Guyana not worried about food shortages, skyrocketing prices – aiming instead to capture opportunities

Even as people the world over brace for a possible repeat of the 2008 food crisis, as warned by the United Nations Food and Agriculture Organisation (FAO), Guyana is not too worried about possible food shortages, or exorbitant price increases that could affect access and affordability of local consumers.

Although Agriculture Minister Robert Persaud admits that Guyanese authorities are carefully monitoring the situation, he highlighted opportunities which the Agriculture Ministry is positioning the country and its food producers to explore. He notes that, already, the rice industry has seen significant improvements in production and exports, which are earning local farmers a lot more. There has also been growth in the non-traditional crops sector, with growing global demands; while the sugar industry has seen increases in prices.

In spite of these realities, the minister recognised that the growing corn and soya prices globally could have negative local effects, especially in regard to supplies of livestock feed. Fuel prices could also impact costs of local food, but ultimately, the minister does not foresee any problems with food availability and accessibility in Guyana.

Nevertheless, he assured that the Agriculture Ministry is looking at what is taking place globally, with rising prices and shortages in supplies in some countries, and the effect this is likely to have on Guyana.

In this light, he sees opportunities for Guyanese farmers to enjoy better markets and prices for their produce.

He pointed out that the Agriculture Ministry has established a Commodity Market Outlook since last year, and this enables the officials to see trends and projections of prices and supplies of various foods both locally and internationally.

Persaud reported, too, that Guyana has already been seeing results from the state’s investments in the ongoing “Grow More” food campaign, whereby significant resources have been channeled towards various aspects of agriculture and food production countrywide.

However, he stressed the need to organize farmers and provide support with marketing intelligence and support services.

Locally, the New Guyana Marketing Corporation (GMC) has been upgraded to better meet the needs of farmers and other agricultural stakeholders, such as exporters, including establishment of a market information system. Guyana is also preparing to participate in an upcoming regional forum to be held in Trinidad and Tobago seeking to develop a Caribbean Market Intelligence System. This, Persaud believes, would help Guyana to know what products are on demand and where the markets are available, so Guyanese producers could capitalise on the opportunities.

The World Bank, on February 15th, stated that food prices are at “dangerous levels” and have pushed 44 million more people into extreme poverty since June.

According to the latest edition of its Food Price Watch, prices rose by 15 per cent in the four months between October 2010 and January this year.

Food price inflation is felt disproportionately by the poor, who spend over half their incomes on food.

The bank called on this week’s G20 meeting to address the problem. The BBC has quoted World Bank President Robert Zoellick as saying in a statement that “global food prices are rising to dangerous levels and threaten tens of millions of poor people around the world.” He also said that rising food prices were an aggravating factor of the unrest in the Middle East, although not its primary cause.

Rapid food price inflation in 2008 sparked riots in a number of countries. At that time, the World Bank had estimated 125 million people were in extreme poverty.

The World Bank says prices are not quite back at those levels – just three per cent below – although they are 27 per cent higher than a year ago.

A separate report from the UNs’ Food and Agriculture Organization ( FAO) earlier this month had said that world food prices had hit a record high in January.