Sugar and rice production plunged in the first half of the year, resulting in a reduction of production targets for the year.
According to the Ministry of Finance’s Mid-Year Report laid in the National Assembly on Monday, overall, the agriculture, fishing and forestry sectors contracted by 10 percent, in spite of growth in the livestock, other crops, and fishing subsectors.
Sugar production for the first half of 2016 was a “disappointing” 56,645 tonnes, or approximately 30 percent below production at mid-year 2015. “This shortfall in production was mainly due to the severe El Nino dry spell, from September 2015 to April 2016, which affected the growth of the ratoon canes which, in turn, resulted in lower yields,” the report said. It added that this combined with the Guyana Sugar Corporation’s (GuySuCo) inability to irrigate the fields, coupled with delays in the acquisition of fertilizer and fertilizer application, further compromised the quality of canes harvested.
Following the shortfall, the industry’s target for 2016 has been revised to 218,188 tonnes from the budgeted 231,145 tonnes.
According to figures provided, sugar exports fell from US$30.4 million for the first half of 2015 to US$20.8 million for the first half of 2016, a decline of 31.4 percent. Lower sugar exports reflected reduced quantity, due to lower production in the first half of 2016, despite higher sugar prices, the report said. Export sales amounted to 49, 278 tonnes of sugar.
It noted that thus far, tillage, planting, and fertilizer application have been timelier in the second half of 2016, which makes for an improved first crop in 2017. “With respect to restructuring the industry, following the harvesting of second crop canes at Wales later this year, the move towards a pilot scheme for aquaculture and rice will commence as part of the diversification efforts,” it said.
Meantime, growth in the rice industry also declined during the first half of 2016, with rice production recorded at 265,818 tonnes, a fall of 26.2 percent compared to production during the same period in 2015. The El Nino dry weather was the main cause for reduced production levels as it resulted in poor yields and a loss of 3,312 hectares of paddy, the Ministry said.
Additionally, farmers suffered from further losses due to the early arrival of the rainy weather – when farmers were about to harvest their paddy – and delayed payments by millers.
Production for 2016 has been revised downwards from 687,784 tonnes to 600,000 tonnes, the report said. It pointed out that rice exports fell about 29.8 percent, from US$125.7 million in the first half of 2015 to US$88.3 million in the first half of 2016. Rice exports fell because of lower export quantities and lower prices compared with a year ago, the report said.
Global
It noted that although global rice prices improved somewhat over the first six months of 2016, the loss of the Venezuelan market for rice, which paid a relatively high price per metric tonne, resulted in a substantial decrease in the average price received for rice exports. According to the Ministry, the industry is emerging from a price structure that was artificially inflated by the Venezuelan market, to which 30 percent of rice produced was sold, and which served to cushion low world market prices.
Meantime, the report said that with regards to delayed payment, the Guyana Rice Development Board will undertake increased advocacy by hosting several meetings during the second half of 2016 in order to improve collaboration among the bankers, millers and farmers, and their related associations.
According to the Ministry, the GRDB remains willing to support farmers who opt to take legal action against delinquent millers. Farmers are being encouraged to adopt improved production practices, to minimise the cost of producing an acre of rice. The Government through the GRDB continues to support the industry through the development of more flood-resistant high-yielding varieties, while encouraging both farmers and millers to move towards more value added products, including aromatic varieties, the report said.
Meanwhile, the report said that in spite of several acres of crops being destroyed during the dry weather, the other crops sector grew by 2 percent in the first half of 2016. “The sector is expected to improve its performance during the second half of 2016, as the Government continues to promote development of agriculture in the hinterland regions. In this regard, investment in the savannahs will continue in the second half of 2016, with the production of 100 acres of soya bean targeted before the end of 2016. Additionally, nurseries will be expanded in Ebini, Hosororo and Kato for the production of spices such as turmeric, black pepper, and ginger, as well as fruits,” the report said.
Black Giant Poultry
It also revealed that the livestock industry grew by 0.8 percent in the first half of 2016, compared to the same period in 2015. “During the second half of 2016, expansion of poultry meat and eggs will occur in Regions No. 7 and 8, utilising the Black Giant Poultry Initiative, which will lead to greater productivity of chickens among livestock farmers, improved biosafety in the industry and reduced cost of protein sources for consumers in the hinterland. In addition, a new hatchery for ducks is expected to become fully operational, in Region 4, during the second half of the year, resulting in increased ducklings being distributed to farmers,” the report said.
As it relates to the fisheries sector, this grew by 2.1 percent during the first half of 2016, compared to the same period in 2015. However, the sector continues to be affected by sustainability issues due to overfishing. Government is taking steps to address the problem by reducing illegal and unregulated fishing, the Ministry said.
Guyana recently became a signatory to the Port States Measurement Agreement to prevent illegal fishing, which came into effect in June 2016. During the second half of 2016, the assessment of the Marine Stewardship Certification will continue in order to reduce bureaucracy and ‘red tape’ within the fisheries industry. All working trawlers are now equipped with Vessel Monitoring Systems, which will make it easier to confirm that vessels are complying with regulations, it added.
As it relates to the forestry sector, this contracted by 13.1 percent during the first half of 2016 compared to the same period in 2015. “Several concessions issued by the Guyana Forestry Commission (GFC), were not fully operational. It is anticipated that the second half of the year will see operators fully mobilised and a corresponding increase in production as compared to the first half, where mobilisation of labour and equipment happened late in the second quarter. In spite of the contraction the sector is still projected to grow by 2.5 percent in 2016, as relatively dry weather conditions allow for improved access and increased operations,” the report said.
It added that the GFC, in collaboration with several other agencies such as the Marketing Council and the private sector, will continue to aggressively seek out additional markets and promote value added products. Increased production combined with a larger market for value-added forestry products, should see rising production of value-added products, the Minister said.
The report also revealed that among other major exports, shrimp and prawns exports increased in the first half of 2016 compared with the first half of 2015, rising from US$27.0 million to US$29.6 million.
