«EuropeAid/127806/D/SER/GY FINAL REPORT EXECUTIVE SUMMARY/WORKING DOCUMENT February 2011 UST 2010 A contract being carried out under the Caribbean ...»
DEVELOPING AN ACTION PLAN FOR
PROMOTION OF A REGIONAL
AGRIBUSINESS SECTOR AND TARGETED
EXECUTIVE SUMMARY/WORKING DOCUMENT
February 2011 UST 2010 A contract being carried out under the Caribbean Integration Support Programme (CISP) funded under the 9th EDF Page | 1
TABLE OF CONTENTSTABLE OF CONTENTS
CURRENCY CONVERSION – USD
2. FUNDAMENTAL PRINCIPLES
3. STRATEGIC GOAL AND OBJECTIVES
4. GENERAL FINDINGS AND RECOMMENDATIONS
4.3 OPTIONS AND OPPORTUNITIES IN THE EXISTING TRADE AGREEMENTS: RELEVANTTRADE AGREEMENTS‘ IMPACT ON INTRA AND EXTRA-REGIONAL TRADE
4.4 COUNTRY SUMMARIES: STATISTICAL REVIEW BY CARICOM MEMBER STATES........ 14 COMMODITY CHAIN ASSESSMENTS – COMMODITY ENTERPRISE VALUE CHAINS.......... 39 4.5 4.6 VALUE CHAIN MAPPING, VALUE CHAIN ANALYSIS AND COMPETITIVENESS
5. KEY RECOMMENDATIONS
SECTION 1. INTRODUCTION
1.1 PURPOSE AND EXPECTED OUTCOMES
1.3 SCOPE WORK, TERMS OF REFERENCE AND METHODOLOGY
1.4. CRITERIA FOR ENTERPRISE SELECTION
SECTION 2. STRATEGIC FRAMEWORK
INTRODUCTION – JAGDEO INITIATIVE AND THE AGRIBUSINESS FRAMEWORK.............. 64 2.1 2.2 VISION, MISSION, MANDATES
2.3 INSTITUTIONAL ARRANGEMENTS
2.4 TECHNICAL ISSUES AND TECHNOLOGY
ENABLING ENVIRONMENT – INVESTMENTS, LEGISLATION, AND REGULATIONS............ 74 2.5 COMMODITIES – PRIORITIES AND TARGETS
2.6 SECTION 3 STRATEGIC ANALYSIS
3.1. ENABLING ENVIRONMENT FOR STRATEGY IMPLEMENTATION
3.2: TRADE, AGRIBUSINESS SECTOR DATA AND TRADE INFORMATION PLATFORM............ 176
This report would have not been possible without the efforts of the members of the team.
Thanks to Nigel Durrant, Sergio Garcia and the team at the CARICOM Secretariat for providing the necessary coordination and support during this exercise. Thanks to the representatives of all the Ministries of Agriculture without whose cooperation and assistance, it would not have been possible to meet and discuss the issues faced by the stakeholders in the agriculture sector. Thanks also to the representatives of CARDI, IICA, and FAO for their assistance and guidance.
A special word of praise to the national coordinators for arranging the schedules of the team and ensuring that the team was able to collect all relevant data and documents, and without whom this exercise would not have been completed. These special individuals and their counterparts are as follows: Sereno Benjamin and Joel Matthew – Antigua and Barbuda; Andrew Skeete – Barbados, Carlos Itza and Manuel Matus – Belize; Richard Alliport-Dominica, Michael Church – Grenada, Nizan Hassan and Johan David – Guyana;
Allan Lecorps – Haiti; Michael Price, Tracey-Ann Wright, Zulika Budhan – Jamaica; Phillip Browne and Calvin Edwards – St. Kitts and Nevis; Vincent La Corbimere, Ms. Anthia Joshua, – St. Lucia; Mr. Claude Browne, Melissa O‘Garro – Montserrat; S. Parbhoe Rossanna, Gerrt Breinburg – Suriname, Yvonne Davidson and Beena Persaud – Trinidad and Tobago.
We are extremely grateful to all the stakeholders who participated in the focus group meetings and interviews: these individuals are shown in Appendix 1 of the report.
The CARICOM Secretariat embarked on conducting a study targeted towards “Developing an action plan for promotion of a regional agribusiness sector and targeted commodity enterprises – CARICOM,” this is part of the larger Caribbean Integrated Support Programme (CISP) for the promotion of a regional agribusiness sector and targeted commodity enterprises. The project aims at developing a strategic framework for regional agribusiness development, with the intention to promote training and dialogue among national and regional policy makers and relevant private sector stakeholders to advance the agribusiness/commodity development agenda.
The overall objectives of the project are to:
develop a strategic framework for regional agribusiness development, which includes action plans for targeted commodities promote dialogue among national and regional policy makers and relevant private sector stakeholders to advance the agribusiness/commodity development agenda.
The action plans will be used for the promotion and development of two areas: (i) a regional agribusiness sector and (ii) targeted commodity enterprises. The expected
enhanced policy and technical advice and transition mechanisms provided to decision makers development of a framework for facilitated implementation of new arrangements between public and private sectors for developing a viable agribusiness sector increased awareness among producers, agro-processors, exporters of opportunities within domestic and regional markets, particularly for targeted commodities increased agribusiness investment proposals developed and funded, particularly for proposals that are regional and subregional in scope increased coordinated pro-agribusiness policy measures developed/ strengthened and implemented.
The action-oriented recommendations are provided solutions based on the constraints
and opportunities identified. These recommended solutions will address the following:
1. upgrading and strengthening commodity value chains to ensure competitiveness
2. integration of viable small and medium enterprises into these value chains; as well as beneficial participation of the poor (as consumers, farmers, agro-processors, and employers) in the process
3. risk management instruments
4. developing/strengthening regional support institutions/services to deal with issues such as food safety and food product and process standards, marketing, finance, and transport.
In order to arrive at the recommended solutions there are some fundamental principles that form the foundation to guide the strategies given the overall strategic goal, vision,
mission and strategic objectives. These are as follows:
Principle I: As shown in Table 3.2.1.01. (Section 3.2.) it is estimated that the region has over 1.3m farmers, with Haiti accounting for over onem farmers distributed in four major categories, marginal, small, medium and large farmers, operating on 1.98m ha (4.95m acres) of land engaged in over 170 commodity enterprises.
Principle 2: There are two forms of agriculture practised in the region: industrial agriculture geared towards mainly exports, and agrarian agriculture and marine fisheries with enterprises that have export potential but tend towards consumption. It is within this group that there is strong potential for the region given the four strategic objectives.
Principle 3: The value chain system of trading commodities is broker driven, not producer or consumer driven.
Principle 4: The production and marketing data and information platform requires substantial investments to facilitate the collection, storage and retrieval to be used in making meaningful decisions.
3. Strategic goal and objectives Given these five principles, the proposed strategic goal is that within five years the regions‘ economies will increase the contribution of the agribusiness subsector to the regions‘ overall GDP at an average rate of 3–6% annually by using an enterprise development strategic approach, through the adoption of a balance growth paradigm and the application of producer-driven value chain frameworks to systematically produce and market targeted commodities competitively (see Section 4).
Four strategic objectives are identified to achieve the strategic goal and the development
of the agribusiness sector. These are as follows:
Strategic policy option/objective # 1: Identification of commodity enterprises to enhance food security Strategic policy option/objective # 2: Identification of commodity enterprises for competitive import replacement Strategic policy option/objective #3: Identification of commodity enterprises to increase export earnings and foreign exchange Strategic policy option/objective # 4: Identification of commodity enterprises (particularly indigenous species) for value-added products, tourism market and agrisector stability through increased employment.
Developing an Action Plan for Promotion of a Regional Agribusiness Sector and Targeted Commodity Enterprises – EuropeAid/1267806/D/SER/GY – Final Report – February 2011 Page: 2 4. General findings and recommendations The findings are separated into two areas gaps/challenges and opportunities, the trade agreements and commerce enabling environment, current production and trade flows by country, the foundation for the selection of commodity enterprises and value chain analysis. The recommendation follows highlighting the opportunities on regional and country bases.
The following outline the key findings and recommendations:
4.1 Gaps/challenges Weak enabling environment infrastructure with intractable administrative guidelines and gaunt civil service support General lack of infrastructure to facilitate agricultural development e.g. poor drainage and irrigation – in some cases this is non-existent – and a lack of proper farm roads Poor postharvest capability including lack of refrigerated trucks, and poor packing houses, where they are available, leading to a high level of wastage and spoilage, coupled with periods of glut/shortage Limited extension service capability resulting in limited and poor data collection and limited servicing of farms Need for the development of a comprehensive marketing system to assist stakeholders to have an indication of product availability, prices etc.
Lack of intra/extra-regional transportation capability thus limiting the development of both intra and extra export trade Low level of technology both in agricultural cultivation and agro-processing High proportion of small-scale farmers cultivating a wide range of produce and doing so at a low level of productivity Shortage of agricultural labour either real or contrived Limited information on land availability and land use capability Diversion of agricultural land into housing and other construction Lack of a comprehensive policy to encourage youth into agriculture and agribusiness as a replacement for the existing aging farmers High cost of finance for investment in agriculture and agribusiness as well as limited availability of financial resources for both areas Limited research and development in agriculture and processing. A disconnect exists between research and the farming community as there are claims that information is not passed down to farmers Supply and cost limitations affecting the development of the processing subsector Limited and/or negligible agro-processing throughout the region but more so in the smaller territories, where the majority are engaged in the production of condiments, jams and jellies Disconnect between farmers and processors as there is competition between supply for the fresh produce trade and the processing trade __________________________________________________________________________________
Developing an Action Plan for Promotion of a Regional Agribusiness Sector and Targeted Commodity Enterprises – EuropeAid/1267806/D/SER/GY – Final Report – February 2011 Page: 3 Limited levels of certification both in farming and processing impacting negatively on the ability to get market share in the high end local market and tourist trade as well as the overseas export trade, HACCP, GAP, 1 etc.
Limited product development capabilities in agro-processing as former laboratories have been closed or operate at low levels High cost of imported inputs-packaging materials and where available of questionable quality resulting in poor product presentation Need for improved marketing exposure and representation-limited exposure in international marketing Limited capability to supply tourism sector: irregular supply, low grades and standards, contracts not fulfilled and a general lack of business skills. Farmers are to all intents and purposes not marketers Gap in private sector involvement-need for emphasis on institution strengthening of existing associations both in farmer groups and the wider national organisations Trade agreements and policies are skewed towards donor-driven activities solving issues that are external to region and not the core of the regions‘ agribusiness sector With respect to value chain assessment the major difficulty in this process lies in the fact that we are dealing with a sector where the major proportion of the players are small-scale. The other problem is the lack of reliable and up to date information on cost of production and other data at the various value gain points of the chain Present policy favours primary production with attention given to the small-scale farmers, who are in the majority, so as to achieve the expansion of agriculture.
4.2 Opportunities A number of possibilities exist both in the area of import replacement and substitution and trade expansion regionally and exports Greater use of root crops as a replacement for imported white potatoes. Increased production and better postharvest capability to reduce imports of onions.