Minister Mustapha unveils emerging opportunities for agriculture at GMSA’s Business Luncheon

Sep 29, 2021 News

Kaieteur News – The Guyana Manufacturing and Services Association (GMSA) on Friday, September 24, 2021, had its first Business Luncheon this year with approximately 70 participants which included the GMSA membership and other specially invited guests.

Agriculture Minister, Zulfikar Mustapha

In anticipation of the imminent observance of Agriculture Month held annually in October, guest of honour, Minister of Agriculture (MoA), Zulfikar Mustapha M.P. gave the keynote address. The Minister was accompanied by his esteemed MoA delegation which included Mr. Mandanlall Ramraj, Director General, at the MOA; Ms. Delma Nedd, Permanent Secretary at the MOA; Mr. Aditya Persaud, Senior Compliance Officer at the Ministry; Mr. George Jervis, the Ministry’s Chief Technical Officer; and Dr. Richard Blair, Advisor attached to the CARICOM Agri-Food System at the Ministry.

President of GMSA, Mr. Rafeek Khan, in his opening remarks lauded the ambitious foresight of Guyana becoming the breadbasket of the Caribbean. However, he posed a challenge to all stakeholders to start this initiative by first becoming a self-sufficient state. Mr. Khan stated, “Guyana has been an important supplier of fresh farm produce and processed farm products to the Caribbean. While we have the potential to be the breadbasket of the Caribbean, I would like to challenge our dear country of Guyana to realize this ambitious desire locally first”.
He indicated that in previous years, imports of agricultural products far exceeded that of exports, and there needs to be a strategy to reverse this continuous trend. “For this to happen, we need more export-oriented domestic production and manufacturing of agro products,” stated Mr. Khan.

The GMSA President urged all and sundry to collectively pay attention to household food security and nutrition by putting measures in place to mitigate adverse effects of seasonal food production and price volatilities. He also encouraged those present to get involved in home-gardening, as this is an integral part of local food systems, and the agricultural landscape of developing countries, such as Guyana.

During the delivery of his keynote address, Minister Mustapha was keen to note that the Government of Guyana and the Ministry of Agriculture recognize that emerging opportunities in agriculture for the private sector in Guyana’s oil and gas economy is immensely important. The Minister said, “Firstly, agriculture and manufacturing will prove to be critical in counteracting any adverse effects associated with the exploitation and capitalization of natural resources. Secondly, there is a projection of growth in national income, as the new oil and gas sector will serve to unlock opportunities in traditional sectors, principally agriculture and manufacturing…”

The Minister emphasized that Guyana is experiencing an influx of expatriates to serve the oil and gas and auxiliary sectors which inevitably increases the demand for high quality processed foods with greater domestic value-added. This influx also ultimately implies a large and potentially explosive future growth in the downstream components of the food value chain particularly farming, processing, wholesaling, retailing and logistics.

In this regard, the Minister stated that the Government is committed to directing substantial resources towards the alleviation of chronic under investment in public goods. The programmes initiated include adequate stable power and water supply, credible quality and safety standards with efficient testing and enforcement to enhance agriculture health and food safety and traceability services, all of which will provide an entry point for the demanding export markets as well as high-end local markets.

Alluding to the importance of the MoA partnering with the private sector, Minister Mustapha said, his Ministry has facilitated and created an environment which supports investment opportunities and recovery efforts in priority areas such as agro-processing, coconut, corn and soya bean, niche vegetables, beef, dairy, poultry and aquaculture development. He furthered shared with attendees, that the Government’s proactive role in the development of the local processing sector through a programme that aims to improve the quality of existing agro-processing products, develop incubation centers in strategic locations. With the injection of GY$262.0M, the Ministry will be establishing certified processing facilities in Regions 1, 2, 3, 4, 5, 6, 9 and 10, which will be utilized for commercial production and product development to assist small and medium agro- processors.

He explained the integral role of the Guyana Marketing Corporation (GMC) in supporting local content, and added that the GMC will be focusing on subsidizing raw materials for agro-processors, to aid in reducing their production costs. The Minister stated, that GMC has some 2,100 locally produced items that are also available on supermarket shelves. He called on the private sector to buy local and reduce the imports of similar products and commodities that are produced locally.

Livestock was brought to the fore of the presentation as the Minister expressed his concern over dairy imports, since dairy as a percentage of total value of food imports, has increased from 4.3% to 8.7% during the periods 2018 and 2019, with an average import bill being US$27M. He was pleased to note, that recent investment in the establishment of dairy processing facilities by Demerara Distillers Limited (DDL) and Amaya Milk Company, will address the large dairy import bill and gives a clear indication of foreign interest in boosting Guyana’s economy. Further to this, Minister Mustapha mentioned some of the Government’s incentives for investment in the livestock sector, including VAT-free concession and waivers on Import Duty for machinery, equipment tools and supplies for agro-processing, technical and extension support by the Guyana Livestock Development Authority (GLDA), concession on large scale livestock farming, zoning for livestock and crop farmers, and tax concession on investment in agro-processing facilities.

Another investment for livestock includes the establishment of abattoirs that meet international Hazard Analysis and Critical Control Points (HACCP) standards. This initiative will open new markets and will see the construction of a cattle abattoir in Region Five, and a swine abattoir in Region Four. The GLDA is also in the process of introducing its Livestock Information System to improve the availability, reliability and accuracy of livestock data for decision making and reporting, and enhance animal traceability and surveillance capacity.

Minister Zulfikar reiterated that the agriculture sector remains integral for future development of the nation. As such, he assured that oil and gas resources will be used to develop Guyana’s food systems and create an environment where the private sector can flourish. One of the main concerns is the cost of energy, and has remained the most difficult hurdle to overcome for competitiveness in agro-processing and manufacturing sectors. With the gas to shore project expected by 2024, the Minister affirmed that the project will not only benefit the agriculture sector immensely, as the cost of energy can reduce by as much as 50%, but also allow the country to conserve on foreign exchange which is lost through the importation of fuel.

In closing, the Minister thanked GMSA for the opportunity to engage the Membership and all stakeholders, as he sought to put into perspective the absolute importance of both the agriculture and manufacturing/processing sectors, and the key roles they play in an emerging oil and gas economy.