Guyana Focus
agro-processing needed
Guyana imports a staggering $10.9 billion in snack foods, highlighting the shortcomings of its agro-processing sector and the population’s love for foreign foods.
This startling statistic was disclosed last month by Agriculture Minister Noel Holder who lamented the failure of the agro-processing industry to take advantage of the country’s enormous capabilities in food processing.
According to the Minister of Agriculture, the country, for instance, imports about $1 billion in juices, over a quarter billion dollars in peanut butter, and about $40 million in jams and jellies – products which can be produced locally, using readily available raw materials.
The truth is, the sector has experienced limited success in recent years but continues to face substantial challenges.
For it to succeed, there is need for strategic policy intervention – not just soft political commitment. Such intervention should include but not be limited to the imposition of import and tariff controls; the removal of the barriers to growth of the sector; better resource allocation; and raising awareness of the value of locally produced foods through education.
In fact, agro-processing has been the subject of exhaustive discussions and political pronouncements by various governments – past and present – for decades. They have long recognized the country’s potential in this area, given Guyana’s enviable status in the region as having the greatest potential in food production, combined with the fact that its geographic land mass is greater than all of the Caribbean countries combined.
However, aside from the challenges of developing a feasible agro-processing sector that have evolved over time, political motivations have always superseded business motivations, leading to the failure of the sector to take-off. The country should focus on foods in which it has comparative and competitive advantages, instead of introducing new crops in which it has no real experience or advantage, or can produce on a competitive scale.
In as much as the underlying motivations of politicians might be based on real potential, the failure to put credible measures in place to develop the sector has amounted to no more than wishful, instead of strategic commitment. A well-defined plan with realistic goals, taking into consideration the capabilities and resource needs of the sector, has never been developed.
Rather, ad hoc projects have periodically made headlines but have not necessarily attained the desired level of scale, and consequently success, primarily because of inadequate planning and resource allocation. As well, there has been weak integration of implementation efforts, resulting in sporadic ventures that have attained limited success.
Over the past few years, the private sector, led by the Guyana Manufacturing and Services Association (GMSA), has been leading the charge to develop agro-processing, in collaboration with the government.
The GMSA has held several exhibitions and trade fairs which brought together companies in the agriculture and agro-processing fields, focusing on marketing and sale of local products; and attracted buyers from Latin America, North America and the Caribbean.
While the GMSA’s plans to develop the agro-processing sector has garnered government support, including the development of a modular processing plant, many challenges still remain.
First, 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 are to be fulfilled. Failure to fulfill orders would lead to a loss of markets and a lack of confidence in the industry.
History shows that 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 fulfill contractual supply arrangements.
While a proposed modular plant can process different types of products, it would not operate efficiently if inputs for processing are insufficient to meet capacity needs. The GMSA also needs to conduct a feasibility study to determine the location of a modular processing plant and whether a single multi-purpose plant will ensure the viability of agro-processing.
It would also be necessary to improve co-ordination of farm-to-factory supply and establish a formal mechanism to ensure that processes put in place actually work. It is easy to argue that such mechanism, like the Guyana Marketing Corporation already exists but whether it works effectively remains questionable.
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 are being put in place, it is also 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. Evidently, Guyanese have a preference for foreign goods, which ultimately limits the expansion of domestic industries.
Market penetration must be supported by marketing, branding, and packaging initiatives; as well as education about the virtues of locally manufactured goods. Pricing of processed goods must also be competitive to gain market share and attract local as well as foreign buyers.
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.
For local products to replace imported products such as snack foods, agro-processing must focus on creating substitute products that meet the demand of consumers.
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 companies in the sector also face a range of other challenges, including the scarcity of capital, and where available, the high cost of financing; high electricity costs, combined with unreliable supply; and exorbitant freight costs, which are higher because of smaller quantities being shipped.
Guyana’s on-off focus on agro-processing over the past 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.
It goes without saying that the 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.
– TRPI poll
According to what respondents of the survey have indicated, if an election were to be called today with Mr. Ali as the PPP Presidential nominee, the coalition is likely to prevail, forming the government with a plurality or the largest bloc of voters with minor parties making a good showing.
However, with either Dr Anthony or Nandlall as the PPP Presidential nominee, the PPP would command majority support defeating the coalition with the minor parties seeing their support diminished.
On candidate selection and political strategy, many respondents commented that the PPP is doing a repeat of 2011 and 2015 and expect different results with a majority saying PPP is going down to defeat because of stubbornness.
Significant numbers of voters express disenchantment with APNU, PPP, and AFC. These are some of the major findings of the poll conducted in late August by the TRPI.
The latest TRPI survey was conducted under the supervision of Dr. Kirk Meighoo, former lecturer at University of West Indies, where he taught Research Methods, Development, and Political Sociology, among other subjects. Dr. Meighoo, who has been among the top half-percent of academics searched on academia.edu, is a leading political analyst in Trinidad and Tobago and hosts a weekly global podcast on political movements around the world.
The poll randomly interviewed respondents using the face-to-face contact method and stratified sampling, utilizing a dozen interviewers. Some 1400 individuals were interviewed to represent the varied demographics of the population (39% Indians, 30% Africans, 20% Mixed, 10% Amerindians, 1% other ethnic groups). The data was analyzed at a 95% confidence level which is standard in social science research. Polls at this level have a margin of error of 4%.
The survey queried voters on varied issues. Asked to rate the performance of the government, 9% said excellent, 17% said good, 13% offered a neutral rating, 57% said poor or very poor and 4% offered no comment.
Asked if they think GECOM should adhere to the CCJ ruling and prepare for timely elections, 63% said yes with 29% saying no and 8% not providing a response.
And when asked if they think elections will be free and fair, only 37% said yes.
Queried who they think would be the strongest candidate for President for the PPP, Dr Anthony leads with 34%, closely followed by Nandlall at 33%, Ali at 17%, others and no response, 16%. Many said they were surprised that Ali was chosen as the Presidential candidate given his unpopularity among the population when he was Minister of Housing with varied allegations leveled against him including fake educational certificate.
Respondents feel that rather than directing Central Committee members who to vote for, the PPP should have held an internal election among supporters or among delegates to democratically select the nominee.
Asked if they support the choice of Ali as PPP Presidential candidate or prefer someone else, 16% support Ali with 81% saying someone else and 3% not offering a response.
Asked if they think Anil Nandlall is a better choice than Irfaan Irfan Ali as PPP Presidential candidate, 73% said yes with 19% saying no, and 8% not offering a response.
Asked if they think Dr Frank Anthony is a better choice than Irfaan Ali as PPP Presidential candidate, 74% said yes with 17% saying no, and 9% not offering an opinion.
If an election were called now with Irfaan Ali as the PPP Presidential candidate, 45% said they will vote for APNU+AFC coalition, 43% PPP, 8% for the minor parties, and 4% undecided.
However, if Nandlall were the PPP Presidential candidate, PPP gains 8% support leading the coalition 51% to 45% with support for the minor parties dropping to 2% and 2% undecided.
If Dr. Frank Anthony were PPP Presidential candidate, PPP gains 10% leading the coalition 53% to 44% with 2% for the minor parties, and 1% undecided.
Some 59% of the population feel all the opposition forces should come together to guarantee a victory against the coalition. Some voters would like to see all the minor parties come together to contest against the two major forces. Some respondents say they would like a new political figure of integrity like Mr. Lenox Shuman (of LJP) lead a united opposition and be given a chance to govern the country since others heretofore failed the nation.
“I am prepared to give up my position as a possible Member of Parliament and Minister of Government after the 2020 General & Regional Elections in the interest of all Guyanese as I see it as the greatest service and sacrifice that I can give for the greater good of Guyana,” Sharma, the junior Minister of Public Infrastructure, wrote in a post on his Facebook.
“I am convinced that WE MUST GO INTO THE GENERAL & REGIONAL ELECTIONS AS A UNIFIED COALITION BECAUSE: WE ARE BETTER TOGETHER. WE ARE STRONGER TOGETHER. This is a tough time in politics and the tough must get going to make the tough decisions necessary to win,” he added.
Sharma’s comments appeared to be a response to the AFC saying on Friday that the party is prepared to campaign alone if a new accord is not agreed by Monday.
The AFC has also said that it will launch its elections campaign on November 23rd, with or without APNU. “This deadline can no longer be extended,” the parrty had said.
“AFC is ready. We desire a partnership with the APNU. It is the preferred way to go in these elections but we are battle ready and with or without our partners, we are ready to go and all of our plans are in place,” the party’s Deputy General Secretary Leonard Craig had said.
The AFC, which had declared the negotiations stalled last month, in a statement, explained that discussions between the parties resumed after October 24th, with several productive high-level meetings between the leaders of the AFC and APNU, as well as between the two negotiating teams.
The AFC had indicated several deadlines over the past week for the talks on a new electoral pact to wrap up: November 10th, 14th and November 18.
Asked if there had been a meeting with A Partnership for National Unity (APNU), Patterson said “no comment.”
Asked what actions his party would take next, Patterson said “no comment”.
Asked if the party would be issuing a statement, Patterson again said “no comment.”
He, however, indicated that a press conference is scheduled for later this week.
Meanwhile, the Executive Committee of APNU issued a statement in which it explained that a meeting of all the parties that make up the Partnership was held Monday. At the meeting, representatives of the Guyana Action Party (GAP), the Justice For All Party (JFAP), the National Front Alliance (NFA), the People’s National Congress Reform (PNCR) and the Working People’s Alliance (WPA), with President David Granger sitting as chair, were briefed by APNU’s negotiating team.
According to the statement, the partners examined several proposals and agreed on a post-election formula for the allocation of seats.
They also recommended an approach for the continuation of negotiations with the AFC in accordance with the core principles already agreed.
“The Partners further agreed and recommended that the Constitution of the Cooperative Republic of Guyana will guide all future discussions,” the statement added before concluding that APNU remains committed to ending “winner-take-all” politics in Guyana and to contesting the 2020 elections as a coalition.
It is not clear which of the coalition partners cancelled Monday’s meeting but it is the AFC which had established November 18th as the final deadline.
“This deadline can no longer be extended,” the junior coalition partner had said in a statement on Friday.
APNU’s chief negotiator Volda Lawrence told a press conference held at Congress Place on the same day that, “We believe that we will able to conclude all negotiations and all our agenda items by the end of this year as we are working towards.”
AFC officials told a press conference at its Kitty Headquarters last Friday that the party would launch its elections campaign on November 23rd with or without APNU.
“AFC is ready. We desire a partnership with the APNU. It is the preferred way to go in these elections but we are battle ready and with or without our partners, we are ready to go and all of our plans are in place,” Deputy General Secretary Leonard Craig said.
Craig further explained that the outstanding issue is “a formula for the awarding of ministerial positions and seats on the Regional Democratic Councils.”
Notably, the party, which had previously halted negotiations over APNU’s reluctance to accept AFC leader Khemraj Ramjattan as the PM candidate, would neither confirm nor deny that this aspect of the accord has been finalised.
The AFC, which had declared the negotiations stalled last month, in a statement, explained that discussions between the parties resumed after October 24th, with several productive high-level meetings between the leaders of the AFC and APNU, as well as between the two negotiating teams.
President Granger and Ramjattan had met following this suspension of talks and apparently reached a compromise.
Stabroek News reported sources saying that part of that compromise was a commitment from the AFC that its prime ministerial candidate would not rise to the presidency.
workers as hinterland gold mining
operations is halted
A memorandum issued from Managing Director and Chief Executive Officer Ken Nilsson said the board has decided that all personnel currently stood down will be terminated as from this week. “This decision was made with reluctance…,” Nilsson said, while noting that the company will assist employees by providing a termination pay out, which is expected to be paid by November 22nd.
“It is expected that Troy will go back to re-hiring employees as needed for a start up in the near future and Troy hopes most current employees will be available and willing to return to work,” Nilsson added.
In September, the company had 450 employees. It suspended more than 300 on October 15th, while keeping 137 on for exploratory operations. Under local laws, a company is permitted to stand down the workforce without pay for up to six weeks by invoking force majeure, which Troy has done, but those six weeks would have ended next Monday.
According to the memo, the lack of income over the last six weeks has “clearly damaged the company,” which is looking to “secure financial support” as a return to profitability is paramount.
Operations at the company came to a halt after it was issued with a cease order on October 10th by Minister in the Ministry of Social Protection with responsibility for Labour Keith Scott following the death of geologist Ryan Taylor.
Taylor died on October 8th while working on the construction of a “bench” in a mining pit. A slippage occurred, which led to him falling and being covered by the rubble. The report on that death has not yet been concluded by the government and the company has said that while it has done its own, it will await the government’s findings.
On October 15th, Minister of Social Protection Amna Ally rescinded the order but Troy suspended operations after what it said was the knee-jerk reaction by Scott.
In a statement on the same day, the company had said that the cease order came as a surprise since the ban included all mining areas rather than isolating the area where the incident occurred.
Nilsson said that to get back to all stages of operations would require input of “about ideally US$5 million but we work with about US$4 million per month.”
However, he explained that it was not sustainable and a plan had to be worked out to look at the business interests of the company, lest it starts falling into deficits and becomes unsustainable for future operations. According to him, while the cease order did not help matters, the company had been struggling for months.
Nilsson said that a local group here has seen it being put under pressure. “The problem is we have had a lot of pressure on Troy from certain interest groups that had been attacking from every conceivable quarter, and that is as much I would like to say. That put us under a lot of pressure and they also have a lot of good connections within government,” he said.
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