Sisal production at Korogwe estates to resume

Korogwe. Sisal production in Korogwe District estates where a Sisal Smallholder and Outgrower Scheme is operating, is set to resume after resolution of a protracted dispute.

The government intervened to save the situation by suspending all activities in the estates pending a provisional formula for sharing costs and earnings.

Production in processing plants belonging to the Tanga-based sisal company, Katani Limited, was suspended on August 21 by the Tanga regional commissioner, Mr Martine Shigela.

Mr Shigela directed the suspension of production following protracted wrangles over payment between the company and smallholder farmers.

Smallholder farming was initiated by the company in the late 1990s after privatisation, which saw majority of shares of the former Tanzania Sisak Authority being bought by the company.

The RC announced the provisional formula during a visit to the five estates, Hale, Ngombezi, Mwelya, Magunga and Magoma where he spoke with farmers. The formula set an earning share of 54 per cent for the company and 46 per cent for the smallholder farmers. The RC said the provisional formula would be in force for at least three months until a final report that sets a new agreeable formula and regulations to guide relations between the two sides as presented by the consultant.

“We decided to work out a provisional plan to save the situation. It would have affected adversely the smallholder farmers who depend on sisal production for their livelihoods and the company’s production,” said Mr Shigela during meetings with the farmers and company officials from all estates.

He said the scheme, which was established to enable the smallholder farmers to take part in sisal farming about decades ago, was facing several challenges, which must solved to enable both sides operate profitably.