By Okoti Gilbert, Kenya Sugar Board
The manner in which the sugar industry value chain operates—particularly cane supply—is heavily influenced by the social, political, economic, and environmental factors specific to each region, as well as the involvement of external parties in socially responsible investment. As land becomes an increasingly contentious and high-profile issue, the availability of additional land for new and expanding sugarcane businesses has emerged as a major constraint to strategic planning in many countries. High population density, limited formal land acts and laws, and traditional land management and distribution practices often prohibit or reduce the feasibility of the more traditional ‘miller cum planter’ estate development model, prompting many sugar processing companies to adopt new business models.
The Problem of Cane Poaching
Cane poaching—where millers unlawfully source cane contracted to other mills—disrupts supply agreements and undermines the long-term investments made by legitimate sugar factories. The blame game continues among millers in the region, largely due to breaches of contractual laws that stipulate a contract should last up to three harvests before a farmer may switch allegiance. This situation has forced many millers to crush immature cane as they struggle with underproduction and reduced operations, with some even forced to close down.
Regulatory Response
With the re-enactment of the Kenya Sugar Board through the Sugar Act 2024, industry stakeholders believe that the establishment and operationalization of the Sugar (General) Regulations 2025, which include robust provisions for Cane Supply Agreements (CSA), will be a game-changer. The CSA is set to become the main link between out-growers and millers, clearly defining the roles and responsibilities of each partner and addressing a wide range of issues to regulate sugarcane production effectively.
Anti-Poaching Strategies
To address the challenge of cane poaching and ensure a sustainable industry, several strategies should be considered:
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Adopting Geographical Information Systems (GIS): GIS is a vital tool for providing detailed resource information in agricultural management. When linked with smart contracts software, it can enhance the traceability of contracted farmers’ land parcels to specific mills, ensuring that only mature cane is delivered to the correct processing factory.
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Millers’ Investment in Cane Development: Millers should prioritize supporting farmers by providing financial assistance, quality inputs, and technical support, rather than relying on poaching activities.
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Recruitment of Cane Crop Inspectors: Employing inspectors to patrol, monitor, and enforce established laws regarding the sale and trade of sugarcane will help ensure compliance and deter poaching.
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Farmer Education and Community Engagement: Enhancing community education on the benefits of honoring grower-miller contracts and raising awareness about the consequences of cane poaching can foster a culture of compliance and trust.
These remedies can promote sustainable sugarcane farming practices and support the profitability and long-term success of all industry stakeholders.