KIST-GIZ boost sustainable aloe vera cultivation in Kilinochchi

On August 14 2025, renowned Sri Lankan food brand KIST, marketed by Cargills Food and Beverage Limited, marked a significant milestone in sustainable agriculture and rural empowerment in Sri Lanka by entering into a grant agreement with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to launch a high-tech aloe vera cultivation 

project in Kilinochchi. 

The Integrated Development Partnerships with the Private Sector agreement was signed in the presence of Education, Higher Education and Vocational Education Ministry Additional Secretary Vocational Training Samanthi Senanayake, GIZ-Vocational Training in Sri Lanka Head of Project Fabio Germano and officials from Cargills, including Cargills Food and Beverage Limited Managing Director Arjuna Kumarasinghe and Group Manager Agribusiness Haridas Fernando. This grant will support the financing of essential equipment required by the farmers for aloe vera cultivation, enabling them to adopt efficient and sustainable agricultural practices.

The initiative introduces a forward contract farming system whereby the farmers will benefit from a guaranteed buy-back mechanism at a pre-agreed price from Cargills, providing income stability and security. The project will directly support 100 female farmers in Kilinochchi, empowering them with the opportunity to engage in a sustainable source of livelihood through modern and climate-resilient agricultural practices while also providing extension services. 

Germano said, “What we’ve learned through our work is that sustainable development requires genuine market integration, not just capacity building in isolation. This partnership model with Cargills demonstrates that the most effective development interventions occur when we can embed social objectives within commercially viable structures. The private sector’s drive for efficiency, scalability and profitability, when properly aligned with development goals, creates more robust and sustainable outcomes than either sector could achieve independently.” 

Kumarasinghe commented, “At Cargills, we believe that sustainable agriculture is not only about improving yields but about improving lives. This project reflects our deep commitment to strengthening rural economies by creating fair market access, building farmer capabilities and ensuring long-term income security. By working hand-in-hand with GIZ, we are bringing modern technology, guaranteed markets and responsible farming practices together to create lasting social and economic impact for farming communities in Kilinochchi.”

The harvested aloe vera will be processed at the KIST plant located in Kilinochchi. The plant plays a key role in the local economy and is operated almost entirely by women, demonstrating the company’s commitment to empowering women and inclusive development. The processed aloe vera will be used in the production of KIST Aloe Vera Drink, adding value locally and creating market opportunities for rural farmers.

In addition to agricultural support, the project is set to uplift rural communities by integrating unbanked farmers into the formal financial system. Through Cargills Bank, the participating farmers will gain access to essential financial services and loan facilities, supported by corporate guarantees provided by Cargills Food and Beverage Limited. Modern agricultural practices such as micro-irrigation systems and mechanical weeding will be introduced to enhance productivity and sustainability. Farmers will also be guided to follow only non-chemical weed and pest control practices to ensure the safety and hygiene of the aloe vera leaves used for production.

Furthermore, the project will implement standardised harvesting practices to ensure consistent quality while improving packaging, handling and transportation to reduce post-harvest losses. Capacity-building training sessions will be conducted to develop women’s entrepreneurship, leadership, business decision-making skills and social integration, fostering social cohesion within the community. Farmers will also receive support in sourcing high-quality aloe vera planting material and benefit from technology transfer initiatives to expand their knowledge. 

GIZ GmbH-Vocational Training in Sri Lanka project, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and Swiss Development Cooperation, supports Sri Lanka’s TVET institutions and private sector partners in improving the TVET sector with a special focus on employment-oriented qualification measures for marginalised communities and persons with disabilities.

The KIST Aloe Vera Drink is produced at the Cargills Food and Beverage’s state-of-the-art production facility in Katana. This production facility holds certifications for ISO 9001, ISO 22000, HACCP, GMP, SLS and Halal standards.