Fortification of Vegetable oil and Sugar with Vitamin A in Uganda

C. Differences in the Ugandan Sugar Companies
Figure 5.5 shows the relative output share of the four largest Ugandan sugar mills. As seen in
Table 5.3, the rank size ordering of the big three companies was the same each year over the
1998-2007 period. Kakira is the dominant firm. Kinyara produces between 70 and 90 percent of
the output level of Kakira, and Lugazi, the smallest, generally produces about 40 percent of
Kakira’s output level. Table 5.3 shows the total production (in tons) and percent share of total
output of each firm. The highlighted cells indicate the peak levels of output or share of total
output of each of the three main companies over the 10-year period.
Lugazi
19%
GM Sugar
3%
Kakira
49%
Kinyara
29%
Figure 5.5: Ugandan sugar production: output shares of the four Ugandan sugar mills, 2007.
Table 5.3: Ugandan Sugar Production by Mill, 1998-2007
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Kakira 49,450 61,234 58,650 56,504 75,268 87,296 84,160 88,292 93,182 96,786
Kinyara 35,478 41,700 50,209 52,948 57,900 53,799 65,137 61,299 60,201 58,062
Lugazi 17,599 23,248 28,091 24,528 32,795 35,579 46,819 44,137 38,117 37,444
GM Sugar (estimate) 5,000
TOTAL: 102,527 126,182 136,950 133,980 165,963 176,674 196,116 193,728 191,500 197,292
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Kakira 48% 49% 43% 42% 45% 49% 43% 46% 49% 49%
Kinyara 35% 33% 37% 40% 35% 30% 33% 32% 31% 29%
Lugazi 17% 18% 21% 18% 20% 20% 24% 23% 20% 19%
GM Sugar (estimate) 3%
TOTAL: 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Shaded cells indicate the year the sugar mill reached its highest level of the indicator in question.
Source: USCTA 2008
The big three companies vary in terms of size and structure, the extent to which they rely upon
outgrowers, and their approaches to business risk and innovation. As seen in Figures 5.6 and
Table 5.4, they differ markedly in the degree to which they rely on outgrowers, both in terms of
the proportion of total sugar cane from their own lands and the proportion they purchase from
outgrowers, and in terms of the total tons from each of these sources.
40