Rising food prices underscore the national importance of the Intermediate Savannahs soya bean and corn project, according to investor and Bounty Farm Director David Fernandes, who says the venture represents a long-term solution to the country’s reliance on imports.
“This COVID-19 situation has caused freight and everything to go up. The grain prices have been ridiculous as of recent and we are not sure where it would end up. Rice has increased by 71.4%, feed corn by 24.76%, the soya prices by 35% and feed grade fats or oils by some 25%,” Fernandes, one of the nation’s leading poultry producers, told Stabroek News in an interview.
“Chicken prices, on the other hand, have had a 3% increase. How long will that be sustainable? This project gives us the opportunity to be self-reliant but it would not have an impact until about the next three years, if all goes well,” he added.
Fernandes explained that when President Irfaan Ali took office in August of last year he reached out to the business and farming communities to brainstorm solutions due to concerns raised by both farmers and livestock feed producers.
“In the middle of the pandemic with world prices increasing, the President reached out and said to us that government understood our concerns and wanted to arrange a meeting. He said they would give support if we are willing to take up this opportunity. So basically what happened was that he asked us to get a group to come meet with him,” Fernandes noted.
He said that the group comprised this country’s top poultry and livestock feed producers and agriculture investors. NF Agriculture Inc, owned by Brazilian Yucatán Reis, according to Fernandes, “made a pitch to the group and wanted to know if they offered us the produce if we would buy”.
“NF Agriculture did a presentation on a proposal and it was then that they indicated that the infrastructure to get product in and out would therefore need to be developed also,” he said.
“Every government has to support the food security and self-reliance of its citizens because it is critical to a nation’s development,” Fernandes reasoned as he lauded efforts and promises by government for creating the infrastructure to ensure the project’s goals were realised,” he added.
Last month, the Ministry of Agriculture (MoA) announced that six local companies had joined forces to undertake a “massive project” that could place Guyana on the path to becoming self-sufficient in corn and soya bean over the next few years.
The consortium, which consists of Guyana Stockfeeds Ltd, Royal Chicken, Edun Farms, SBM Wood, Dubulay Ranch, and Bounty Farm Ltd, along with NF Agriculture, plans to produce soya bean and corn for both the local and the regional markets.
So far, the MoA release had stated, the team has engaged bodies like the Guyana Lands and Surveys Commission (GLSC), and the Guyana Office for Investment (G-Invest).
Once given the green light, cultivation is expected to commence before the end of this year.
Some 250 acres are being prepared in Tacama, Region 10, for a trial crop scheduled for planting next month and reaping in September.
Agriculture Minister Zulfikar Mustapha has explained that the project was birthed as a collaborative initiative among the businessmen as government partners with them to put in the necessary infrastructure. “It is a collaboration where government gives the infrastructure and they roll out the agriculture project. Already, we have done site visits and have seen the 18 kilometers of road to the site. We collected soil samples to be tested to know what specifications of the road we should do. We are aggressively pursuing this and hopefully by June they can start planting,” he told this newspaper.
Mustapha further assured that government was “committed” to playing its part and that the ministry will use monies from the $500 million allocated in the 2021 budget to “do these works” so that the project can be off the ground in the timeframe scheduled.
Mustapha disclosed that if successful, government would be looking to invite additional investors for various other agricultural initiatives.
Director of Guyana Stockfeeds Inc Robert Badal has expressed hope that the project grows significantly to the point where other local investors will come on board so as to get this country to the stage where it becomes the Caribbean’s premier supplier of poultry feed, as the initiative will significantly decrease reliance on imports and ensure prices, especially for poultry, remain constant.
“We import probably about 100 thousand tonnes of grains per annum of corn and soya. These would
normally be sourced from the US. Our conditions here in the Intermediate Savannahs present a significant opportunity for the local production of corn and soya in the sense that we have extensive acreage for large scale production. Growing our grains will enhance the competitiveness of our poultry production; presenting us with the opportunity to export processed chicken feed throughout the Caribbean,” he has said.
Already, veteran agronomist Dr. Nandkishor Boedhram, who is based overseas, has offered to help.
He told Stabroek News that he has decades of experience with corn and soya beans and wants to give back. “I have [an] M.Sc. and Ph.D. from the University of Nebraska, Lincoln, in agronomy/agricultural meteorology/crop physiology/photosynthesis etc. The crops I have studied and extensively worked on/within the field, for about 15 years in the USA (Nebraska, Iowa, and Wisconsin, the corn and soybeans basket of USA), are corn and soybeans,” he said while explaining that he wanted to see if there are any grounds for high level cooperation where he could offer his knowledge and experience.
Dr. Kishore also believes that the project seems viable and should be supported.
His views along with those of the Agriculture Minister and Badal were echoed by Fernandes, who said that while he is optimistic that the project will be a success, Guyanese should temper short term expectations as it “would not happen overnight”.
“We are doing a feasibility study that will give us the impetus of where we go from there. The idea is to do it larger in 2022 maybe 10 times but the study will guide. It is a national effort and it is why we as a group will have to work together,” he said.
“We had not been in that area before. The only person was NF Agriculture and Mr. Reis had done a little presentation indicating that infrastructure to get product in and grain out and therefore would have to be developed. Everywhere, a government has to support the food security and self-reliance initiatives because they are] critical to a nation’s development,” he added.
‘Not magic’
Consumers, Fernandes said, will see increases in the price of poultry at some point since the increases in the cost of grains are affecting producers. “What happened is that we have not seen it increased much as yet. But it is gradual. If you just punch in world grain price [in an online search engine] it would give you an idea of what we are facing. Take Bounty, for example. We at Bounty do mix for our farms as well as we sell feed. But the prices internationally are making a mess out of all countries producing feed. The cost for a 40 ft container moved from US$2000 to US$12000. That affects everything; from supermarket items to building materials… There will be price increases but this will not take effect until the chickens get to maturity. This year alone the prices have increased every month. We don’t have control over that. So this [project] this is not magic. We are starting with us getting the trial done and then thereafter you identify what the projections will be and then come in a few years,” he said.
“We still would be reliant on imports at least for a few years. This project is an opportunity for us to get out of this reliance but it won’t happen overnight. Don’t get me wrong. I am absolutely optimistic about this because if Belize and Brazil can do it, then we surely can. I think with the support of the government and the agencies and as well as investors it could change the way agriculture is done locally. It is a transformational project from a national point of view, but it won’t happen until say the next three years,” he added.
At that time, Fernandes expects that the initiative will serve as a development driver for this country since the “domino effect” will see the lowering of costs of chicken, creation of rural development and jobs, especially in the rural areas and Guyana being a production hub for livestock feed for the region.
“It can add to the export potential of the country and significantly affect direct and indirect job creation,” he said as he pointed out that at Bounty Farm alone, in excess of 1200 persons are employed and the company would hope that figure grows as the project blossoms.
