Assessment of factors affecting profitability of smallholder sugarcane farmers: a case of Butembe county, Jinja district.

Abstract

The purpose of the study was to assess the factors affecting profitability of smallholder sugarcane farmers, a case of Butembe county, Jinja district. This was achieved by the guidance of the following hypothesis, smallholder sugarcane farmers use traditional production and marketing methods, sugarcane production is profitable among smallholder sugarcane farmers, sugarcane profitability is significantly higher for farmers who use improved inputs, access credit and extension services and sell sugarcane through contracts and cooperatives and vice versa. The study adopted a descriptive research design in studying the targeted population of 74 respondents who included smallholder sugarcane farmers in Butembe County. The sample adopted purposive and simple sampling technique to select a sample size of 74 respondents. Data was collected using interviews, FGDs and questionnaires then analyzed both qualitatively and quantitatively. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS) and descriptive statistics such as mean, standard deviation, frequencies and percentage were obtained. Inferential statistics such as regression analysis were carried out to examine the relationship between dependent (Gross margin) and independent variables (factors that influence profitability). The findings revealed that profitability of sugarcane among smallholder sugarcane farmers was highly influenced by the farm size, access to extension services, education level, input costs and the marketing strategies that were used by the farmers. The findings also revealed that most of the farmers faced major challenges of lack of permits, high transportation cost and prices fluctuations and most of the smallholder farmers practiced traditional methods of farming which affected their production and hence profitability. The study therefore recommended that government, agricultural organizations and stakeholders should improve access to training and extension services, strengthen farmer organizations such as Busoga sugarcane growers association and collective bargaining power, support sustainable farming practices and develop supportive policies that address the specific needs and challenges faced by smallholder sugarcane farmers.