3% reduction in interest rate for loans to poultry farmers – President Ali announces

…4 commercial banks on board

…industry stakeholders laud Govt’s efforts to support sector

In a move to boost Guyana’s food security efforts, President Dr Irfaan Ali has announced that the People’s Progressive Party/Civic (PPP/C) Government has managed to broker the reduction of interest rates on loans to poultry farmers from 8 per cent to 5 per cent.
President Ali made the announcement on Saturday, while addressing stakeholders in the poultry sector at State House. According to him, at least four commercial banks in Guyana have agreed to reduce their interest rates on loans to poultry farmers/operators.

This means that small, medium, and large-scale farmers are expected to benefit from this 3 per cent lowering of the interest rate. He went on to add that poultry farmers and operators with existing loans at these four banks will also benefit from this new lowered interest rate from next month.
“We will introduce a facility under which the interest income earned by commercial banks on loans granted to the poultry sector will be free of corporate income tax. This now will enable commercial banks to lower their interest rate, the charge to the poultry sector by almost 3 per cent; from 8 per cent to about 5 per cent.”
“I’ve concluded discussions with a number of commercial banks… Citizens Bank, Republic Bank, Demerara Bank, and GBTI would have all agreed that the interest rate as a result of this measure by the Government will be reduced from 8 per cent to 5 per cent. That is a 3 per cent reduction in your interest rate,” the President explained.
President Ali noted that these commercial banks have all decided to fully participate and that the reduction in interest rate will be done almost instantaneously. And he urged those involved in the sector to take advantage of the move.
“This latest measure represents the latest step taken by the Government to promote food production, increase food supply, and reduce the costs of basic food items to the final consumer… I’m very pleased that all the commercial banks I mentioned have already taken the decision to fully participate and to move towards the reduction in interest rate almost instantaneously as this measure takes effect, now bringing down the effective interest rate for the poultry sector.”
“And this is the poultry sector across the board. All investors in poultry and poultry sector would benefit from this. I therefore now encourage all the farmers and stakeholders in this sector to take advantage of the benefits that will arise from the reduced cost of financing that will now be available to the sector,” Ali stated.

Other measures
From an oversight side, President Ali meanwhile warned that there would be increased patrols by the Guyana Livestock Development Authority (GLDA), aimed at reducing smuggling. A draft sectoral development plan is also in the works and is currently being reviewed by stakeholders.
When it comes to other agencies, President Ali said his Government is taking a number of measures to address the poultry sector. This includes strengthening the National Poultry Association and the Guyana Livestock Development Authority (GLDA), engaging with the Mahaica Mahaicony Abary – Agricultural Development Authority (MMA-ADA) and the Guyana Lands and Surveys Commission (GL&SC) on allocating land for the poultry sector. This includes identifying another 25,000 acres of land for the production of rice as an input to feed.
“As you know, the cost of feed goes up because of the cost of input… 70 per cent of the chicken, that is the final product, rice as a component of feed from 2020 would have increased by 100 per cent. Soya bean and corn by 62 and 57 per cent, respectively. We’re trying to have more control pf the input cost by opening up opportunities for the industry.”
“We’ve equipped the GLDA nutrition lab with additional instruments. We’ve equipped the quarantine and surveillance unit with tools and equipment worth $13 million. We’re training technical staff in good poultry practices. And we intend to extend this training to farmers,” President Ali said.
Other measures have included working with the Ministry of Public Works on reducing transport costs and introducing more hatcheries. This includes a new hatchery in Region Five that can accommodate 20,000 chicks per week. They are also looking to acquire a cold storage facility to support farmers.

Govt lauded
Meanwhile, the announcement of reduced interest rates has since been welcomed by the Private Sector Commission (PSC), which in a statement extended congratulations to the Government of Guyana for deciding to grant reduced interest rates on agricultural loans for poultry farmers – a decision they noted stemmed from President Ali’s recent meeting with the Minister of Agriculture, poultry farmers and the local commercial banks.
“The Commission regards this decision as a positive step towards enhancing the livelihoods of the poultry farmers. The Commission looks forward to the poultry farmers now utilising this decision by the Government to modernise and upgrade their production facilities and increase their production to ensure that Guyana becomes self-sufficient in poultry production.”
“The PSC takes the opportunity to commend the Government on this and other initiatives to encourage private-sector development in Guyana and will continue to advocate for the growth and development of our country,” the PSC said in their statement.
Also issuing a statement was the Guyana Poultry Producers Association (GPPA), which expressed its support for this and other measures the Government has been implementing, including boosting the GLDA and procuring vaccines for poultry farmers to improve their stock.
“The Association is greatly appreciative of His Excellency’s swift action to address the concerns of the industry and to alleviate the hardships being faced by poultry producers. These actions are a tangible demonstration of the Government’s commitment, under President Ali’s leadership, to address in a meaningful manner the issues that are critical to ensuring adequate production and affordable availability of essential food items for the Guyanese people.”
“The Association reiterates its commitment to work closely with his His Excellency President Dr Mohamed Irfaan Ali and his Government in pursuit of the country’s food security agenda,” the GPPA said. (G3)