GOVERNMENT IN ACTION
A NAREI worker examining the sprinklers at the shaded cultivation nursery
A NAREI worker examining the sprinklers at the shaded cultivation nursery

Increased crop production, agro-processing key to development of Agriculture Sector

Georgetown, Guyana – (July 22, 2016) AGRICULTURE represents a significant portion of Guyana’s Gross Domestic Product; moreover, Guyana’s vast land space provides this country with great potential for economic growth through agriculture.With a sizeable portion of the country’s total exports consisting of agricultural products, Guyana is seen as possessing the potential to become a self-sufficient, agricultural stronghold with the ability to address, and ultimately solve, the food insecurity of the Caribbean Community.

Dr. Oudho Homenauth, CEO of NAREI, has said the hinterland region is a major focus of the Government’s agenda
Dr. Oudho Homenauth, CEO of NAREI, has said the hinterland region is a major focus of the Government’s agenda

To ensure that Guyana’s agricultural productivity is enhanced, and that farmers are given adequate support in crop diversification and other key areas of crop production, the National Agricultural Research and Extension Institute (NAREI), which is an expansion of the National Agricultural Research Institute (NARI) has, since its establishment in 1984 and its expansion in 2011, implemented research designed to produce technologies and systems required to maintain national self-sufficiency.

Chief Executive Officer of NAREI, Dr. Oudho Homenauth, explained that the institution also focuses on developing new technologies and providing support and empowerment to farming communities. Among the recent technologies that have been implemented are those surrounding agriculture diversification through the introduction of new crop types.

Dr. Homenauth has said there is a fairly high level of spice production in the hinterland regions of Guyana. However, Guyana continues to import millions of dollars’ worth of spices. The Government is concerned with scaling up production in Guyana, particularly in the hinterland regions, where land space is available, but production would have to go hand in hand with the marketing of those products locally and in the Caribbean.

In fact, the hinterland region is a major focus on the Government’s agenda, and serves as part of President Granger’s vision for tackling food insecurity.

Dr. Homenauth has stated that NAREI is currently finalising an agriculture programme for all the regions in the hinterland. It is hoped that the proposal for this programme would be finished by August this year, so allocations can be made in the 2017 budget.

And while works are being done to increase agricultural activity in the hinterland, Dr. Homenauth said, the coastal regions continue to dominate in crop production. Other areas of technology introduced in crop production around the country include shaded cultivation and hydroponics, the latter being a technique used to grow plants in water instead of soil. The technology allows the roots to absorb a balanced nutrient solution which is dissolved in water, and which ensures healthy plant development and growth.

Workers tending to plants in a nursery at NAREI's Headquarters
Workers tending to plants in a nursery at NAREI’s Headquarters

In 2015, a hydroponics facility was set up at NAREI’s headquarters in Mon Repos, East Coast Demerara, and the institution is currently involved in testing the viability of certain vegetables using that technology. Hydroponics provides for more produce in a shorter period of time, among other benefits that farmers can tap into as they strive for increased productivity.

Increased productivity also comes as a result of farmers’ ability to easily transport their produce to buyers. In this regard, access to farm-to-market roads, which aids in the reduction of spoilage and increased production, becomes imperative.

Just this month, two new market roads were commissioned at Parika, in the Essequibo Islands-West Demerara Region. At that event, Agriculture Minister Mr. Noel Holder said that among the top items on the Government’s agenda is addressing the deplorable and underdeveloped infrastructural facilities in the country with a focus on farm-to-market roads. He said that as Guyana seeks to expand its agricultural output to meet its national and regional objectives, adequate farm access roads and dams are critical in optimising agricultural development and production.

“The farmers, producers and buyers face difficulties in transporting produce, inputs, machinery, as well as accessing lands and farms. Roads are often inaccessible due to damage from heavy rains and an inability to accommodate the type and level of traffic required,” the minister said. He noted that this interrupts access to markets; trade and food supply, and thereby reduces income and employment, and affects the overall livelihood of the people who depend on agriculture.

Workers tending to plants at the nursery at the NAREI headquarters
Workers tending to plants at the nursery at the NAREI headquarters

“In essence, without projects such as this, food security would not be assured,” he said.

But access roads are just one of the problems facing farmers within the regions. On a broader scale, Dr. Homenauth said, finding adequate markets and prices for their produce remains a problem. In this regard, it is believed that value addition through agro-processing can solve not only the problem of inadequate markets for farmers, but it can also further enhance the country’s food security.

Minister of Business, Mr. Dominic Gaskin, in response to questions on the prospects of agro-processing in Guyana, said: “Guyana holds great potential for agro-industrial development, given its relative abundance of agricultural raw materials. Therefore, strengthening our agro-processing production can be an effective means of economic growth and an improved standard of living.”

To assist the farmers in this area, the Ministry of Business also collaborates with the Small Business Bureau (SBB) and the New Guyana Marketing Corporation (NGMC) in facilitating workshops for small businesses and entrepreneurs (including farmers). These workshops provide information on how small businesses and entrepreneurs can improve in the areas of agro-processing, and also work along with the Ministry of Agriculture to aid in the development of the local agro-processing sector through a tri-country initiative funded by the European Union (EU).

One other institution that strives to encourage investment in agro-processing, so that farmers could tap into its benefits, is the Guyana Office for Investment (Go-Invest). Chief Executive Officer of Go-Invest, Mr. Owen Verwey, has said that while the country is involved in some aspects of value addition, the majority of agricultural production focuses on commodity products for domestic consumption and export.

Samples of local products available in Guyana are on display at Go-Invest
Samples of local products available in Guyana are on display at Go-Invest

He said that because of the economic benefits of agro-processing, more focus should be placed on value addition of agriculture products. As such, he said, the institution is embarking on a study that would seek to assess which areas within the agriculture sector hold the most prospects with regard to agro-processing. The study involves a value chain analysis and is financed by the Inter-American Development Bank (IDB).

Additionally, Mr. Verwey said, entering into agro-processing would require farmers to operate on a much higher scale of production. This would require identifying key suppliers which can multiply almost tenfold the production that the largest producers are currently putting out. “That is not a simple task, which is why the value chain analysis will aid in identifying what is needed to attract and support them, and ensure that Guyana and its economy can benefit as much as possible,” Mr. Verwey said.

He said the value chain analysis would last for five years, but it could take just up to 18 months to assess which industries hold the most prospects for farmers to benefit in the line of agro-processing.

President David Granger’s vision for the country includes a robust economy, which itself would achieve sustainability in part through greater value-added production. In fact, his mantra as he travels across Guyana has been a call to value-added production and agro-processing. The President has made this call in areas such as Baracara and Rose Hall Town in the East Berbice Corentyne Region, the Pomeroon in the Pomeroon–Supenaam Region, and Mabaruma in the Barima-Waini Region.

A hydroponics facility was established in 2015 and set up at the NAREI headquarters at Mon Repos, East Coast Demerara
A hydroponics facility was established in 2015 and set up at the NAREI headquarters at Mon Repos, East Coast Demerara

On the occasion of World Food Day, in October last year, the President reaffirmed his government’s commitment to promoting value addition and agro-processing as part of enhancing the lives of Guyanese.

“Our Government will seek to move increasingly into value-added food production. We will seek greater investment in agro-processing, and we will take steps to stimulate cottage industries — what we call bottom house industries — thereby creating jobs; providing reliable sources of income, particularly for women and young people coming out of school,” the President said.

Meanwhile, Minister Gaskin has said that farmers have relatively low income. As a result, one of the most realistic avenues for increased revenue lies in agro-processing. For Guyana, agro-processing holds the benefit of increasing value of exports, reduction of importation of foreign substitutes, job creation and increased investment, and enhanced food security, among other benefits.

Increased production and value added production is the way forward for the development of agriculture in Guyana. This country can, and will, live up to its potential as a true bread basket of the Caribbean with this two-pronged approach and the continued hard work of farmers.

 

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