Professional Documents
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AGRICULTURAL SECTOR
By : Rufus Leandre
Chief Extension Officer
INTRODUCTION/OVERVIEW
The World Economic Crisis (WEC) which is affecting the whole world in
some form or other now would inevitably also have a profound effect on
our fragile economy. Though otherwise suggested or touted we are largely
considered an agrarian economy that produces both crops and livestock
and bananas mainly for the international market.
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In our review of the agriculture sector we envisage two major effects
that this global economic down turn will have on our island nation and
the agricultural sector in particular.
Global Economic changes are effecting the context under which farmers
throughout the developing world participate in the agricultural sector.
Economic globalization has brought about such change as
liberalization of trade and investment formulation of Regional
Economic agreements and implementation of structural adjustment
projects (SAPS) and the removal of subsidizes and price support. While
some farmers may benefit from economic globalization by shifting to
production of export commodities, accessing niche markets or
funding alternative sources of income related to emerging consumer
economics, many others are threatened by low crops prices removal of
subsidizes, competition with cheaper imports, changes in credit
availability inability to gain access to internet. And a lack of access to
imputs such as high yielding seeds, fertilizer and irrigation. Likewise
changes to climate are also affecting agricultural production through
increased rainfall, droughts and heavy winds.
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The channels through which agri markets will be affected are on both the
demand and supply side.
There is no doubt that St Lucians farmers are capable of the hard work
needed to pull the economy into recovery. The increase in production are
shown over the past thirty years testify to their abilities. Over this period
the production of vegetables food and root crops, hot pepper and tree
crops has risen six fold. Similarly the country is experiencing which
production has risen sharply in less than a quarter of a century.
OPPORTUNITIES
The agricultural sector provides probably the best opportunity for our
country to ride out the Economic downturn and come out stronger
economically than ever before.
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export food to address the expected food shortages in some
countries of the world.
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• For development of sharper and even the development of a national
farmers organization that can further lobby government for
incentives, inputs and equipment etc.
CHALLENGES
• Producer uncertainly
• Regular farmers may not be able to meet loan payments and other
commitments over production and over supply possibilities. Eg.
access to cheaper poor value foods, high cost of production – not
reflected in price paid to farmers
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These include:
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In order farmers to increase on their scale of production:-
Need to provide further support to our farmers to provide them with very
improved technologies improved seeds and other low cost inputs
especially fertilizer and other high price inputs.
Form partnerships and alliances with all hotel and other entities on the
island. Call for a review of tax incentives provided to those entities
including clauses which will inform level of tax holiday and tied to the
purchase of local products as a major part of the agreement for receiving
Tax concession. Also methods and agreement for payment to these
farmers on a more timely basis. Create the environment for the hotel in
ensuring reliability of produce on a regular basis, the hotel should
consider a joint venture investment to ensure success for both parties.
(agri-Tourism linkages improved and increased).
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It will not have suffered the brunt economical and financial of the crisis
being presently experienced by development countries.
Government needs to put measures in place and ensure that the Labour
Code is swiftly put into law.
This measure will encourage and promote a more efficient labour force,
and ensure that our farmers will get a fair day work for a fair day pay.
Presently labour in the sector is about 3 hours per day this would mean
that by wage the farmer is entitled to pay for the amounts of hours
worked. Productivity in the sector will increase three fold.
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effective amidst and rising food prices, faced with the global Renewal
crisis and less shifted to other issues. Whilst some stimulus packages
introduce direct spending increases for agriculture and rural
development, the overwhelming is on other sectors. More needs to be
done to revitalize and revive agriculture emphasis.
CONCLUSION
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We strongly believe that agriculture is the only sector that will see the
economy through the world economic recession and we should all pull
our weights towards accelerating, through environmental climate change
incentives etc. The green revolution in St. Lucia we are coping and that
present minister of agriculture exemplifies and is a great support of our
vision as he shown the fortitude to deliver and his promises and support
to the agricultural sector this far.
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