Long-considered a viable business opportunity in Guyana, green shoots are finally beginning to appear in the country’s agro-processing sector. The potential for these shoots to flourish is high, given Guyana’s regional comparative advantage in agriculture.
But it will take well-coordinated and substantial investments in agriculture and agro-processing infrastructure to nourish these shoots to grow beyond small-scale and mom-and-pop ventures, which currently dominate the country’s agro-processing landscape.

As well, government incentives, a business friendly economic environment, and greater political certainty would act as “fertilizer” for the shoots to grow up. Greater support for the agriculture sector, without political motivations, is also necessary, with or without the impending influx of oil revenues, which will disrupt the structure of the economy.
Traditionally, agriculture has been the backbone of the economy, and up until the end of last year remained the largest contributor to GDP growth, in spite of the rising importance of mining. Without a doubt, oil will displace agriculture as the leading productive sector next year, but the sector’s relative importance to the economy in terms of employment and sustenance for a major segment of the population will remain.
Yet agriculture has been subject to the machinations of various governments, resulting in gyrating budgetary support and consequently fluctuating production patterns. For agro-processing to be successful, a long-term political commitment is essential, or many existing businesses in the segment will go the way of the dodo bird, or like the failed orange juice and tomato processing facilities, to name a couple.
The truth is, agro-processing has been the subject of exhaustive discussions and political pronouncements from various governments – past and present – which recognized the country’s potential in this area. However, aside from the challenges of developing a feasible agro-processing sector, political motivations have always superseded business motivations, leading to the failure of the sector to take-off.
Inasmuch as the underlying motivations of politicians might have been based on real potential, the failure to put credible measures in place to develop the sector amounted to no more than cheap, instead of strategic commitment. A well-defined plan with realistic goals, taking into consideration the capabilities and resource needs of the sector, has never materialized.
Rather, ad hoc projects made headlines only to become white elephants primarily because of inadequate planning and resource allocation. As well, there has been weak integration of implementation efforts, resulting in sporadic ventures that engendered limited success.
But the prospects of the sector appear to be heading for the better. Over the past few years, it would seem that the private sector, led by the Guyana Manufacturing and Services Association, has been leading the charge to develop agro-processing, with some government support.
In recent years, a number of events showcasing the country’s potential and products brought together domestic as well as foreign companies in the agriculture and agro-processing fields, focusing on the marketing and sale of local products. Although the sector is well-positioned for take-off, many challenges still remain.
The production of commodities for processing must achieve economies of scale, combined with consistent output, to ensure a steady flow of finished goods to meet market demand. This is especially important if orders from buyers cannot be fulfilled. Failure to fulfill orders on-demand would lead to a loss of markets and a lack of confidence in the industry.
History shows that the production of agriculture crops has been sporadic due to the vagaries of weather and diseases. This trend would have a negative impact on processing output and the inability to fulfil contractual arrangements.
While agro-processing technology is evolving, the use of modular plants to process different types of products on a smaller scale would be useful. However, these plants would not operate efficiently if inputs for processing are insufficient to meet capacity needs.
It is also necessary to conduct a feasibility study to determine the location of processing plants and whether single or multi-purpose plants will facilitate greater efficiency in agro-processing.
Improved co-ordination of farm-to-factory supply and the establishment of a formal mechanism would ensure that processes put in place actually work. Arguably, mechanisms such as the Guyana Marketing Corporation do exist but whether they work effectively remains questionable. The question of how farmers would get their produce to a single plant needs thorough examination.
Another area that needs to be addressed is the transportation and storage of perishable crops destined for processing. This gives rise to the need to establish adequate facilities such as storage, refrigeration and transportation to support farm to factory processing activities.
Although it appears that quality control measures for processed goods have been put in place, it is necessary to implement measures for standardization of quality, especially for the export market.
If the local market for processed agricultural goods is to grow, the government must show its commitment by implementing tariffs and quotas on imported substitutes for local goods. Guyanese have a preference for foreign goods which ultimately limits the expansion of domestic industries. If agro-processing is not given some form of protection to develop as part of a feasible business strategy, the sector will not prosper.
Market penetration must be supported by marketing and branding initiatives and education about the virtues of locally manufactured goods. Pricing of processed goods must also be competitive to gain market share.
At a more macro-level, Guyanese have a knack for focusing on the cultivation of crops in which it has neither a comparative nor a competitive advantage. Therefore, the government must guide the cultivation of crops for processing in which the country has a clear competitive advantage. Such strategy would also be beneficial because the sector would be able to maximize the use of its existing skills in the production of established crops for processing.
The government also needs to assist with the acquisition of appropriate technology to support agro-processing, as well as seek technical assistance through international donor agencies to assist with the development of the sector. While it should leave implementation of an agro-processing strategy in the hands of the private sector, it should not take a hands-off approach.
But in the case of agro-processing, the private sector should not expect to be spoon-fed by the government in developing its initiatives. It should also take responsibility for ensuring the viability of its business initiatives and for the success of the sector.
Guyana’s on-off focus on agro-processing over the past four decades has not benefitted from the level of government commitment required to support its growth. Past experience shows that there has been weak integration of implementation efforts in the absence of a strategic plan. But this can change with the renewed co-operation of the government.
Agro-processing has tremendous potential in Guyana. As the Caribbean’s largest food producing country, its food import bill is way too high, given the country’s capability. Developing the sector will reduce the country’s vulnerability to its traditional industries, create jobs, improve its trade balance and enhance its overall development prospects.

Georgetown – Acting Chief Justice Roxane George-Wiltshire SC is expected to make a ruling next Wednesday on the challenge by Christopher Ram to the ongoing house-to-house registration exercise.
The judge is also expected to rule on the application filed by the Guyana Elections Commission (GECOM) for her to recuse herself from hearing Ram’s challenge as well as the application made by Attorney General Basil Williams, who has asked that Ram’s challenge to house-to-house registration be struck out.
Justice George-Wiltshire on Monday heard submissions from Williams, Solicitor-General Nigel Hawke, Ram’s attorney Anil Nandlall, and attorney Sanjeev Datadin on behalf of the Guyana Bar Association, which appears amicus in the proceedings.
Subsequently, Justice George-Wiltshire adjourned the matter until August 14th when a ruling is expected to be made.
Ram, an attorney, chartered accountant and political commentator, is of the view that the house-to-house registration exercise is being undertaken in violation of the Constitution.
In his fixed date application, Ram’s attorneys asked the court to declare that the registration exercise is in violation of the letter and spirit of the Constitution and the judgment and consequential orders made by Caribbean Court of Justice CCJ) in the consolidated cases stemming from the passage of a no-confidence motion against government last December.
The application argues that since passage of the motion against the David Granger-led administration, neither the Cabinet nor President has resigned; nor has the Head of State issued a proclamation dissolving the National Assembly or fix a date for elections to be held within the three months as is stipulated by Article 106 of the Constitution.
While it has been government’s position that the exercise is an important prerequisite to the holding of credible elections, both Ram and the opposition PPP/C say it would be in contravention of the Constitution.
GECOM has said that while it is undertaking the registration exercise, concurrent operational activities for the preparation of general and regional elections are also underway.
Senior Counsel Stanley Marcus, in an application on behalf of GECOM, requested that the Chief Justice recuse herself from hearing the challenge on the basis that Justice George-Wiltshire had previously issued a press release that allegedly contained “certain statements which raise the likelihood of bias” on her part.
It is Marcus’ contention that the Chief Justice’s pronouncement of her interpretation of the CCJ ruling being that elections should be held no later than September 18th, 2019 – three months from June 18th, when the court would have rendered its ruling – amounts to bias.
Meanwhile, Williams argues that Ram’s challenge amounts to an abuse of process as he claims that the issues complained of have already been dealt with by the CCJ. He has advanced that in accordance with the principle of res judicata, the matter has already been finally settled by judicial decision and is not subject to further appeal. As a result, he has requested that Ram’s application be struck out.

Georgetown – Newly-appointed Chair of the Guyana Elections Commission (GECOM) retired Justice Claudette Singh will preside over her first meeting of the commission on August 15, one day after the acting Chief Justice, Roxane George provides a ruling on a challenge to the House-to-House registration exercise underway.
Stabroek News reports being informed that the six other members of the commission were on Monday invited to a meeting with Singh; the agenda of which lists only one substantial item: the way forward in holding General and Regional Elections.
Singh who was appointed on July 29 spent her first full day of work on July 30 being familiarized with the operation of the commission and met separately with both sides of the commission on July 31. She met with the opposition-nominated commissioners for 90 minutes at GECOM’s headquarters in Kingston and with the government-nominated commissioners for three hours.
After the meeting, opposition commissioners Bibi Shadick and Robeson Benn were hesitant to pronounce on the matters that were discussed and only related that they had a “very cordial and informative meeting.”
Commissioner Sase Gunraj added that the issues that were discussed were “all matters that are in the public domain and in relation to the conduct of elections that are constitutionally due.”
He noted that Singh appeared very receptive and respectful to the views that they presented to her adding that he believed her reaction was influenced by her long judicial service. Consequently according to Gunraj commissioners are looking forward to meaningful deliberations with all sides present.
The government-appointed commissioners also emphasized that the meeting was cordial. Vincent Alexander told reporters that everything possible was raised.
Singh has remained media silent on her plans for the commission but has previously indicated that the constitution would be her guide. While stressing that she does not believe in “walking out” the retired Judge told reporters at her appointment ceremony that she believed in inclusivity.
“I will speak with everybody. I do not believe in people walking out when there is a disagreement. I believe in sitting down and hammering out the problems, not the media will solve our problems, we will have to,” she said.
The most recent meetings of the Commission, following the passage of the December 21st no-confidence motion against government and immediately prior to the resignation of the former Chairman, were each cut short when the opposition-nominated commissioners walked out in protest at the commission’s failure to begin preparation for general and regional elections. These contentious interactions form part of the two main challenges facing the new chair as she will have to immediately address how to handle the CCJ edict that Article 106 (6) of the constitution requires general elections in three months from June 18th, 2019. The new Chairman will also have to preside over a deeply divided GECOM on the question of whether controversial house-to-house registration for a new national register should be halted.

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