Hastening the creation of a regional agribusiness sector

The sense of disappointment, even frustration over the slow pace at which the hoped-for creation of a strong regional agribusiness sector is proceeding was evident in the presentations at last week’s regional agribusiness forum by Caricom Secretary General Edwin Carrington, Agriculture Minister Robert Persaud and, at the end of the two-day forum, by President Bharrat Jagdeo. Each presentation, with varying degrees of diplomatic mindfulness, reflected an impatience with the fact that the issue of creating a viable agribusiness sector appears stuck somewhere between a seeming indifference to the importance of regional food security, on the one hand, and the familiar Caribbean propensity for discussing things to death, on the other.

Dilatoriness in the implementation of initiatives is, of course, a familiar regional propensity, though this time around the sense of urgency associated with shoring up regional food security means that we cannot afford the luxury of delay.

As the region’s lead spokesperson on matters to do with agriculture President Jagdeo’s blunt admonition of what he clearly regards as the preoccupation with talk rather than action was by far the most forthright of the presentation and the note of disappointment which he struck over the lack of progress in this pursuit is understandable, given the nexus between the strengthening of the regional agricultural sector and, first, the consolidation of regional food security, secondly, the need to maximise export earnings at a time of global financial and economic crisis and, thirdly, the opportunity to secure new markets and consolidate existing ones in the face of what is widely believed to be an impending global food crisis.

The sense of urgency signalled in their respective presentations by President Jagdeo, Agriculture Minister Persaud and Secretary General Carrington must be seen against the backdrop of the failure of two major fora on the subject of agriculture and agribusiness – held in Georgetown in 2007 and 2008 – to realize much in the way of practical action.

The renewed sense of urgency on the matter of creating an internationally competitive regional agribusiness sector must also be viewed in the context of the region having turned its back on earlier opportunities to consolidate its food production and export capacity – some of which were alluded to by Dr. Carrington in his address to the forum – and the fear that we may well be in danger of making the same mistake all over again.

While it appears that the region has come to terms with the fact that last year’s US$3 billion food import bill was entirely avoidable and, moreover, is altogether unsustainable, it is evident that a clear regional plan of action for responding to this concern is yet to emerge.

Up until now it is Guyana that has been seeking to galvanize some sort of robust regional effort to move the process forward and one can only speculate as to the reasons why President Jagdeo’s efforts to take this critical process forward, appear not to be benefiting from a great deal of corresponding enthusiasm on the part of his Caricom colleagues. Add to this what appears to be, up until now, the less than wholehearted commitment of the regional private sector to the quest for the realization of a strong agribusiness sector and the note of concern sounded by the three lead speakers at last week’s forum is clearly not misplaced.

Setting aside the note of urgency sounded at last week’s agribusiness forum, the address by Dr. Carrington served, perhaps above all else, to raise a number of issues that serve to remind us of just how far behind we are lagging in terms of our state of preparedness to create a truly viable and internationally competitive agribusiness sector. He alluded, for example, to the fact that there is still a need to rationalize the respective roles of the regional public and private sectors and to facilitate better access to market information and information regarding sector support initiatives and supplemental resources. His urging that the region monitor the demographic, social, technological, organizational and economic trends that influence agro-food systems at the regional and international levels, embraced the critical considerations of global demand for higher value food products and services, satisfying demand for lifestyle preferences, reducing food safety risks, the creation of strategic relations for technology transfer and marketing and meeting the high cost of realizing consumer demand for higher safety and quality standards.

All of these considerations – in which the region is decidedly deficient – point to the need for the creation of a strong regional structure that can properly and effectively address them thoroughly and professionally as a starting point for the creation of a regional agribusiness sector. There are considerations of market intelligence, technology, the need to meet internationally demanded standards of packaging, safety and health, all of which will require vigorous research and a considerable measure of diplomatic lobbying effort outside the region. Here in the region, reaching the standards necessary to cope with international competition will require strong public sector support for what is essentially a private sector mission.

The Secretary General’s declaration that the Caricom Secretariat is ready to play a more central role in the process is, in effect, an acknowledgement of the importance of creating an environment that offers the best possible institutional mechanism for a properly coordinated regional effort. Among other things, Dr. Carrington sees the Secretariat serving as a focal point for facilitating regional public/private sector discourse on agribusiness, coordinating regional and international initiatives in the sector and functioning as a clearing house for the acquisition of information and for its timely and effective dissemination to stakeholders.

The envisaged role of the Caricom Secretariat in effectively kick-starting the process towards the realization of a viable regional agribusiness sector appears conspicuously consistent with the urging by President of the Guyana Manufacturing and Services Association (GMSA) Mr. Ramesh Dookhoo that the Caricom Secretariat be required to work more closely with the regional private sector. Specifically, Mr. Dookhoo is calling for the creation of a Business Development Unit within the Secretariat which he says should seek to facilitate the region’s private sector in various ways.

Dr Carrington’s proposal, meanwhile, has to be seen as a step, albeit a small one, in a process, the success of which will ultimately depend on just how quickly the principal stakeholders, regional governments and private sectors, are prepared to go to take the process forward. One is inclined to wonder too, whether, even allowing for the best intentions of the Secretary General, the Secretariat will not itself require a significant infusion of additional resources to effectively undertake what, by Dr. Carrington’s own admission, is a challenging administrative and technical task.

That, of course, is a matter that has to laid at the door of Caricom governments and one suspects that President Jagdeo may well make an issue of his frustration over the slow pace of proceedings at the Caricom July Heads of Government meeting. Where the region goes in the period ahead in its quest to get the show on the road as far as the creation of a regional agribusiness sector is concerned could shape the future of Caricom economies and, perhaps, even the broader future of intra-regional relations in a not inconsequential way.