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Barbados Gives Aid to Struggling
Agricultural Sector
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By
Pamela Grant, The
Times-News Online
November 13, 2001 |
BRIDGETOWN, Barbados -- The Barbados government is undertaking some bold
initiatives to help revive the ailing agriculture sector which once
dominated the economy as the major foreign exchange earner.
Up until the 1960s, agriculture had
contributed about 25 per cent to the gross domestic product (GDP) when
sugar was king, pumping millions of dollars into the economy.
Today, that figure is about five per cent
as many farmers have left the industry and changes in the global trading
environment and production systems have impacted negatively.
With these new initiatives, the government
here is attempting to make commercial agriculture a viable sector once
more.
The overall objective is to achieve a
satisfactory level of food security, maintaining the stability of rural
Barbados and forming the necessary linkages with sectors such as tourism
-- now the country's major foreign exchange earner.
The initiatives were announced by Prime
Minister and Minister of Finance, Owen Arthur, earlier this month as he
presented a Statement of Financial and Economic Policies to Parliament.
Government is offering an additional price
support of 10.55 Barbados dollars (US$5.27) per tonne for the 2000 sugar
crop; will engage in the production of high-grade, high-quality sugar and
sugar-based products and move to a single sugar factory that is expected
to reduce the industry's operating cost by Bds$8 million (US$4 million)
per year.
The other initiatives to stimulate
agriculture include: the establishment of a Bds$100,000 (US$50,000)
technical assistance fund to help develop organic farming; a grant to
farmers of Bds$500 (US$250) per hectare for idle land brought back into
cotton production (plot sizes from 0.2 to 8 hectares).
Government will also make available a grant
of 30 per cent of the cost of establishing a post harvest facility on
farms for sorting, grading and packaging agricultural produce of up to
Bds$5,000 (US$2,500) per farmer and a rebate of 30 per cent up to a
maximum of Bds$10,000 (US$5,000) per exporter on the cost of international
transport and freight for fresh produce.
In an effort to increase the consumption of
local products, government will ensure that, in the first instance, at
least 60 per cent of the requirements of the school feeding program,
institutions be assigned to local fresh and processed products, beef,
lamb, vegetables etc.
Arthur said the changed global trading
environment which is characterized by the removal of protectionist
barriers, had seriously affected the agriculture and manufacturing
sectors.
He said the effects were deeply felt over
the last two years, resulting in a sharp decline in production, growing
uncertainty, reduced investment and pressure on the viability of some
enterprises.
"The nature of challenges facing our
sector now requires that there be drastic reform in what we produce and
how we produce in agriculture in Barbados," Arthur said.
"Government, will therefore, in the
context of the reform to be carried out in the sector, provide our
agriculture sector with protection in all forms and fully up to the extent
consistent with our regional and our international trade agreements,"
he added.
There is a general view that the
government's initiatives would go a long way in injecting new life in the
agriculture sector.
What has been suggested, though, is that
the success of the initiatives will depend a lot on the farmers themselves
and how and when they are implemented.
Some questions have been raised, as well,
about whether or not the government's schemes are coming a little bit to
late.
Opposition leader David Thompson, for
example, has taken issue with the specific initiative to use more products
from local farmers.
He countered that because traditional
suppliers of foodstuff would not be able to compete at current prices due
to increased competition, the government was now turning back to local
producers.
"When farmers were complaining that
certain big-ups in the government were swamping the market with imported
produce and rendering their farms unprofitable, they were abused,"
Thompson said in his reply to Arthur's presentation.
He described as "absurd" the
government's plan to reserve 31,000 hectares of land for agricultural
purposes, saying land owners were not likely to plant sugar in an
environment where "ad hoc and open-ended planning permission (was)
being given to people to develop luxury tourism accommodation and golf
courses".
Chief Executive Officer of the Barbados
Agricultural Society (BAS), James Paul is of the view that it might take
more than incentives to bring agriculture back to a position of economic
dominance.
"I see the measures which were
introduced by the prime minister as going a long way in terms of
stimulating production in the sector. But, as to whether or not the
production stimulated would be lasting and not temporary remains to be
seen," the Business Authority quoted him as saying.
In its assessment of Arthur's policy
initiatives, the accounting firm PricewaterhouseCoopers said the measures
had the capacity to facilitate the sustainable development of key sectors
such as tourism and manufacturing.
It said the government had adopted a
workable approach to addressing the challenges confronting agriculture
sector but they required a great deal of commitment on the part of the
parties involved.
"This is a comprehensive approach to
addressing the challenges that are confronting the agricultural sector as
a result of globalization and is a bold and well-conceived course of
action," it said.
"Its success will depend on the
support and commitment of the partners involved, including investors.
However, farmers need to know what financial assistance will be provided
for 2001 and beyond," it added.
A report from the Central Bank shows that
during the first quarter of 2001, sugar production rose by an estimated
17.9 per cent during the period under review.
The production of 28,650 tonnes of sugar
was due to an early start to the sugar crop and higher sucrose content in
sugar, it stated.
On the contrary, output in the non-sugar
agriculture sector declined by 18.4 per cent in the first quarter, after
expanding by the same period last year, the result of contractions in fish
landings and chicken production.
As far as the former head of the Barbados
Agricultural Management Company Ltd (BAMC), Attlee Brathwaite is
concerned, the government needs to reassess its land use policy in order
to save the agriculture industry.
He says that too much of the agricultural
land is being re-allocated for golf courses, construction and urban
development or to an idle status producing weed and wood.
"For example, unless agriculture
begins to be seen as a profitable enterprise and effective land use
policies are put in place and implemented, this trend will continue, if
not increase," he said in addressing last weekend's conference of the
opposition Democratic Labour Party (DLP).
"At present, agriculture looks like a
dying industry, sugar production is disappearing, food crop production is
declining, livestock production is down and there is a note of panic in
current discussions on land use and land prices," he added. |
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