Outgrower schemes, livelihoods and response pathways on the Zambian ‘sugarbelt’

Abstract

In critical agrarian studies, the connections between large-scale agricultural investments and outgrower schemes are strong, but evidence on which model produces improved livelihood outcomes remains relatively weak. This paper examines livelihood impacts in two differently structured outgrower schemes under Zambia Sugar Plc – ZaSPlc, a subsidiary of Illovo Sugar Plc. The first scheme centrally controls land through an integrated company, renting out sugarcane plots to smallholders whilst acting as an intermediary. The second scheme amalgamates individual smallholder plots of land to form a contiguous block-farm managed by a ZaSPlc intermediary, integrating smallholders as shareholders. We identify the former scheme as producing greater livelihood impacts across financial capital and other dynamics but emphasise that these remain low quality and fail to produce significant path-changing gains for households. Analysis of livelihood groups and strategies, livelihood contributions of LaSAIs and sugarcane uptake, and livelihood response pathways reflect causes and consequences of differences in the evolution, operation, and integration of outgrower schemes. One outcome is the production of narrow as opposed to broad-based livelihoods. Livelihood diversification away from sugarcane schemes are forged within land-based and agrarian activities and show that smallholders do not always switch to profit-maximising strategies. Our findings show that greater attention must be paid to the role of institutional arrangements and local conditions in unfolding outcomes for land and water relations, and how emerging relationships shape inclusivity of an agricultural investment. Thus, outgrower arrangements that ensure commodity production alongside alternative farmer activities that boost livelihoods are thus strengthened for this purpose.