Clarke
The following are excerpts from the presentation by Minister of Agriculture Roger Clarke in the 2003 Budget Debate.
THE NEGATIVE change in the value of the GDP was reflected in the Planning Institute of Jamaica's (PIOJ) agricultural production index, which declined by 8.3 per cent. Output for domestic crops declined by 11.3 per cent and export crops went down by 5.8 per cent. Increases were recorded in output for livestock (up 0.6 per cent) and fishing (up 14.3 per cent).
EARNINGS FROM TRADITIONAL EXPORTS
Turning now to earnings from the traditional sector for 2002, these were obviously impacted by the reduction of output in the sub-sector. Consequently, Mr. Speaker, earnings for the year, including sugar, were US$131.6 million compared with US$137.3 million in 2001.
EARNINGS FROM NON-TRADITIONAL EXPORTS
In relation to non-traditional exports Mr. Speaker, exports declined by 6.0 per cent to US$63.7 million for the first nine months of 2002, compared to the same period in 2001. (End of year figures not available). Notwithstanding this, increases of 20.2 per cent and 5.8 per cent respectively were recorded for papayas and yams.
FOOD PROCESSING
The sector must become capable of producing and substituting much of the raw material required for food processing. My Ministry is fully aware of the necessity to add value, Mr. Speaker, and that is why we are placing such importance on orchard crop development, not only for crops like ackee and avocado, but also for a range of tropical fruits, which can provide the base for a viable food processing industry.
I am, therefore, pleased to say that in this regard we are at a very advanced stage of discussions with the Food and Agriculture Organisation (FAO) in relation to a technical co-operation project, which will not only assist in the procurement of high quality tropical germplasm, but also select sub-tropical germplasm, which is suitable for establishment in the higher altitudes of Jamaica.
Another market which still has significant untapped potential Mr. Speaker, is that of the tourism and food industry. In this regard it is important to note that in 2001, the total value of locally produced food used in the tourism industries was approximately J$2.3 billion. Of this, roughly $695.0 million was spent on fresh fruits, vegetables, tubers and condiments; while the remainder was used to purchase meats and processed foods such as sausages, yams, jellies, juices and sauces.
THE BANANA INDUSTRY
For the year 2002 Jamaica exported approximately 40,000 tonnes of bananas to the United Kingdom at a value of US$25.5 million. This compares with an export volume of 43,000 tonnes valued at US$26.5 million the previous year - a decline of 7.3 per cent.
It should be noted Mr. Speaker that while the export segment of the industry continues to adjust to lower prices and to meet the requirement of increased quality there has been a significant shift to supplying the domestic market at very competitive prices. In this regard, a recent survey indicated that domestic consumption has increased from 60,000 tonnes to 92,000 tonnes. There is also a growing processing industry for which there is significant unfilled demand.
EUROPEAN UNION
Mr. Speaker, the European Union has been providing substantial support to the agricultural sector in general and the banana industry in particular. To date, Jamaica has received over 21.3 million Euro from the E.U. through the European Union Banana Support Programme (EUBSP). Within the framework of the current EUBSP, the Government has prepared a banana country strategy for the ten-year period over which the assistance will be provided. The objective of this strategy Mr. Speaker, is to develop a more efficient banana industry which is able to compete in a liberalised market on a sustainable basis, whilst at the same time, safeguarding foreign exchange earnings, rural income and employment.
It is intended Mr. Speaker that 16,000 to 20,000 rural farm families will benefit both directly and indirectly from the E.U. banana support programme by 2009.
COFFEE
The overall volume of cherry coffee delivered to the processing plants during the 2001/02 crop year increased by 20.8 per cent to 16,202 tonnes compared with the previous year's delivery. However, whilst the quantity of Blue Mountain cherry coffee increased by 53.2 per cents to 13,025 tonnes, that of non-Blue Mountain, declined by 35.2 per cent to 3177 tonnes. The industry was severely impacted by the flood rains and experienced a loss of 6,272 tonnes of coffee during the crop year.
Export earnings for 2002 were US$31.9 million compared with US$30.1 in 2001, and this, despite the reduction in volume Japan remained the principal market for coffee, but efforts to diversify saw a reduction in this segment of the market from 95 per cent to 84.1 per cent. All other segments increased market share with the European Market increasing from 0.4 per cent in 2001, to 8.1 per cent in 2002 and the U.S. market increasing from 3.9 per cent to 6.2 per cent. Encouraging results are also being obtained from the value-added roasted coffee business in a number of countries including the Bahamas, Canada, England, Hong Kong, Taiwan, Italy and Holland.
CITRUS
Citrus production for 2002 Mr. Speaker was 3.4 million boxes, roughly the same as the previous year. As is well known Mr. Speaker, the industry has been severely affected by the citrus tristeza disease since 1992. In an effort to aggressively deal with this situation, as of January 2001, the Ministry commenced the implementation of the citrus replanting project which is jointly funded by the Caribbean Development Bank (CDB) and the Government of Jamaica. To date, a total of J$93 million in loans have been approved for replanting of orchards. Under the certification component of the project, a total of nine nurseries have been registered to produce certified plants. One very important aspect of this project Mr. Speaker relates to the sensitisation of farmers, extension officers and the public at large, to inform them about the virus and the role they must play in helping to bring it under control as quickly as possible.
COCOA
During 2002 there was a reduction in the production of cocoa and consequently, a reduction of 18.9 per cent in the volume exported. This was valued at US$1.3 million. Notwithstanding this reduction Mr. Speaker, the Cocoa Industry Board was able to negotiate more favourable premium prices with buyers of the fine flavoured cocoa. It was, therefore, possibly to pay farmers a first payment of $300 per box and a final payment of $100 per box.
What is happening Mr. Speaker, is that the problems in the Ivory Coast, the world's leading producer, has pushed cocoa prices to near 17-year highs. The Government and the board are now moving aggressively to take advantage of this situation principally through the rehabilitation of existing cocoa fields which can yield results in the short run.
PIMENTO AND GINGER
The pimento industry, although negatively impacted by poor weather continued to earn foreign exchange revenues of approximately US$5 million. This level of earnings Mr. Speaker is expected to continue in the foreseeable future as demand for Jamaican pimento remains very strong.
The Ministry of Agriculture continues to implement programmes aimed at increasing production and productivity.
These include a black ants control programme and the provision of drying and reaping equipment to qualified producers. It is also important to note Mr. Speaker, that the Ministry has distributed approximately half a million seedlings to producers. This is expected to result in an additional 7,300 acres yielding 25,960 tonnes at maturity.
GINGER
Mr. Speaker, the Jamaican ginger industry has been seriously affected by the Rhizome Rot disease for over five years. The disease peaked in 1999, at which time traditional Jamaican ginger was on the verge of extinction. During that year only about two tonnes of dried peeled ginger were available for export.
Focus will be placed on the re-development of the market for ginger in the sliced, dried, un-peeled form. In this regard, samples have already been sent abroad to potential buyers for testing and acceptance.
COCONUT
For the calendar year 2002, coconut production declined by 9.9 per cent to 15,499 tonnes relative to 2001. The resurgence of lethal yellowing disease in the late 1990's Mr. Speaker, continued to have a devastating effect on the industry, destroying a significant number of coconut palms in the country. In an effort to replace plants destroyed by lethal yellowing, the coconut board launched a replanting programme in 2002 for implementation in non-traditional coconut growing areas. Under this programme Mr. Speaker, some 40,000 coconut seedlings for planting over the next five years will be distributed. The board will also provide fertilisers for 80 per cent of the seedlings given to farmers along with a grant for weed control.
This programme will be implemented concurrently with a similar programme launched in 1999 in the traditional coconut growing areas and it is expected that 60,000 seedlings will be distributed free of cost under this programme.
DAIRY
During 2002 it was estimated that production of milk was approximately 20.5 million litres compared to 22.1 million litres the previous year. Farmers were challenged to reposition their operations in order to cope with the planned reduction of 40 per cent in purchases by Nestle.
It is important to note, however, Mr. Speaker that the Jamaica Dairy Farmers Federation (JDFF) increased its purchases by 82 per cent (3.22 million litres) compared with 2001. Approximately 50 per cent of this volume was sold to the school feeding programme. It is also worthy of note that Serge Island increased its production by 20 per cent during the year.
POULTRY
Poultry production during 2002 was estimated at 83,839 tonnes representing a marginal increase over the previous year's level. Mr. Speaker, given the high level of capital investment in the industry; given the extent of technological transformation which is taking place at all levels of the industry; and given the capacity of the industry to significantly meet local demand (except for necks and backs) the Government availed itself of the provision under the WTO and temporarily imposed duties of 260 per cent (up from 86 per cent) on specified imported poultry products. This is intended to give the industry the breathing space to continue to make technological advances and to increase efficiencies necessary for its survival.
PORK
Mr. Speaker, the pig industry continues to be subject to gluts and shortages, due to the fact that when prices are high new players enter the industry and the resulting increase in production drives down prices, which triggers another round in the cycle. Consequently, in 2002 production declined to 5,489 tonnes, down 13.8 per cent of the previous year's level. The newly formed Pig Farmers Association is, therefore, committed to undertake with the support and assistance of the Ministry of Agriculture and the Food and Agriculture Organisation (FAO) the preparation of a long term development plan based on a rigorous analysis of the potential of the industry, so that consensus can be reached on the way forward.
BEEF
Beef consumption Mr. Speaker, remains at approximately 13.0 per cent of meats consumed locally. During 2002 production increased marginally by 6.7 per cent. While attempts continue to be made to identify new markets Mr. Speaker, it is clear that a realistic assessment will have to be made of the potential of the industry and the way in which it can be reconfigured to meet the requirements of the market place.
FISHING
For 2002 Mr. Speaker, freshwater fish production increased from 5,000 tonnes the previous year to 6,000 tonnes. This increase can be mainly attributed to a 15.0 rise in the hectares of fish ponds, as well as an increase in high density stocking of ponds with the use of artificial means of aeration. In addition, one major producer increased his contracted volume with other producers, thereby encouraging a higher level of production.
In relation to marine fish Mr. Speaker, there was also an increase from 6,328 tonnes in 2001 to 7,283 tonnes, despite the fact that production was negatively impacted by a reduction in the number of 'Sea Going' days due to unpredictable weather, excessive rainfall and storm warnings.
It is clear Mr. Speaker, that we will have to take a more serious look at our fisheries in order to maximise the vast untapped resources in this sector. Consequently, Mr. Speaker, in collaboration with the FAO, we will be undertaking this financial, year a full assessment of the current status and production practices in order to strategically plan for the sustainable management and development of our fisheries resources.
