JANUARY – APRIL VOL. 13, N0.

1, 2007 ISSN-CaRC/TT-01/07
IN THIS ISSUE Agriculture in 2006 – A Snapshot
Agriculture could have performed better in 2006. But the In 2006, agriculture in
situation could have been worse. The region was lucky: In the Caribbean, except some countries continued
there were no hurricanes or other natural hazards of for the January floods, to experience slow
significance that derailed development activity. However, which cost Guyana billions growth, such as, in
the performance, or lack thereof, of agriculture was the of dollars in agricultural Barbados (1%), and
subject of much debate in political circles, the media and products, the region was declines, such as, in St.
the wider public as food prices escalated. AgriView (AV) generally spared the wrath Vincent and Suriname.
provides a brief overview of agriculture’s performance in of hurricanes, extreme Grenada was among the
its lead article and information promoted in two In a adverse weather conditions good performers, with
Nutshell issues: and pest and disease agriculture rebounding,
Agriculture in 2006 – A Snapshot………………….…1 outbreaks of economic showing 20.5% growth
For Your Library………………………………………………3 significance. following a 38.1% decline
As briefly indicted in the article, concerns over the extent in 2005, fuelled by post-
of private sector participation in agriculture’s hurricane recovery and production support programmes. In
development, especially in generating investment and Jamaica, agriculture grew by 17.6%, due partly to
business, was also a major issue in 2006. “Fragmented and expansion in sugar, cocoa, coffee and bananas and the
Disorganised Private Sector is identified as a major Key resumption of ackee exports to the US after a one-year
Binding Constraint in the Jagdeo Initiative. AV presents suspension by the USDA. In the Dominican Republic, a 9.9%
the topic of private sector in agriculture from a number of growth in agriculture and livestock represented the 3rd
perspectives, including: consecutive year of steady growth, generating 26,000 new
Foster Private Sector Initiative jobs, making it one of the most dynamic sectors of the
and Enterprise…………………………………….……4 economy.
‘Clustering’ a Private Sector
Competitiveness Strategy ………………….…..5 Regionally, food production showed relatively good
Clustering for Competitiveness………………..…..6 performance, with expanded output of crop and animal
Going Herbal…………………………………………………..7 products for
The Caribbean Private Sector local markets,
and Food Self-Sufficiency………………….…...8 both in terms of
AV also briefly reminds readers of the basics of the Jadgeo volumes and
Initiative in: range. The slight
Repositioning Agriculture- the– growth
Jagdeo Initiative in a Nutshell……………….8 experienced in
Agriculture’s performance and private sector initiative Barbados was
sets the stage for a brief discussion about the role of due largely to
policy in: non-sugar
Decoding Policy ..……………………………………….9 agriculture, led
Among the factors cited for the lack of dynamism in by poultry (6.3%)
agriculture have been ‘ageing of farmers’ and ‘lack of and fishing
involvement of the youth’. It is a general view that youth (5.6%). Jamaica
are not attracted to agriculture. This view would probably also benefited from robust growth in its food crop and
be more accurate if it was stated as “…not attracted to livestock (mainly poultry) production, which grew by 6.8%
the old way of doing agriculture’. Agriculture must get and 5.1%, respectively. In St. Lucia, expanded domestic
with the times to attract modern youth in high-tech food production was buoyed by local purchasing, mainly
careers, new businesses etc. AV seeks to balance the view from hotels and restaurants. Grenada also reported that
by acknowledging young successful achievers in: its domestic market was ‘flooded’ with vegetables as a
AgriBuzz……………………………………………………....10 result of concerted efforts at rehabilitating non-
traditional agriculture, mainly fruits, vegetables and root
AV ends with a brief update on the trade negotiations in crops. However, generally, non-traditional agriculture
Agri-Negotiations to Date…………………………...11 remained comparatively small in contrast to the size of
the traditional sub-sector. This situation was reflected in
and with pleas to continue most countries, suggesting limited structural change.
'Celebrating We Agriculture’ (CWA)…………….12
2
For the traditionals, Dominica, St. Lucia (with over 54%
of Windwards islands exports), Jamaica and Suriname
reported growth in banana exports. The growing Fair
Trade movement acted as a stimulus to this expansion,
especially in the Windwards. However, 2006 represented
major adjustments due to the introduction of the
European Union (EU) Tariff Only Regime on January 1st.
By year end, Ecuador, complaining of unfair treatment
from a 176 euros (225.6 dollars) per tonne customs duty
on bananas from Latin America, launched a new attack
on the new regime at the WTO, the first since it took
effect. The EU Agriculture Commissioner deemed that
the complaints from Latin America were unjustified,
defusing the challenge; for now! CARICOM sugar
industries were also in various stages of transition to the
reform of the EU Sugar regime. By year end, the
remaining active industries had already developed
integrated Action Plans for improving industry
competitiveness, diversification through value-added
activities involving use of the sugar cane plant, and for
transition into other economic activities.
The situation in agriculture in Haiti differed markedly
from the other Caribbean countries. 2006 marked the
end of a two-year transition period and a return to
constitutional order in Haiti. However, political and
social instability continued with serious repercussions for
agriculture and rural welfare. Disruptions in the free
movement of goods internally, including agricultural
products from rural areas to markets in the capital,
adversely impacted on the prices of local fruits and
vegetables. Stability and Haiti’s reintegration into
CARICOM will be critical to enable recovery and
development of its agriculture.
Indeed, agricultural development is central to CARICOM’s
integration process. Agriculture is identified as an
“economic driver of growth in the Community as a
whole”, alongside energy, sustainable tourism and new
export services. This suggests that despite its past and
continuing challenges, agricultural sub-sectors or cluster
of activities still have “potential for sustained growth of
exports to international markets, or have substantial
potential for growth in intra-regional trade, or can
generate significantly expanded supplies of a key input
underpinning international competitiveness in other
activities…. and are capable of imparting dynamism to
other economies and to the Community as a whole”.1
This strategic importance of agriculture was underscored
in a High-Level Caricom Single Market and Economy
(CSME) Symposium - ‘Caribbean Connect’ (Barbados,
June).
Given its integral role in cementing and stimulating
growth in the CSM, the revitalisation of agriculture
assumed more urgency in 2006. Consequently, issues
1
See Symposium report - ‘Towards the Single Economy –
Report’ Norman Girvan, [Draft, September 21, 2006].
Trimesterly Newsletter Vol. 13. No1
pertinent to the CSM implementation were also deemed
extremely relevant to the nature and pace of agricultural
development. Futher, concerns over constrained growth,
food security and environmental integrity remained on
top of the agriculture revitalization agenda, both
nationally and regionally. The implementation of the
Jagdeo Initiative, the region’s current mechanism to
alleviate 10 Key Binding Constraints (KBC) in the medium
term was therefore acclerated. The core strategy is to
prioritise specific elements for immediate and urgent
coordinated regional actions while simultaneously
supporting individual Member States actions that
contribute to the alleviation of these KBCs.
With respect to movement in the Jagdeo Initiative in
2006, the establishment of an Agricultural Modernisation
Fund (AMF) within the Regional Development Fund (RDF),
proposed as one intervention to alleviate Financing and
Investment Constraints, remained a development
concept. Efforts to alleviate the constraints of ‘Outdated
and Inefficient Agricultural Health and Food Safety
(AHFS) Systems’ continued to focus on operationalising
the Caribbean Agricultural Health and Food Safety
Agency (CAHSFA). Efforts to strengthen and coordinate
Research and Development (R&D) led to agreement on
developing of a Regional R&D Strategy, initiation of a
consultancy for Regional R&D Coordination and to
explore the possibility of establishing a coordinating
office for the Consultative Group for Agro-biotechnology
in the Caribbean. Notable on-the-ground R&D efforts
included expansion in hydroponic (greenhouse)
technology for a wider range of agricultural crops in
Jamaica and other countries, and the recent
breakthrough by the UWI St. Augustine campus and a
Trinidad firm Kairi
Blooms in developing
bacterial disease
resistant varieties of
anthurium.
A rather pressing issue in
2006 was that of the
steady increase in food
prices in 2006, most
notably in Barbados,
Dominica, Jamaica and
Trinidad and Tobago. As a result, agriculture and policy
makers came under greater scrutiny from a diverse set of
interest groups. Pressures also came from proponents of
agri-tourism concerned with the high level of leakage of
the tourism dollar from food imports. In Jamaica, for
expamle, an estimated 50% of every tourism dollar
leaves with the tourist, similar leakages in Barbados
(50%) and the Bahamas (85%). Against this backdrop,
food security remained a burning issue, fuelled further
by the run-away regional US$3 billion food import bill.
This situation is expected to worsen given the World
Travel and Tourism Council (WTTC) prediction that
Caribbean Travel and Tourism would grow by 3.9 % per
 3

annum, in real terms, between 2007 and 2016. Caribbean development. It needs to remain high on the agenda of
countries will need all the policy space and flexibility the region's development priorities.
they can muster, to put in place policies and support Indeed, such a response would also awaken the latent
mechanisms that strengthen productive capaicty, market power of the Caribbean private sector, both within and
efficiencies, competitiveness and strong linkages to beyond the region and mobilise their interest,
other economic activities. Effective preparations for, investment and involvement in more a direct and formal
and continuous representation in the ongoing World manner, in the agricultural repositioning efforts
Trade Organisation (WTO) and European Union (EU) trade underway and yet to come. Increased private sector
and economic negotiations will be critical in this regard. participation in agriculture perspectives, will go a long
way in modernising agriculture, generating growth and
Given its performance recently, and indeed over the past securing regional food supplies.
two decades, a perspective from Dowlat Budhram2
provides some food for thought. Dr. Budhram asserts that
the challenges currently afflicting agriculture are not For
For Your Library
new; and that agriculture still treated as a ‘crisis Information is central to our decisions, social interactions
industry’. When markets are not threatened, and economic actions. It informs and educates, enabling
governments continue with business as usual – little us to go beyond existing and to flourish. In this knowledge
policy change; little concerted efforts to modernize and information age, the In a Nutshell series is designed to
towards productivity, market-orientation and less stimulate interest and inform on issues and topics of
dependent on preferential trade arrangements. Even importance to sustainable agricultural development in the
with sound policies and strategies, agriculture will not be Caribbean. The following sumamrises two recent IICA/CTA
developed unless there is a strong commitment, issues (available from IICA offices).
reflected through the allocation
of adequate financial resources. ‘If we fail to find Good agriculture is essential to
The series of regional plans, money to invest in
sustainable development and
starting with the Regional Food agriculture, it will
good policy is essential to good
Plan in the 1970s through to the not be very long
agriculture. Policies affect our
present Jagdeo Initiative (still before we will be
options, decisions, activities,
in its infancy) have produced forced to find far
interactions and standards of
few or zero results precisely much more money
living. This issue appeals to
because of the insufficient to deal with the
youth, rural women, indigenous
commitment of resources by consequences of our
people and educators to enable
the governments. He concluded neglect’
transformation to a new
by reminding us that the Mr. Charlesworth
Samuels, Minister of agriculture by getting involved
development of US and EU with farmers, scientists,
Agriculture, Antigua
agriculture has been due largely and Barbuda, 17 universities, ministries of
to huge financial commitments October, 2007 agriculture and development
by those governments, agencies in strengthening the policy process for
sustained over many, many years. agriculture.

The Caribbean needs to mobilise its collective support Food and nutrition security is
to the sustained development of agriculture, in its wider a growing concern in the
dimension. Such mobilization is not impossible. It has region. This issue focuses on
been done in several other areas, which offer less long- issues relating to securing the
term development impacts in terms of multiplication and future of food supplies and
spread of benefits to the wider economy and society, the implications of a rapidly
including income distribution effects. What agriculture growing world population for
and the Jagdeo Initiative need is an equal level of food supplies. It points to
genuine attention, single-minded purpose, time, speed, what we need to do now, to
effort, resources and commitment as that mobilised for reduce the likelihood and
the preparations to host the 2007 Cricket World Cup in incidence of food insecurity
the Caribbean. Such a regional response would send a and hunger for all, at all
powerful signal that agriculture is indeed, an important, times. It provides information
investment worthy and strategic sector to the region’s that can be easily understood
integration process, growth prospects and sustainable by the general public, especially women and young
producers.

2
Dowlat Budhram is Director of Performance and Evalaution
Management in IICA Headquarters.

Trimesterly Newsletter Vol. 13. No1

4
Foster Private Sector Initiative and Enterprise
.… the engine room of an economy
Reaching and sustaining high
rates of growth is an over-
riding goal of Caribbean
economies. Up until the
decade of the eighties,
agriculture was a front-runner
in fuelling such growth. During the agriculture era,
activity was largely driven by expansive government
projects and investments, bolstered by concessionary
financing and grants from the donor community, mainly,
the United Kingdom, the United States and Canada.
Export-led agriculture was king and ‘green gold’ (a term
used to describe the significance of bananas) allowed several
countries to earn a continuous inflow of foreign
exchange and maintain rural prosperity from agricultural
exports.
. . . a new wind has blown
The focus on increasing earnings through expanded
volumes, has given way to concepts of productivity,
quality and competitiveness through expanded private
investment and enterprise. A new wind is blowing, one
that emphasises the pivotal role of the private sector in
initiating, growing and sustaining business. Economic
development experts emphasise that in order to
maximize the welfare of the nation, resources should be
directed toward those firms or industries that possess
the greatest potential advantage for efficient and
competitive business.
Competitive business, whether located in rural or
urban areas, or built on agriculture or non-agriculture
products and services, is fully within the decision-making
and actions of the individual entrepreneur - collectively
the private sector. In agriculture, ‘private sector’ can be
interpreted as including any business-oriented activity,
whether farming, food processing, manufacturing or
other form of agricultural business – ‘agri-business’. In
the traditional thinking, the label of ‘agri-business’ was
reserved for non or post-farm activity. The new wind has
blown away this interpretation. In the new agriculture,
farmers, particualrly those engaged in high-value, high
end crop production, such as, sugarcane and corn for
ethanol, neutraceuticals, etc, are the new wave of
agribusiness, the future farmers of fortune.
Governments have recognised this new reality. This
is why the Jagdeo Initiative calls on member states to
take urgent actions to alleviate the binding constraints
related a ‘Fragmented and Disorganised Private Sector’.
Leadership for actions in this KBC at the political level in
the region is within the Ministry of Agriculture, St.
Vincent and the Grenadines, supported by the Caribbean
Agribusiness Association (CABA). The private sector
itself agrees that in order to alleviate this constraint,
they must become more organized and co-ordinated.
Governments must continue to focus on providing
Trimesterly Newsletter Vol. 13. No1
.
national policy, productive infrastructure, economic
incentives and efficient public services to stimulate and
enable private sector initiative and enterprise. However,
increasingly, it is the private sector that must take a
more proactive and leadership role and in generating
more business and investments.
Apart from the large conglomerates, such as, the
food and beverage manufactures of Grace Kennedy of
Jamaica, Ansa McAl and S.M.Jaleel of Trinidad, some
emerging private-sector led initiatives and capacity
building projects in agriculture in the region are:
▪ CABA- Caribbean Agribusiness
Association, which is spearheading
interventions to strengthen private
sector organisations both in terms of collaboration
and capacity building. It is being supported by a
Inter-American Development Bank (IDB) Multilateral
Investment Fund (IMF) project that aims to
strengthen Market Access Opportunities for
Agricultural Small and Medium Enterprises (SMEs).
CABA is considering the formation of Commodity
Associations for rabbits, hot peppers, coconuts,
sweet potatoes, cassava, pumpkins, golden apple
and herbs. The Trinidad and Tobago National Chapter
(TTABA), which is the main implementing agency for
the TT Ministry of Agriculture and Marine Resources
(MALMR)’s recently launched Agribusiness
Development Programme, has indicated its intention
to invest in green house technology specifically for
production of hot peppers, tomatoes and lettuce.
▪ CaFAN – the Caribbean Farmers
Network – is a collaborative effort of
farmers and non-governmental
organisations. It seeks to empower and
enable Caribbean farmers to address
their key challenges and propose feasible solutions
with particular emphasis on influencing regional
agricultural production and marketing policies and
strategies. Farmers’ associations in Antigua and
Barbuda, Barbados, Dominica, Grenada, Guyana,
Jamaica, St Kitts and Nevis and St Lucia are full
members. Members have identified intra- and extra-
regional trade as a key priority area for collaboration
and networking. In this context, CaFAN will focus,
inter alia, on (a) enhancing the marketing and
service delivery capacities of Caribbean farmers’
associations; (b) raising awareness and collectively
influencing regional decisions on agriculture; and (c)
mobilising resources for and on behalf of members.
Through such actions, CaFAN will contribute to
enhanced competitiveness of Caribbean farmers and
quality of life of farmers’ families. In 2006 Eastern
Caribbean Trading and Development Organization
(ECTAD) was designated as CaFAN Secretariat.

“Clustering” a Private Sector Competitiveness Strategy
Extracted from a Research paper on “Cluster in Theory and Practice and its Application to Agricultural Development in the Caribbean”
by Richard Rampersaud, IICA Consultant
Industry and business collaboration has
long been recognized as one of the most
practical and strategic options for
successfully negotiating today's
increasingly competitive, knowledge-
based and dynamic global market.
‘Clustering’ describes the process
by which firms and other
organizations within a concentrated
geographical area cooperate towards
common goals and establish close
linkages and working alliances to
improve their collective
competitiveness. Clusters have been
recognized as the primary driver for
economic development in many National Research Council of Canada Cluster
countries, with the most famous Model; http://www.nrc-
example found in Silicon Valley. The cnrc.gc.ca/clusters/innovation_e.html
more competitive clusters are
characterized by a unique blend of skills, expertise and
intense networking which are necessary to produce the
high value added products and services, and global
market presence. Such clusters largely depend on the
formal and informal networks, intense collaboration and
competition that exist between the firms, their
suppliers, service providers, support agencies,
institutions, research bodies, training providers and
other players in the supply chain.
Clusters are seen to affect competition in three
broad ways, by: (1) increasing the productivity of
companies based in the area; (2) driving the direction
and pace of innovation; and (3) stimulating the
formation of new businesses within the cluster. The
benefits of clustering include: (1) assisting a clump of co-
located firms and organisations turn into a high
performance system, (2) working together to achieve
results that would not be possible individually and (3)
delivering the existing benefits of competitiveness and
innovation as well as the wider social, economic and
environmental benefits.
The presence of this ‘clustering’ phenomenon can be
traced back in history, to as early as the 1920s. But in
1990, Michael Porter, the competitiveness guru,
described clusters as a ‘new kind of organisation’. He
noted that “clusters are the building blocks of a
productive, innovative economy”. Clusters enable firms
to generate a critical mass, assist firms to jointly address
their weaknesses (e.g. technology acquisition, marketing
etc.) and develop collaborative projects (bulk buying,
sharing freight costs, assistance for R&D, institutional
support etc.) to improve industry competitiveness.
Cluster-based policies seem to have taken the lead over
the traditional sector approaches as being the most
Trimesterly Newsletter Vol. 13. No1
5
appropriate in achieving development and
enforcing competitiveness (DTI, 2001;
OECD, 2001). They have also been
recognized as a very important tool
for achieving economic success at
the national and regional level.
Cluster-based policy provides a
better perspective of the economic
situation, a better understanding
of industry needs and a direct
means of dialogue among cluster
members. This enables the tailor-
made design of support for private
sector initiative and practical
approaches for their financing and
management.
The role of the government in
developing industry policy must be
different from that of cluster–based policy. In pursuing
cluster-based policy, the aim is simply for government to
reinforce the development of all clusters. Given their
resource limitations, governments tend to concentrate
on certain clusters, disregarding traditional clusters,
such as agriculture (Porter 1998). Porter contends that
governments should not choose among clusters, as each
one offers opportunities to improve productivity,
employment and contribute to the economy and to
affect the productivity of other clusters. Government
should work with the private sector to build on
existing and emerging clusters rather than create
entirely new ones, since successful new industries and
clusters often grow out of established ones. In
carrying out its role, governments must ensure the
supply of high quality inputs, such as well educated and
skilled persons and physical infrastructure. It must set
the rules for competition, by protecting intellectual
property and enforcing antitrust laws to ensure that
innovation and productivity successfully contribute to
the economy. It must upgrade and build public and quasi
public goods that have a significant impact on linked
businesses.
In summary, a cluster is a voluntary association of
independent enterprises in a region, sector or along a
supply chain, collaborating for mutual benefit. Clusters
develop over time and are not a phenomenon that just
appears or disappears overnight. Cluster-strategies
should lead the way towards competitiveness, with the
role of government focussed clearly on enhancing the
repositioning strategies of the cluster. Depending on the
cluster, government, individual companies, trade
associations, reaearch, universities, educational
programs and all involved, should work together.
6

Clustering for Competitiveness in the Caribbean

Jamaica's Agribusiness Cluster Combines Buying’ Power

For most Jamaican hot sauce and jerk manufacturers, packaging is the single largest input
cost. Glass bottles are particularly expensive, accounting for as much as 40% of unit costs.
Although the bottles used in the industry are generally standardized, they are purchased in
small batches by the individual processor due to volume requirements. As a result, the larger
glass bottle suppliers have been able to exert bargaining power over a fragmented buyer
base, dictating prices, credit terms, and the degree of after sales service.

The Jamaica Competitiveness Cluster Project (JCCP) launched a consolidated glass

purchasing programme, whereby cluster members have taken their needs to the market in
search of better prices, credit, and service. The purchasing initiative has already resulted in
orders from several agro-processors (representing approximately 25% of the local market),
through the preferred vendor pricing arranged by the JCCP. Cluster members have realized
savings in the range of 8% to 25%, already resulting in excess of US$ 900,000.00.

From: http://www.otfgroup.com/eng/projects.html

Mango Farmers Become Entrepreneurs

Dominican Republic Mango producers and exporters collaborate to enter
U.S. market

Some of Latin America’s finest mangos are grown in the Dominican

Republic. Yet for decades they were sold only domestically, often grown in
backyards or abandoned plots, and exported only as an industrial pulp,
selling at lower prices than fresh fruit. Although the U.S. market was
nearby, the competition and regulations appeared too daunting to tackle.
Mango farmers had no organized association, lacked a clear business
strategy, and had little government support.

In 2005, United States Agency for International Development (USAID)

helped create a mango “industry cluster,” bringing together farmers,
suppliers, exporters, transport companies, and government bodies. The
objectives of the mango cluster were to: (1) establish the DR mango as a
Photo: Chemonics/Leah Garcia
Employees of a mango-packing plant near Santo Domingo
product of high product of high quality through the development of seals of
prepare mangos for export to the United States. quality and (2) increase the volume of mango production through the
design, communication and implementation of a plan of national
development. USAID assisted them in gaining entry to the U.S. market, helping set goals and overcome obstacles. A
major hurdle was meeting U.S. phytosanitary requirements and ensuring that all exports were pest-free. Since this
required a lot of collaboration among all parties, similar efforts had failed before. Therefore, a plan of work was
introduced which included new pruning and packaging methods, a programme to control Anthracnose disease,
objectives of value added products, post harvest handling and visits to packing companies in the USA. In addition, to
meet the international market requirement, industry standards were established including HACCP, certifies/seal of
quality and a seal of origin issued for traceability. The USAID worked closely with the U.S. agencies that provided final
approval to import the mangoes.

Today, everyone involved in the nascent mango export industry is working together and their next goal is to expand to
high-end niche markets. They’re no longer farmers or distributors; they’re entrepreneurs who are working jointly
to develop a sector-wide business strategy and reduce costs. Also, private investors are investing in treatment
facilities for mangos. Pruning techniques introduced by USAID are doubling yields, improving fruit quality and lowering
costs. In 2005, they earned $2 million from exports to Europe and $300,000 from exports to the U.S. In 2006, they
intend to double their U.S. sales. For the mango cluster, now known as PROMANGO, this is only the beginning.

From: USAID (US Agency for International Development), Mango Farmers Become Entrepreneurs, Telling Our Story.
www.usaid.gov/stories

Trimesterly Newsletter Vol. 13. No1

 7

Taking Caribbean Herbals Global

Herbs and botanicals have become increasingly popular within

recent times. Globally, this popularity is being driven partly by
aging ‘Baby Boomers’ seeking healthier lifestyles and purchasing
habits in all the other demographic groups. This offers
unprecedented opportunities for viable agribusiness and trade in all
product categories, eg. pharmaceuticals, culinary spices,
cosmeceuticals, functional foods and personal care.
The Caribbean has a rich botanical biodiversity and tradition of
herbs and spices for medicinal, health care, therapeutic and
culinary use. Given such natural advantages and assets and its good
international reputation, the Caribbean is well positioned to both
take advantage of and create opportunities in the herbal and
botanicals market. With continued strong demand, rapid growth in Medicinal Herb Farm, Dominica
tourism and heightened interest in environmental preservation and
wellness, growth in herbal and botanical industries will provide wide-ranging socio-economic benefits to Caribbean
economies. These include providing a solid base for sustainable livelihoods both in terms of producing herbs and
botanicals and providing associated health and wellness services. It will also provide a much-needed launch-pad for
developing innovative entrepreneurs and products and promoting wider application of new technologies in agriculture,
including the application of appropriate biotechnologies.
Caribbean countries are currently exploring their options in a dynamic herbal and botanicals market. However, the
ability to develop herbal and botanical industries on a commercial basis will require, inter alia, harmonized policy that
creates the enabling business environment for private investment and sustainable growth. Strategic interventions,
particularly a strong regulatory framework and standardization of approaches to Intellectual Property Rights and the
‘practice’ of Traditional Medicine/Complimentary Alternative Medicine must give effect to such policies. Development
will also require strengthening of the existing herbal businesses which are currently operating at low levels of
commercialisation with limited access to market analysis, trade information and innovative research.
In this regard, the Caribbean Herbal Business Association (CHBA) was established in 2004 to ensure that the
favourable climate needed to develop herbal and botanicals industries is created and sustained over time. CHBA
mandate also includes networking, lobby and negotiation on issues affecting the herbal and botanical industry. The
Secretariat of the CHBA is hosted and supported by IICA, Trinidad and Tobago Office. Other partners in development
include international organisations of Pro€Invest, Centre for the Development of Enterprise (CDE), Technical Centre for
Agriculture and Rural Co-operation (CTA), European Commission-Caribbean Export Development Agency (EC-CEDA),
which support research, dissemination of information, training, seminars, workshops and events aimed at collectively
assisting the promotion and development of the industry.

CHBA, in keeping with its mission to

promote the development of a
sustainable regional Herbal Industry,
will publish the Caribbean’s first
ever herbal business magazine. The
first issue of Caribbean Herbal
Business will be available in
mid-2007 and will be
distributed widely throughout
the Caribbean and
internationally. The Magazine
features industry Trailblazers, Herb
and/or Botanical Profiles of
commercial value, activities and
Programmes undertaken by the CHBA
and Market Intelligence among other
interesting topics. CHBA has also
completed a suite of Herbal
Technology Briefs in seven (7)
categories which are available on the
website: www.caribbeanherbs.org.

Trimesterly Newsletter Vol. 13. No1

8

The Caribbean Private Sector and Food Self-Sufficiency

Extracted from “Time is ripe for Caribbean to consider self-sufficiency in food” by Stacia Browne of the Barbados Advocate

There is the potential for Barbados and other Caribbean
countries to be self-sufficient in food. This statement was
disclosed by Dick Stoute, president of the Barbados
Chamber of Commerce and Industry, in an interview with
the Barbados Advocate. Stoute highlighted that such a
venture was highly possible with the private sector taking
the leading role. He said, “I would think that if the
Caribbean companies were involved in the food process
growing, marketing, retailing all together and looked at
the subject holistically, we could make strides in the food
industry.” The BCCI President noted that the time is ripe
for the region to examine this issue closely, particularly
considering that food prices have been on the increase.
Stoute remarked that it was the domestically and
regionally produced goods that had some of the highest
prices across the spectrum. This, he reasoned, is a major
concern. Last week the Fair Trading Commission (FTC) and
the Division of Commerce and Consumer Affairs issued
reports that highlighted the tremendous increases the
food retail sector in Barbados is witnessing. In fact,
according to the FTC report, food prices in Barbados have
increased by 25 per cent, while inflation was about 13 per
cent.
When asked about the buy-local campaigns that some
Caribbean countries are involved in, such as Barbados,
Stoute reasoned that such campaigns are usually a success
for a certain period of time. He maintained, “These were
successful initially, but all campaigns have a life and we
are at the end of that one; so we need to develop a new
initiative.” However, he believes that these campaigns
were too insular when they were first launched. He said
that they should have been more regionally focused,
rather than territorial.
He said, “We need to think to buy Caribbean. There are
products in other Caribbean islands like Guyana and
Dominica that we are unable to get in Barbados, because
they are no shipping links between those territories and
Barbados. In fact, he indicated that it is his belief that
this disparity is having a negative impact on regional
trade.” The Caribbean imports over Bds$2 billion in food
annually. Barbados share is close to Bds$400 million. Many
analysts believe that this high food import bill must be
reduced.
He mentioned the Jagdeo initiative, which looked at
using the production capacity in Guyana to supply the
Caribbean with food. The BCCI President believes that the
time is ripe for the private sector in the Caribbean to
follow up on these initiatives. He explained that such a
venture should be private sector driven, because it is their
businesses that stand to benefit from it.

Repositioning Agriculture – The Jagdeo Initiative in a Nutshell

Why the Initiative?
Growth, food security and
environmental integrity top the
region’s sustainable
development and integration
agenda. Agriculture is key in
contributing to the achievement
of these objectives.
Caribbean countries all face
similar difficulties in effectively
meeting the challenges and
sustaining growth in agriculture.
These challenges arise from
external forces, e.g., trade
liberalisation, natural hazards;
and domestic deficiencies, eg.,
unstable policies, weak
institutions and loss of resources.
Coordinated and joint action
among member states in critical
areas is necessary to stem further
decline, revitalise industries and
establish a stable platform for
growth in agriculture.
What will the Initiative Do? Where do we go from here?
For the medium-term, Member States established 10
Key Binding Constraints (KBCs) for concerted,
coordinated and joint action. They are:
1. Limited financing and Inadequate New
Investments
2. Outdated/Inefficient Agricultural Health & Food
Safety (AHFS) systems
3. Inadequate Research and Development
4. Fragmented and Disorganized Private Sector
5. Inefficient land and water distribution and
management systems
6. Deficient and uncoordinated risk management
measures
7. Inadequate (export) transportation
8. Weak and Non-integrated Information/
Intelligence systems
9. Weak Linkages/Participation in Markets
10. Lack of Skilled Human Resources
Existing national and regional actions that are
already contributing to alleviating these KBCs will
be supported and expanded as necessary.
Interventions to fill the gaps at both the regional
and national levels will be defined and submitted
for financing and implementation.
Work on The Initiative started in
late 2003 among institutions and
member states. Between 2004
and 2005, member states and
regional and international support
agencies worked to take stock of
what exists and define relevant
actions to fill the gap to alleviate
these KBCs within the shortest
time-frame possible.
The timeframe for this phase of
the Initiative is 2015. This is in
keeping with the Millennium
Development Goals (MDGs)
targets and the Agro Plan 2003-
2015. The region has 8 more years
to achieve substantial progress in
these 10 KBCs. This will be critical
to establish a stable platform for
sustaining growth in agriculture. It
will also be pivotal in making
agriculture a significant socio-
economic force in accelerating
regional integration and adapting
to globalisation.

Go to www.carapn.net for more information on the Jagdeo Initiative

Trimesterly Newsletter Vol. 13. No1

 9

acknowledging success and achievers Youth in Agriculture are people

The bee is a humble yet industrious, well organised and in our societies who have an
persistent creature. This corner is devoted to our many interest in agriculture and who
youthful go-getters and achievers in the diverse field of the want to make a difference in the
agriculture food and natural resources system with such region and world’s oldest, largest
qualities. They deserve to be recognised and acknowledged. and most diverse industry.

Agriculture, Biotechnology and the YOUTH

Curiosity has led Nigel Austin straight into the exiting and dynamic field of
biotechnology. Nigel had a deep passion for finding out how organisms worked
and a deep interest in solving problems in agriculture and medicine. Nigel,
who is 30 years, already has a B.Sc in Biochemistry and is on his way to
completing a Ph.D in Genetics this year. His main project is the thesis, which
looks at genetic diversity of forest trees and the repercussions, if any, on its
management. He also did extensive work in genectically modified organisms
(GMO) testing where the results has proven that humans have been consuming
genetically modified foods for a long time now.

Nigel believes that biotechnology is a cutting edge field. It offers several

cross-cutting applications that are useful in many other areas, including
agriculture, nutrition, pathology, forensics and medicine. When combined
with traditional and emerging technologies and efficient infrastructure all
working synergistically, Nigel thinks that biotechnology can propel the
development of the ‘new’ agriculture in the Caribbean.

Nigel advises that once the correct skills and techniques are learnt and
understood, the field of biotechnology opens up limitless opportunities for
youth. To succeed in this field, youth will definitely need a supportive
framework and motivation from family and friends, academics, and constant
general reading in biotechnology and related news and technologies. He What is Agrobiotechnology?
thinks that the ideal pre-requisites for any young professional wanting to get Agrobiotechnology adds value to
involved in biotechnology is foremost a love for biology and an interest in how agricultural products. There is no
life works at the molecular level. An appreciation for basic sciences such as getting around scientific terms, but
Biology, Chemistry, Math and Physics will provide the foundation for further in its simplest form,
studies. Further, a keen interest in solving problems related to agriculture, agrobiotechnology refers to a group
food and nutrition and medicine is definitely a key to becoming a fine of technologies that uses living
biotechnologist. He advises the new comers to be willing to sacrifice and work organisms, their parts and
extremely hard to succeed in this field. components, as well as biological
systems and processes for the
Nigel Austin is a Graduate Student and Teaching Assistant at the University of the production of goods and services in
West Indies, Department of Life Sciences, St.Augustine Campus under the supervision agriculture related activities.
of Dr. Path Umaharan, Geneticist. He plans to continue his current research project Research and development in
and pursue a post Doctoral research, where he can provide technical expertise in areas
agrobiotechnology includes
where the application of biotechnology can strengthen the overall societal and
economic framework of the country or region. strategies for better yield of crop
plants, including production of
uniform high quality planting
This issue focuses on issues relating to sustaining youth materials using plant tissue culture
interest and activity in the ‘new’ agriculture, whether as technologies, control and prevention
policy makers, leaders, development change agents and the of livestock diseases, alternatives to
new ‘agri-preneurs’. Youth, along with women, must the use of traditional antibiotics to
participate fully as development proceeds. They cannot enhance livestock production,
allow themselves to be marginalized; but must take a more among other things. Next time you
proactive and assertive role in the development of our go to a nursery, what may catch your
societies and economies. They are Our Hope, Our Future, eye is a hue of anthurium or orchid
Agriculture’s Generation Next! you have never seen before. That is
also agrobiotechnology!

Trimesterly Newsletter Vol. 13. No1

10

Decoding Policy”
“In bureaucratic circles, ‘policy’ is perhaps the word used communicated and accepted by all involved, as an integral
most frequently, apart from the ‘budget’, of course”. part of the process itself.
This was extracted from “Decoding Policy”, an article This leads to another issue in ‘decoding policy’. That
published in the Trinidad and Tobago (T&T) Daily Express policy implementation is a responsibility that must be
newspaper of 19th December 2006 by the School of shared by the state and all other interested/affected
Education, UWI, St. Augustine. The focus was on the parties. This includes agreeing on roles, responsibilities
education system. But the issues raised are also relevant and resource allocation. In the process of implementing
for agriculture. It may be that the lack of clear direction to policy, the article emphasizes the importance of
some of these issues have and continue to present understanding the process of how macro (or national)
roadblocks to the efficient implementation of policy. policy normally feeds into how the interested/affected
Each CARICOM country has the sovereign right to parties function at the micro level. It states that “..no
formulate policy for developing its food, agriculture and macro policy can spell out the appropriate action to be
natural resources system. In addition, due to their taken in every situation…although macro policy may be
membership in the regional integration union – initially the driven by a specific and stated overarching philosophy (and
Caribbean Community (CARICOM) and more recently the goal) it is incumbent on (interested/affected parties) to
CARICOM Single Market (CSM) – each CARICOM country also read between the lines, to interpret, and to align their
has an obligation to pursue and implement a common behaviours with the system’s intentions”.
regional food, agriculture and natural resources policy. This An efficient and successful implementation process
is being patterned to some extent, on the European Union requires full participation in breaking-down the state policy
(EU) model where EU members have adhered to principles for the food, agriculture and natural resources system. This
and elements of the Common Agricultural Policy (CAP). should differentiate between broad areas that require
The fact that the UWI article started with the words “in harmonized or standard policy and those best served by some
bureaucratic circles, ‘policy’ is…”, could be interpreted as policy flexibility. For example, agricultural health and food
‘policy’ formulation being the responsibility of the state safety issues must be guided by standard policy in accordance
(government). In fact, this interpretation was not far of the with international guidelines. In contrast, developments in
mark, since the article continued by saying that “..those in the area of agri-business development may require some
legitimate power are the ones responsible for formulating policy flexibility in implementation due to scale, gender and
policy for others to implement”. This essentially reflects product considerations.
the sentiments of most agriculture stakeholders/actors, The bottom line is that while macro policy provides the
who continue to see themselves outside of, or without general goal and roadmap to get there, it is at the micro
influence in the policy formulation process. level, where the diverse interests and capacities of all actors
An issue in ‘decoding policy’ is to debunk the view that come to the fore, that the specifics of the targets, actions,
government is responsible for policy formulation. Regional how actions are to be implemented and by who, must be
organizations, including the CARICOM and OECS thrashed out, decided and agreed, i.e., the strategic planning
Secretariats, and international organizations, including the process. It is only then that individual behaviour will be
World Bank, FAO and IICA, repeatedly emphasize that collectively aligned with the system’s intentions, the
policy formulation must be a fully participatory process if challenges of transforming policy into practice will be
policy implementation is to be efficient and successful. systematically addressed and overcome, and meaningful
While the state (government) has a major role to play in progress achieved.
informing, facilitating and formalizing the process, it These considerations may explain the why the
cannot and should not, on its own, be responsible, even performance of agriculture has been as it was over the years,
largely so, for formulating policy. and that inspite of genuine efforts of individual private sector
All interested, potentially affected parties, and the participants, any gains achieved in one period, seem not to
oft-described ‘beneficiaries or stakeholders’ accept their last over the long term. This also explains why we are still
roles and responsibilities in the process of formulating struggling to find practical solutions to the same ‘constraints’
policy that clearly defines a long-term development goal to agriculture that were identified 20-30 years ago.
and objectives for the food, agriculture and natural The absence of a stable and practical development-
resources system. This is the only mechanism that will, at oriented policy framework for agriculture, harmonized within
the very least ensure some consensus on an official the region, to guide the establishment and functioning of
national policy and development strategy and the appropriate institutions, human resource development,
partnerships needed to move the process. For this to be investment mobilization, national to regional consensus
achieved, then, as indicated in the UWI article, issues building and joint action still continues to be a major
relating to “what happens once the “policy” is handed deficiency. Until the role of policy becomes well understood
down; who explains the policy; who implements it; and and managed, then the performance of agriculture will
what is lost in translation?” must be clearly defined, continue to be adversely affected!

Trimesterly Newsletter Vol. 13. No1

 11

Agri-Negotiations to Date In Brief

Agriculture is a complex and challenging issue in the Caribbean’s major trade negotiations: these are the World Trade
Organization (WTO) Doha Development Agenda and the European Union (EU) Economic Partnership Agreement (EPA).
Caribbean member states have joined other developing countries in the call for fair trade in agriculture, particularly
genuine access to developed country markets for their exports, the elimination of export subsidies and time, flexibility
and international assistance to implement their development agenda. The year 2007 is critical in accelerating the pace
for these negotiations, shaping more favourable outcomes and placing countries on a stronger developmental footing.

Doha - Complexities and missed deadlines EU-CARIFORUM EPA – impractical deadlines

Agricultural subsidies and market access are
contentious issues that have stymied progress in the WTO
negotiations thus far. Still reeling from the adverse
impacts of the Uruguay Round trade liberalization on their
traditional banana and sugar industries, Caribbean
countries have been adopting a very cautious approach to
the negotiations. Indeed, this appears to be the stance of
several developing countries as evidenced by the missed
deadlines from the launch of the round in Seattle in late
1999. The latest missed Doha deadline was the April 30
2006 time limit for farm modalities and the submission of
comprehensive draft Schedules based on these modalities
by 31 July. This was exacerbated by the suspension of the
negotiations in July 2006. However, the suspension
provided an opportunity for Member States to safeguard
past achievements and to reflect on the outlook for the
Round.
On January 27, 2007, the informal Davos mini-
Ministerial clarified the status quo, provided direction on
moving the process forward and gave new impetus to the
negotiating process. The negotiations resumed in February
2007 demonstrating commitment to the Round’s spirit and
confidence in its potential. However, members are yet to
propose new formal offers on tariff and subsidy cuts and
agricultural issues are focused on sensitive products. Some
difficult trade-offs and technical work needs to be done
urgently to speed up the process. This is particularly so as
the US Trade Promotion Authority expires at the end of
June 2007. Missing this deadline means that the US
President will no longer be able to put trade agreements to
Congress for a yes-or-no vote without the possibility of
amendments. If there are no signs that the mandate will
be extended, other countries, particularly devloping ones,
will be reluctant to negotiate on trade, fearing that
concluded deals will not survive a Congressional vote
intact.
According to Pascal Lamy, Director-General of the WTO
“we have been learning a lot in the process so far . . . I am
convinced we are not very far from success — but this is
the final stretch, and as in so many human endeavours,
the last part is the most difficult.” Caribbean countries
will remain engaged in the Doha negotiations to secure the
policy space needed for their development agendas, as
individual sovereign states and as a region, with special
focus on addressing the livelihood concerns of small, poor
and vulnerable segments of society.
The Caribbean, through their membership in the
African, Caribbean and Pacific (ACP) group of countries
and the European Commission (EC), acknowledge that
present trade arrangements must be dismantled and
replaced with new ones that are WTO compatible. The
WTO agreed to allow the EU to continue preferential trade
with ACP countries only until the end of 2007 and both the
EU and ACP have committed to concluding trade talks by
that deadline. Come January 1st 2008, existing trade
preferences under the Cotonou Agreement will end. The
already debilitated banana and sugar industries and rice
exports will be further challenged to survive in a
liberalized EU market.
Caribbean countries insist that the January 2008
timeline for completing negotiations on a new trade
regime with the EU is impractical. In the long-run, the
region’s export-led growth could be significantly
compromised from an unfavourable trade arrangement,
unless certain conditions are met. These include need for a
more expansive array of EU funding instruments with
binding commitments in the EPA. This is preferred to the
reliance on the European Development Fund (EDF) as a
dynamic tool to strengthen the region’s developmental
position and regional integration efforts. Caribbean
countries have proposed a 25-year transition period for
very sensitive products under the new market access rules
and special agricultural safeguard measures. As for the
WTO, tariff liberalization remains a major stumbling block.
On April 4 2007, the EU proposed to remove all
remaining quota and tariff limitations on access to the EU
market for all ACP regions as part of the EPA negotiations.
The offer covers all products, including agricultural goods
like beef, dairy, cereals and all fruit and vegetables. It will
apply immediately following the signing of an agreement.
The only exception will be South Africa where a number of
globally competitive products will continue to pay import
duties. Briefly, this offer will: (a) eliminate all tariffs and
import quotas for all ACP countries, (b) give all ACP
countries the same full access to EU markets that all Least
Developed Countries have under the EU's "Everything But
Arms" Duty and Quota Free market access system, (c) not
be tied to the requirement of equivalent openness from
the ACP countries and (d) apply in full from day one -
planned to be 1 January 2008- with the exception of a
transition period for rice and sugar. From 2015, ACP sugar
would be duty and quota-free. For rice, tariff rate quota
would be substantially increased and the in-quota tariff
rate would be zero (0) during this transition period.

Trimesterly Newsletter Vol. 13. No1

 12

'Celebrating We Agriculture’ ~ CWA

Scenes from the 6th Caribbean Week of Agriculture (CWA) in the Bahamas October
3-7 2007. Theme: ‘Sustaining Marine and Agricultural Resources into the Future'.
The CWA was first initiated
in Trinidad and Tobago in
July 1999 by the Alliance
for Sustainable
Development of Agriculture
and the Rural Milieu. It
provides a forum for
the Ceremony
dialogue, highlight
successful experiences, the Children. . agriculture’s future
promote the importance of and generation next. . . .
agriculture and showcase
the region's products. It has
become an annual event.
CWA 2007 will be in
Jamaica

the Commodities. . . attractive, appetizing, innovative and nutritious

The Conferences. . .

the Conferences. . .

the Crustaceans…. our marine life the Chefs and Cuisine . . . gourmet
the Culture . . .that flavours agriculture agriculture at its best . . .

Articles, news, updates, book reviews, questions and comments for publication in the AgriView Newsletter are welcomed

AgriView is published trimesterly by the Inter-

American Institute for Cooperation on
Agriculture. AV provides a forum for researchers,
policy makers and agri-entrepreneurs, including
small farmer, to share ideas and successful
experiences that will contribute to the
repositioning of the agri-food system in the
Caribbean to one that is economically efficient,
socially responsible and environmentally sound.
AV also provides information to enhance
knowledge critical to agribusiness.
Production and Editing:
Diana Francis
Research Assistance:
Richard Rampersaud
Printing:
Printcom (Caribbean) Limited
Tel. 665 3324, 671-7289
ISSN 1991-2315 CaRC/TT-01/07
The responsibility for opinions expressed in this publication and errors and ommissions rests solely with the authors.

Trimesterly Newsletter Vol. 13. No1