Low-cost Venezuela fertilizer to benefit farmers from next week

Nov 20, 2014 News

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– farmers sales top $50B mark this year

The MV Oslo left Venezuela on Tuesday with 7,000 tons (140,000 bags) of Urea

fertilizer for farmers in Guyana.
The fertilizer will be available to farmers by Monday, the Ministry of Agriculture announced.
According to the Ministry, the Guyana Rice Development Board and the Guyana Rice Producers Association have been directed to ensure that farmers have access to the fertilizer at a cost no more than $5,000.
The arrival of the 7,000 tons of urea from Venezuela is another component of the PetroCaribe arrangement, but Guyana is paying cash from advances being made through the Government of Guyana (GOG).
“The prices being paid by the GOG is the best available price on the international market at this time.  The GOG wanted to ensure the availability of urea at this price at this time, because the price being charged by the private sector has again been creeping up and the GOG wanted to ensure that fertilizer price remains stable.”
According to the ministry, initially shipping was to have taken place earlier this year, but due to difficulties not under the control of the local authorities, it was not possible.
“We have made new arrangements with the manufacturer in Venezuela and hopefully shipment will be more stable. The arrangement for procurement of fertilizer on behalf of farmers is a partnership between the Ministry of Agriculture, the GRDB and the RPA. We are grateful for the tremendous support we have received from the RPA,” the Ministry said.
Some of the fertilizer will be available to cash crop farmers, but most of it will be utilized by rice farmers around the country.
The Ministry noted that during the second crop of 2013, the Government offered fertilizer at $5,000 per bag at a time when the price had risen to between $7,000 and $8,000 from private suppliers.
“Since then the price stabilized at about $5,200 in the private sector, but has crept up in recent months. In the first crop of 2014, the price had risen closer to $6,000 per bag, but in a partnership with the RPA, the GOG was able to offer farmers urea to meet some of their needs at $5,200 per bag in a subsidized program.”
Currently, farmers have prepared almost 90% of available rice land for the first crop in 2015.
According to initial figures, around 90,000 hectares will be under cultivation for the first crop. With almost 97% of the 2014 harvesting completed, Guyana’s rice production on Tuesday stood at 627,463 tonnes of rice.
According to the Ministry, with the completion of the harvesting in a few weeks time, it is expected that the country will surpass 2013 production by almost 100,000 tonnes.
Last year, Guyana also exceeded the 2012 production by more than 100,000 tonnes.
Export has grown significantly. In 2014, so far, Guyana has exported 423,900 tonnes and it has contracts for 2014 delivery of 90,176 tons.
“This means that Guyana would exceed 500,000 tonnes for 2014, a milestone once considered utopian for our country. Note that export in 2013 was 395,000 tonnes. The export for 2014 will exceed this by greater than 100,000 tonnes.”
Newer markets have been added. Panama has become an important new market. Haiti, a market in which Guyana has been on and off is growing at this time. Guatemala, Belize, Nicaragua and other destinations have been added.
However, the Ministry noted that one challenge remains an important constraint.
“The industry cash flow of almost $50B has proven very difficult for rice millers. The consequence is payment to rice farmers continue to be a major barrier in the industry. The Government of Guyana has ensured we support the process and we have made advances to allow some ease of the problem. The Government is working with the bankers association and millers to increase their credit available to them; this is in an effort to ensure a more timely payment to farmers.”
In a meeting with bankers, the Minister of Agriculture, Dr. Leslie Ramsammy reportedly urged them to provide even more support to allow more timely payment to farmers.
“The first crop of 2014 saw payments made to farmers of about $25B. Even though there were a significant delay in payment, almost all payment have been made except for about $200M, more than half of which the GOG has stepped in to pay off.”
In the second crop, almost $24B of sales was made by farmers and millers have so far paid about $17B.
“We expect with advance payments being made to millers for rice to be exported for the rest of 2014 that a major dent will be made in reducing the remaining $7B. Part of this payment will be supported by bank loans.”
In the meanwhile, the Ministry said, the Moco Moco rice farm, in Region Nine, has begun to produce rice that are available for consumers, and is providing livelihood for Moco Moco families.
“At Sante Fe also almost 800 acres of land are under cultivation, as Sante Fe begins its 4th rice crop. In 2014, Sante Fe exported over 8,000 tons of cargo rice to Brazil. It is expected that Sante Fe will reach a target of over 20,000 tons in 2015.”
Already Sante Fe has become a major source of employment and outside of the GOG, Sante Fe is now the main employer in Region 9.

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