ABSTRACT

The study was carried out at Sugar Corporation of Uganda Limited (SCOUL) with the purpose of assessing the effect of sugarcane growing on people’s welfare. The specific objectives of the study were; to investigate the effect of sugarcane growing on the people’s income, to determine the effect of sugarcane growing on food security of people and to assess the effect of sugarcane growing on the health and sanitation in Lugazi town, Buikwe district.

The study adopted a descriptive research design where both qualitative and quantitative approaches of data collection were adopted. The researcher used questionnaire and interview method to collect data from 50 respondents using purposive sampling. Data was analysed using descriptive statistics and inform of frequencies and percentages.

The study found out that 33(66%) revealed that household income has increased, 35(70%) agree with households are able to pay school fees for their children, 50(100%) observed that sugarcane growing has enabled people construct decent houses while 17(34%) of the respondents revealed that sugarcane factories pay people low wages and 39(78%) agreed with income from food production and other non-farm sources has improved since you began growing sugarcane. It was observed that 33(66%) agreed with the plantation has affected the growth of food crops since it covers the whole land, 33(66%) indicated that people lack food because much attention has been put on sugarcane farming. Results showed that (35)70% agree with there is better access to health facilities as a result of better road infrastructure while 50(100%) indicated that smoke from the factory is nuisance leading to diseases such as lung cancer and bronchitis and 40(80%) said wastes from the factory affect the soil fertility and contaminates water.

Sugarcane farming has had a great impact on community welfare in Lugazi town. More income attributed to proceeds from the sugar industry has been pumped into the local economy especially in terms of better roads and building infrastructure. However, there are threats to food security in most sugar cane growing areas since most farmers lease their land for sugarcane.

It was recommended that there is the government should look at subsidising further seed cane and fertilizer in order to ensure that farmers are not embroiled in constant debt. Also, sugarcane factories should also institute an environmental management plan in their company policy to ensure the environment is not degraded further by sugarcane farming.

CHAPTER ONE

1.0 Introduction

This chapter presents the background of the study, statement of the problem, general and specific objectives of the study, research questions as well as the scope and significance of the study.

1.1 Background to the study

Agricultural sector plays an important role in the economy of a county. This sector has been developed with the aim of attaining economic growth, assuring equity in such growth and stability of farm incomes as well as a wider participation by small scale farmers and large scale farmers in cash crop production and meeting the country’s domestic food requirements (Chebei, 2013)

Maloa (2001) stated that the sugar industry is attaining new dimensions in the fast changing world. An estimated total of about 45 million sugarcane farmers, their dependents and a large mass of agricultural laborers are involved in sugar cane cultivation, harvesting and ancillary activities, and constituting 7.5% of the rural population. In developing countries, the sugar industry has been reported to be the focal point for socio-economic development in the rural areas by mobilizing rural resources, generating employment and higher income, and developing transport and communication facilities.

According to Richardson (2010) around $3bn has been earmarked for investment in the sugar cane industries of some of southern Africa’s poorest countries in the last decade. However, Greenwood (2010) argued that due to the changes in global market environment particularly for sugar, sugar along with oil, diamonds, cocoa and coltan are commodities produced in Africa that could prove more of a burden than a blessing to the continent.

According to Kyala (2013), the sugar industry’s focus on producing a high quality, profitable and cost effective product is complemented by its focus on sustainable development. Since the industry is a major contributor to rural development, an area often neglected in an urbanizing society, therefore, this holistic approach will promote economic transformation, social investment and sustainable environmental practices.

McCarthy (2007), states that the sugar industry directly accounts for 10.9% of all agricultural employment and 1.3% of national employment. After considering the sugar industry’s many linkages, direct and indirect employment amounts to 2.5% of national employment. According to Bates and Sokhela (2003), the sugar industry also has a long history in promoting and supporting cane production by small scale growers in communal areas.

Uganda as a country has six established sugar manufactures namely; Kakira Sugar Ltd in Jinja District producing almost 50%of all the sugar and based in Busoga region, Lugazi Sugar Works, Sugar Corporation of Uganda, Sango Bay Ltd, Mayuge Sugar Industries in Mayuge District in Busoga Region and Sugar Allied Industries Ltd in Kaliro District again based in Busoga Region. Lugazi is a town in the Buikwe District of the Central Region of Uganda. The town is also called “Kawolo”, and the two names are interchangeably used by the local inhabitants (Kyala, 2013).

Using Registered farmers of Lugazi Sugar Ltd, out of 6,954 registered farmers4,607 farmers are small scale farmers having less than 2.5 acres (1 Hectare) of sugarcane and out of 9,517 registered blocks at the start of this investigation, 8431 blocks were subsistence that is on less than 2.5 acres of land (less than 1 Hectare as stipulated by the company regulations and guidelines) almost all small scale farmers visited had used all the household land available to their families for sugarcane growing. This implies that there are many people in Lugazi that are engaged in sugarcane growing (Kyala, 2013). Therefore the study sought to assess the contribution of sugarcane growing on the welfare of people in Buikwe district.

1.2 Problem Statement

The sugar sub-sector plays an important role in the country’s economy. It generates an estimated shs12 billion annually, provides about 500,000 jobs and supports livelihood of about six million people (Faith, 2013). Most farmers engage in sugarcane farming to raise income for the education of their children, acquisition of additional property, notably, land and construction of decent family shelters (Waswa et al., 2012); there are threats to food security in most sugar cane growing areas since most farmers lease their land for sugarcane. However statistics and observation indicate that poverty in this region remains prevalent witnessed by poor housing facilities, poor feeding, poor health facilities and low incomes among others (Kyala, 2013). Therefore, the study sought to assess the effect of sugarcane growing on people’s welfare.

1.3 Objectives of the study

1.3.1 General objective

The study aimed to assess the effect of sugarcane growing on people’s welfare. A case study of Sugar Corporation of Uganda Ltd, Lugazi town, Buikwe district.

1.3.2 Specific Objectives

To investigate the effect of sugarcane growing on the people’s income in Lugazi town, Buikwe district.
To determine the effect of sugarcane growing on food security of people in Lugazi town, Buikwe district.
To assess the effect of sugarcane growing on the health and sanitation in Lugazi town, Buikwe district.

1.4 Research Questions

What is the effect of sugarcane growing on the people’s income in Lugazi town, Buikwe district?
What is the effect of sugarcane growing on food security of people in Lugazi town, Buikwe district?
What is the effect of sugarcane growing on the health and sanitation in Lugazi town, Buikwe district?

1.5 Scope of the study

The study assessed the effect of sugarcane growing on people’s welfare. The study was carried out at Sugar Corporation of Uganda Ltd. (SCOUL) located in the town of Lugazi, approximately 48 kilometres, by road, East of Kampala. The study was carried out basing on information collected for a period of 10years that is to say from 2007 to 2016.

1.6 Significance of the study

The results of this study may be used by relevant institutions and stakeholders in the sugarcane industry as a basis for capacity building and education on the effects of practicing sugarcane monoculture so that it does not conflict with efforts to conserve natural resources while maintaining a steady development.

To policy makers, the findings will guide them on where to make appropriate decisions to improve the welfare of people in the sugar industry. Policies made will help sugarcane growers to balance sugarcane growing and the growing other crops especially food crops; this would reduce on the food insecurity in the area.

Hopefully, this study will set a platform for coming up with policies that favour farmers at the expense of largely profitable sugar companies and also incorporate natural resource management techniques in areas where there has been a boom in high value cash crops such as sugarcane, tea, rice and coffee to foster sustainable agriculture.

The output obtained from this study may also be used to advice communities on how to attain sustainable livelihoods from such high value cash crops that always tend to take precedence over other crops, especially food crops and substitute economic activities where they are introduced with the promise of maximum benefits accrued, even without relaying the bigger picture to the relevant stakeholders including farmers, Government agencies as well as Non-Governmental Organisations involved in agriculture and natural resource management.

The study will help other researchers carrying out the research on other related problems as references. The study will also propose areas for further research which may be very important to researchers who will easily get to know what needs to be done in the area of study.