Stakeholders partner to boost sugarcane haulage in Busoga
A truck transports sugarcane on the Kamuli-Jinja road. Sugarcane growers in Busoga Sub-region have decried the lack of transport for their raw cane to Atiak Sugar Factory. PHOTO/TAUSI NAKATO.
What you need to know:
- This partnership aims to enhance sugarcane haulage, improve farmers' productivity, and increase their earnings.
In a groundbreaking move, stakeholders including Cooper Motor Corporation (CMC) Uganda Ltd and several commercial institutions have teamed up to offer subsidised asset financing to sugarcane out-growers in Busoga sub-region.
This partnership aims to enhance sugarcane haulage, improve farmers' productivity, and increase their earnings.
A 2022 report showed Busoga's poverty level stood at 29.2 per cent, surpassing the national average of 20.3 per cent.
"We realised borrowing from commercial banks was costly, but after six months of negotiations, we've secured a special finance deal for Kakira out-growers," said Mark Davidson, CMC Uganda's Country Director, while addressing out-growers at Kakira Sugar Works in Jinja District on Wednesday.
The deal, subsidised by CMC and New Holland, allows out-growers to acquire the 6610S New Holland tractor, capable of carrying 20 tons of cane, with only a 30 per cent down payment. The balance can be repaid over four years.
"Traditionally, cane haulage uses 90-horsepower tractors carrying 8-10 tons. The new model offers a price advantage and higher return on investment," Davidson explained, highlighting the benefits of the new tractor.
Ms Dorcas Najjemba, CMC Uganda's Marketing Executive, emphasised the importance of mechanisation in farming.
"A farmer using a tractor can plough 12 acres a day, while one with a hoe struggles to plough an acre. Times have changed, and farmers need to adapt to modern technologies," she said.
CMC (U) Ltd Country Director, Mr Mark Davidson addresses journalists on Wednesday. Inset is Equity Bank's Regional Manager, Mr Joel Wamika. PHOTO | PHILIP WAFULA
Equity Bank Regional Manager Joel Wamika highlighted the partnership's goal.
"We want to see farmers maximise profits. We're offering equipment and fertilisers to boost yields and subsequently, income. Sugarcane farmers in Busoga have always struggled to make profits due to fluctuating prices and high interest rates."
Wamika added, "We've come up with initiatives, including agricultural loans at low interest rates, to support farmers. We want to see medium-level farmers become large-scale producers and small-scale farmers move to the medium level."
Kakira outgrowers' chairman, Mr Kokasi Wambete, welcomed the initiative. "This will commercialise agriculture, improve productivity, and increase earnings for our 9,000 farmers. We're talking about adopting modern technologies to boost production."
The partnership is expected to revolutionise sugarcane farming in Busoga, making it more efficient, productive, and profitable.
