Sugarcane can take up to 24 months to reach maturity. Assuming the production of 100 tons per acre the average profit for sugarcane farming would range between Ksh 80,000- 120,000. Maximum profit of Ksh 120,000 distributed across the 24 months translates to about Ksh 5,000 per month which is way below the minimum wage in Kenya for a farmer who relies on sugarcane farming. That is without considering the unpredictability of when the sugar companies will pay the farmers.
That said, sugarcane farming is a key source of employment and livelihood for many people in Kenya. The country's fertile soil and tropical climate make it ideal for growing sugarcane, one of the major cash crops. The main sugarcane-growing areas in Kenya are Nyando and South Nyanza. The Nyando zone includes Kibos, Soin, Muhoroni, and Chemelil. The South Nyanza region includes areas of Sukari, Transmara, and Sonysugar. Sugarcane is also grown in the Western region, in areas of Butali, Nzoia, and Mumias.
Sugarcane farming in Kenya is done by small-scale farmers using small plots of land as their main source of livelihood for their families. Sugarcane farming is labor-intensive, involving planting, weeding, and harvesting. Despite the labor-intensive nature of the business, small-scale farmers in Kenya have successfully engaged in sugarcane farming
In the recent past the government of Kenya is working closely with farmers to revive the sugarcane industry. The government has introduced the sugarcane bonus to revitalize the sugar sector. Despite its controversial nature of introduction, the farmers stand to benefit. What would be in contention here is its sustainability over time. Both bonuses and dividends are directly related to a company's profitability, with the key difference being that bonuses are considered a business expense, while dividends are a distribution of profits to shareholders. How the government was able to offer a bonus while the industry has been experiencing losses over time remains to be a mystery.
Challenges Facing Sugarcane Farming in Kenya:
1. Declining Productivity
The productivity of sugarcane farms in Kenya has been steadily declining in recent years, driven by a combination of factors that affect both the quality and quantity of yields. Poor farming practices, including inadequate land preparation, improper irrigation, and inefficient use of fertilizers, have contributed significantly to this decline. Additionally, many farmers still rely on aging cane varieties that are less resistant to pests and diseases, leading to lower yields and reduced cane quality. These factors have compounded over time, making sugarcane farming less profitable and less sustainable for many smallholder farmers, who are unable to adapt to these changing conditions due to limited resources or knowledge.
2. Poor Infrastructure
In Kenya, inadequate infrastructure is a major challenge for sugarcane farmers. Poor road networks, particularly in rural areas where sugarcane farming is prevalent, make it difficult to transport harvested cane to the mills in a timely manner. This delay can lead to a decline in the quality of the cane and a reduction in the prices farmers receive. Additionally, many areas lack reliable electricity supply, which affects both the operations of sugar mills and the ability of farmers to utilize modern farming technologies. Outdated milling facilities are another obstacle, as they often operate inefficiently, resulting in low extraction rates and high wastage.
3. Unreliable Water Sources
Water availability plays a crucial role in the success of sugarcane farming, yet many regions in Kenya face significant challenges in this area. In areas where farmers rely on rain-fed agriculture, the unpredictability of rainfall has become a serious issue. Extended dry spells or unpredictable rainfall patterns can lead to droughts, severely affecting sugarcane growth. Without proper irrigation infrastructure, farmers in these areas face the risk of crop failure, resulting in reduced yields and, consequently, financial losses.
4. Pests and Diseases
Sugarcane is highly susceptible to a variety of pests and diseases, which significantly affect yields and the overall quality of the crop. Pests like the sugarcane borer, which burrow into the stalks, can cause extensive damage to the crop, weakening the plants and making them more vulnerable to other diseases. In addition to pests, sugarcane is also vulnerable to several diseases, such as smut, which causes stunted growth and can result in the death of the plants.
5. Low Prices and Market Volatility
The sugar industry in Kenya is highly sensitive to fluctuations in global sugar prices, which can lead to instability in the local market. As global prices drop, the profitability of sugarcane farming decreases, and farmers may struggle to cover their production costs. In addition to price volatility, there is the issue of competition from imported sugar, which is often cheaper due to subsidies or lower production costs in other countries. This influx of imported sugar has been a significant threat to local farmers, as it drives down the prices that domestic sugarcane producers can charge for their crop.
6. Land Fragmentation
Land fragmentation has become a growing issue in Kenya, particularly as the population continues to grow. Smaller land sizes reduce the ability to achieve economies of scale, leading to inefficiencies in production and increased costs. For sugarcane farmers, this fragmentation means that it is harder to allocate enough land for sugarcane cultivation, which is a crop that requires large areas to be grown efficiently. Furthermore, smaller landholdings may lack the resources necessary for the effective use of modern farming techniques, which are often capital and labor-intensive.
7. High Cost of Inputs
The rising cost of inputs such as fertilizers, herbicides, pesticides, and labor has become a major challenge for smallholder sugarcane farmers in Kenya. Even with fertilizer subsidies the quality of the availed fertilizer has recently come into question. Low qualities have occasioned a reduction in production. Consequently, the farmers have been forced to revert to the expensive fertilizer that is not subsidized at least the quality is a little bit assured.
8. Government Policies and Regulation
The sugarcane farming sector in Kenya has been heavily affected by inconsistent government policies and poor regulation, which have undermined the sustainability of the industry. The lack of clear and effective regulations regarding pricing, land use, and market access often leaves farmers vulnerable to exploitation and unfair competition. Furthermore, the government has failed to provide adequate support for smallholder farmers, who struggle to access financing, modern equipment, and necessary resources. The closure of state-owned sugar mills, coupled with a lack of investment in modernizing existing mills, has further disrupted the supply chain.
Cost and Profitability of Sugarcane farming
· Land preparation: Ksh 30,000 – Ksh 40,000 per acre
· Planting materials: Ksh 10,000 – Ksh 15,000 per acre
· Fertilizers and pesticides: Ksh 25,000 – Ksh 35,000 per acre
· Labor costs: Ksh 40,000 – Ksh 60,000 per acre
· Irrigation: Ksh 15,000 - Ksh 20,000 per acre
· Miscellaneous - Ksh 20,000 per acre
Average cost of production is about 250,000 per acre.
The current price of sugarcane per ton has been increased to Ksh5,300 from 4,950. Before August last year the price was Ksh 6,100 per ton. There is an upward trend which is promising to the farmers.
Assuming the production of 100 tons per acre the average profit would range between 80,000- 120,000. Sugarcane take up to 24 months to reach maturity. Maximum profit of 120k distributed across the 24 months translates to about Ksh 5,000 per month which is way below the minimum wage in Kenya for a farmer who relies on sugarcane farming. That is without considering the unpredictability of when the sugar companies will pay the farmers.
Escaping the vicious cycle ailing the sugarcane industry
One of the best ways to overcome is alternative farming. Many sugarcane farmers in Kenya are increasingly turning to alternative crops as a way to secure higher or more immediate profits, particularly when sugar prices are low. Crops like maize, horticultural products, and other cash crops often provide faster returns or better market prices, leading some farmers to shift away from sugarcane farming. This switch can be particularly appealing in times of economic uncertainty or when the sugar market is volatile.
A very viable option considering the nature of the climate in sugarcane growing areas which is warm to hot is also very ideal for fruit farming. With a little irrigation during the driest months farmers in Western and Nyanza region can improve their livelihoods significantly by practicing fruit farming. The weather in these areas is ideal for growth of 90% of fruits if not all.
There are quite a number of fruit seedling that start bearing fruit in less than two years whose profitability surpasses that of sugarcane by a very huge margin. Here are a few examples.
- Strawberry
Strawberry farming is relatively easy, especially if you are keen to provide balance soil nutrients. The process begins with preparing the soil, which should be well-drained and rich in organic matter.
- Cost per seedling Ksh. 60
- Seedlings per acre -24,000
- Spacing - 30cm by 40cm
- Fruit price- Ksh 150 per kg (farmgate)
- Yield- 200kgs per week
- Common pests- red spider mites
- Diseases- blight, fusarium wilt, bacterial wilt
- Lifespan 2-3 year
2. Tree Tomato
The tree tomato, also known as tamarillo, is a small to medium-sized tree that can reach heights of up to 5 meters. It has large, heart-shaped leaves that give your farm a beautiful dark green canopy.
- Cost per seedling Ksh. 60
- Seedlings per acre -1,100
- Spacing - 2m by 2m
- Fruit price- Ksh 80-100 per kg
- Yield- 20-30 kgs per tree per year harvested every week
- Common pests- white flies and aphids
- Lifespan 10yrs
- Cost per seedling Ksh. 100
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- Seedlings per acre - 650
- Spacing - 2m by 3m
- Fruit price- Ksh 60-90 per kg (farmgate)
- Yield- 1 kg per plant per week
- Lifespan 3 years
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4. Pawpaws
Pawpaws, also known as papayas, are among the fruits that always have a short supply in the market. People love them, especially for babies, since they are rich in vitamins A and C and other essential nutrients.
- Cost per seedling Ksh. 100
- Seedlings per acre -1,100
- Spacing - 2m by 2m
- Fruit price- Ksh. 40-60 per kg
- Yield- 30-40 tons per year harvested weekly
- Common pests- mites
- Lifespan 2-5 yrs depending on variety
Detailed articles on pawpaw farming:
Pawpaw Profitability Calculations
5. Dragon Fruit
Dragon fruit farming in Kenya is no longer a foreign concept as it sounded 2 years ago. Today, we have a few hundred small-scale dragon fruit farmers in Kenya and tens of relatively large-scale farmers.
- Cost per seedling Ksh. 300
- Seedlings per acre -2,000
- Spacing - 2m by 1m
- Fruit price- Ksh 400-600 Per Kg
- Yield- 20-30 fruits per vine, a plant should have at least 5 vines
- Common pests- the plant is generally disease and pest resistant.
- Lifespan - 40 yrs plus
- Cost per seedling Ksh. 250
- Seedlings per acre - 400-500
- Spacing - 3m by 3m
- Fruit price- Ksh 400-800 per bunch (farmgate)
- Maturity- 9 months
- Common pests- nematodes, mealybugs, scales
- Lifespan - 40 yrs plus
Read more articles on bananas farming below.
Feel free to contact us via 0724689357 or 0723213602 or email us on info@richfarmkenya.com for enquiries and seedlings supply.
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