This study examines the impact of privatization on the productivity of smallholder sugarcane out-growers in Malawi using a case study of Dwangwa Cane Growers Limited (DCGL). The study uses the autoregressive distributed lag model and finds that privatization had a significant positive impact on the sugarcane productivity of the DCGL scheme, both in the short run and the long run. Furthermore, it shows that price incentives alone cannot drive productivity growth and highlights the significance of sustainable fertilisation practices.