Gy$600M funding facility for non-traditional agri drive in 2011

Guyanese farmers and investors in the non-traditional agricultural sub-sectors will be able to access finances for their activities from two funding facilities starting next year. The two financial packages will make some Gy$600 million available for disbursement in grants and loans.

The Guyana Bank for Trade and Industry (GBTI) would operate one of the facilities, while the Institute for Private Enterprise Development (IPED) would implement the other. The facilities target farmers, exporters, and other investors interested in diversification activities, such as fruits and vegetables, livestock and aquaculture. The Agriculture Export Diversification Project (AEDP) will provide funding for the facility that will be administered through GBTI, while the Rural Enterprise Agricultural Development (READ) will fund that to be administered by IPED.

While announcing the finalisation of the packages with the two entities, Agriculture Minister Robert Persaud said on Tuesday, December 28th that the initiative is the government’s response to farmers’ constant cry over the lack of finances for agriculture. He believes that the two packages make a substantial amount available in funding for the producers, but in groups. This, he continued, is essential to the diversification drive, which is already reaping success in various areas. 

This year, exports of non-traditional crops recorded a 7.4 per cent increase when compared to exports for 2009. Despite the attack of the Black Sigatoka, plantain exports also recorded increases, both in terms of production and exports. Persaud observed that the New Guyana Marketing Corporation (NGMC) has boosted its capacity significantly during this year in terms of upgrading its infrastructure for packaging and other activities. The NGMC, this year, procured a number of vehicles, including cold-storage trucks that now allow the transport of fresh fruits and vegetables from the farms to the pack houses. 

Additionally, the New GMC marketing information system is up and running, and the officials are working to make available more timely information to farmers and exporters. Marketing is often lamented as one of the main hurdles facing producers, but Persaud is promoting market-led production. He advocated that farmers should not plant if they do not have guaranteed markets for their produce.  Despite this, he spoke about some of the major developments taking place in the agriculture sector that will assure support to farmers and other stakeholders. 

Through the newly-established Guyana Livestock Development Authority (GLDA), work will accelerate to improve genetic resources using embryo and semen transfers. There would also be establishment of the new abattoir and more coordinated and comprehensive research and extension activities. Other major activities in the sector include animal legislations and movement and quarantine regulations. Consultants have drafted eradication of TB and Brucellosis regulations, while food safety regulation is also currently under review and will be updated by an Agrotec consultant. Already, the Agrotec consultant has trained various food and health inspectors around the country. Further, the Analyst Food and Drug Department and the consultant are revising the Drug Act. 

Crops support, on the other hand, will become the sole responsibility of the National Agricultural Research Institute (NARI), which is being restructured as the National Agricultural Research and Extension Institute.  This institute is currently spearheading revitalization of the coconut industry; development of spices, particularly in the hinterland; cassava utilization; and tackling the Black Sigatoka. NARI is also involved in the mangroves restoration drive, encouraging modern agriculture technologies, and still producing planting materials.   

Today, in the National Assembly a bill is scheduled to be tabled and debated, seeking to allow this reformation of the research institute. With the change, research activities would be conducted in coordination with extension services. As NARI is taking on a bigger mandate and the Livestock Authority picking up the other activities, the Crops and Livestock Department of the Ministry of Agriculture is being closed down permanently with effect from December 31, 2010. 

Meanwhile, the Pesticides and Toxic Chemicals Controls Board is also advancing its work to not only ensure safe use of chemicals, but also to clamp down on illegal and unsafe chemicals that are made available to farmers. Also, this year, the newly-built pesticides laboratory would be made available to the public for residue and other testing.