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Budget offers no hope for farmers
published: Tuesday | May 20, 2003


Balford Henry

ACCORDING TO Jamaica Agricultural Society (JAS) head, A.A. Bobby Pottinger, the Society could become self-sufficient in three years, if it is allowed to go ahead with its development plan.

The past decade or so, the JAS has been repeatedly criticised for its inability to generate more revenue from its assets in order to make itself less dependent on the Government. However true that is, it is obvious that there is a serious attempt being made to turn around its finances and make it profitable, so much so that the Society is expected to turn out a profit of approximately $810,000 for the financial year ended March, compared to a loss of $4.7 million for 2001/2002.

Mr. Pottinger has attributed much of this success to the appointment of a management team within recent years and insists that, provided all the necessary projects are put in place, including a marketing project by July, self-sufficiency should be achieved in three years. "Whatever we receive from Government at the end of the three years, should be based on a contractual basis, like an NGO doing work for the government and being paid for it," he boasted.

But, the basic question being asked in agricultural circles has been, is the government really taking the sector seriously, any more?

SIGH OF RELIEF

The decision to take feeds, fertilisers and herbicides off the list triggered a sigh of relief no doubt, but has done very little to change the view that the sector is being sacrificed in this desperate rush to revive the economy and save the dollar.

The agricultural sector has been one of the few to have gone to government with a proposal for its own revival.

The JAS, for the past few years, has been lobbying the government for a half-per cent cess to be placed on certain imported food items which have been devastating our farmers. The society put forward a very well conceived proposal to use the funds from the cess to finance the implementation of their Agricultural Development Fund (ADF) as well as facilitate the implementation of the National Praedial Larceny Control Programme; a cost-effective, self-sustaining Tractor (Tillage) Service, as well as the establishment of a Centralised Marketing System serving exporters and domestic outlets and assisting the JAS to significantly build its (administrative) capacity to undertake a co-ordinated farmer group extension/marketing and technology transfer programme.

This is in a context in which domestic agricultural production has declined significantly over the past several years. Compared to 1996 when production was at approximately 695,000 tonnes, production for 2002 was only 431,579 tonnes, a

38 per cent decline. At the same time, the importation of agricultural produce has been on the increase.

THE BRIGHTER SIDE

But, on the brighter side, it has become evident that domestic demand for agricultural produce, including from the tourism sector, currently outstrips domestic supply. Indications are that local demand for meat, fish and dairy products is very strong. There are opportunities for marketing to hotels and cruise ships, where much of the imported competition is now concentrated, as well as some top local supermarkets.

According to the JAS, there is still a strong preference for local foods due to their freshness and intrinsic taste; there are a number of clearly defined markets with requirements, including municipal markets, supermarkets, hotels, caterers, agro processors and exporters. There is an opportunity to increase local demand, through effective marketing, building on intrinsic preference for the Jamaican flavour, says the society.

Obviously, there are constraints and threats, including unplanned and scattered production, limited structured irrigation leading to great reliance on rain, giving rise to periodic gluts and shortages; there is a lack of promotion of local foods to consumers and there is the World Trade Organisation, or globalisation.

The local approach to agriculture has remained typically traditional and unprofessional. The JAS, recognising that improved production and productivity are the crucial challenges facing the sector, has suggested that, "keen attention must be paid to the task of transforming the attitude of farmers to farming and promote a culture for the production of quality produce at competitive prices."

It was in recognition of these faults, that the Society came up with its development plan which sought to make the farmer earn more of the profits from his produce, which often ends up in the pockets of higglers, by taking the marketing aspect out of the hands of the middle traders and operating it as a farmers' project. Attached to that were initiatives to deal with the problem of praedial larceny, estimated to be costing farmers several billion dollars per annum, as well as the availability of equipment like tractors on a lease basis, especially in the light of the recently announced GCT on these items.

LITTLE ENCOURAGEMENT

But, the response of the government has not been very encouraging to the farmers. The Budget barely maintains some of the projects which have already been introduced and there is no new initiative which offers hope for farmers. No wonder most people seem to be opting out of farming. No wonder too that Agriculture Minister, Roger Clarke, has been missing out on quite a few meetings with farmers and his junior Minister, Errol Ennis, has been given the task of making the farmers believe that there is something hidden under those budget figures that could create a miracle, after all.

The fact is that the farmers are no dunces, they can smell a rat like anybody else and if there is a foul smell in farming have no doubt that they are quite aware that this budget offers very little in terms of government assistance to improve their production, much less financial support for their ambitious marketing, production and anti-praedial larceny proposals.

Balford Henry is News Editor at the Gleaner Company

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