Sugar Industry Case Study

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CHAPTER ONE INTRODUCTION 1.1. Background of the problem About 62% of sugar in the world is produced from sugarcane while sugar beets accounts for 38%, (Wada et al., 2006). Sugarcane is also a source of bio-fuel. According to Litch (2008), Brazil produce ethanol which it exports to other countries such as United States of America, Sweden, Japan, among others. According to Kenya sugar industry strategic plan 2010-2014, the sugar industry is a major contributor to the agricultural sector which is the mainstay of the economy and supports livelihoods of at least 25% of the Kenyan population. The subsector which accounts for about 15% of the agricultural GDP, is the dominant employer and source of livelihoods for most households in Western Kenya…show more content…
In addition to this, Platteau and Baland (2001) observed that the major mode of land acquisition in most sub-Saharan African countries is by the means of inheritance. Also, access to resources such as water and to services such as sanitation and electricity, as well as the ability to make long-term investments in land and housing, are often dependent on rights to access land (Cooper, 2010a). Land inheritance reduces the size of land per individual in a case where a father has many children to inherit the land. This is almost the same case in Kanduyi sub county in Bungoma county, where the farmers could be experiencing the same challenges and thus making many of them to withdraw from sugarcane farming and mainly getting involved in other farming activities because sugarcane farming requires relatively large size of land. This move has really affected the sugar industry in Kenya considering the fact that western part of Kenya is the leading producer of sugar, and in particular, Bungoma county where Nzoia sugar company; one of the key players in Kenya’s sugar industry is…show more content…
How does food security influence the quantity of sugarcane supplied to Nzoia sugar factory in Kanduyi sub-county? iii. How does the harvesting age and crop cycle the quantity of sugarcane supplied to Nzoia sugar factory in Kanduyi sub-county? 1.4. Significance of the study It is hoped that the findings from this study will assist the management of Nzoia Sugar Company in coming up with solutions to curb the problem of sugarcane shortage for processing, which has of late led to reduced sugar production by the factory. It is hoped that the study will assist the government of Kenya in coming up with long term solutions to the issue of sugar shortage, which is becoming a major problem in the country and which leads to importation of large amount of sugar from outside the country. 1.5. Scope of the study The study will be carried out in Kanduyi sub-county, Bungoma County in Kenya. This particular location is chosen because according to the reports from Nzoia Sugar Company, Agriculture Section, tonnage of sugarcane transported to the company from the farmers is continuously decreasing. 1.6. Assumptions of the study It will be assume that the causes of decrease in the quantity of sugarcane supplied to Nzoia Sugar Company are the ones enumerated in the study

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