Mr. Chairman, colleague minister, Mrs. Ffolkes- Abrahams, officials of JAMPRO, distinguished panelists, ladies and gentlemen – a pleasant good afternoon to you.
Let me begin by thanking the Jamaica promotions agency, JAMPRO, for their invitation and allowing me this opportunity to address this distinguished gathering on the tremendous opportunities and possiblities for producing for export.
Agriculture currently contributes 5.6% to the Jamaican economy and employs over 18% of the workforce. We believe that this can be doubled in short order with the right framework creating a new era of public/private sector partnership.
Overarching policy
The overarching policy of the government with respect to the agricultural sector is to grow agricultural gross domestic product (GDP) as it offers the greatest potential to grow our way out of the economic crisis. It has the capacity to employ more people than any other industry and investment in the sector also has the greatest multiplier and will not only contribute to growth but also to rural development and social stability.
Strategic framework
There are two overarching objectives of the ministry:
1. To feed ourselves– driven by our food and nutrition security policiy and contribute to the health and well being of the society. In that regard, we will maximise possibilities for import substitution – so long as we can competitively do so, and will endeavour to produce as much of the food we consume as is possible.
2. Expansion of exports – we will identify crops which have a disctinct competitive advantage in our key export markets shifting our focus from the Diaspora to the mainstream, capitalising on the high quality of the products Jamaica produces. We will not be able to compete on price due to a lack of scale, but our strategy will be to focus on the creation of value-added products derived from the crops identified, and position ourselves in the niche segments of the markets.
Whether for import substitution or export growth, the ministry of agriculture and fisheries will assess the entire value-chain of each of the crops or livestock chosen, analyse gaps, and make a determination in terms of what investments are necessary to close those gaps. If the gaps are of a public nature, the government will undertake to provide the resources to close those gaps (i.e. Research, land, regulation of trade policy, sanitarity and phyto-sanitary issues). But the private sector is expected to undertake the commercial risks in these ventures. One of the strenghs of the ministry is the capacity to mobilise farmers to produce the primary products, which can be guaranteed so long as markets are clearly established and contracts given to farmers.
We are working aggressively to boost local production in a number of traditional crops (banana, sugar, cocoa, and coffee) in addition to creating new opportunities in areas such as ginger, turmeric, sheep and pineapples to close the gap between imports and exports, create jobs and increase revenues for the island.
Going for growth
What we are essentially proposing is a strategic relationship with key investors in existing and emerging areas of the sector that pairs key government non-cash assets such as land and buildings, human resource, and policy support with private capital to achieve our goals of economic development in the short, medium and long-term. Let us examine a few such possibilities.
Ginger
Our ginger is the world’s best with its superior flavour and aroma (this has been scientifically proven!). We estimate that Jamaica’s potential market is in the range of 4-thousand 200mt of dried ginger. However,at present, the country fulfils only 10% of its unsolicited orders of 170mt ginger. This represents only 4% of our potential demand. The challenge that faced us in the past was the availability of disease free planting material; however due to tissue culture technology, this has been overcome. We are looking for partners to move aggressively with us to expand planting material availability and put more acreage in the ground and in shade houses to satisfy this demand.
Turmeric
Turmeric grows in many parts of Asia, Africa and the Americas, with India being the world’s largest producer, accounting for 80%-85% of global production and 60% of exports. Turmeric is used mainly in the food industry to add a distinct aroma, flavor and color to various preparations, and is almost always used in its powder form. It is also used in the pharmaceutical and cosmetic/personal care industries.
In Jamaica turmeric is an economically important spice; it is required in the agro-processing industry as well as the export and fresh markets. Jamaica consumes an estimated 179,653 kg of turmeric rhizome (curry) powder annually and can be produced island wide; however, the major producing parishes are Westmoreland and St. Elizabeth.
We believe that that there is a tremendous opportunity for the exportation of turmeric. Our exports increased significantly by 133.4% in 2009 moving from 28,891 kg in 2008 to 67,441 kg in 2009 with the main export destinations being the USA and Canada.
Yam
Yam is the largest non-traditional export with the United States accounting for approximately 75% of non-traditional exports. The cultivation of yams, which is primarly done by small-to-medium –size farmers, is a crucial source of income and economic livelihood for many thousands of rural Jamaicans. In 2011, the value of yam exports to the United States was over us$27.7 million dollars. We want to increase production especially using the mini-set technology and tap into value opportunities such as vacuum packed sliced yams. Again we believe we are merely scratching the surface in this subsector as this industry has tremendous earning potential and value added possibilities.
Pineapple
Traditionally, the ministry of agriculture has supported manufacturers by permitting imports of raw materials that we were not producing at that time. This was the case for pineapple with average imports in excess of j$200 million dollars per year. We have introduced a new variety that is much more productive than existing varieties and more conducive to value added propositions and we are seeking private investors to expand production and develop processing plants to produce concentrates and purees. I wish to make it clear that once there is local production, the government’s policy is to set a framework that will strengthen local market access thereby creating a more sustainable platform upon which agriculture can thrive. We have the land, we have the research infrastructure and we are ready to work with you.
Sheep
The demand for mutton/lamb locally is significantly greater than what can be currently supplied. In 2010 local production was 8,815kg which increased from 6,987kg in 2006. However, when compared to imports in 2010 of 2,462,068kg Jamaica is only producing 0.34% of demand. A more worrying trend is that while the volume of imports fell between 2006 from 4,842 metric tons to 2,462 metric tons in 2010, the value of imports dramatically increased from j$763,690,610 to J$967,348,872 in 2010. Products are imported from as far away as Australia and New Zealand.
Total imports of mutton/lamb over the five (5) year period 2006 and 2010 stood at 21,268 metric tons valued at j$4.1 billion. Mutton imports have averaged approximately 4,300 metric tons per annum for the period 2006 – 2010. Local production attained its highest ever volume of 21 metric tons in 2008 which fell to a low of 8.8 metric tons in 2010. This trend suggests, based on annual averages, that the additional market to be captured by domestic suppliers is in the range of 4,000 metric tons per year for mutton and lamb.
Ladies and gentlemen these are but some examples of the possibilities that exist through which the sector can be diversified in order to improve its competitive advantage. The government of Jamaica is willing to work with you and support you in whatever way we can. Money is limited but whatever assets we have at our disposal we are prepared to use in partnership with you to convert many of these opportunities into revenue for the country, profits for you, employment for the people and development of our rural communities.
I thank you.