EFFECT OF OUTGROWER SCHEME ON THE SUPPLY OF CANE TO SUNTI GOLDEN SUGAR COMPANY

Despite several literatures exist on out-grower scheme in many countries for both crops and animals, little or no study exist on the sugarcane out-grower scheme around communities surrounding the Sunti sugar plant owned by Golden Penny Company. The study investigated the efficacy of the outgrower scheme under the sugar policy in providing sugarcane raw material for sugar production by sugarcane outgrowers in Sunti local community of Mokwa in Niger state by examining how the sugarcane out-grower scheme serve as source of raw material to the Company the and the extent of the reliability of the scheme as source of raw material for Sunti Sugar Company. Questionnaire and interview schedule was utilised to collect data from staff of sugar plant in-charge of the scheme. Observation was used to study the habitat of outgrowers and get data on the scheme. Results shows that the scheme enhanced the timely availability of sugarcane supply according to the company specification; ensure price stability and cost effectiveness; comparatively more productive and fulfils government policy obligation on Backward Integration Measure within the sugar policy in Nigeria in the study area. Despite immense benefit the company derives from the scheme among other benefits, it falls short in terms of Corporate Social Responsibility. The company’s welfare activities towards surrounding communities are insignificant. Base on the findings of this research, it is recommended that deliberate measures on Corporate Social Responsibility such as “tax break for social amenities” by the NSDC should be effectively and efficiently enforced which takes into cognisance sugar company’s profitability and tax need of government. Yearly social amenities scorecard can be used by the NSDC to ensure compliance.