Malting barley cultivation in Mbeya Region by small-scale farmers (microfinance for irrigated barley and rice cultivation) Note: This project has been cancelled, because there was no progress in the project's implementation.The original plan was to upgrade a degraded 8,000 ha rice farm with a neglected irrigation system. Local partner Kapunga Rice Project Limited decided to set up a contract farming microfinance scheme to include small farmers in commercial farming activities. The applicant Verus Contracts had broad experience in setting up these systems.Corporate Social Responsibility (CSR)The joint venture will implement the Ethical Trade Initiative standards and become an ETI member. Every year, based on a company report, ETI will check if the ETI Base code is still applicable for the joint venture.Child labour will not occur. Since the outgrowers will be working on the land of the local partner, this will be very easy to control. Managers will go around the land during the day.Impact•	Employment and working conditionsAt the end of the PSI project, 24 people (16 basic- and 8 high-level) will be contracted. The salaries will be 25% above the minimum wages. All staff members will receive protective clothing and safety training. Two years after the project the joint venture will employ 43 people (30 basic- and 13 high-level).The most significant employment and income generating effect will be achieved in the smallholder sector. During the project 175 farmers will be contracted, each employing 9 people. Thus providing employment of approximately 1,575. Two years after the project 300 contracted farmers are contracted, giving work to 2,700 people.The joint venture will guarantee working conditions in line with the ETI standards. Protective clothing and safety training will be provided.•	Innovation / Transfer of knowledgeThe cultivation of irrigated barley is new. New training components include microfinance, minimum tillage and conservation farming techniques, efficient irrigation water use in rice, barley and rice, pest and disease management, balanced fertilisation and optimisation of yield. Also, crop rotation is new for small farmers.•	Chain effectsThe cultivation of irrigated barley is new. New training components include microfinance, minimum tillage and conservation farming techniques, efficient irrigation water use in rice, barley and rice, pest and disease management, balanced fertilisation and optimisation of yield. Also, crop rotation is new for small farmers.•	EnvironmentA Water Users Association will be set up for the farmers to establish an efficient and effective water and irrigation maintenance scheme.For rice production in 2007 the local partner Kapunga Rice Project Limited did an EIA. No significant issues were identified. Recommendations were followed-up. For the production of the dry crop barley, include dry season irrigation, a new EIA will be done. Other environment issues were already covered in the earlier EIA.•	Position of womenEqual opportunities will be offered for men and women. At least 25% of the employees will be female. Also, in the selection of small farmers the partners will ensure that women farmers will get equal chances in becoming a contract grower. At the Water Users Associations at least one of the three elected representatives will be female. To establish a smallholder contract farming operation for the cultivation of 1,000 ha of barley in rotation with rice and soybean for the local market based on irrigation and microfinance.