THE EDITOR, Sir:
THE FARMERS feel powerless to control their lives or their livelihoods. Jamaican farmers have been calling for a sure market for their products at a reasonable price. This is a matter of governance and should be guided by government policy. Government can support its agriculture with support for the seeking of fund aid for core activities of farmer representative organisations.
Government can support its agriculture by taking action promptly to effect change in legislation, such as the enactment of the Dairy Board Act. Government can support its agriculture with effective import duties to counteract dumping or allow an infant sector time to develop. Government can do anything it needs to, but it might help in trade relations if a case is made as to why there is the need.
PRODUCTION STUDIES
The Dairy Board has conducted local cost of production studies, has information on global prices and levels of dumping on the world market. They will have seen that since 1999 the farmgate price of milk in Jamaica has fallen from $18 per litre (B grade) and $22 per litre (A grade) to $14 per litre and $18 per litre respectively. In this environment the Jamaican dollar has devalued by 58 per cent and cost of living has risen. Whereas the US and EU farmers have been getting about US$0.30 $0.38 per litre the Jamaican counterpart is now getting US$0.23 $0.30 per litre (US$ = J$60).
GOVERNMENT'S SUPPORT
But the Jamaican farmer has higher costs to bear and has suffered production quotas that have forced volumes down so that efficiency is lost. Still the Jamaican farmer is competitive. In 1998 the farmers thought they had found the government's support when they began implementation of the strategy for milk production and to this end the farmers formed their own Federation. A year later the Dairy Board was formed. Meanwhile the Minister of Agriculture said the import duties on milk powder were coming. Still it has not come. The duty rates on milk products can be increased to effective levels without breaking any rules of CARICOM or WTO.
The international community is fully aware of the damage done by dumping on developing countries like Jamaica. One just has to read the EU development non-government organisations (e.g. OXFAM) websites to learn the instances of cotton, poultry, dairy, tomatoes and others. The strong agricultural producing countries in the region have protected themselves to develop their agriculture. Jamaica cannot afford to liberalise its agriculture faster than the large developed countries. The Caribbean Region Negotiating Machine (CRNM) is lobbying successfully for recognition of the problems that Small Island Developing States (SIDS) have to cope with which causes loss of efficiencies. It is still up to Government to take the necessary action.
I am, etc.
FIONA BLACK
fionab@cwjamaica.com
Dairy Herd Services
48 Daisy Avenue
Kingston 6
