Agricultural exports in the first quarter of this year have remained stable and in light of the global financial crisis, the Ministry has been reviewing the possible impacts, Agriculture Minister Robert Persaud says.
He said that although the agriculture sector is vulnerable to what can happen in the global financial situation, he does not expect that there will be much effect. “We don’t expect a tremendous, severe negative impact on the local agriculture sector although we have been seeing some developments within the forestry (sector) in terms of the high-value forestry exports”, he said. Persaud had noted that that sub-sector had seen a decline.
The Minister was speaking at a roundtable discussion on the Global Effects on the Agriculture Sector at the Hotel Tower on Wednesday and disclosed some export figures for this year.
He said that for this year, first quarter earnings of the forestry sector totalled US$8M as compared to US$12M for the same period last year. He pointed out that close to 40 000 cubic metres of forestry products was exported in the first quarter last year while for this year 15 500 cubic metres have been exported. He stated that “strangely” production has gone up by 25% thought exports have deteriorated and while he outlined a few possible reasons, he said that this will be examined.
Meantime, first quarter exports for the rice industry were over 45 000 tonnes bringing in US$25M as compared to 22 000 tonnes bringing in US$7.3M in the corresponding period last year. The minister said that exports in the fisheries sector are expected to remain the same based on preliminary indications.
Non-traditional exports in the first quarter last year were close to 1.8 million kilograms of fresh fruit and vegetables worth $375M, and this year there is a 30% to 40% increase, with 2.5millon kilos exported, bringing in $329M, a lesser value than last year. Persaud noted that with the exception of forestry, all the sub-sectors have been stable or saw a significant increase in exports for this year.
He said too that the Ministry has been reviewing the possible impacts of the global financial slowdown with a view to identifying opportunities and what can be done to tap into those identified. He said that the crisis has forced stakeholders to be creative and the Ministry has been active, taking steps such as the slashing of the export commissions, among other actions. “There will be some level of impact but we don’t think the level will be deep”, he stated.
Also speaking at the forum was President of the Guyana Manufacturing and Services Association, Ramesh Dookhoo, who declared that this was an opportune time to sell Guyana as an agri-business investment destination. He declared that in every down-turn there is an opportunity. Dookhoo said that most of the local financial institutions are strong though if criminal negligence surface “we need to jail those who are responsible”.
Also echoing the view that in difficult times, there are opportunities, was James Plasman, Economic and Commercial Officer at the US Embassy, who said that, this is a chance to shift towards non-traditional agriculture. In terms of produce, he declared that farmers will have to focus on quality and quantity. Plasman stated that focus should also be placed on new products, new technology, infrastructure- which he said was one of the challenges faced here, and packaging.
