and potential investors are also increasingly interested in the environmental impact of products and services.