Dennise Williams, Staff Reporter
Senator Norman Grant
"I THINK that 2005 could be described as one of the most challenging for agriculture over the last decade," said president of the Jamaica Agricultural Society, Senator Norman Grant.
He spoke to the Financial Gleaner last week about the 2005 performance of his sector. And, even as he spoke, brewing was the double whammy announcement by the Bureau of Standards Jamaica regarding ackee producers and the statement by the Jamaica Exporters Association about the potential losses in the European Union export market.
"We had seven major disasters, which included four hurricanes of at least Category II levels," Senator Grant explained. "What this has done is to create a situation of negative growth for 2005, especially the last quarter. Right across the board in the subsectors there were losses."
DYOLL COLLAPSE HIT COFFEE PRODUCERS
The collapse of Dyoll Insurance contributed to the woes of the agriculture sector. Although the news has focused on Dyoll group shareholders, coffee farmers are right in the mix of affected parties.
Senator Grant said, "Over 10,000 coffee farmers were affected by the demise of Dyoll Insurance Company. Combined with the effect of Hurricane Ivan in 2004, the projected foreign exchange inflows from coffee exports dropped 30 per cent from US$40 million to US$28 million."
Dyoll Insurance had offered insurance coverage for the coffee farmers before its collapse, and its own sister company, Dyoll Wateru, was a coffee producer.
"We have written to the Dyoll liquidators and asked them to pay the US$3.2 million that is owed. We are awaiting their response," Senator Grant revealed. It will take about three years to get back to the pre-Hurricane Ivan production levels of £5 million per annum.
BANANAS UNDERCUT INTERNATIONALLY
"Bananas are a nine month crop and so this industry is fighting back. Compared to 2004 when there was 90 per cent devastation, this year around 15 per cent of the crop was lost after the hurricane season," he said. "In 2005, two of our biggest losses were on the international front. The European Union
ruling to phase out preferential pricing and the European Commission to cut 36 per cent in prices paid over five years was too drastic. So that is a big loss."
CITRUS
"Citrus held its own," he said. "The active hurricane season did create a setback, but was not significant compared to coffee."
LIVESTOCK
"Livestock was badly affected by praedial larceny, but it is on its way up. And one unique thing we are doing is promoting the consumption of rabbit meat through the Four H movement. This high protein meat is slowing being accepted by the Jamaican consumer.
However, the winner in this sub-sector is poultry. Despite the international threat of bird flu, we have been able to keep it out of our borders. This underpins the 'Eat Jamaica Campaign'. One of the reasons we have been able to keep Jamaican birds safe is the investment in tunnel houses. Yes, they are expensive at $10 million each, but it stands up to heavy hurricane winds. This is a big win for Jamaica."
OPPORTUNITIES IN 2006
Senator Grant was optimistic about the prospects of growth in agriculture. Despite the dire need for improved rural infrastructure, he said that with the advent of the CARICOM Single Market and World Cup 2007, there is a wide market for Jamaican goods.
"I am enthusiastic about burgeoning opportunities for the new year. Although the price of sugar has been cut, this is not the end," he said. "There is scope for ethanol, bagasse and domestic consumption of sugar."
Other opportunities to be found in Jamaica as outlined by Senator Grant are:
Commercial forestry
Fruit forestry
Alliances with the tourism sectors
Sea Island cotton production (the most expensive cotton in the world)
Greenhouse and hydroponics farming.
