GMSA’s business luncheon: Agri Minister unveils emerging opportunities for sector

The Guyana Manufacturing and Services Association (GMSA) had its first Business Luncheon this year with some 70 participants which included the GMSA membership and other specially invited guests.
At the event, which was hosted on Friday, Agriculture Minister Zulfikar Mustapha said that the Government and the Agriculture Ministry have recognize that “emerging opportunities in agriculture for the private sector in Guyana’s oil and gas economy” is immensely important. He noted that agriculture and manufacturing will prove to be critical in counteracting any adverse effects associated with the exploitation and capitalization of natural resources. According to the minister, there is a projection of growth in national income as the new oil and gas sector will serve to unlock opportunities in traditional sectors, principally agriculture and manufacturing. Secondly,

He emphasized that Guyana is experiencing an influx of expatriates to serve the oil and gas and auxiliary sectors which inevitably increases the demand for high quality processed foods with greater domestic value-added. This influx, he said, also ultimately implies a large and potentially explosive future growth in the downstream components of the food value chain particularly farming, processing, wholesaling, retailing and logistics.
In this regard, the minister stated that the Government is committed to directing substantial resources towards the alleviation of chronic under investment in public goods. The programmes initiated include adequate stable power and water supply, credible quality and safety standards with efficient testing and enforcement to enhance agriculture health and food safety and traceability services, all of which will provide an entry point for the demanding export markets as well as high-end local markets.

Alluding to the importance of the MoA partnering with the private sector, the minister said that the ministry has facilitated and created an environment which supports investment opportunities and recovery efforts in priority areas such as agro-processing, coconut, corn and soyabean, niche vegetables, beef, dairy, poultry and aquaculture development. He furthered shared with attendees, the Government’s proactive role in the development of the local processing sector through a programme that aims to improve the quality of existing agro-processing products, develop incubation centers in strategic locations. With the injection of GY$262.0M, the ministry will be establishing certified processing facilities in Regions One; Two; Three, Four; Five; Six; Nine and 10 which will be utilized for commercial production and product development to assist small and medium agro- processors.

GMC supporting role
He explained the integral role of the Guyana Marketing Corporation (GMC) in supporting Local Content and added that the GMC will be focusing on subsidizing raw materials for agro-processors, to aid in reducing their production costs. The minister stated that GMC has some 2,100 locally produced items that are also available on supermarket shelves. He called on the private sector to buy local and reduce the imports of similar products and commodities that are produced locally.
Livestock was brought to the fore of the presentation as the minister expressed his concern over dairy imports since dairy as a percentage of total value of food imports has increased from 4.3% to 8.7% during the periods 2018 and 2019, with an average import bill of US$27M.
He was pleased to note that recent investment in the establishment of dairy processing facilities by Demerara Distillers Limited (DDL) and Amaya Milk Company will address the large dairy import bill and gives a clear indication of foreign interest in boosting Guyana’s economy. Minister Zulfikar mentioned some of the Government’s incentive for investment in the livestock sector, including VAT-free concession and waivers on Import Duty for machinery, equipment tools and supplies for agro-processing; technical/extension/ R&D support by Guyana Livestock Development Authority (GLDA), concession on large scale livestock farming, zoning for livestock and crop farmers, and Tax concession on investment in agro-processing facilities.
Another investment for livestock includes the establishment of abattoirs that meet international Hazard Analysis and Critical Control Points (HACCP) standards. This initiative will open new markets and will see the construction of a cattle abattoir in Region Five and a swine abattoir in Region Four. The GLDA is also in the process of introducing its Livestock Information System to improve the availability, reliability and accuracy of livestock data for decision making and reporting and enhance animal traceability and surveillance capacity.
Zulfikar reiterated that the agriculture sector remains integral for future development of the nation. As such, he assured that oil and gas resources will be used to develop Guyana’s food systems and create an environment where the private sector can flourish. One of the main concerns is the cost of energy and has remained the most difficult hurdle to overcome for competitiveness in agro-processing and manufacturing sectors. With the gas to shore project expected by 2024, the Minister affirmed that the project will not only benefit the agriculture sector immensely as the cost of energy can reduce by as much as 50%, but also allow the country to conserve on foreign exchange which is lost through the importation of fuel.

Opening arable lands
The minster mentioned the opening up of arable lands in Regions Two, Three, Four, Five and Six which are slated for development to expand cultivation of rice and other crops. On matters of drainage and irrigation, he stated the Ministry is striving to upgrade the infrastructure to improve the performance of the system in response to impacts of climate change. He explained that the construction of farm-to-market access roads is a national policy that supports the agriculture sector, thus the Government through the National Drainage and Irrigation Authority will focus on the construction of at least 65KM of roads for 2021-2022 period in Regions Three, Five, Six and 10.
Meanwhile, GMSA president, Rafeek Khan, in his opening remarks lauded the ambitious foresight of Guyana becoming the breadbasket of the Caribbean. However, he posed a challenge to all stakeholders to start this initiative by first becoming a self-sufficient state. Khan stated “Guyana has been an important supplier of fresh farm produce and processed farm products to the Caribbean. While we have the potential to be the breadbasket of the Caribbean, I would like to challenge our dear country of Guyana to realize this ambitious desire locally first”.
He indicated that in previous years, imports of agricultural products far exceeded that of exports, and there needs to be a strategy to reverse this continuous trend. “For this to happen we need more export-oriented domestic production and manufacturing of agro products,” stated Khan.
Khan urged everyone to collectively pay attention to household food security and nutrition by putting measures in place mitigate adverse effects of seasonal food production and price volatilities. He encouraged everyone to get involved in home-gardening as home gardens are an integral part of local food systems and the agricultural landscape of developing countries, such as Guyana.