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Sugarcane farmers abandon fields due to lack of markets

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While the sugarcane sector has the potential to empower stakeholders along the value chain, farmers have abandoned their fields for other income-generating activities, writes YUDAYA NANGONZI.

Currently, sugar production has declined amidst increasing demand from consumers and fluctuating prices, with the majority of millers operating below capacity. In a study conducted by the Economic Policy Research Center (EPRC) on the sector, Dr Swaibu Mbowa, the lead researcher, attributed the massive exodus of cane growers to lack of markets and a decline in cane prices while other farmers have already replaced cane with food crops.

The increasing levels of poverty in cane-growing districts have also forced farmers to rethink the crop. In Uganda, about 29,000 farming households engage in cane production with an estimated 640,000 labourers. More households took up the business between 2012 and 2021 with at least 40,000 households, at one point, growing cane between 2005 and 2021.

“By the time we collected data in November-December 2021, this number had declined to about 29,000. This indicates that 28 per cent of out- growers had abandoned cane growing, with the highest attrition rate (33.8%) occurring in the Busoga sub-region,” Mbowa said.

This implies that one in every three cane farmers in Busoga has abandoned the business. Currently, Busoga has 20,474 growers while 10,475 stopped growing cane. In the Buganda region, the research shows that there are 4,394 growers and 522 farmers out of the business. In Bunyoro, 367 farmers joined other activities, leaving 3,801 active growers.

Mbowa presented the daunting figures at the recent 10th national Forum on Agriculture and Food Security held at Sheraton hotel in Kampala. The forum was organized by the EPRC in collaboration with Michigan State University and the International Food Policy Research Institute under the auspices of the Food Security Policy Research, Capacity and Influence.

Themed “Revisiting Policy, Institutional and Regulatory Arrangements in Uganda’s Sugarcane Sector”, the forum intended to stimulate debate on how to strengthen and improve the implementation of the sugarcane policy and regulatory frameworks to foster sustainable transformation in Uganda.

“MILLERS FAILING FARMERS”

Worldwide, sugar factory ownership is a mix between the government and the private sector. For Uganda, ownership is largely private with the government owning a lesser stake in the Atiak Sugar factory after selling its shares in Kinyara Sugar Factory in 2017.

This arrangement, farmers argued, has forced many to collapse as millers suffocate the sector. As of 2020, there were 33 licensed mills, with a combined milling capacity of 71,850 tonnes per day.

However, by December 2021, only 12 mills in the study sub-regions were operational and out-growers sold more cane to mainly established large millers who have disproportionate power over sugarcane price determination.

Mbowa noted that existing millers acquired new licenses in different jurisdictions to forestall other players from establishing milling plants in the same area. This could explain why there are fewer operational mills than those licensed.

The negative free-fall in sugarcane prices worsened the situation. For instance, a tonne of cane that cost Shs 175,000, Shs 162,000, and Shs 135,000 in Buganda, Busoga, and Bunyoro in 2017 has since dropped to Shs 95,282, Shs 92,782, and Shs 97,907 respectively.

Speaking to The Observer on the sidelines of the forum, a cane out-grower and director of the sugarcane value chain at Operation Wealth Creation, Kabakumba Labwoni Masiko, agreed that prices are illogically fixed by millers.

“We may look at millers as competitors in business but it’s not the case during price determination. Unlike in the past when millers would negotiate with farmers or their association, today, you find the price fixed on their notice board. Surprisingly, cane is the only crop where prices don’t vary much across the country. What does that mean?” Kabakumba asked.

Due to the price inconsistencies, some farmers have been forced to cut the cane for other activities since millers were also taking longer to buy it at fair prices.

“Today, there’s scarcity of cane. Millers are looking for cane in vain and that cyclical nature of operation by hurting farmers is catching up with them and the entire sugar sector,” she said.

The farmers also faulted millers for infiltrating their organization to ensure that they remain weak and the introduction of cane harvesting permits has created a black market for them, especially in Buganda to the detriment of farmers.

The manager of Kayunga Sugarcane Outgrowers Cooperative Society, Semeo Mugenyi, urged the government to regulate how far millers can go in expanding their nucleus to reduce competition with farmers.

“The primary role of an investor is to give economic opportunities to the local people. If the investor takes half of the supply, then it limits potential farmers on their supply,” Mugenyi said, adding that without a sugar mill managed by farmers as promised by President Museveni, cane farmers will continue to be exploited or exit the sector.

RECOMMENDATIONS

The study findings call for urgent discussions among government and sector stakeholders on the future of the sugarcane sector. In particular, the study points to the need for the constitution of the sugar board, as recommended by the Sugar Act 2020 to oversee the sector. Mbowa said the inclusion of out-growers in the cane sector is “the primary means by which it can contribute to increases in rural farm household incomes, food security, and rural employment in cane-growing areas.”

To date, the 2010 Sugar Policy and the Sugar Act of 2022 are not operational. David Kiiza, a senior industrial officer at the ministry of Trade, said the government has made strides in organizing the sector but remains constrained by inadequate funds.

“We wrote to stakeholders and they sent us their nominations but the ministry of Finance said it has no money for setting up the board. They [Finance] told us to make a supplementary budget of Shs 2bn [to set up the board] but they have told us to wait. Most likely, the money will be availed in the next financial year,” Kiiza said.

He added: “The ministry of Trade has already held a meeting with millers and we plan to schedule one for the out-growers and later meet them all in one meeting to agree how to set up the board as we await funds from the government. By the end of this year, we expect the Act to be reviewed.”

In the meantime, Kabakumba urged the traditional big millers to graduate into the production of refined industrial sugar as Uganda has brown sugar in surplus. This would provide the much-needed market for the farmers of sugarcane as well as more employment opportunities for small millers dealing in brown sugar.

Source: The Observer

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FARM NEWS

Five counties roll out agroecology policies to boost climate resilience

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At least five counties have adopted agroecology policies as Kenya accelerates efforts to promote climate-resilient and sustainable farming.

Murang’a, Makueni, Nakuru, West Pokot and Kiambu have already developed county agroecology policies, while Trans Nzoia, Turkana, Laikipia, Kirinyaga and Machakos are drafting similar frameworks.

Stakeholders are urging more devolved governments to fast-track implementation to strengthen food security.

Participatory Ecological Land Use Management (Pelum) Kenya country coordinator Rosinah Mbeya said counties must move beyond policy development by allocating adequate budgets and implementing programmes that directly support farmers. She spoke during the Third Agroecology Symposium.

Mbeya said although agroecology is gaining momentum in Kenya, greater  political commitment, increased financing and faster implementation are needed to help farmers cope with climate change, rising production costs and declining soil health.

Kenya continues to grapple with multiple agricultural challenges, including climate change, emerging crop pests and diseases and increasing input costs driven by global economic disruptions.

“These challenges are making farming increasingly difficult, particularly for smallholder farmers. However, they also present an opportunity to transform our food systems and build farming systems that are more resilient and less dependent on external inputs,” Mbeya said.

Agriculture& Forestry

She described agroecology as an environmentally sustainable approach that restores ecosystems while improving agricultural productivity, conserving biodiversity and protecting human health and the environment.

Mbeya said the focus should now shift from developing strategies to implementing them through adequate funding and practical support for farmers.

“The discussion is no longer about developing strategies. It is now about implementation, budgeting and ensuring these policies benefit farmers on the ground,” she said.

Mbeya said agroecology continues to attract support from development partners, researchers and policymakers.

However, only a small proportion of Kenya’s estimated 7.5 million smallholder farmers practise agroecology through organised networks.

She said Pelum works with about 1.5 million farmers but said wider adoption is needed to transform the country’s food systems.

Farms& Ranches

Agriculture secretary in the State Department for Agriculture Peter Aoko said crop diversification remains one of the government’s key strategies for strengthening climate resilience and improving household nutrition.

“Different crops perform differently under different ecological conditions. Diversification ensures that if one crop fails because of weather or pests, another succeeds while also providing better nutrition,” he said.

Aoko said the government is strengthening farmers’ capacity through agricultural extension services and knowledge sharing while working with county governments to domesticate the National Agroecology Strategy.

He acknowledged that implementation has progressed slowly because agriculture is a devolved function but expressed confidence that momentum would increase as more counties adopt the strategy.

“Agroecology is about producing food sustainably while protecting the environment, particularly soil health. Without healthy soils, agricultural production cannot be sustained over the long term,” he said.

Dr Lisa Fuchs, a scientist with the Alliance of Bioversity International and CIAT, said agroecology extends beyond environmentally friendly farming by integrating ecological sustainability, economic viability and social equity.

She said the approach promotes crop diversity, healthy soils, circular farming systems and locally adapted food production to improve food security and nutrition.

Agriculture& Forestry

Fuchs encouraged farmers to recognise the value of indigenous knowledge and work collectively to develop solutions suited to local conditions.

“Agroecology is a science, a practice and a movement. Farmers should organise, share knowledge, work with their neighbours and partner with government, researchers and other stakeholders to strengthen local food systems,” she said.

She said agricultural research institutions are increasingly embracing participatory approaches that involve farmers and communities in developing, testing and scaling innovations to ensure solutions respond to local needs.

Source: the-star.co.ke/

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200 farmers demonstrate at parliament, worried about new seed monopoly

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About 200 individuals consisting of rice farmers, small farmers, environmental activists and NGO representatives gathered in front of the parliament building in Kuala Lumpur to urge the government to cancel Malaysia’s participation in the 1991 UPOV convention.

The gathering aimed to submit two memorandums demanding the defense of the rights of small farmers who are alleged to be at risk if the amendment to the Protection of New Plant Varieties Act 2004 is continued.

Assembly spokesman Abdul Rashid Yob claimed that the Ministry of Agriculture and Food Security (KPKM) submitted a draft amendment to the act to the UPOV Secretariat in Geneva last September.

“The involvement of foreign bodies in the formation of national laws without comprehensive consultation with stakeholders, including the governments of Sabah and Sarawak, is seen as a form of violation of national sovereignty.

“This amendment will revoke the traditional rights of small farmers to exchange and sell seeds, as well as limit the right to save seeds for the next breeding season,” he told reporters after handing over the memorandum.

The government has so far neither confirmed nor denied the allegations of submitting the draft act to the UPOV Secretariat.

Malaysiakini is trying to obtain clarification from Agriculture and Food Security Minister Mohamad Sabu and his officials regarding this allegation and issue. 

Today’s gathering was organised by the Malaysian Food Sovereignty Forum (FKMM) and was also attended by representatives from the Malaysian Socialist Party (PSM) and the Mandiri student group.

The attendees carried various placards with slogans such as “Lift Farmers’ Rights”, “Students with Farmers”, “Farmers are not lazy” and “Reject Upov”.

Also on display was a large sketch of Mohamad showing the “good” finger gesture.

More than 50 uniformed police were present to control the rally, which proceeded without any disturbances.

Earlier, a memorandum was also given to Deputy Minister of Agriculture and Rural Development Chan Foong Hin, PN Chief Whip Takiyuddin and Gopeng MP Tan Kar Hing representing the Agriculture and Domestic Trade Special Select Committee (PAC).

All parties that received the memorandum promised to bring the issue to parliament.

Seed supply monopoly

Meanwhile, the coalition claims that the 1991 UPOV will only strengthen the monopoly of large companies on seed supply, thus eliminating traditional practices that have long been the backbone of local farmers’ survival.

“The existing PNPV Act 2004 is sufficiently balanced in protecting the rights of breeders and farmers, as well as safeguarding the interests of Indigenous communities and local biodiversity.

“Deleting the section relating to the prevention of biopiracy and the obligation to supply seeds at reasonable prices will only place the country’s seed policy under the influence of foreign powers,” he said.

Apart from the seed issue, rice farmers also raised the cost of living crisis which is becoming increasingly pressing due to the increasing cost of agricultural inputs and pressure on paddy prices in the market.

Among their main demands is a call for the government to set the maximum paddy grading rate at 20 percent to avoid losses for the farmers.

They also demanded that the government revise the price of paddy to RM1,800 per metric ton and make immediate improvements to the agricultural subsidy system.

They also complained about delays in fertilizer distribution, weak water management, and bureaucratic red tape in the disaster takaful scheme that made it difficult for them to receive compensation.

“The government needs to address the issue of leakages and weak governance in relevant agencies which have been alleged to be affecting the country’s rice production chain.

“If these demands are ignored, the country’s food sovereignty will continue to be threatened and dependence on imported seeds will increase dramatically,” he added.

Abdul Rashid added that UPOV 1991 is an international agreement that gives plant breeders intellectual property protection rights for new plant varieties they produce.

However, it became controversial after allegations that farmers were not free to store, exchange or resell protected seeds, unless permitted by national law.

Small-scale farmers do not agree with this agreement because it is seen as potentially detrimental to small farmers and only benefits large seed companies, as well as potentially threatening food sovereignty.

Source: malaysiakini.com

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Farmers count losses as maize prices drop

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Farmers in the greater Kibaale area, covering Kagadi, Kakumiro, and Kibaale districts are counting losses after maize prices dropped sharply during the peak harvest season.

Many farmers said they had invested a lot of money, hoping for better profits, but the market prices let them down. They blamed the low prices on the high supply of maize, saying many people planted the crop after making good profits in the previous season.

Last season, a kilogramme of maize was sold between Shs900 and Shs1,000, but this season the price has fallen to between Shs500 and Shs700.

Farmers said the sharp drop has left them without profits, with only middlemen and casual workers benefiting.

Mr Dezii Katongore, a large-scale farmer in Kitonya Village, Bubango Sub-County in Kibaale District, said he spent more than Shs2m on pesticides, labour, and renting land to grow maize, expecting to earn more than Shs4m. He planned to harvest 90 sacks but only got 52 because of a long dry spell after planting.

“To my dismay, I sold at Shs750 per kilogramme instead of Shs1,000 as I had anticipated. Losses start even before the market stage. I had nowhere to store the maize. If I had kept it, it would have spoiled. I don’t know if I will farm maize again next season,” he said in an interview on September 8.

Similarly, Katangwe Birungi, a small-scale farmer from Kataara Village in Kibaale District, said he invested more than Shs1m in his four-acre maize farm at the start of the season.

He harvested 28 sacks, earning about Shs1.26 million instead of the more than Shs3 million he had expected. Mr Birungi said he was unable to raise enough money to pay school fees for his children. He now plans to switch to beans, saying their prices are more stable.

Mr Businge Byamukama, a resident of Kijungu Village in Kagadi District, shared a similar experience. He spent nearly Shs900,000 on labour and farm inputs for his two-acre maize garden but harvested only 27 sacks.

Mr Byamukama was forced to sell each kilogramme at Shs250, far below what he had hoped, earning just Shs1 million. He said from the little he earned, he had to clear a Shs300,000 loan, pay Shs200,000 in school fees, and settle hospital bills of Shs100,000.

What remained, he said, was hardly enough to take care of his family.

“I was forced to sell because I couldn’t afford storage. I am now planning to intercrop next season because relying on just one crop isn’t sustainable. I want to switch to beans,” he explained.

Mr Zimwanguhiiza Byaruhanga, a farmer from Kibaale District, said he invested about Shs800,000 in labour, pesticides, fertilisers, and seeds for his two-acre garden. He had expected at least 20 sacks but ended up with only 16.

“What we put in doesn’t match what we got out. We’ve been neglected, yet agriculture is a major contributor to the country’s economy. Why doesn’t the government set regulations to fix prices for farmers? We’re making losses on some of the money we invest, including bank and Sacco loans, and now we’re finding it hard to pay them back,” he said.

He said he had hoped to sell his maize at Shs1,000 per kilogramme, but the market only offered Shs500. Mr Byaruhanga accused middlemen of exploiting farmers by setting unfair prices during harvest time and urged government to step in and regulate the market. ‘

“Even after harvest, the middlemen manipulate measuring tapes to cheat us. But we have no choice—we must sell to support our families, pay loans, and school fees,” he said.

Source: Monitor

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