VALUE added production in agriculture has become an indispensable component in this sector and is continuously increasing its share in agricultural output throughout the world.
And this is a logical development considering that agricultural products are subject to continuous fluctuations of gluts and shortages due to climatic conditions, natural disasters and supply and demand. In addition, in a high paced global lifestyle, everyone is increasingly looking for ready to use products or those that need little preparation before use.
So, globally there is an increasing demand for value added products.
David P. Anderson and Charles R. Hall in their paper ‘Agriculture Products’ point out:
“Value-added agriculture generates several billion dollars in economic impact for the state of Texas each year. In fact, the economic impact of adding value beyond the farm gate is usually several times the value of agricultural production at the farm gate alone.
“Agricultural producers receive a much smaller portion of the consumer’s dollar than do food processors, especially those who produce brand name items (e.g., Sunkist, Del Monte). Capturing those additional dollars or adding value to farm or ranch products is a goal of many producers. Even for ‘commodity’ products, such as beef, the farm-to-retail price spread indicates that those further up the supply chain earn much more than producers at the ranch or farm level.”
In this regard, the current Guyana Government, since its assumption to office, has moved steadily to implement value added production as part of its agriculture diversification strategy to expand the sector and bring greater returns to the national economy as well as to the stakeholders.
In recent years, several local companies have been moving in this direction, producing fruit juices, cereals, nut butter and other items.
And most recently, another company based at the Canal Polder No. 1, on the West Bank Demerara, came on board and will be producing a variety of local juices.
The location of the factory is ideal because that community historically is agriculture-based and is more specifically a major producer of fruits.
This is the type of investment that the agriculture sector needs and it will certainly boost value added production.
“We need more investors like Mr. Abdul Aziz. It’s our country and we have to truly realize its potential. The time has come for every Guyanese to recognize that there are tremendous opportunities here. Let us have more manufacturers like Mr. Aziz and provide quality products which will boost our economy”, Agriculture Minister Robert Persaud said at the launching of the project.
The minister also correctly pointed out that the enterprise will have a significant impact not only on the community, but also on the country, as a vast number of farmers will benefit. He said the establishment will now allow farmers to make full use of their produce.
The minister noted too that the investment fits into the government’s vision of transforming Guyana and the government fully supports such undertakings.
Perhaps, to encourage similar investments, the Agriculture Ministry could examine the possibility of implementing an incentive package for potential investors in this area because with the country’s agricultural capacity, value added production has the distinct possibility of becoming a huge sub-sector within agriculture.
An important aspect of this investment, too, is that it is yet another nail in the coffin of the local cynics because it is a further demonstration of investor-confidence in the economy and the future development and prosperity of Guyana.