Agricultural production – especially other crops – is not declining

Dear Editor,
I wish to refer to Dr Kenrick Hunte’s article entitled ‘Guyana’s agriculture is in a downward spiral’ dated December 14, in which he argued that  agricultural output for several sub-sectors had declined during the period 2000 to 2008.

This analysis is in stark contrast with the reality on the ground. Dr Hunte based his argument on incomplete data provided by the Planning Unit of the Ministry of Agriculture (MOA) to the Bank of Guyana (BOG).  As a matter of fact, this unit is currently under modernization by the MOA so as to establish a new and improved methodological framework for data collection especially at it relates to other crops.  The MOA is thus currently seeking the expertise of statistical consultants to aid in the transformation towards a more modernized method of data collection within this unit.

The Bureau of Statistics, the official statistical agency in Guyana, recognizes the fact that data on other crops is incomplete and as such has devised a more progressive way of deriving its other crops data for the calculation of Guyana’s Gross Domestic Product (GDP).  In examining agriculture’s contribution to Real GDP in 2000 and 2008, it is revealed that there was a decline in sugar and a marginal decline in the fishing sector while the rice, livestock and other crops sectors showed increases of 12.8, 18.1 and 24.8 per cent respectively.  (See Table 1 below for further clarifications).  Real GDP figures are quoted over that of current GDP since they are adjusted for inflation and would more accurately reflect what is occurring in production volumes.
Table 1

20091220current

Source: Bank of Guyana and Bureau of Statistics

Note: Sugar and Rice sectors include both the agricultural as well as the manufacturing components.

A thorough analysis of the agricultural sector would be incomplete without an analysis of agricultural exports.  Dr Hunte’s article paid meticulous attention to the other crops category, and as such an examination of the non-traditional agricultural exports which consists of mainly other crops is provided below.  Table 2 reveals that there were significant increases in all agricultural products except for banana, pineapple, pepper (wiri wiri) and bora for the period in question. Increases in agricultural products ranged from 30% to as high as 13495% (in the case of plantain), with the overall increase in the non-traditional sector totalling 126%.

It can therefore be seen that the MOA’s policies in support of non-traditional agricultural exports have been very successful. This coupled with the fact that the locally available supply has been steady and increasing, would suggest that Guyana is not only able to produce a sufficient amount of agricultural products to feed itself, but is also contributing to regional and even global food security.

In addition, the National Drainage and Irrigation Authority (NDIA) has undertaken drainage and irrigation works throughout Guyana and has thus made available a total of 80,900 acres of land for agricultural production in 2009/10.  (See table 3 below).  One of the main goals of the MOA is the diversification of Guyana’s economy and as such the ministry is currently working on the expansion of agricultural production (especially that of other crops) in these areas.

20091220export

Source: New Guyana Marketing Corporation

Finally, statistics from Go-Invest reveal that agricultural investments by the private sector over the last three years totaled US$74.693 million, creating approximately 1,395 new jobs for Guyanese citizens, primarily in the non-traditional sector.

20091220cultivation

Source: National Drainage and Irrigation Authority of the MOA

Further, Ram & McRae’s ‘Business Outlook Survey for 2010’ indicates that the ‘Grow More Campaign’ by the MOA was one of the four positive prospects for global economic recovery since it was one of the main drivers of optimism in the private sector.  In addition, this survey indicated that the MOA received the highest rating among the public sector entities listed, in the categories moderately effective to excellent (very effective).

With all of the evidence shown above, it is evident that it is impossible for agricultural production (especially as it relates to other crops) to be declining.

Yours faithfully,
Natasha Gaskin
Senior Analyst
Ministry of Agriculture