A $90 million deal; but at what cost?
On 25 May 2025, Madagascar’s Secretary of State for Food Sovereignty signed a Memorandum of Understanding (MoU) in Tel Aviv with Israeli agribusiness firm LR Group. The $90 million agreement aims to develop “agropoles” on 10,000 hectares in four regions: Analamanga, Vakinankaratra, Bongolava and Amoron’i Mania; to grow rice, maize, and soybeans.
Billed as a step toward agricultural modernization, the initiative has triggered alarm among farmer groups and land rights defenders. For them, the deal represents a deep threat to Madagascar’s food sovereignty, land tenure security, and the autonomy of small-scale producers.
Behind the promise: the hidden costs of hybrid seeds and agribusiness models
The project plans to use Chinese hybrid rice varieties on 5,000 hectares; half the targeted area. These seeds are high-yielding but come at a cost: they cannot be reused, forcing farmers to purchase new seeds each season. This increases dependency on external suppliers and undermines local seed sovereignty.
Even more concerning is the organizational model being proposed; agricultural aggregation, a form of public-private partnership that groups farmers into cooperatives under strict contracts with an agribusiness “aggregator.” While these farmers retain nominal land ownership, they are required to use company-provided seeds, fertilizer, and machinery, often financed through debt. Farmers must then sell their harvests back to the company, sometimes at pre-agreed prices, with little room for negotiation.
Similar models elsewhere; including in Angola, where LR Group implemented the now-defunct Aldeia Nova project; have led to high debt burdens, economic failure, and land loss for local families.
Fears of land grabs and loss of control
Farmer organizations, including the Collectif TANY and SIF, argue that this project echoes the dark legacy of the failed Daewoo land deal, where millions of hectares were almost handed over to a foreign company with minimal benefit to Malagasy people.
The concern is apparent: under the guise of agricultural development, land may be gradually alienated from communities. The fact that the LR Group intends to “mobilize” funding, not invest directly further raises questions. If the Malagasy government guarantees loans, the people bear the financial burden, while foreign entities control the process.
Sovereignty means local control, not corporate capture
True food sovereignty requires:
- Secure land rights for farmers, especially women, youth, and landless families.
- Protection of local seed systems and biodiversity.
- Public investment in farmer-led infrastructure and fair market access is key.
- Participation of communities in shaping agricultural policy and practice.
The use of hybrid seeds has been enforced, and debt-dependent farming undermines this vision. Similarly, the lack of transparency and public participation in shaping such high-impact agreements is also a concern.
A call to reclaim the agenda
This case is not isolated. Across Africa, “modernization” is too often equated with large-scale agribusiness models that centralize control and marginalize smallholders. Yet it is family farmers, Indigenous Peoples, and pastoralists who feed most of the continent, and whose knowledge, land, and labour are vital to a just and sustainable food system.
The fight in Madagascar is a call to all of us. Development must not come at the cost of people’s dignity, rights, or sovereignty.
ILC Africa stands with Malagasy farmers
We join our voices with those resisting unjust land deals and calling for community-led, inclusive agricultural transformation.
Read the full statement by Malagasy land defenders
