Latest update January 1st, 2025 1:00 AM
Jul 21, 2008 Editorial
Agriculture still remains the largest sector of our economy. According to official figures, it contributes some thirty-two percent of GDP, thirty percent of employment, and forty percent of export earnings. Of this, the traditional crops — sugar and rice — account for seventy-four percent of the value of the agricultural production.
The Government, however, has been placing emphasis on “non-traditional” crops within its Agricultural Diversification Strategy that have produced consistent growth in this sub-sector to the tune of six percent on an average for over a decade.
With our comparative advantage in land and water, it is not surprising that policy makers have awoken to the reality that an agricultural bird in the hand is worth more that two long-promised, high-flying, hi-tech development sectors in the bush.
The worldwide rise in food prices has served to focus the minds of the doubting Thomases wonderfully. According to reports, the Government has received several proposals for investment in the production of soya as well as in sugar-cane for its bio-fuel potential.
But, as the Government ploughs ahead to expand the sector by aggressively pursuing major investments from both local and foreign corporate firms in these large scale operations, it ought to ensure that the present base of small farmers is not placed in any type of disadvantage by the shift. In fact, we believe that the Administration must insist that the new mega-farms assist in reducing rural poverty as well as contributing significantly to our economy.
At present, we must point out that the Administration, especially the energetic Minister of Education, has been most exemplary in addressing the needs of farmers.
Especially in rice, we have witnessed a flurry of activities ranging from exploring the supply of cheaper fertilizers to aggressively insisting that farmers do not keep up literally holding the bag as far as payments from millers is concerned. Most rice farmers operate on subsistence-sized farms of around five acres, and it is criminal that at the end of the crop they have to dig into their pockets to start the next crop.
In the sugar sector, the expansion of production in the Skeldon area was premised on the expectation that private farmers would supply thirty percent of the additional cane. Towards this end, the Government has extended a considerable hand in developing the new sugar lands, and it will have to be vigilant that its investment is recouped.
But the Government has been somewhat lax in not taking full advantage of its unique position in agriculture, as owner of practically the entire sugar industry. For instance, the overall annual fertilizer needs of the rice industry are known, as is the case with sugar.
But the thousands of rice farmers do not have the organisational wherewithal to purchase fertilizer in bulk and secure the concomitant savings as does GUYSUCO – because of the latter’s contacts and history. One would suppose that a subsidiary of GUYSUCO could be established to purchase its fertilizer and could also do so to supply the rice industry without scalping the latter grouping, as is presently the case with the private suppliers.
But to return to the efforts to attract large firms into agriculture, we agree that Guyana seems unable to attract the requisite capital and corporate farming is the way to go. We note the massive investment in retailing operations and real estate while opportunities in farming wither on the vine.
But the Government has to structure any new investments in the sector so that the present small farmers can benefit – if only from externalities such as knowledge of new crops and their demands, or in improving our productivity in our traditional crops, which still compares unfavourable with the major players in the world markets.
The Ministry of Agriculture will have to continue and intensify its activism as corporate farms are introduced. It will have to expose the small farmers to the modern methods of cultivation, such as maximising the efficiency of water supplies, use of quality seeds, land-levelling through conventional means, soil testing, and the optimum use of fertiliser and pesticides etc, so that the productivity of their lands would be boosted and they could extract the maximum benefits from it, as do the corporate farms from theirs.
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