Budget Presentation 2013 Ministry of Agriculture and Fisheries Hon - - PDF document

Budget Presentation 2013 Ministry of Agriculture and Fisheries

Hon Roger Clarke, MP Grow Agriculture – Grow Jamaica

Salutations

• Mr. Speaker, it is my pleasure today, to stand again in this Honourable House and to account in

this Debate, to the people of Jamaica for my stewardship of the Ministry of Agriculture & Fisheries. As I do so, I greet and acknowledge the support of all stakeholders in this vital sector of the economy. Let me specially acknowledge :

• my colleague Ministers and fellow Parliamentarians
• the staff at the Ministry of Agriculture and Fisheries
• our local and international partners
• farmers’ organisations
• my constituents
• and, by no means least, my family.

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• Mr. Speaker, I stand here today a happy man- giving God thanks for the rains that have come

.The drought is broken. It is the season for planting and a time for growth. Isn’t this a blessed country? We thank God for his abundant blessings and we stand ready to grasp every

• pportunity to grow agriculture and so to play our part in growing Jamaica. I am passionately

committed to the growth and development of this nation. I believe that if we continue to grow Agriculture, we will grow Jamaica. As a servant of the people, I am accountable to the people of this country, and I therefore intend to begin my presentation with an account of my stewardship over the last sixteen months.

• Mr. Speaker, I would not characterize myself as a thin-skinned person, but I believe I have an
• bligation to respond to my critics. The truth is that, save and exceptthe Prime Minister, no
• ther Minister has endured in the last sixteen months the level of sustained criticism that I
• have. This has ranged from my being labelled old and irrelevant, to having abandoned

programmes set up by the previous administration and removing public servants from office. I do not intend to descend into a quarrel; I will just put my record on the table and let the people

• f Jamaica judge.

I came to the Ministry of Agriculture & Fisheries on the afternoon of January 6, 2012. I came alone, without a battery of consultants and relying solely on the expertise and collective wisdom of the existing cadre of employees. I certainly have not removed anyone. Some, however, who have not demonstrated the competence and the commitment to work in support of the objectives we have set, have been separated by their respective boards and with

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due process. Others have left voluntarily to pursue their personal interests. After sixteen months, I still do not have one single consultant, or one single advisor.

• Mr. Speaker, while as a Government we listen to the suggestions and proposals of all, I am

constrained to point out that this Government was elected on the basis of clear manifesto

• commitments. I have enthusiastically embraced any suggestion, any programme initiated by

the former regime that makes sense and that enures to the development of the sector. However, I am continually rebuked for not having continued programmes started by the previous administration. I was elected with a mandate and with a programme for the development of the sector, and I will execute that programme despite the criticism. I will and I have in fact continued any programme that I inherited which makes sense. What are the facts? Irish Potato

• Mr. Speaker, this country consumes some 15 million kilograms (33 million pounds) of table

(Irish) potato per annum. Although we have the capacity to produce all of this locally, we have relied heavily on imports over the years. In 2007, we produced only 42 % of our consumption. This went down to 32 % in 2008. I commend the former Administration for having taken the initiative to reverse this trend by implementing a special programme to boost Irish potato production in 2009. This resulted in the contribution of local production moving from 51 % in 2009 to 76 % in 2011.

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• Mr. Speaker, this programme made every sense to me when I assumed office.Since then, I have

provided critical extension support to Irish potato farmers and funding support to RADA to participate in the purchasing and storage of the excess production at the peak of the crop. This resulted in our self-sufficiency moving upto 79 % in 2012. Towards the end of 2012, I personally met with importers of Irish potato as well as the farmers in the Guy’s Hill area in a deliberate attempt to sustain or even exceed the production levels. This was against the background of Hurricane Sandy in October and the accompanying rainfall that restricted the planting season. Given the impact of the hurricane and the accompanying rainfall, the Ministry provided $10 million to the Guy’s Hill area farmers to acquire inputs. A further $50 million was also allocated to the farmers in the Christiana area. Therefore, for 2013 we are projecting about the same level of production despite the hurricane and prolonged rains that affected Guy’s Hill and the prevailing drought impacting the Christiana area. Where then, Mr. Speaker is the evidence of abandonment? Ginger/Turmeric

• Mr. Speaker, when I came to the Ministry I heard talks of accelerating ginger and turmeric

production, against the background of the undisputed high quality of Jamaica’s ginger and

• turmeric. In fact, our manifesto identified this sector as a strategic area of focus. Therefore

when I came I sought immediately to put plans in place to accelerate production. We established some 171 hectares (422 acres) of production yielding 4,600 tonnes of ginger, and

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111 hectares (275 acres) of turmeric yielding 900 tonnes. This was supported by J$39 million from the Ministry to provide disease-free planting materials and other critical inputs to farmers. Picture 1 The content of curcumin inJamaican turmeric is over three times that contained in imported

• turmeric. This essential ingredient has many cancer-fighting properties among other health

benefits

• Mr. Speaker, not only have we embraced the increased production of ginger and turmeric, but

indeed in this financial year, we will put in an additional 202hectares (500 acres) under our programme, in addition to some 81 hectares (200 acres) to be undertaken by other farmers

• independently. We will also establish 2 hectares (five acres) of shade-houses to produce some

193 tonnes of disease-free ginger planting material to ensure continued expansion into next year.

• Mr. Speaker, where is the abandonment?

Import/ Export Performance

• Mr. Speaker, one of the criticisms levied at me is the “flooding” of the country with imports.

What are the facts?

• Mr. Speaker, last year the import bill moved to US$959 million from US$938 million in 2011

representing a 2 % increase. This marginal increase in value is clearly attributable to increases

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in the prices of imported food due to increased world food prices, and particularly the price of cereals which constitute the bulk of our imports. It should be noted that some of the corn imported is used to manufacture animal feed which is then exported throughout the Caribbean. Animal feed exports, for instance, increased from 13.3 million kg in 2011 to 20.1 million kg in 2012. The fact is that the Food and Agriculture Organisation (FAO) reports a seven percent increase in the average world price of cereals last year. Indeed, Mr. Speaker, if one examines Jamaica’s food import bill without including cereals, then one would realise that there was a significant decline in other food imports. We recorded declining import figures for a number of critical imported items; for example, imports of Irish potato decreased in both volume and value by 9.9 %and 15.1% respectively. The same is true for pork, tomato, cucumber, cabbage, cantaloupe, sweet pepper, carrots,

• nion, watermelon, cauliflower, celery, and lettuce.
• Mr. Speaker, correspondingly, the local production of those very items increased. For instance,

in the ten year period 2003 – 2012 the following products attained their highest levels of production: cucumber, pak-choi, pumpkin, escallion, ginger, onion, hot pepper, sweet pepper, cantaloupe, watermelon, corn, Irishpotato, and sweet potato

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Production for Selected Crops2003 vs. 2012 Item Production (kg) 2003 2012 % Change Cucumber 16,134,000 16,617,400 3 Pak Choi 7,022,000 12,453,800 77.4 Pumpkin 39,103,000 52,170,300 33.4 Escallion 8,648,000 14,142,400 63.5 Ginger 402,000 1,081,600 169.1 Onion 602,000 1,088,200 80.8 Hot Pepper 5,595,000 14,263,100 154.9 Sweet Pepper 9,226,000 15,154,500 64.3 Cantaloupe 3,243,300 100 Watermelon 22,799,000 15,568,800

• 31.7

Corn 2,029,000 2,821,200 39 Irish Potato 6,710,000 15,395,800 129.4 Sweet Potato 23,595,000 42,164,700 78.7 Source: Ministry of Agriculture & Fisheries

• Mr. Speaker, while imports increased marginally in value, food exports moved up from US$224

million in 2011 to US$274 million last year. That is an increase of 22.3 %.

• Mr. Speaker, we are obviously moving in the right direction, to grow Jamaica by growing

agriculture. I would wish to highlight Mr. Speaker, in particular, the export of such food items as sweet potato, yams, pumpkin, ackee, meat products, animal feed, paw-paw and sauces. The export value of paw-paw and sauces, for instance, increased by more than 100 % during 2011-2013. Under my leadership, I am determined that this trend will continue.

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Irrigation

• Mr. Speaker, the National Irrigation Development Programme (NIDP) was formulated under our

watch in 1998. We oversaw the implementation of the first three projects under that programme to bring irrigation water for the first time to the Pedro Plains in 2007 at a cost of US$12 million. We negotiated, in our previous term, a loan of US$21.06 million from the IDB to implement the second phase of the NIDP, consisting of projects in Colbeck, New Forest/Duff House and Yallahs. When I left office, these projects were being implemented. I came back to find the entire implementation riddled with a myriad of problems. We have sorted out those problems and delivered in March, a brand new system in New Forest/ Duff House at a cost of over $500

• million. As we speak, production is booming, and this area will be the site of one of our agro-

parks towhich I will speak later. In a few weeks the Honourable Prime Minister and I will journey to Yallahs to commission into

• peration that scheme, completed at a cost of $216 million. Yallahs will also be the site of

another agro-park. As we speak, The National Irrigation Commission (NIC) is also rehabilitating 8,000metres of irrigation pipelines in the Vernamfield area to support the resurgence of cane growing. This will cost J$65.7 million. Additionally, the NIC lined some 800metres of irrigation canals in Rhymesbury to reduce transmission losses.

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Legislation

• Mr. Speaker, in my 16 months, I have engaged this Honourable House in a very active way,

tabling the following pieces of legislation:

• The Animals Diseases (Importation) Control (Amendment) Regulations, 2012
• The Plants (Quarantine) (Wood Packaging in International Trade) Regulations, 2012
• The Citrus Plant (Certification) (Amendment) Regulations, 2012
• The Meat Products and Meat By-Products (Inspection and Export) (Prescribed Fees) Regulations,

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• The Fishing Industry (Special Fishery Conservation Area) Regulations, 2012.
• Last of all, the Protection of Plant Genetic Resources for Food and Agriculture Act, Act 1 of 2013.

Sugar

• Mr. Speaker, in the area of sugar transformation the performance of the Ministry is simply
• phenomenal. Having roamed nearly all the capitals of EU member states in 2005 to secure

some form of compensation from the EU, consequent on their reducing the price of sugar by 36 %, I returned to the Ministry in time to see to the application of these funds for the social transformation of sugar dependent areas. Since returning, we have obtained sub-divisional approval and commenced infrastructure works on all seven barrack relocation projects in the parishes of Westmorland, Trelawny, Clarendon and St. Thomas. These projects will culminate in the construction of some 400 housing units to accommodate over 800 people currently living in degraded conditions in the barracks. Picture 2

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Relocation of 39 families to Spicy Hill Community in Trelawny:Minister Clarke, Head of Delegation of the European Union, Paola Amadei and Patrick Atkinson, Attorney General, MP break ground. Not only have we commenced infrastructure works but, as we speak, the National Contracts Commission is considering bids from the Ministry in relation to construction of the housing units in Barham, Shrewsbury, and Masemure in Westmoreland and Steelfield in Trelawny. Tenders for housing construction will shortly be invited for the remaining schemes. The residents of Barham, Shrewsbury, Masemure and Steelfield will occupy their homes before

• Christmas. When we would have completed these 400 units, the Government would have

spent nearly $2.4 billion in infrastructure and housing. Mr. Speaker, we are taking social transformation further. Last year we announced the upgrading of 13sporting facilities in sugar dependent areas at a cost of $213 million. All of those projects are either completed or are in an advanced stage of completion. Picture 3 Thirteen sporting facilities will be provided under the transformation programmefor sugar dependent areas.

• Mr. Speaker, this year we will be doing an additional three in Croft’s Hill and Waterwell in

Clarendon and Knollis in St Catherine at a cost of approximately $55 million.

• Mr. Speaker, we go further. Tenders are out for the rehabilitation of some 67 km of cane roads

in all sugar growing parishes at a cost of nearly $400 million. All of these roads will be

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completed in this financial year. We are also doing serious drainage work to prevent flooding in Westmoreland and St. Thomas. In Westmoreland we cleared some 39.78 km of drains at a cost of $29 million and only last week Cabinet approved two contracts to clear some 42 km of drains in the Plantain Gardens area of St. Thomas at a cost of approximately $90 million. These works will not only address perennial flooding but will support the agro-park being established in the area.

• Mr. Speaker, last year the Ministry spent another $150 million on a number of critical social

projects in sugar-dependent areas including the expansion of health facilities, schools and other social infrastructure. I will speak on the economic side of the sugar industry in a little while. Policies

• Mr. Speaker, consistent with our manifesto commitment, the Ministry of Agriculture & Fisheries

has been very active in formulating critical policies to provide the framework for the development of the sector. The Cabinet of Jamaica, in February 2013, approved the National Food Safety Policy and Implementation Plan, which provides the framework for the installation

• f the requisite legal institutional framework and infrastructure to secure public health through

the delivery of safe food for both local consumption and export. Just last week, the Cabinet approved the National Food and Nutrition Security Policy. Thisground-breaking policy will provide the framework within which Government will increase production of local foods, improve access to food by the most vulnerable and bolster the resilience of food production systems against the background of climate change and

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frequentnatural disasters. It is also intended to enhance the nutritional well-being of our people, particularly our children. Mr. Speaker, the implementation of this policy will result in a healthy population, capable of effectively contributing to national and economic development. This policy will underpin our efforts to reduce the food import bill even further and our main target is the School Feeding Programme, which I will address later. Economic Environment

• Mr. Speaker, we cannot be unmindful of the context within which this presentation is being

made today. In closing the Budget Debate last week, the Honourable Minister of Finance and Planning announced the approval by the International Monetary Fund (IMF) of a four year Extended Fund Facility for this country. In the last few months there was a crescendo of calls for an IMF agreement, as if the agreement by itself would be a panacea. The truth is, the agreement portends challenging days ahead and will require tremendous discipline and sacrifice to pull this country out of our current economic malaise. But Mr. Speaker, it is also a time of tremendous opportunity. Our high unsustainable food import bill provides a significant

• pportunity for import substitution. The devaluation of the Jamaican Dollar need not be a

death knell, but should serve as an encouragement to export more. We can use expanded agricultural production as a vehicle to address the whole matter of rural development.

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Therefore, for the Ministry of Agriculture & Fisheries, and to paraphrase President Obama, “this crisis is too ‘serious’ to waste”.

• Mr. Speaker, there is no doubt in my mind that agriculture can make a significant contribution

to reversing our economic fortunes. Over the last 20 years, the average annual growth rate of the agricultural sector was 6.0 %, while the national economy over the same period had an average growth rate of 0.6 %. In fact, save and except for episodes of natural disasters, the agricultural sector grows consistently.

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This sector must therefore be at the forefront of our economic recovery initiatives. No other sector can readily absorb the volume of low-skilled or unskilled individuals as the agricultural

• sector. In fact the statistics show that during the years 2008 and 2010 when there was serious

fallout in the bauxite sector, employment in the agricultural sector increased by 5.8 %. The linkages between agriculture and manufacturing as well as tourism in turn cause investment in agriculture to have a high multiplier effect. This is particularly important in the rural areas,

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 API 100 105 96.

• 95. 101 104 118 132 140 147 155 130 124 130 112 118 111 118 107 101 116 108 101 115 115 127 128

R² = 0.798 20 40 60 80 100 120 140 160 180 Agricultural Production Index 1986 - 2012 and the Incidences of Severe Natural Disasters 1986 = 100

Hurricane Gilbert

• Hurris. Charley and Ivan

Hurricane

• Hurrs. Dennis, Emily, & Wilma

Severe drought Hurricane Michelle Severe drought Flood rains

• Hurrs. Isadore & Lily

TS Gustav TS Nicole Hurricane Sandy

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where the multiplier effect is even stronger, as increased income contributes to an increase in many other economic activities. With our hotel sector satisfying only approximately 30 % of their food demand from local agriculture, and with manufacturing depending heavily on imported agricultural raw materials, facilitated by waivers, the agricultural sector can, in fact , step up to make an even greater contribution. Mr. Speaker, it is in this spirit and with this

• ptimism that I now turn to the critical and strategic programmes that this Government will put

in place to increase agricultural production. We are committed to growing agriculture in order to grow Jamaica. Targets for Growth Agro-Parks

• Mr. Speaker, the Government intends to engage some 3,237 hectares (8,000 acres) of land in

the production of a number of critical crops within the framework of our agro-parks. These parks are situated in Plantain Gardens and Yallahs, St Thomas; Amity Hall and Hill Run, St. Catherine; Ebony Park and Spring Plain in Clarendon; New Forest/Duff House, St Elizabeth/Manchester; Ettingdon, Trelawny and Meylersfield in Westmoreland. Theyare

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beingdeveloped through a tri-partite partnership involving the Government, farmer/investors, and the private sector. The Government will make lands available with the requisite

• infrastructure. Production on these lands will be targeted specifically at import substitution.

These lands will be leased to farmer/ investors who will be responsible for working capital and agricultural production. The private sector will be responsible for providing markets; that is, farmers will sell to them on a contractual basis and they, in turn, will market the goods to the hotels, agro-processors, export markets or retail outlets. In some instances the investor/farmer will market his or her own goods, but in every instance what is being produced will be tied to a specific market. Progress to date What has been done so far and what are our targets? A total of 48 hectares (120 acres) of lands have been identified for the agro-park in Plantain

• Gardens. Farmers have been engaged through leases to produce ginger and onion on some23

hectares (50 acres) of those lands and land preparation has in fact commenced. The farmers are being provided with working capital in the amount of $40million through a loan from the St. Thomas Cooperative Credit Union Ltd.

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Picture 4 Minister Roger Clarke and his team examine improved Ginger planting material grown in shade houses Seeds have been procured on behalf of the farmers and the Rural Agricultural Development Agency (RADA) and the NIC are currently working with them to improve crop husbandry and to provide technical assistance with the installation of on-farm irrigation. At the same time, the Ministry is in the process of rehabilitating the existing irrigation system to supply the entire48hectares (120 acres) and main drains will be cleaned under the project mentioned

• earlier. Proper access roads will also be provided by the Ministry.

All the ginger cultivated will be purchased from the farmers by the Ministry’s Export Division. An importer who currently trades in onions will purchase the onions produced in this agro-park through contracts with the farmers. By next year we expect the rest of the lands in this agro- park to come into production. Amity Hall: Mr. Speaker, the Amity Hall Agro-Park is bustling with activities. The Government

• f Jamaica has provided a proper irrigation and drainage system for Amity Hall that comprises

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some 809hectares (2,000acres) of land. We have also done some significant bridge/road work to allow for access to large equipment such as planters and harvesters. Land preparation activities are being finalized on some 323 hectares (800 acres) of land and theplanting of sorghum by Caribbean Broilers will commence within days. Mr. Speaker, another 283 hectares (700 acres) of sorghum will be planted this year by other private interests. Red peas will be planted in rotation with the sorghum, and the quantum of red peas to be reaped will be sufficient to replace a significant portion of that being imported. In addition to the sorghum,

• Mr. Speaker, another 48 hectares (120 acres) of land in Amity Hall is currently being engaged

for vegetables, 12 hectares (30 acres) for onion and another 40 hectares (100 acres) for hay production in support of a private sector led small ruminant expansion project.

• Mr. Speaker, I would like to highlight that apart from the jobs that this agro-park will generate

the red peas and the sorghum production is a deliberate assault on our high food import bill, as we now import nearly 100 % of the red peas we consume in Jamaica and all the grains we use to produce animal feeds. Ebony Park: the focus at Ebony Park will be on the production of onions, yams, pepper, pineapple and a mixture of vegetables. We are in the process of concluding discussions with a

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Canadian investor who is the largest exporter of beans to Jamaica along with a number of Jamaican investors to grow a minimum of 600 acres of onions which represents approximately 42% of national demand. Additionally, we are finalizing discussions with two of the largest suppliers/importers of vegetables to the tourism industry to establish a 40 hectare (100 acre) vegetable farm focusing on replacing products that they now import. In addition, three farmers’ associations are producing vegetables, tubers, condiments and spices amounting to101 hectares (250 acres), valued at $150 million in the 2013/14 financial

• year. Mr. Speaker, in order to support all these production activities, the Ministry’s contribution

will be the installation of a proper irrigation system in this area.This will be implemented in this fiscal year.

• Mr. Speaker, in relation to the agro parks at Spring Plain, Hill Run, New Forest/Duff House,

Yallahs and Ettingdon, the Ministry is currently doing the necessary assessments and preliminary work in terms of crop identification, planning of necessary infrastructure works, identification of farmer/investors and private sector partners. The intention is to bring these

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parks fully on stream by next year. I must point out, however, that in the case of New Forest/Duff House and Yallahs there are currently significant production activities already taking place as we have just completed two new irrigation schemes for these areas. Picture 5 Prime Minister Portia Simpson Miller and Minister Clarke commission the new irrigation scheme at New Forest/Duff House The value that these agro-parks will add is to orientate production to defined markets by linking existing farmers to private sector buyers. This work is currently being done and therefore, for all intents and purposes, these two agro-parks will come on stream this year. Picture 6 Residents welcome the new irrigation scheme to their community. Small Ruminants

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We expect massive expansion in the rearing of small ruminants over the next two years. In December of last year our Ministry brought in a number of sheep and goats to improve our breeding stock. We will continue with the upgrading of our genetic material. Pigs

• Mr. Speaker, we are virtually self-sufficient in the supply of pork and pork products. Indeed we

are producing to the extent that we are breaking out into the export market. We are working to accelerate our exports as we continue to build on the successes we have had with the improvement of our pig breeds. Major investments continue in the pig industry. Tubers As it relates to yams and other tubers, Mr. Speaker, we have been able to overcome some of the challenges we experienced last year when a substantial amount of our exports were rejected by the United States because of the use of certain chemicals for the treatment of our

• exports. We have since found the requisite chemicals for the treatment of these tubers and

yam exports continue to make a significant contribution to our foreign exchange earnings. We

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will continue to monitor the situation and remain in dialogue with our partners in the US to ensure continued expansion and growth of our exports. Youth in Agriculture

• Mr. Speaker within the framework of our agro-park programme, the Ministry of Agriculture

intends to place particular focus on our youth. As is well known, young people face a particular challenge in accessing land and capital, even though many of them have invested heavily in their education and are appropriately qualified. Government has a responsibility to facilitate youth trained in agriculture, who have not yet been able to find employment in the sector.

• Mr. Speaker, farmers are by nature, entrepreneurs and this apparent challenge provides us

with an opportunity to create more entrepreneurs in the agricultural sector. In this regard, Mr. Speaker, the Ministry will devote, on a pilot basis, 40 hectares (100 acres) of land exclusively for young unemployed agricultural graduates. The lands will be leased to approximately 20 youths at concessionary rates.We are imploring major private sector players in the sector to provide the necessary working capital and markets for the production emerging from these40 hectares

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(100 acres). This is not a welfare activity; the private sector will actually be pre-paying for the produce that will be delivered to them. The Ministry will provide further support in terms of extension services and planting material. In the process, our young people will be honing their skills and getting a jump start in the sector.

• Mr. Speaker, this is part of our plan to grow agriculture and grow Jamaica.

School Feeding Programme An area with great potential for growth is the School Feeding Programme. The Ministry of Education in collaboration with our Ministry will be working together to put in place the School Feeding Programme. The intention is to substitute imported butter fat with liquid eggs. This will give the egg farmers of Jamaica a great opportunity. Fruit and vegetable farmers will also have an opportunity to participate. Traditional Sub-sectors

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• Mr. Speaker, even whilst we roll out the agro-parks, and whilst we are excited at the prospects
• f the parks in building new industries, we are not losing sight of our traditional sub-sectors. I

speak specifically to sugar, cocoa, coffee and banana. Sugar

• Mr. Speaker, I have to report that despite privatization, this year the projected production of

sugar is 125,000 tonnes compared with 131,589 tonnes produced last year. Obviously Mr. Speaker, this is disappointing. The truth is production at Pan-Caribbean Ltd comprising Frome, Monymusk and Bernard Lodge, which constitute 70 % of the Industry, has been down by 23 % in comparison with 2010/2011, the last year of Government control. Last year for example, the Complant-owned factories produced 65,000 tonnes of sugar while this year they did 54,000

• tonnes. Clearly, therefore,Mr. Speaker, there are some deficiencies within the Complant
• perations. While there is some expansion in cane production from cane farmers in the area

the agronomic practices on the Complant operated farms are less than desired.

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At the same time the other divested estates, Golden Grove and Everglades are making serious

• strides. For instance, production at Everglades moved from 3,984 tonnes last year to 6,674

tonnes this year, and projections are for a 56 % increase in production for the 2013/14 crop year, based on their current expansion in cane production. At Golden Grove production fell marginally because of the severe impact of Hurricane Sandy. However, in the 2013/14 crop they are poised to increase 14.5 % due to the expansion of sugar cane production currently underway. The Government is committed to working with Pan-Caribbean to get their production back on track, so that we can realize the enormous potential of this Industry. If Pan-Caribbean takes the necessary corrective action, then we could see their production increase in the 2015/16 crop year. Mr. Speaker, Worthy Park and Appleton continue to hold their own. The Opposition spokesman on Finance in his presentation opined that theGovernment had not fulfilled obligations to Complant and we were therefore jeopardizing the construction of a $US 100 million refinery by Pan-Caribbean. Mr. Speaker, the fact is that the only outstanding matter has to do with the separation of some workers from the JPS lines that supply Complant

• perations. This is going to cost the Government $200 million and we are working with the

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Ministry of Finance to see how that can be accommodated. All of the technical drawings are in place, and we are only awaiting the financing of the project. Cocoa

• Mr. Speaker, cocoa production fell from 554 tonnes in 2011/12 to 450 tonnes this crop year

due to the impact of Hurricane Sandy. Nevertheless this is still 100 % more than production in 2010/11. Mr. Speaker, this improvement over 2010/11 is the direct result of the massive rehabilitation and replanting programme the Ministry implemented across the sector, with funding support from the USAID and the European Union. Mr. Speaker, in the up-coming 2013/14 crop year we expect production to be increased to 850 tonnes, barring any adverse weather conditions. Coffee

• Mr. Speaker, the Coffee Industry continues to face challenges. Production was 6,687 tonnes in

the last crop year and is projected to be approximately 6,000 tonnes this year. This is a far cry from the over 9,000 tonnes in 2007. This decline relates to the fall out in the Japanese

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market,resulting in reduced orders and lower prices. The problems in the sector have been compounded by the outbreak last year of coffee leaf rust disease which is impacting 70% of coffee fields in the Central American region. Indeed some countries in the region have actually declared an epidemic where the disease is considered. Here in Jamaica Hurricane Sandy not

• nly exacerbated the disease problem but also directly impacted production and access to

some areas.

• Mr. Speaker, the Ministry has responded to the leaf rust outbreak with an $8.5 million

eradicationprogramme in partnership with the stakeholders. The Government divested Mavis Bank in order to secure the requisite investments and attract new markets. The divestment of Wallenford is a critical part of Government strategy to bring new investments, additional working capital and market diversification. We are at the cusp of concluding agreement with a private sector entity for the divestment of Wallenford and an announcement will be made in short order on this matter.

• Mr. Speaker, we are doing all of this because we want to grow agriculture and grow Jamaica.

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Banana

• Mr. Speaker, banana production in 2012 was 47,473 tonnescompared to 46,660 in

2012.Obviously the impact of Hurricane Sandy is being felt this year, 2013, in terms of the availability of the fruit. The Ministry responded swiftly with provision of inputs in the amount

• f $13.5 million, thanks to the Banana Catastrophe Fund and European Union resources. The

Government further provided a $100 million loan facility through the DBJ at a subsidized interest rate of 5 %, for resuscitation efforts. Approximately 50 % of this amount has since been taken up. Mr. Speaker, I am happy to announce to this Honourable House that the Government has secured a grant of €5 million from the European Union to bolster production for local consumption and regional exports. With this intervention and subject to good weather we expect banana production to move to 100,000 tonnes over the next three years. Cattle

• Mr. Speaker, I now turn to the Dairy Industry. The consumption of milk in Jamaica, as a major

source of protein, is of concern to this Government. For the last decade, local production has been averaging 12 to 13 million litres annually. At the same time, importation of milk products

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has declined from 162.31 million litres (fluid equivalent) in 2007 to 103.64 million litres in 2012, translating to a per capita consumption of 115 millilitres ofmilk per day.This is below the WHO recommended consumption of 200 millilitres per day.

• Mr. Speaker, we have to rebuild the Dairy Industry. Our analysis shows that based on the

existing number of milking cows and heifers, we can increase production within a one-year period by at least 10percent, if we can address the issue of the animals’ nutrition, particularly during the dry periods. Mr. Speaker, I have therefore tasked the Jamaica Dairy Development Board to work with industry stakeholders on an action plan to increase silage and hay production this year to support the desired 10 percent increase. The resources from the Dairy Cess, which this year will amount to some $65 million, will support this programme. I have further asked the FAO to immediately provide us with some assistance to formulate a five-year action plan to spur dairy production, addressing not only nutrition, but breed improvement, pasture management and so on. Again the resources of the Dairy Development Cess will support this process. Already Mr.. Speaker we have started to address this critical

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matter of nutrition, by procuring and leasing to the stakeholders in the sector important equipment and machines to aid with hay production. So far, we have procured someforest choppers which have been leased to the farmers

• Mr. Speaker our Ministry has committed to working with the beef cattle farmers to assist them

to put a silage programme together to ensure year round nutrition. Pasture management is critical in cattle production. We are faced with a serious challenge of Piano grass (Themeda arguens) threatening the survival of our pastures. It is a dangerous species that can only be destroyed by the chemical MSMA. The Pesticide Control Authority has placed a ban on MSMA, and we have yet to find an effective permitted alternative. Exploring New Industries

• Mr. Speaker, the world is dynamic and we have to continually look for new opportunities for

growth and prosperity. Of all the species that the good Lord has given us for food, we are

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really only just exploiting a fraction of what is available. There are a number of herbs and spices known to us, such as mint, cerasee and fever grass that we use on a domestic basis with spectacular results. The time has come for us to commercialize these herbs and spices. The field of nutraceuticals is growing exponentially and holds enormous potential for this

• country. Organic agriculture is another such area. However we have not been focussing

sufficiently as a Ministry on these emerging areas. In this regard, we are currently negotiating a contract with a specialist in this area to help the Ministry to work with stakeholders in the sector to devise an industry development plan. We will explore these exciting possibilities including, for example, the possibility of producing high quality tea in the Blue Mountains. Fisheries

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• Mr. Speaker, given the depletion of our marine fisheries stock, due to overfishing on the reefs,

the Ministry will continue to increase its conservation efforts through the designation and proper management of fish sanctuaries. As this House is aware, 14 sanctuaries have been designated including three since I have taken

• ver as Minister. The Ministry expended some $40.4 million on the management of these

sanctuaries and already we are getting reports of increased fish stocks and size of fish. Picture 7 Minister Roger Clarke and industry stakeholders tour Bluefields Bay Special Fishery Conservation Area In the meantime, Mr. Speaker, the Ministry’s strategy is to rebuild the aquaculture sector. This sector has been challenged by heavy competition from cheaper imported Tilapia and other fish, especially fillets for the fast-food Industry. In fact, approximately 11 percent of our food import bill in 2011 was attributable to the imports of fish and fish products. Far from being exasperated, the Ministry views this as an opportunity for growth. In this regard, the Ministry is committed to the following:

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I. Completion of an Aquaculture Development Strategy in this financial year to guide the development of this sub-sector. II. Two agro-parks – Hillrun and Meylersfield – will focus on the rehabilitation of abandoned fish ponds to increase aquaculture production. These parks will come into operation in the latter part of this year into next year. The Government will provide infrastructure such as irrigation and roads.We are also engaging a major fish processor and distributor as well as local hotel to buy our local production. III. The Ministry recognizes that the availability of quality seed stock has been a problem and, in recognition of this, will be looking at rehabilitating infrastructure at the Aquaculture Branch of the Fisheries Division to provide quality seed stock and research facilities for the aquaculture sub-sector. Funding for this activity will be secured from the Fisheries Management Development Fund. Extension Services

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• Mr. Speaker all of these efforts to grow agriculture to grow Jamaicawill be underpinned by

improving our extension services. Wehave establishedfarmer field schools which are proving highly successful. Minister Paulwell last week issued Parliamentarians with new tablets. I must report that we did the very same thing with our extension officers a few weeks ago. We provided them with tablets to enable them to have greater linkages with the various services offered by the Ministry and greatly improve field service delivery. It is part of our efforts to provide an enabling environment for continuous improvement in our extension services. Picture 8 Permanent Secretary Donovan Stanberry hands over 124 tablets to marketing, extension and livestock officers to revolutionise RADA service delivery Enabling Environment

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• Mr. Speaker, having outlined our critical programmes for the next financial year, allowme

nowto indicate the enabling framework within which these programme will be executed.

• Mr. Speaker, I first want to turn to the Fisheries sector in which nearly 30,000Jamaicans are
• engaged. We have to secure our fisheries resources for future generations. I say this against

the background of the depletion of our resources and the plundering by poachers. Mr. Speaker, I have had discussions with the Office of the Chief Parliamentary Counsel and the Minister of Justice, and I am indicating to this Honourable House, today, that whatever it takes we are going to bring the Fisheries Bill to this House in this Parliamentary Year. This comprehensive piece of legislation will make the necessary legal provisions for the sustainable management of these valuable resources. I further commit to advance the modernization of the Fisheries Division into an Executive Agency.

• Mr. Speaker, let me turn to the matter of the Pedro Cays. There has been much written and

said on this matter in the last six months. Let us face it: collectively,successive governments have not paid sufficient attention to the management of the Cays. The Ministry of Agriculture & Fisheries has been leading the charge to correct this, but it is also important to work in concert with all the relevant agencies of the Government. We have committed over

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$9.8million for the removal of garbage from the Pedro Cays up to the end of the year. This activity is ongoing. Picture 9 Picture 10 Over 2,500 bags of garbage removed from Pedro Cays along with zinc and other metals to date and on-going waste removal continues We have stepped up enforcement with the placement of two Fisheries officers on the Cays. They are working closely with the Marine Police and the JDF Coast Guard to enforce adherence to fisheries licenceregime on the Cays. We are currently finalizing a contract with the University

• f the West Indies to undertake a carrying capacity study to determine the number of people

that the Cays can support and the kind of sanitation infrastructure required, being cognisant of preserving the environmental integrity of the Cays. On the basis of this study the Ministry will establish an appropriate licensing regime, notwithstanding our proactive stance in reducing the number and validity period of licences issued this year. The Ministry will also contribute to the installation of the required infrastructure. It is imperative to statethat the day-to-day

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management of the Cays will have to be addressed through the formulation and execution of a multi-agency sustainable management regime. Food Health & Safety

• Mr. Speaker, this Government has made considerable strides in overhauling our food health

and safety infrastructure in order to safeguard public health. As mentioned before, the National Food Safety and Implementation Plan has been approved by the Cabinet. Within the framework of this plan, we will rationalise the institutional arrangements and the legislative framework for food safety management as this responsibility is now dispersed across several

• Ministries. In this regard, the Veterinary Services Division and the Plant Quarantine Divisions of

this Ministry will be appropriately strengthened. Currently, the Ministry is undertaking an aggressive programme to have all its labs duly

• accredited. We have so far spent approximately $50 million on the equipping of our veterinary

laboratories; a number of our staff has undergone extensive training both locally and abroad; critical manuals have been prepared and the target is to have two laboratories accredited by

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the end of this year. A similar approach is being taken in respect of the other labs in the Ministry.

• Mr. Speaker, we remain concerned about the quality of food our people are consuming. In this

regard I have asked the Jamaica Bureau of Standards to work with the relevant Agencies of the State to formulate and promulgate a comprehensive set of standards for key food items.

• Mr. Speaker, the levels of sodium in some of our imported foods is frightening. The sugar

content of some of the snacks - particularly imported ones - that our students consume in our schools is equally alarming. We have a responsibility to safeguard our nation’s health and by the same token keep out unsavoury imports and provide opportunities for increased production of wholesome local foods and snacks. In terms of facilitating exports, the Ministry is currently upgrading the Agricultural Marketing Corporation (AMC) Complex to meet US Food Safety Modernisation Act (FSMA) standards and

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last year we improved our two export complexes at a cost of $16 million. These initiatives have supported the increase in exports to which I referred earlier. Under the US$15 million IDB Agricultural Competitiveness Project, significant resources are committed to food safety, and we are actively pursuing an initiative to partner with a private entity to establish a modern multi-species abattoir in Westmoreland from the resources of this project. Restructuring Initiatives

• Mr. Speaker, the Ministry continues its modernization programme to provide more efficient

and effective service to the sector. Last year I announced the commencement of work on the rationalization of the regulatory functions of the Cocoa, Coffee and Coconut Boards as well as the Export Division.This project is headed by Dr. Garnet Brown. Significant work was undertaken including consultations with stakeholders, research on best practices, review of existing legislation and development of the legal framework for the new entity as well as a structure for the merged entity. The work will be sufficiently advanced to allow me to take to Cabinet later this year specific proposals for a new structure, and new legislation.

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• Mr. Speaker, in tandem with this initiative work has also been advanced on the divestments of

the commercial assets of the Cocoa Board. As we speak, the valuation of the assets is being carried out. Unfortunately, we lost some momentum with the untimely death of Mr. Sam Lawrence the former Chairman of the Enterprise Team. I have since appointed Mr. Richard Burgher to chair the Enterprise Team, and the intention is that the divestment will be synchronized with the coming into being of the merged entity.

• Mr. Speaker, as this Honourable House is aware, the Wint Commission of Enquiry of 2008

recommended the restructuring of the Sugar Industry Authority and the Sugar Industry Research Institute in light of the privatization of the Industry and the changes in the marketing arrangements for sugar. Price Waterhouse Coopers (PWC) was engaged to undertake this

• work. I am pleased to announce that I now have in hand the recommendations of PWC; the

stakeholders have been consulted and I will shortly take those recommendations to Cabinet. At that point full disclosure will be made to the public on the new structure.

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• Mr. Speaker, the Jamaica Exotic Flavours and Essences Ltd. now forms part of the portfolio of

the Ministry of Agriculture & Fisheries. This entity is now playing a pivotal role in the School Feeding Programme by supplying purees and essences for juices. This entity is under- capitalized, and we think the nature of the services it provides makes it appropriate for

• divestment. In this regard, the Ministry intends to initiate proceedings for the divestment of

this entity. Research and Development

• Mr. Speaker the only sustainable means of increasing and maintaining agricultural productivity

is through consistent innovative research and application of research findings to production. Countries of our size and means cannot engage the range of research required to solve our productivity problems without collaboration with academia. Mr.. Speaker our R and D programme over the years has yielded spectacular results –Jamaica Hope, Bodles Globe Pumpkin, several varieties of pepper and tomatoes and so on. We cannot halt the momentum

• n account of fiscal challenges!

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Cognisant of this fact, Mr. Speaker, I have mandated the Ministry to immediately engage all our tertiary institutions - UWI, UTECH, NCU and CASE to formulate a joint programme of research to tackle problems which are of import to the sector. This will complement existing programmes with foreign based universities and regional and international organizations such as theCaribbean Agricultural Research and Development Institute (CARDI), the UN Food and Agriculture Association (FAO), Inter-American Institute of Co-operation on Agriculture (IICA), and the Commonwealth of Learning. I think the significant convergence of interests and collaborative research will have a greater impact on the sector rather than having each institution operating in a silo. We expect an MOU to be crafted and implementation to commence in this financial year. Focus on Soil

• Mr. Speaker our soils form the basis of all our agricultural development, and are equally

essential for ecological sustainability. Unfortunately we have not been good stewards of this critical resource due to our poor soil management and agronomic practices. Frequent hurricanes, floods, and drought have also contributed to widespread soil erosion. We have to start addressing this problem in a systematic way.

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• Mr. Speaker during the 146th meeting of the FAO council, on April 24th this year the 193

member countries agreed to the designation of 2015 as “The International Year of Soils”. The Ministry some time ago produced a soil manual and nothing significant has happened

• since. We are not going to await 2015 to start focussing on the rehabilitation of our soils, the

adoption of such time honoured agronomic practices as crop rotation, and whatever other methods required to increase our soil fertility and drive productivity.

• Mr. Mark Brooks has been a consistent advocate for healthy soils and therefore, Mr. Speaker; I

am mandating my Ministry to work with Mr. Brooks, the universities and our regional and international partners to formulate a programme for the assessment and rehabilitation of our soils. Praedial Larceny and Farm Theft

• Mr. Speaker, praedial larceny and farm theft continue to be a major deterrent to agricultural
• production. Last year we increased our collaboration with the security forces and the judiciary.

This has resulted in increased arrests by the police, particularly in the St Thomas and St Elizabeth Divisions. The traceability systems that we are strengthening under our food health

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and safety programme will considerably bolster our anti-praedial larceny/farm theft

• programme. At the same time we will launch a new public education programme.
• Mr. Speaker, this year we are moving to put greater emphasis on monitoring end-users. Various

entities of the Government will work together within the framework of existing legislation to step up inspections in retail outlets, as we are not convinced that the thieves can dispose of stolen goods, particularly livestock, without the collaboration of large buyers/distributors. We are also going to invoke a number of legal provisions on the Statute that regulate the movement and slaughter of animals, and we are going to cause the registration of purveyors, as required by law.

• Mr. Speaker, praedial larceny and farm theft is a societal issue and we err if we view it as a

matter only to be tackled solely by the Ministry of Agriculture & Fisheries. We believe that there are enough legal provisions to deal with the matter and we will work collaboratively with

• ur other partners in Government and the farming community to address the problem.

Conclusion

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As I close this presentation Mr. Speaker I must say I feel a sense of optimism about the future. Indeed I am nostalgic about the possibilities in the agricultural sector. Mr. Speaker, challenges there are, but yes, we are blessed – with abundant sunshine, sufficient rainfall and rich soil. It is

• ur duty to secure and to utilise these God-given resources to improve our welfare as a people.

I believe we have the capacity – the people and the know-how- to continue to grow a healthy and wholesome agricultural sector. To grow agriculture is indeed to grow Jamaica. I have therefore today, outlined the policies, plans and programmes of the Ministry of Agriculture and Fisheries. I am confident that with God’s will and with our commitment and dedication, we can do this and we can prosper. Through sugar transformation, Mr. Speaker, we can grow Agriculture and grow Jamaica. Through the increased production of ginger, turmeric and neutraceuticals, we can grow agriculture and grow Jamaica! Through our traditional food sectors, we can grow agriculture and grow Jamaica!

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• Mr. Speaker, through our agro-parks, we can grow agriculture and grow Jamaica!

I have outlined our achievements and programmes of the Ministry going forward and the enabling environment. It was really a challenge to tell so much in the time allotted. However,

• Mr. Speaker we at the Ministry understand the critical role the sector must play in placing our

country on a path of growth and economic development. Perseverance will be our watchword. Growing agriculture to grow Jamaica will be our mantra. May God bless the farmers and their

• rganizations. May God bless Jamaica, the land we love.

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