–$50B injected into agriculture sector to fuel transformation

DURING its first one year in office, the People’s Progressive Party/Civic (PPP/C) government has invested some $50 billion to boost the agriculture sector.
According to a broadcast message issued on Thursday, funds have been expended on various areas within the agriculture sector, including drainage and irrigation, the production of new crops, the distribution of supplies, the rebuilding of the sugar industry, as well as the construction of infrastructure needed to improve the lives of farmers throughout the country.
More specifically, the message said that since assuming office in August 2020, the PPP/C government has invested some $10.5 billion in restructuring and rebuilding the Guyana Sugar Corporation (GuySuCo).

In doing so, the administration has essentially returned hope to thousands of sugar workers who lost their jobs due to the abrupt closure of five sugar estates by the former A Partnership for National Unity + Alliance for Change (APNU+AFC) government. Additionally, a substantial amount of funds was directed towards the improvement of drainage and irrigation throughout the length and breadth of Guyana. These investments were substantially heightened within the last three months, as a result of the unprecedented floods which began in mid-May, and continue to disrupt lives and livelihoods nationwide. The government has also invested heavily in providing subsidised seeds and plant materials to hundreds of farmers.
In relation to agriculture infrastructure, the Ministry of Agriculture, under the leadership of Zulfikar Mustapha, has plugged $327 million into kick-starting the construction of an asphaltic concrete road at Onverwagt, in Region Six (East Berbice- Corentyne). Similarly, a number of roads in various agriculture communities have been rehabilitated to push the government’s farm-to-market initiative, which seeks to make it easier for farmers to market their produce. Added to that, the PPP/C administration has, within the past year, allocated some $500 million towards the large-scale development of the corn and soya bean industry.

ENHANCING INFRASTRUCTURE
Minister Mustapha had explained that most of these monies would be spent on enhancing the necessary infrastructure in the intermediate savannahs, so that the private sector would be able to invest in the production of the corn and soya bean.
“If we can produce the amount of corn and soya bean required to become self-sufficient in proteins for our poultry industry, those funds can be used to further develop the sector. As a government, we are also working to reduce Guyana’s food-import bill and food-import dependency,” Minister Mustapha indicated.
Guyana’s national feed consumption for the poultry industry is 113,000 tonnes annually, with ‘broilers’ consuming approximately 100,000 tonnes of feed, and ‘layers’ consuming approximately 13,000 tonnes of feed annually. This feed comprises 60 per cent grain (corn and rice), which is equivalent to approximately 68,000 tonnes, and 30 per cent soya bean meal, which is equivalent to approximately 34,000 tonnes per year.

With the investment, the government has projected a massive reduction in Guyana’s dependence on the importation of feed material.
The trial project encompasses the cultivation of approximately 250 acres of corn and soya bean.
It was reported earlier in the year that six local companies and a regional firm have joined together to undertake a massive project that could see Guyana on the path to becoming self-sufficient in corn and soya bean over the next few years.
The owners of the Guyana Stockfeed Ltd., Royal Chicken, Edun Farms, SBM Wood, Dubulay Ranch, and Bounty Farm Ltd., along with the Brazilian-owned N F Agriculture, have partnered to produce soya bean and corn for both the local and regional markets.
Additionally, the Agriculture Ministry has also been placing much attention on the development of the poultry sector. As at May 2021, the government’s investment in poultry had topped US$67M ($14.4 billion).

CONDUCIVE FOR INVESTMENT
Traditionally, the demand for output from the poultry industry has always been high, but the zero-rating of this commodity and other adjustments since August have created the conditions for wider investments, and more lucrative results. It was announced late last year that there will be no Value Added Tax (VAT) on fertilisers, agro-chemicals, pesticides and key inputs in the poultry sector, including poultry feed, building materials, and packaging. The government also gave the poultry industry zero-rated VAT status.
Since those adjustments, there has been a stark increase in investments in this industry, with about 500 new farmers getting into poultry farming between August and December 2020 alone.
This increased interest in the industry augurs well for Guyana, according to Minister Mustapha. He said that this will supplement the growth stemming from the country’s booming oil-and-gas sector. Minister Mustapha had said: “As investors begin to show interest, we have to make lands available; we have to make the necessary infrastructural adjustments, because we are building partnerships.

This is why we are currently working to develop the second phase of the Mahaica Mahaicony Abary Agriculture Development Authority (MMA-ADA) Scheme. This is the largest agriculture scheme in the country and Region Five is the largest in terms of production.
“This is in cash crops, traditional crops like rice and sugar, and cattle. In this year’s budget, we’ve set aside $100 million to start works in that scheme. This will see hundreds, or even thousands of acres of land being opened up for agriculture purposes. We will also be building a farm-to-market all-weather road from No. 58 Village, Corentyne to the Canje Creek area.”
Aside from poultry, some US$3.3 million was invested in beef production, and US$670,000 in small ruminants, predominantly sheep and goats.
As it is, the livestock sub-sector contributes approximately 13.6 per cent of the agricultural Gross Domestic Product (GDP), and 2.8 per cent of the total GDP. Livestock is commonly defined as domesticated animals raised in an agricultural setting to produce labour and commodities such as meat, eggs, and milk among other things.

Key achievements and projections:
* $50 billion spent to boost the agriculture sector
* $10.5 billion spent on restructuring and rebuilding the Guyana Sugar Corporation (GuySuCo)
* Provision of subsidised seeds and plant materials to hundreds of farmers
* $327 million allocated for construction of an asphaltic concrete road at Onverwagt
* Investment in poultry topped US$67M ($14.4 billion) by May