Overview
Last week I started a short series on critical issues as it relates to our farmers and recommended major improvements in order for them to be able to strategically position themselves to improve their products, marketability and financial results.
The 2008 budget for the agricultural sector indicated it to be a “maintenance budget versus a budget that outlines strategic changes in the sector to move from our traditional crops to a more diversified approach given the needs of the global market.” The budget says the goals are to grow and build on last year’s solid achievements. If one looks at our agricultural sector, one will find it very difficult to locate solid achievements in 2007.
Facts:
1. I alluded in last week’s column to the lack of an engineering plan to address the drainage issue i.e. which trench leads to which canal etc. In addition, our budget should include a study on building deep holding reservoirs in certain areas to temporarily hold large amounts of water. The reservoirs can be used for irrigation and aquaculture farming.
2. The 2007 agriculture budget focused on increasing competitiveness of rice and sugar, which was not achieved.
a. Per the Government, the production of rice declined by 2.9% (298,198 mt). We dispute this number, given the major damage due to extensive rain, the shortage of delivering rice quota to Jamaica and the rapid increase of rice prices locally due to the major 2007 shortages. The GRDB is acting unfairly when it comes to licensing and I advise the farmers to take a stance on the issues.
b. Per the Government, 266,482 tonnes of sugar were produced in 2007- less than the projected 285,000. Again we dispute these numbers as it is projected to be worse and potentially having to import sugar for the local market in 2008. Guysuco is looking at strategies on how they can best take off the cane in the first crop. Most likely it will have to carry over cane from the first to the second crop, further upsetting our crop
c. No large export of non-traditional products to move Guyana into the Green Anchor of the Region.
d. Fisheries still in an embryonic state
Budget discussions need to focus on the following:
1. Review Rice production and break up monopolies in the distribution system with a view to minimising gaps between producer and consumer prices.
2. Reducing the administrative bottlenecks associated with the import and export process to facilitate international trade. To achieve these, cumbersome customs procedures must be streamlined to reduce transaction costs associated with clearing and exporting goods.
3. Develop and implement a land programme with a view to harnessing the potential of land as the main productive asset in rural development.
4. Empower women through the promotion of income generating activities, supported by the introduction of improved technologies, credit, markets, and micro-financing.
5. Support agro-processing, promoting the development of techniques and equipment which reduces the time burden of women.
6. Reduce dependence on traditional farming techniques that are labour intensive and which result in low productivity.
7. Initiate the development of farmer based organizations to facilitate access to inputs, credits and markets.
8. Initiate community participation in national resources and environmental management.
9. Facilitate discussions to improve logistics of shipping especially in the air cargo arena.
Conclusion:
We need to focus on our production cycle in order for it to become a cost efficient model; we must also invest in a capital strategy that will change the current way we do business in this sector. It starts from the ability of the farmers to be able to buy equipment, market their produce at a reasonable cost, and work towards a model to make Guyana, as I have written many times, the “Bread Basket of the Caribbean” without government interference.
Let’s go on an aggressive marketing campaign outside Guyana to show off our fertile land with a comprehensive plan to improve infrastructure, packaging, shipping, scientific planting, quality control and profits. Let’s create a budget with incentives versus just having goals or being in a maintenance mode, we need rapid and radical changes in the industry. Let us develop a 2008 budget that can be measured by prosperity for our farmers. Until next week: Roop.
