President Yoweri Kaguta Museveni has announced that the government will acquire the Mayuge Sugar Factory to benefit sugarcane farmers in the Busoga region.
The announcement was made on Wednesday, August 6, 2025, during a meeting with sugarcane farmers, millers, and sugar producers from across Uganda. The gathering took place at Kityerera State Lodge in Mayuge District.
This move fulfills the government’s earlier commitment to establish a sugar processing plant dedicated to supporting farmers in Busoga. During the meeting, farmers endorsed the proposal and granted the government approval to begin negotiations for purchasing the factory. The new ownership structure is expected to promote fairness in the sugar industry and ensure that profits benefit the farmers directly.
“I promised to build a sugar factory for you. Recently, the owners of Mayuge Sugar Factory approached me, saying they wanted to sell it so it could benefit the ordinary people. Do you agree to this?” President Museveni asked the farmers, who responded enthusiastically in favor.
“In that case, we shall negotiate with them and buy it for you,” he assured the group.
The meeting brought together representatives from Uganda’s key sugarcane-producing regions, Busoga, Buganda, Western, and Northern Uganda—as part of the President’s broader effort to reform agro-industry and improve livelihoods through agricultural modernization.
Land Size Matters in Sugarcane Farming, Says Museveni
During his address, the President also provided an economic overview of sugarcane farming, cautioning that its profitability is limited for small-scale landowners. He explained that the average income from sugarcane farming stands at approximately UGX 4 million per acre per year, an amount insufficient to lift smallholder families out of poverty.
“Sugarcane farming should be left to those with large pieces of land,” Museveni said. “If you have only two acres, sugarcane won’t help you escape poverty. Let’s be honest about that. You farmers should set a minimum land requirement for engaging in sugarcane growing.”
He urged smallholder farmers to consider a diversified model instead. Recommending what he termed the “four-acre model,” Museveni advised that small plots should be used to grow food crops and coffee, alongside activities like livestock rearing, poultry, fish farming, or piggery, all of which offer more sustainable income opportunities for families with limited land.
