THE EFFECT OF SUGARCANE GROWING ON PEOPLE’S WELFARE
A CASE STUDY OF SUGAR CORPORATION OF UGANDA LTD
SECTION ONE: INTRODUCTION
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)
According to Venttore et al. (2011) sugarcane refers to any six to 37 species of tall perennial grasses of the genus Saccharum. The crop is adaptable to the temperature of tropical regions, it has stout, jointed, fibrous stalks that are rich in sugar, and measure two to six meters tall. Sugar cane is an important industrial crop of tropical and subtropical regions and is cultivated on about 23.8 million hectares in more than 90 countries (FAO, 2010).
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 seeks 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). The growing of sugarcane was generally considered to alleviate poverty by expanding income generation possibilities. 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 seeks to assess the effect of sugarcane growing on people’s welfare.
1.3 Objectives of the study
1.3.1 General objective
The study aims to assess the effect of sugarcane growing on people’s welfare. A case study of Sugar Corporation of Uganda Ltd.
1.3.2 Specific Objectives
- To determine the effect of sugarcane growing on food security of people.
- To assess the effect of sugarcane growing on the education levels of people.
- To investigate the effect of sugarcane growing on the employment levels of people.
1.4 Research Questions
- What is the effect of sugarcane growing on food security of people?
- What is the effect of sugarcane growing on the education levels of people?
- What is the effect of sugarcane growing on the employment levels of people?
1.5 Scope of the study
The study will assess the effect of sugarcane growing on the food security, education and employment levels of people. The study will be carried out at Sugar Corporation of Uganda Ltd. (SCOUL) located in Lugazi, Uganda. Company is working in Food manufacturing, Sugarcraft supplies, Farming, Sugar estates business activities. This is because it’s a sugar industry and many people in this area engage sugarcane growing and activities. The study will be carried basing on information collected for a period of 10years from 2007 to 2016.
1.6 Significance of the study
To policy makers, the findings will guide them on where to make appropriate decisions to improve the welfare of people in the sugar industry.
The study will help other researchers carrying out the research on other related problems as references.
SECTION TWO
This section presents related literature and it is presented in themes according to the research objectives.
2.1 Overview of Sugar Cane Growing
Richardson (2010: 6) stated that during the colonial period, sugar production first occurred in the Southern Africa in Mauritius. From there, it spread to Natal (South Africa), Portuguese East Africa (Mozambique) and finally, by the 1930s, Southern Rhodesia (Zimbabwe). However, as South Africa became internationally isolated during the 1960s, the attention of the country’s companies turned from further regional expansion to preserving their domestic market share. It was the overturn of apartheid and the agenda of privatization across the continent at large that reinvigorated the expansion of South African capital to countries such as Malawi, Mauritius, Swaziland, Zambia and Tanzania (Richardson, 2010: 5).
Even though the average yield per ha in Africa is as low as about 85% of that of the world, poor countries in Southern Africa are still experiencing something of a boom in sugar cane production (Tarimo and Takamura, 1998). Billions of dollars of investment have been poured into the region- including from UK and French sugar companies – in order to source increasing amounts of sugar for the European (EU) market. According to Richardson (2010: 4) 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.
Cane Sugar growing in Uganda begins with the establishment of sugar plantations at Kakira in 1919 and Lugazi in 1924. Sugar cane grows best in warm, sunny, frost-free weather. It needs fertile, well-drained soil and at least 1,500 millimeters of rain each year or access to irrigation supplies. Sugarcane needs plenty of moisture and protection from weeds. The sugar content of sugar cane varies from one area to another. In Uganda, it is around 9%. The country’s mills therefore have to process 1.11 million tonnes of cane to produce 100,000 tonnes of sugar.Uganda consumes about 320,000 tonnes of raw sugar.
Uganda imported new varieties of Sugarcane from CIRAD in Montpellier, France. So far, 231 varieties have been imported. Furthermore, the East African Sugar industry is collaborating with the Common Fund for Commodities (CFC) and the International Sugar Organisation (ISO) to import an additional 500 new sugar cane varieties.
2.2 Effect of Sugarcane growing on food security
2.3 Effect of sugarcane growing on education levels
2.4 Effect of sugarcane growing on employment levels
RESEARCH METHODOLOGY
3.0 Introduction
This section discusses the research design, data type and sources, simple size and selection, data collection tools/methods, data presentation and analysis, data collection procedure and limitation of the study.
3.1 Research Design
A descriptive in nature research design will be used because it is flexible in both quantitative and qualitative data collection. Descriptive research design will also be used because it is effective to analyse non-quantified topics and issues, the possibility to observe the phenomenon in a completely natural and unchanged natural environment and the opportunity to integrate the qualitative and quantitative methods of data collection which other designs do not provide.
3.2 Sample Size, Selection and Procedure
The study will cover sample size of 50 respondents. A sample size of 50 people will be determined using Sounders Lewis and Thornhill method of sample size determination using the formula given by;
n= {(Zß/2)2 PQ}/U2;
Where Zß/2 = the standard normal value
n = the sample size,
P = the estimated population proportion,
Q = 1-P and
U = the maximum allowable error.
Taking Zß/2 =0.025 as 1.96 at 95% confidence level, assuming that,
P=80% and Q=1-80% =20%
U=10% and Zß/2 =0.025 =1.96
Then from n= {(Zß/2)2 PQ}/U2;
n= {(1.96)2 *0.8*0.2}/(0.1)2;
n=50.070784
This will give the researcher a sample of approximately 50 respondents
The study will use purposive sampling method. Purposive sampling is one of the most cost-effective and time-effective sampling methods available, it may be the only appropriate method available if there are only limited number of primary data sources who can contribute to the study and this sampling technique can be effective in exploring anthropological situations where the discovery of meaning can benefit from an intuitive approach.
The study also will use simple random method to reduce on the biasness of the purposive data and will mainly be used on clients. Advantages are that it is free of classification error, and it requires minimum advance knowledge of the population other than the frame. Its simplicity also makes it relatively easy to interpret data collected in this manner. For these reasons, simple random sampling best suits situations where not much information is available about the population and data collection can be efficiently conducted on randomly distributed items, or where the cost of sampling is small enough to make efficiency less important than simplicity.
3.3 Data collection methods and procedures
The study will involve questionnaires and interview method.
This research instrument to be used includes structured questionnaires with pre-coded answers administered to the respondents. The questionnaire will be used because it is practical, also large amounts of information can be collected from a large number of people in a short period of time and in a relatively cost effective way, can be carried out by the researcher or by any number of people with limited affect to its validity and reliability, the results of the questionnaires can usually be quickly and easily quantified by either a researcher or through the use of a software package, can be analysed more ‘scientifically’ and objectively than other forms of research, when data has been quantified, it can be used to compare and contrast other research and may be used to measure change.
Interview guide is used by the study since the methods help in the collection of more data as it allows the interaction of both the researcher and the respondents. The interview method will be used because any misunderstanding and mistake can be rectified easily in an interview. Also the relationship between the interviewer and the interviewee can be developed through an interview. It increases mutual understanding and co-operation between the parties and suitable candidates can be selected through interview because the interview can know a lot about the candidate by this process. Interview can help to collect the fresh, new and primary information as needed.
3.4 Data management, presentation and analysis
After collecting and cleaning the data it will be entered in a computer using Statistical Package for Social Scientists (SPSS). The quantitative data is analyzed using descriptive statistics, which includes frequencies and percentages. The qualitative data is analyzed in the content analysis and the analyzed data is presented using tables and figures in form of a report.
3.5 Limitations of the study
The research requires a lot of time towards researching and thus less time for other course units. The researcher will draft a time table which will be strictly followed.
Limited funds for undertaking the study. The researcher will solicit for funds from friends, relatives and family members.
The researcher will face a problem of exaggeration of events by the respondents. However this will be solved by making check backs where necessary.
