REMARKS BY HON. ROBERT M. PERSAUD, MBA, M.P MINISTER OF AGRICULTURE

AT THE COMMISSIONING OF THE DDL/TOPCO

STATE -OF-THE ART FRUIT JUICE FACTORY

7^th MAY, 2007

 

It is indeed a great pleasure to be here at the commissioning of this State of the Art fresh Juice factory. I must congratulate DDL/TOPCO for the services they have provided to Guyana and especially their expansion into the fruit juice sector. This is exactly what is needed in this our beautiful country which boasts a wide variety of tropical fruits that can be utilized for the manufacture of fruit juices.

 

The Ministry of Agriculture is committed to the development of our non-traditional agriculture and we have developed an Agriculture Diversification Strategy, which we commenced implementation with local resources as well as potential external resources. Late last year we successfully hosted an Agriculture Diversification Summit after which a Ministerial Advisory Group on Diversification was launched. It is made up of 17 public and private sector officials who have been appointed to provide creative input with regard to Guyana's agricultural diversification drive. It must be noted that DDL is part of this group.

We have embarked on this thrust recognizing the challenges we face in our traditional sector and the potential that we have in our non traditional sector which is set to achieve greater heights as we aggressively seek new markets for our products and bringing state of the art techniques for the processing of new products that is of international standards.

We are revamping the Extension Services so that technology can be readily available to the farmers in real time with advice and the expertise necessary to take advantage of these new techniques.

Our exports of non traditional are becoming increasingly significant, earning as much as 7 million US dollars, or 1.4 billion Guyana dollars in 2006. This trend is expected to continue next year

We have recently commenced the construction of a modern $89 million pack-house and storage facility at Parika. The facility is intended to alleviate the burden on the Sophia Packaging plant and will cater for all preparations for export, ranging from post harvest to cleaning, washing, drying, packaging and cold storage. It is expected to be the first state-of-the-art agro processing centre in Guyana and will be complemented by a concrete wharf. Farmers are now guaranteed a value-added production facility that will enhance the marketability of local produce. When completed the centre would be a port of export for agricultural produce, especially to the Caribbean. The pack-house will be supported by over 10,000 acres of arable land and will directly benefit 3,000 farmers.

Recently projects were commissioned at Aliki at a cost of $53M, at Lanaballi at $26M and at Beribissiballi at $27M.

All of this is in keeping with the drive to support our Diversification Strategy, and we will continue to invest more in facilitating growth and development of the industry.

The New GMC whose mandate is to facilitate and coordinate the development of quality non traditional agriculture produce for both local and overseas markets has recently launched its Guyana Shop and Market Information Center. The goal of the Guyana Shop is to promote local fresh produce, processed agricultural products and other products made in Guyana as well as to facilitate business linkages between producer and buyers.

The Market Information Center provides marketing information to foreign and local buyers and sellers on agricultural products made and grown in Guyana as well as to provide marketing and business related services to farmers, exporters and agro-processors.

So as you can see, we are preparing the ground work for the successful implementation of our Agricultural Diversification Strategy. However as we all know while the Government is facilitating the way, it is the Private Sector involvement that is necessary and important for the development of the sector, for it is the Private sector that should be the engine of growth of the national economy.

I must commend the role of DDL in this venture for it will generate employment for our farmers thus contributing to poverty reduction, income generation and rural development.

Agro processing is the way forward for expanding our non traditional sector, for a market our size we need to concentrate on exports and due to the perishable nature of Agriculture products and its seasonality we need to convert these products so that they can have longer lasting shelf life and we can be able to transport them long distances without losing them. Also the fact is as we add value to our product they can be sold for more and we can access more markets and gain more income.

 I would like to however make a point to both the farmers and the Agro-processors. A business needs trust and confidence to be successful. If an agreement is made to supply a certain quantity of products, then it is the duty of the farmer to ensure that it is delivered on time and in the right quantities and to the required specification. The Agro processor also has to commit to the agreement by buying the products and at a price that is profitable to the farmer. Once this agreement is breached then both sides lose, which would be bad for the country as a whole.

The Private sector must be willing to invest in agricultural related ventures and the Government remains committed to facilitate all necessary measures for the development of the Agricultural Sector. We have Go-Invest, the NEW GMC, and a wide range of agencies that can provide the required information. We also facilitate the importation of Agriculture inputs duty free so as to help the farmers reduce their investment and cost of production.

The need to invest and be prepared to allow other competitors, be them local or foreign, to invest in the local economy are also very important as it all come down to further supporting our diversification drive. With the advent of CSM&E there will be new competition and our local industries must be prepared to compete and survive.

We are also diversifying our sugarcane industry using bagasse with the possible construction of a distillery at Skeldon, a sugar refinery and the generation of power. Another major thrust of our Diversification is the development of an Agro-fuel Strategy which we will be seeking to develop ethanol and bio-diesel as an alternative to fossil fuel. This all fits in our overall Diversification strategy as we move away from dependency of our traditional sectors.

The point I am trying to make is that while the Government is committed to the diversification of our Economy, the Private Sector must play their role also and together we can develop a sector that can provide jobs, enhance our food security and help reduce the food importation bill of the Caribbean. As we know Agriculture contributes on an average 30 % to the GDP and we surely can increase that percentage if we work together.

Once again I thank DDL for having faith in the Sector and wish you all the success for a profitable and sustained venture and assure that my family uses your products all the time and I can safely say that your fruit juices are among the best I have consumed.