Influence of company policies on sugarcane out-growers/contract farmers in Lugazi municipality Buikwe district.

Abstract

Sugarcane is regarded as an. essential crop worldwide due to its many nutritional and economic uses. Sugar cane has long been grown in Uganda in very small quantities on peasant farms but commercial production started in 1921 at Lugazi between Kampala and Jinja and outgrowing was initiated in 1958 at kakira and reintroduced in 1992. This research was conducted to determine the influence of company policies on sugarcane out-growers in Lugazi municipality Buikwe district. Data was collected using questionnaires, interviews and field observations. Sugarcane outgrowing has been long used by cane factories to boost their sugar production and meet the increasing sugar demand. The Sugarcane outgrowers include aided and unaided these enter into contractual agreements with the company to produce sugarcane and the company provides the market for the cane. The contracts have policies which tend to affect their expected income and they also do face many contractual challenges. The research results show that outgrowers income has been reducing due to, price fluctuations and its determined by the size farmer's land, the farmers are majorly affected by lack of permits to sell the cane to the factory. It also shows that unaided outgrowers benefit more than the aided outgrowers. Therefore, in order to improve on the farmers’ income, the company should adjust in their policies and permits should be given to real farmers.