Agriculture Ministry to pursue contract farming

Feb 16, 2014 News

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“…it will ensure steady markets for farmers” – Ramsammy

The local agro-processing industry has been the one with the most success, and to this end, the Agriculture Ministry is looking to implement a ‘contract farming’ system.
Subject Minister, Dr. Leslie Ramsammy explained that this will see farmers being paired with agro-processors so as to facilitate them with an adequate supply of the produce needed to make their packaged goods.

The Minister told Kaieteur News during an interview that the aim of contract farming is to guarantee markets for farmers, while ensuring that agro-processors have a sufficient and steady supply of raw materials.
Dr. Ramsammy pointed out that during last year (2013) there was a significant reduction in the exportation of peppers. However, this was not because production had been low, but because most of the peppers were purchased and utilized locally.
“The local agro-processors were the ones to buy out most of the pepper on the market…most likely to make their products like perhaps pepper sauce, achar and so on,” the Minister said.
He added that this is “still a good thing” and that Guyana’s agro-processing industry has great potential to develop and expand, significantly benefiting the economy, by way of exports.
It is to this end, Ramsammy said, that the Agriculture Ministry, and by extension the Guyana Government, is looking to phase out bottom-house agro-processing.
“A major problem is that not many of the agro-processors are licenced, and to be licenced, these producers have to ensure that their facilities are on par with that is required by international buyers.”
In order to further motivate and persuade agro-processors to upgrade their working area, and become licenced, Dr. Ramsammy said also that the Guyana Shop will not be purchasing from unlicenced operators.
At present, local agro-processors are afforded the opportunity to showcase their produce during one of the monthly exhibitions held on the lawns of the Guyana Shop, which falls under the purview of the Guyana Marketing Corporation. The entity sells strictly locally produced items, and also provides the platform to extensively promote local agro-processors.
The Agriculture Minister added that in addition to promoting local produce, its many fascinating byproducts, and the makers of them, the exhibitions are held to show members of the public how much the local quality and standards of the packaging and labeling industry have improved over time. The most recent activity was a pineapple exhibition.
Meanwhile, Dr. Ramsammy acknowledged that while the quality and taste of locally-made products are on par and in some cases better than those from other countries, the not-so-advanced packaging and labeling of these are hindrances on the international market.
“People would look at the package that is more attractive, and buy that, so this is where Guyana is at a disadvantage,” Dr. Ramsammy said, stressing that “our products itself are as good as anything you will get anywhere else.”
Speaking with this publication on the sanitary conditions of bottom-house agro-processing, representative of the Inter-American Institute for Cooperation on Agriculture (IICA) Wilmot Garnett  said that IICA works with ‘Agriculture Health and Food Safety’  to ensure that the local products are “export-ready.”
Earlier this year, Dr. Maxine Parris-Aaron, Agricultural Health and Food Safety Specialist of IICA, had stressed that packaging and labeling – sometimes the major attractions for a product – remain a challenge for local agro-processors, who have to compete with similar products produced overseas that are on the local shelves.
The specialist emphasized the need for Guyanese to buy local in order to boost the agro-processing industry. She pointed out that for instance, in Jamaica, there are overseas products on the local market but Jamaicans support their own.
Dr. Parris-Aaron noted too that in addition to packaging and labeling, agro-processing facilities in Guyana’s rural areas need upgrading. She believes continuous training and providing relevant material of what is happening, regionally and internationally, to agro-processors in far-flung communities, could improve their standards and products.
Nonetheless, Wilmot Garnett reiterated that his entity remains committed to the Ministry of Agriculture and its partners in development, to continue modernization of the agriculture sector in Guyana.
Garnett said that next year will see IICA concentrating on addressing the issue of production cost with focus on the ground level.
“We will work with the farmers, being very clear and letting them know the details that they can consider so as to make a profit,” he said.
Dr. Ramsammy stressed that during this year, specific emphasis will be placed on agro-processing and developing policies, which will enable the industry to advance.

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