Agriculture Sector…A legacy of investment under PPP/C

From whence we came
AGRICULTURE is among the leading productive sectors in Guyana’s economy, contributing to over 30 percent of Gross Domestic Product (GDP), annually and catering for a similar percentage of employment.

altInvesting in the sector continues to be paramount to the continued development of the economy and like any other country, to ensure it remains productive, investment is crucial.
Research has shown that there were little or no market opportunities made available for farmers to tap into, access roads were in a deplorable state and poor drainage networks resulted in a loss in production. This saw farmers being reluctant to go back to the lands and by the 1990s agriculture in Guyana was an endeavour of the past.
In 1992 with the ascension of the People’s Progressive Party (PPP/C) to Government, a comprehensive programme commenced which saw a total revamp of the entire drainage network, replacing existing drainage structures where necessary, and constructing sluices and structures at strategic points to effectively drain the lands.
Billions were spent in this regard, as is evident in the many modern structures which now exist.alt

Investment opportunities
Tremendous growth in the agriculture sector attracted an increased number of investors who, because of the country’s strategic location, investor- friendly business climate and readily available lucrative markets for its produce, are now realising awesome potential and opportunities that exists.
This saw investments in modern packaging and drying facilities, storage trucks for transporting produce and the initiation of a New Guyana Marketing Corporation (GMC), and the National Agricultural Research and Extension Institute (NAREI)
In the past, traditional sectors were deemed the backbone of the economy; today this is no more, as investments by government to further expand and develop the non-traditional sectors have seen major successes achieved.

altRice cultivation
Traditionally, rice has and continues to dominate agriculture, with more farmers entering the industry. This has prompted government to invest heavily in the sector through the allocation of lands for planting, water management and subsidized chemicals to rid paddy bug.
Several investments were also made including the construction of a State of the Art $174.4M rice seed facility at Number 56 village, Berbice and several drying facilities countrywide.
Guyana also tapped into the international market, by exporting rice and paddy to several countries including Venezuela, Jamaica and Suriname.
“Guyana has never been satisfied as our goal has been to feed people…. For us Agriculture is also about generating wealth for our country and our people. It has always been known from the beginning in our history to now that we will be an exporter country.” Agriculture Minister, Dr. Leslie Ramsammy alluded to.alt
Rice continues to be an integrated, sustainable and profitable industry, and for the first half of 2012 over 210,395 tonnes of rice were produced. This figure has surpassed 2011 thus far, and by December it is expected to double production.
Of the 379,620 projected target for 2011, the GRDB recorded a target of 402,450 tonnes with 305,382 tonnes exported. More than 173,329 tonnes of rice have been exported thus far.
The rice and bean project at Moco Moco is done on a large scale utilising savannah lands and dealing specifically with legumes such as bora and black eye. This project has been successful thus far, and a new project has ready been embarked upon utilising approximately 1000 acres.

Sugar
The sugar industry, despite being posed with challenges of extreme weather patterns, industrial unrest, European Union price cut and mechanical defects at the Skeldon Sugar factory, has performed exceptionally well over the years.
altSugar estates across the country have been doing fairly well, even as government works to rectify defects left by Booker Tate. Recently, Skeldon , for the first time exceeded its 2,500 tonnes weekly target.

The sector has been able to fulfill its production targets set for each crop, despite being affected by the extreme weather patterns and is moving to attain its 34,000 tonnes targeted.

Livestock
Significant investment in the sector has seen the government supporting projects such as the Breed Enhancement programme. Since its initiation over 4000 units were distributed, while improved breeds of cattle, sheep, swine’s and goats were distributed.
To date, over 400 breeding rams and pigs each were distributed to farmers across the country through the Ministry of Agriculture.
Government is also in talks with investors and has injected US$1M for the construction of a veterinary lab, to ensure that farmers practice proper animal health practices and guidelines.alt
This year, the livestock section continues to be given prominence with the passing of bills including the Guyana Livestock Development Authority Act. This will enable farmers to benefit from improved services, plant health and research and, the consolidation of livestock development programmes.

Sluice at Retreive

Aquaculture
Commercial Aquaculture rearing is being practiced on a large scale basis, as it is a new and emerging sub-sector that has the capacity to become one of the country’s leading export earners. Farmers in Essequibo, Demerara and Berbice are now investing.
In 2010, a US$1M aquaculture diversification programme was embarked upon. Farmers also benefited from training through a $20M project, a collaborative venture between the Governments of Guyana and Brazil.
Currently, there are approximately 75 aquaculture farms countrywide. This has seen the administration waiving the duty and consumption tax on a range of aquaculture equipment, processing equipment and feed.

Diversification
Government remains committed to implementing a successful agriculture diversification strategy, as it has proven to have potential for expansion and increased contribution to the national economy. This has seen farmers benefiting from a US$22.9M Agriculture Export Diversification programme (ADP), and a US$6.9M Rural Enterprise and Agriculture Development Project (READ), to better stimulate growth in the non-traditional sectors, while at the same time enhance the country’s export capacity.
The project funded by the Inter-American Development Bank (IDB), and the Government of Guyana, has since paved the way for the construction of a germplasm laboratory, seed facilities countrywide, genetic bank to support the Guyana Livestock Development Authority (GLDA) and the visionary rice and bean project in Region Nine.

Drainage and irrigation

No country is able to develop a meaningful agriculture sector unless it has adequate drainage and irrigation, and this was the main factor why the PPP/C Government took the decision to rectify the drainage network which was abandoned in the 1980s. Through this network over the past 20 years, the integrity of canals, sluices and pump stations were restored.
At present, 42 pumps are now being operated at pertinent locations, compared to the 29 nonfunctional ones the government inherited when they took office.
“This has cost us billions of dollars, but we had to make that investment. Because of that we now have more lands under cultivation and so rice has moved from just over 40,000 acres in 1990 to now to more than 170,000 acres on an annual basis because we do two crops,” Dr. Ramsammy said.
The transformation which has occurred over the last 20 years, is evident in the many D&I infrastructure countrywide. These include;- an $875M contracts for the completion of works in the Black Bush Polder Scheme and additional D&I structures in Regions 3, 4 and 6. Over $800M has been injected for the work on the Hope Canal which is over 75 percent completed while, $324.9M was spent for the construction of a sluice at De Willem, and a pump station at Greenfield.
The National Drainage and Irrigation Authority is now fully equipped with a fleet of 57 excavators to carry out works at the various projects. Over the past five years, over $10B has been spent on D&I to restore the efficiency of structures to ensure that drainage is essential.
Apart from interventions, commitments are also being fulfilled through investments and shortly 14 new pumps and eight excavators are set to arrive from Japan.

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