GEORGETOWN, Guyana – Guyana’s President Irfaan Ali Friday underscored the importance of research and development in the agricultural sector, noting that the region also lacks data when seeking to implement important projects in the sector.
President Irfaan Ali addressing launch of insurance initiative for regional farmers (CMC Photo)Addressing the launch of the Regional Economical Agri-Insurance Programme (REAP) aimed at providing agricultural insurance for farmers in the region, Ali, who has lead responsibility for agriculture and food security in the 15-member Caribbean Community (CARICOM) grouping, said that decisions were also taken without the necessary data.
He told the gathering that sustainability and resilience must bring into account research and development, noting “for too long we have made decisions without data, we have made decisions without having the right research…and looking at the best utilisation of land, best utilisation of our waters.
‘Research and development is a critical part of this whole infrastructure and eco system that supports sustainability and resilience,” he said, adding that with the assistance of the Food and Agriculture Organization (FAO) and the Inter American Institute for Cooperation on Agriculture (IICA) as well as the United States Agency for International Development (USAID), “we are working out on building out this research and development capability”.
He said this would support decision making, support policy making and most importantly support the viability of product and plants.
‘If we can bank a business plan with good research data we make it easier for the farmers to have access to the banking sector ,” Ali said, recalling that nearly three years ago “we said we would work with the banks and a facility to support farmers for a US$100 million.
“At the time, when we went backwards, there was not a single mega project or a single business plan ready for financing from the entire private sector in the region.
‘So we started working on grains for example in Guyana and now we have a project that is fully financed, we have competition to get into the grains and production market…we are building our own storage facility …and by the end of 2025 we would save tens of millions of US dollars”.
He is also prediction a significant reduction in the importation of grains “and forward integrate that into regional food security on meat and poultry.
“We have even gone a step further because of the successes of that we are looking at establishing the food mill for agriculture, not for Guyana, but to support the region and this will bring down the cost of feed for agriculture by almost 50 per cent.
‘So this is the type of integration and investment that takes a bit of time, but justifies to the banking system, the practicality and viability of agro- business and agro- investment,” Ali said.
He said another example of such initiatives involves the consumption of black eye beans and red beans in the region.
‘ I was shocked at the volume of black eye and red beans we are importing in the region and we are setting ourselves a basic target and we are now in a position that by the first quarter of next year…we will produce all our black eye and red beans that is required here in Guyana and …by the end of 2026, corn, soya, black eye and read beans will be fully sustainable in the whole CARICOM region”.
He said the next vertical for Guyana and the Caribbean would be hatching eggs with the emphasis being on moving from a position of importing all the hatching eggs.
He said while there are a number of things to be done, importantly it is to own the idea with the motive being to be able to produce all the hatching eggs Guyana needs within a three year period, taking control of the regional market a year later.
The REAP offers insurance products that provide direct payouts to cover production costs and business interruptions. REAP’s objective is to ensure financial resilience, bolster food security, and promote healthier dietary habits across the region, which align with the key deliverables of the CARICOM’s Special Ministerial Task Force on Food Production and Food Security.”
The initiative was launched by the Barbados-based Lynch Caribbean Brokers and Ali said it was important for regional countries to support the initiative with research and development, availability data so as to reduce the cost of the instrument.
“Because if the cost of the instrument is prohibitive then we are just marking time. So it is a collaborative effort that is needed to ensure that the pricing of the instrument is in keeping with the affordability of the system.”
He said it was also critical to decide upon incentivise lending to farmers and also the capitalisation of agriculture.
“This is important, if you say the average corporate tax….on profit from the financial system is 20, 25 per cent and if you say you lend to the agricultural sector, those profits from those loans, are tax free, then it is an incentive you are looking at.
“So we have to look at how we incentivize the system to support the building of capital and the capitalization of the food and agricultural sector,” Ali told the ceremony.
