Masindi sugarcane farmers oppose closure of weighbridges

MASINDI, February 25, 2025 –– The Ugandan government has closed sugarcane weighbridges in Masindi following allegations of poaching by some sugar millers in the district. The directive was issued days ago by the Minister of Trade, Industry and Cooperatives [MTIC] Fred Mwebesa, who dispatched ministry officials to enforce the order in Masindi on Friday.

“It’s better to close them because they are facilitating sugarcane theft,” stated Mwebesa.

Some of the weighbridges closed were being operated by the Bunyoro Sugarcane Farmers Cooperative Union Limited [BUSFACOU] in Kihande Cell, Masindi Municipality, and Rukondwa village in Bikonzi Sub-county.

Muhamudu Kazimbiraine Baraza, the Chairperson of BUSFACOU, expressed concerns over the lack of communication from Minister Mwebesa regarding the closure. “We take sugarcane that is not registered with any miller. The farmers in Masindi also grow cane independently, without the support of any miller. We don’t take it ourselves; we are called upon due to the better prices we offer,” Baraza whose team was recently in Kampala to see MTIC officials over the matter, explained.

“We operate in a liberalised economy where everyone should be allowed to participate in business. We are also seeking government protection, as we provide employment and contribute to the tax base,” he added.

He also mentioned that some of the cooperative’s farmers sell their sugarcane, grown outside of the contract, to Luwero Sugar Factory and therefore the allegations of sugarcane poaching are not sustainable.

On 8th January 2025, the same ministry had ordered the closure of the weighbridges after various millers accused them of facilitating the theft of sugarcane belonging to established millers. However, the weighbridges were later reopened after petitions from different farmer groups to various stakeholders.

Kinyara Sugar Limited, located in Masindi, has been vocal about the impact of sugarcane poaching, which they claim has significantly harmed sugar manufacturing by their mill.

In interviews with The Cooperator, Kinyara has urged the government to protect millers against cane poaching crime and to stop issuing licences to non-established sugar companies, arguing that mills without their own cane estates rely on contracted farmers for supply.

In mid-2023, police in Masindi, in partnership with Kinyara Sugar Limited, impounded seven trucks loaded with sugarcane allegedly poached from the company’s contracted farmers. In December 2021, Kinyara’s security and the police intercepted four lorries carrying cane stolen from Kinyara’s nucleus in Butoobe village, Bikonzi Sub-county, Masindi.

Phinehansi Kyotasobora, a sugarcane farmer, reported being a victim of sugar theft, losing nine tonnes to thieves in Katasenywa Cell, Bulima Town Council. Patrick Byamukama, another farmer, also lost over 10 tonnes of sugarcane during the harvest in Kinenabuhere village, Bwijanga Sub-county, and reported the matter to the police.

Sugarcane poaching involves the theft of cane from out-growers supplying a specific factory, which is then sold to other factories or entities elsewhere.

During his State of the Nation address on May 31, 2016, President Yoweri Museveni called for an end to sugarcane poaching, citing the risk of importing sugar due to low production levels.

History

The sugar industry in Uganda dates back to 1920, with production peaking in 1972 before declining due to mismanagement and neglect. However, the industry began recovering in the 1980s, following rehabilitation and divestiture programmes supported by both the private sector and the government.

Sugar production

Sugar production in Uganda has increased by nearly 15% annually, with a record annual output of about 240,000 tonnes in 2008. In 2009, production reached 287,387 metric tonnes, a 20% increase over the previous year. Projections indicate that the country will need approximately 915,000 metric tonnes by 2030, assuming a rise in per capita consumption to 15 kg per person annually. Currently, Uganda produces about 600,000 metric tonnes of sugar each year, with the majority being brown sugar and a smaller portion being industrial white sugar.

Weaknesses of the industry:

According to the Uganda National Sugar Policy, several weaknesses persist within the country’s sugar industry:

• Lack of a Regulatory institution: There is no central body to coordinate the sugar sector, leading to mutual suspicion between stakeholders regarding issues such as pricing formulas and sugarcane purchasing agreements. The establishment of such an institution could enhance collaboration between millers and cane farmers.

• High cost of production: Many of Uganda’s pioneer sugar factories operate with outdated machinery and processing technology, resulting in low crushing capacity and poor labour and cane productivity. Additionally, Uganda’s landlocked status, coupled with poor road and rail infrastructure, raises transport costs, further increasing the overall cost of production. This challenges Uganda’s competitiveness in the global sugar market, especially against producers like Brazil and Swaziland.

• Cane varieties: Uganda imports cane varieties from South Africa, France, and India. However, these varieties tend to have high fibre content and low sucrose levels, which reduce productivity. Uganda’s cane productivity of five tonnes per hectare per month is lower than in neighbouring countries, and the average maturity period of 18 to 20 months is uncompetitive compared to other regions where cane matures in 12 months.

• Proximity of jaggery mills to sugar factories: Since 2005, the government has received multiple complaints from established sugar millers about the diversion of sugarcane to jaggery manufacturers. Nearly 300 ox-driven and motorised jaggery mills operate within out-grower areas, diverting cane that is meant for sugar production. Jaggery mills extract only 5-6% of sugar from cane, compared to the 9-11% recovery rate of sugar mills, resulting in lost revenue for the government due to lower recovery rates and uncollected taxes. It is estimated that 20,000 tonnes of sugar are lost annually to jaggery production.

• Non-binding cane production contracts: While out-growers typically have contracts with sugar mills that guarantee supply, pricing, and support, many contracts are violated. Cane growers often sell their contracted cane to other mills, especially jaggery producers.

• High cost of financing for millers and out-growers: Despite the increase in the number of banks and financial institutions in Uganda, interest rates remain high, ranging between 18-24%. This has delayed the modernisation of processing technologies and worsened the financial situation of small-scale farmers, who struggle to access affordable credit due to land tenure systems and the lack of land titles for collateral. Millers also provide credit at high interest rates, which negatively impacts farmers’ profits and, by extension, the price of Uganda’s sugar.

• Insufficient vocational training institutions: The sugar industry requires specific skills not readily available from Uganda’s existing vocational and tertiary institutions, leading to low productivity in factories and higher production costs.https://thecooperator.news/masindi-sugarcane-growers-give-leaders-another-term-of-office/Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news

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