Museveni announces plan to buy Mayuge Sugar Factory for Busoga sugarcane farmers

President Museveni has announced that the government will purchase the Mayuge Sugar Factory for Busoga sugarcane farmers. The President made the announcement on Wednesday August 6, 2025, while meeting sugarcane growers, millers, and sugar manufacturers from across Uganda at Kityerera State Lodge, Mayuge.

The move is in fulfilment of the government’s pledge to build a sugarcane processing plant for Busoga sugarcane farmers. During the meeting, the farmers gave the government a green light to go into purchase negotiations with the sugar factory.

The new ownership model is expected to restore fairness in the sugar industry and ensure that profits return directly to the farmers.

“I pledged to build a sugar factory for you. Recently, the people of Mayuge Sugar Factory came and wanted to sell it to me and give it to the poor people. Do you agree?” President Museveni asked, receiving a resounding “Yes!” from the farmers.

“Okay, we shall negotiate with them and buy it for you,” the President assured.

The meeting brought together key stakeholders from Uganda’s major sugarcane growing regions — Busoga, Buganda, Western, and Northern Uganda — and is part of President Museveni’s wider agenda to reform the agro-industrial sector and uplift communities from poverty.

In the same meeting, President Museveni revealed that the cabinet will decide the fate of CN Sugar Ltd and Shakti Sugar limited which were closed due operational issues.

He said the issue should be handled next week on Monday.

Who should grow sugarcane?
The President gave a detailed economic analysis of sugarcane production, noting that the average returns — UGX 4 million per acre annually — are insufficient for families with small land holdings.

“Sugarcane should be grown by people with large chunks of land. Those with 2 acres will never get out of poverty with sugarcane, let’s be clear. You, the sugarcane growers, must agree on the minimum land size for one to engage in sugarcane farming,” H.E. Museveni said.

He contrasted the income from sugarcane with alternative models, recommending the four acres model for smallholder farmers. This includes growing food crops, coffee, pasture, and engaging in livestock, poultry, fish farming, or piggery.

President Museveni highlighted the case of Joseph Ijara of Serere, who uses only 2.5 acres to generate over UGX 1 billion annually through poultry and zero-grazing dairy farming.
“Ijara sells 310 eggs a day and 320 liters of milk daily. That’s what I have been talking about for years,” the President emphasized. “Another farmer, Nyakana, earns UGX 300,000 daily from eggs — that’s UGX 108 million a year.”

He urged communities to adopt evidence-based agricultural choices based on land size, advising those with smaller plots to avoid sugarcane and instead focus on more profitable, intensive models.
The President also discussed cotton farming, noting that returns are too low for smallholders. He cited large-scale models as viable, recommending prisons and institutions with large landholdings to take on cotton cultivation to support the country’s textile industry.

“If you have 1,000 acres, you get UGX 1 billion from cotton. But smallholders with just two acres should avoid it,” Museveni said.

To further support sugarcane growers, President Museveni pledged a revolving fund to help them buy fertilizers, aimed at boosting sugarcane productivity per acre.

Mr. Budugo also welcomed the President’s commitment, thanking him for promising the factory acquisition, fertilizers, tractors, and halting the controversial trashing of sugarcane tops. He noted that the tops are a valuable animal feed, feeding up to three cows per acre.

The Third Deputy Prime Minister, Rt. Hon. Rukia Nakadama Isanga, welcomed the President to Mayuge and assured him of Busoga’s support in the forthcoming 2026 elections.

“This time, the Basoga want to campaign for you themselves. They don’t want outsiders coming in to speak for you without understanding our local issues,” she said.

Hajji Idi Isabirye, the Bunya South MP and Chairperson of the Busoga Parliamentary Caucus, thanked the President for addressing key challenges, including sugarcane pricing and swamp reclamation. He also praised the transformation around Mayuge State Lodge, calling it an inspiration for locals.

The event was attended by senior government officials, Members of Parliament, former leaders, among others.