Every rose has its thorn

Jun 01, 2022 Features / Columnists, Peeping Tom

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Kaieteur News – The President went to a Demerara Bank event and painted a rosy picture of the country’s agricultural prospects. He painted such a rosy picture that he even said that Guyana is planning to plant flowers to reduce imports of fresh flowers.
I wish him luck. The conditions on the coastland are not suited for the planting of the type of flowers which are imported by local florists.
But certainly the upper regions of the country, with moister air and colder temperatures are ideal. But with the high cost of air freighting produce from the interior, it will be a challenge for those interested in the production of fresh flowers.
The situation is therefore not as blushed as the President may feel. Others have tried and failed.
The same thing which is likely to happen when it comes to imported fruits. The President spoke about plans to plant berries and grapes, the former on mined-out sandpits.
I have no doubt that it is possible for someone to cultivate a few vines of grapes and berries but I would be surprised if Guyana can commercially cultivate them.
If that were possible, you can bet our former British colonial masters would have already done so. Since the 19^th century studies have established the difficulties of growing temperate crops in tropical conditions.
But the President would not have been the first to believe that certain foreign crops can be grown commercially locally. Even the late William Demas, the former President of the Caribbean Development Bank, had fallen victim to the belief that it was possible for the Caribbean to commercially grow strawberries, grapes and even English potatoes.
It never happened. But at least Demas had the foresight to recognise that the Caribbean needs to look beyond import substitution to import replacement – that is encouraging greater production and consumption of indigenous fruits.
The President made a point about farmers forming consortia – coming together of individuals or companies into one entity. But if the President or his advisors truly understood the nature of land ownership in Guyana, he would appreciate why the conditions do not exist for this to become a trend.
Too many of our farmers cultivate small acreages and too many of the large farmers have too much land. The spatial distribution of land does not lend itself to the development of consortia. Most small rice farmers, for example, exists crop-to-crop. Some are successful and others are not. It would amount to a huge risk for them to join with other farmers in a partnership.
In plugging for the establishment of farming consortia, the President pointed to the poultry sector where a group of farmers have come together to experiment with the planting of soya which is used in feedstock. The point that the President was implicitly making was that without these local poultry producers coming together, they would not have been able to embark on such a venture.
He is correct. But that is not the whole story. He did not mention that the government’s indirect support for the project amounts to G$887M in infrastructure development – roads and storage and drying facilities.
The investment is justified in the cause of self-sufficiency of the poultry sector. Guyana is aiming to produce all its poultry feedstock needs as well as hatching eggs.
The Brazilians are waiting in the wings to capitalise. They are likely to produce the bulk of Guyana’s corn and soya needs since in northern Brazil there is usually only one crop per year, while in the Rupununi there can be two crops.
Presently, it is a big gamble. Farmers stand a better chance of winning at the slot machines in our local casinos than of being successful in the fields.
The agricultural sector is in a deep crisis. Sugar is in deep distress. Rice production fell last year by more than 100,000 tonnes.  Rice farmers are taking a big gamble every time they go to crop. If it is not floods, it is paddy bugs.
The rosy picture painted by the President about agriculture’s future in Guyana is not going to excite local farmers. They live the difficulties in the sector every day. The President is daydreaming if he believes that agriculture has a bright future.
But if the President believes that, then he should have used the opportunity of his address at the Demerara Bank event to question why capital is so expensive in Guyana. The President should have a review done of the cost of capital in Guyana. But that will never happen because the banking sector has powerful friends in the government.
It is ironic that the President should go to a banking event and announce that those farmers interested in transitioning to aquaculture would have the initial capital investment funded by the government. Is this not crowding out the banking sector from a business opportunity, the same banking sector which the President says must be responsive and responsible to national development?
(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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