Income generating potential of sugar cane among rural households:A case of Luuka district.

Abstract

The purpose of the study was to determine the factors that influence income generating potential of sugarcanes among rural households in Luuka district. The specific objectives were; i) to characterize the sugarcane growers in Luuka district ii) to determine the profitability levels of sugarcane growing among sugarcane farmers in Luuka district and iii) to identify the major challenges faced by sugarcane growers in Luuka district. The study applied cross-sectional design utilizing quantitative approach to collect data from a sample size of 86 sugarcane growers using questionnaires. Findings revealed that farmers owned an average land size of 2.43 acres and results reported that on average they had spent 6 years of sugarcane growing. Findings also revealed that more than half (53%) engaged in other agricultural activities alongside sugarcane cultivation. Sugarcane growers in Luuka district reported an average (mean) profit of UGX 235,209 per farmer which indicates they were able to make a modest profit from their sugarcane production. Regression results revealed that area of land used for sugarcane growing (B= 0.664, p= 0.006) and level of education (B= 0.246, p=0.048) have an influence on profitability levels of sugarcane growing among sugarcane growers in Luuka district at 5% confidence level. Furthermore, findings revealed that the most prominent challenge faced among sugarcane growers in Luuka district is poor road and transport infrastructure which hinders access to markets and timely delivery of harvested cane to processing mills. In conclusion, the study revealed that the profitability levels of sugarcane growing is inconsistent and it is recommended that there should be timely payments by millers through the establishment of price regulation mechanisms, minimum price guarantees, or farmer cooperatives that negotiate better prices and payment terms.