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Atiak sugar production stalls over pay dispute

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Mr Mohamed Ahmed of Horyal Investment Ltd (left) leads Naads officials led by the director, Dr Samuel Mugasi (centre), on an inspection of sugarcane plantations in Atiak, Amuru District, in August 2019. Net Photo

By TOBBIAS JOLLY OWINY

A longstanding dispute between sugarcane outgrowers and the management of Atiak Sugar Factory in Amuru District has delayed the commencement of production.
Installation of the machines at the factory was completed at the end of June. More than 100kms of roads around the sugar plantation and a bridge on Unyama River have also been built to ease movement of produce and workers.

However, this newspaper has established that sugar production could not start at the beginning of the month due to failure by government to compensate two cooperatives for their sugarcane cuttings supplied to the factory.
Naads in 2017 cut down more than 160 acres of sugarcane plantations belonging to Atiak Outgrowers and Gem-pachilo cooperative societies. The government used the sugarcane cuttings to expand the factory plantation. However, to date, the residents have not been paid.

Mr Dan Kidega, the board chairperson for Atiak Sugar Works, said they are struggling to resolve the compensation issue.
“We are continuing to engage Naads to make sure that this payment is effected soon and that such delays don’t reoccur in future. When one of the parties in the business is not comfortable, we as a board also become uncomfortable,” he said last week.
Dr Kidega revealed that they are finalising negotiations with the cooperatives so that sugar production starts at the beginning of next month.

“From next month when we shall start massive production of sugar, we have 3,750 acres of sugarcane that belongs to the cooperative societies. The ready cane will be distributed to the cooperative society members before it is cut,” he added.
Ms Joyce Laker, the chairperson of Atiak Outgrowers Cooperative Society, said they were disappointed that Naads had refused to pay their members.
“Naads told us many times that the initial harvest was theirs and that out-growers owned nothing there. This frustrated the farmers so much after spending a lot of their time working on the crop,” Ms Laker said.

She added that when farmers started protesting, that is when Naads was compelled to conduct verification of the farmers but deliberately delayed the process.
“Atiak Cooperative has extremely vulnerable groups and I have been begging Naads to release the money to support them. We have lost three of our members who were living with HIV/Aids in Pabbo Sub-county because they did not have food during this lockdown,” she said. Government owns 40 per cent stake in the company while the remaining stake belongs to Amina Hersi’s Horyal Investment Ltd.
The government has so far disbursed Shs52b to facilitate sugarcane production for the project and 28,841 acres of sugarcane has been planted to that effect.
In the initial harvest, the out growers shall receive 30 tonnes per acre, with the factory buying each tonne at Shs120,000.

But Mr Akena Ogik, the vice chairperson of Gem-pachilo Cooperative Society, told this newspaper that most of their members are very disgruntled due to delayed compensation.
“We are in a very volatile situation, we are being threatened day and night, members even abuse us and call us thieves but Naads and Horyal Investment Ltd kept quiet on us,” Mr Akena said.

Last Friday, Dr Samuel Mugasi, the Naads executive director, explained that the delayed payment was caused by late submission of membership files by the cooperative members that are to be compensated.
“We needed to know who the beneficiaries are because we cannot give out money without knowing who exactly is getting the money. If we had done it, that could have caused more chaos,” Dr Mugasi said.
Dr Mugasi acknowledged that although the factory was ready to produce sugar, it would only start after verification and subsequent distribution of the ready cane to the beneficiaries.

“We apologise for the delays, it has taken long. We are at 90 per cent now and we have finished verifying members of Atiak out-growers except Gem-pachilo society that we have not received their files yet,” he said.
the partnership
Naads has since 2016 established more than 15,000 acres of sugarcane plantation to feed the factory under a public-private-community partnership between government, the community and Horyal Investment Ltd. Under the partnership, the community under Atiak Outgrowers and Gem-pachilo cooperative societies were to plant cane on the land and weed the plantations. Once the cane was ready, the plantation, apportioned to the out-growers by Naads would be harvested and sold to the factory.

Source: Daily Monitor

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FARM NEWS

Govt moves to set up food and agriculture regulatory authority

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Agriculture minister Frank Tumwebaze tabled the Food and Agriculture Regulatory Authority Bill, 2026, for first reading in Parliament on August 25, 2026. (Credit: Maria Wamala)

The Bill has been referred to the Committee on Agriculture for scrutiny. The proposed authority will regulate the manufacture, processing, importation, exportation, distribution, transportation, advertisement, labelling, storage, sale and supply of veterinary medicines, agricultural chemicals, veterinary equipment and devices.

KAMPALA – The Government has proposed the creation of a food and agriculture regulatory authority to bring food, animal medicines, agricultural chemicals and related products under one regulatory framework.

Agriculture minister Frank Tumwebaze tabled the Food and Agriculture Regulatory Authority Bill, 2026, for first reading in Parliament on August 25, 2026.

The Bill has been referred to the Committee on Agriculture for scrutiny. The proposed authority will regulate the manufacture, processing, importation, exportation, distribution, transportation, advertisement, labelling, storage, sale and supply of veterinary medicines, agricultural chemicals, veterinary equipment and devices.

It will regulate food and feed manufacturing, processing and distribution, oversee food and feed safety, develop standards, inspect and certify agricultural inputs, and establish traceability systems for regulated products.

The Bill’s memorandum presents a troubling picture of the current food and agricultural regulatory system, stating that the country is “flooded with counterfeit substandard veterinary medicines and agricultural chemicals.”

It cites concerns over medicines and chemical residues, aflatoxins, harmful microorganisms and heavy metals in food and feed, warning that such contaminants compromise public health and the safety of agricultural exports.

Members of Parliament during Plenary on Tuesday. (Credit: Maria Wamala)The memorandum attributes the problem in part to “fragmented regulation”, which it says has resulted in weak and uncoordinated regulation by multiple agencies, duplication of efforts and inefficiencies in enforcement.

It argues that the absence of a single body overseeing the food and agriculture value chain “undermines the effectiveness of regulation” and creates uncertainty for stakeholders.

The proposed authority will inspect food premises, certify meat for public consumption, inspect and certify fish, regulate processed and semi-processed food, and oversee the storage and transportation of food.

The Bill seeks to regulate food packaging, labelling and advertising, while prohibiting the use of radioactive materials, heavy metals and banned substances in food. It provides for residue monitoring to detect harmful substances in food products.

Members of Parliament during Plenary on Tuesday. (Credit: Maria Wamala)

For agricultural chemicals, the Authority will license manufacturers, distributors, fumigators and commercial applicators. It would regulate the import and export of chemicals, as well as their packaging and labelling, storage, sale and advertising.

The Authority will have powers to recall agricultural chemicals and deal with prohibited, banned, restricted, falsified or adulterated products.

The Bill proposes inspectors and analysts with powers to access establishments, conduct sampling and analysis, seize adulterated products and oversee the disposal of obsolete, banned, prohibited and expired products.

Inspectors will, in certain circumstances, order the detention, return or destruction of non-compliant consignments.

The proposed authority will be a body corporate with perpetual succession. Its functions include the registration of veterinary medicines, veterinary devices, veterinary equipment, agricultural chemical application equipment and agricultural chemicals for use in Uganda.

The authority will be governed by a nine-member board appointed by the minister. The board will comprise a chairperson, six members with expertise in veterinary medicine, agriculture, pharmacy, standards and environmental science, and two representatives of farmers nominated by a recognised farmers’ federation.

The Bill contains 13 parts, 101 clauses and three schedules. It seeks to amend the Dairy Industry Act, Fisheries and Aquaculture Act, National Coffee Act and Animal Feeds Act, while repealing the Agricultural Chemicals (Control) Act and the Food and Drugs Act.

The proposed law seeks to give the Minister power to issue written policy directions to the authority.

The Government argues that the new framework would improve the quality and safety of agricultural inputs, strengthen consumer protection and help Uganda gain access to regional and international agricultural markets.

The Bill moves to the Agriculture Committee, where MPs are expected to examine its regulatory, institutional and enforcement provisions before it returns to the House for further consideration.

The public, including experts, are expected to provide their views on the Bill.

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FARM NEWS

Concern over low cassava yields in Bukedi region

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For decades, cassava has been more than just a crop in Bukedi Sub-region in eastern Uganda. It has served as a lifeline, providing a reliable source of food during droughts, a key source of household income and an integral part of the region’s cultural identity.

Across the districts of Budaka, Kibuku, Butebo, Pallisa and parts of Butaleja, cassava gardens once stretched across vast expanses of land. Families harvested the crop throughout the year, processed it into flour and sold surplus produce in local markets.

Today, however, those fields are shrinking. Farmers are increasingly abandoning cassava cultivation in favour of crops they consider more profitable and less risky, raising concerns about food security and the future of one of Bukedi’s traditional staples.

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FARM NEWS

Parliament gives Jinja land office three months to clear backlog

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Some staff of the Jinja Ministry Zonal Office meet members of the Parliamentary Committee on Land on August 27, 2026. PHOTO/TAUSI NAKATO.

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