With growth of 2.5% recorded in the ‘other crops’ sector and rice recording its highest output in over a decade at 360,996 tonnes last year, $1.5 billion has been allocated in this year’s budget to accelerate diversification and modernization of the agricultural sector.
The growth in the ‘other crops’ sector reflects the effectiveness of government’s Grow More Food campaign and the fact that this programme has now matured and has built its own momentum, said Finance Minister Dr Ashni Singh as he presented Budget 2011 to the National Assembly yesterday.
The livestock sector, however, recorded a decline in production by 1.1% last year. This was mainly as a result of an unanticipated shortfall in poultry production during the first half of the year, which recovered somewhat but could not fully compensate during the second half of the year, the minister said. The fishing sector also rebounded in the second half to end with 7.4% growth; harvesting activity accelerated as the year progressed.
The minister said rice continued its stellar performance, ending 2010 at 360, 996 tonnes representing 0.4% growth in value added over the previous year, and causing 2010 to displace 2009 as the year in which the industry produced its second highest output since rice production commenced and its highest output in over a decade. He recalled that in last year’s budget, the performance of the sector was forecast to moderate given the exceptional level of output in the preceding year.
The increased production last year was as a result of weather conditions that on balance proved favourable to the industry’s production cycle, and extended harvesting of paddy into late December, he said.
He had noted that rice exports earnings expanded by 35.5% to US$154.6 million, mainly attributable to a 28.9% increase in export volume to 336,313 tonnes coupled with a 5.1% increase in average export prices.
Meantime, government continues efforts to facilitate large-scale agriculture, Singh said. Several investors have already indicated interest in the intermediate savannahs. “When realized, these projects will introduce agriculture at a scale previously not seen in Guyana and make Guyana a significant player in the global market for the products cultivated,” he said.
The minister said agricultural diversification continues to be one of the principal pillars of the strategy to broaden the productive base of the economy. Government continues to focus on the expansion of this sector and measures have been taken and investments made to improve institutional strengthening, capacity building, credit facilities, improved physical infrastructure and the upgrading and enactment of rules, regulations and legislation for the efficient operation of the plant, animal and food safety agencies.
Last year, $1.3 billion was spent to expand the non-traditional sectors. Activities included the rehabilitation of facilities and acquisition of equipment. Under the Rural Enterprise and Agricultural Development (READ) programme over 1,000 farmers were trained in areas such as food processing, feed formulation and pest and disease control.
With $1.5 billion allocated this year, two financial facilities will be established to provide funding to benefit qualified producer groups for improvements to their farming systems and processing activities.
One facility was launched earlier this year while the other will target individual farmers as well as farmers’ associations on a larger scale through the providing requisite infrastructure and equipment in an effort to boost value-added interventions, improve the business climate, encourage private sector involvement and create competiveness within the sector.
Infrastructural works will also continue this year on the construction of a genetic bank at the Guyana Livestock Development Authority (GLDA), the rehabilitation of the germplasm laboratory at the National Agricultural Research and Extension Institute, rehabilitation of quarantine stations, rehabilitation of control structures and access roads at Canals Polder, purchase of field, inspection and laboratory equipment, and the commencement of an abattoir in Region Five.
The minister said that on the regulatory front, 2011 will see the enactment of new plant, animal and food safety legislation and upgraded regulations for pest and disease control during import and export. Further 7,500 farmers will be trained to be better equipped to contribute to the diversification effort.
