Agriculture looks to export for growth
published: Friday | May 28, 2004

By Dennise Williams, Staff Reporter

FOR THE January to March quarter of 2004, the agricultural sector suffered an aggregate decline of 2.1 per cent.

But if you look behind the numbers, a shift in focus will be revealed. While domestic production has decreased, export crop production has increased by double digits.

According to data released by the Planning Institute of Jamaica, "The decline of 2.1 per cent reflects the impact of drought conditions on domestic crop production." In the first quarter of 2004, the levels of rainfall were 32 per cent less than the 30-year average.

CROP PRODUCTION

Domestic crop production was down 9.7 per cent and livestock production was down 0.3 per cent. However, export crop production increased by 11.1 per cent. And this, as explained by Senator Norman Grant, president of the Jamaica Agricultural Society (JAS), is because persons are now seeing that there is foreign exchange earnings to be made from agriculture.

"I am not surprised by the growth in exports. There is a new wind blowing. People are now looking to agriculture to make big bucks. We, at the JAS, have been saying over the years that agriculture is a business that can earn goods returns. In fact, there have been a number of growth areas in the export sector since last year. There is coffee, pimento and bananas to name a few."

The driver behind the growth in agricultural exports is a value added product. Senator Grant explained, "A lot of processors and cottage industries are coming on stream in Jamaica now. There is the Twickenham Bammy Factory and Walkerswood, to name a few. And that is just the tip of the iceberg." Right now, Senator Grant states, the lowering of interest rates have been addressed somewhat. "This means that there is now a concerted effect to intensify production. Agriculture is an import segment and investors are becoming cognisant of that reality. The focus in agriculture is on foreign exchange earnings. And the prospects are very good. Barring any natural disasters, our sector will be a very good position for the rest of the year."