OVERCOMING THE BINDING CONSTRAINTS CONSTRAINTS TO GROWTH IN JAMAICA This is JAMAICA’S planting time; this is JAMAICA’S rebuilding time This is JAMAICA’S time. State of the Nation Contribution by Senator Norman W. Grant, JP Friday, March 14, 2014 Senator Norman Grant Presentation to the Senate of Jamaica Page 1 Senator Norman Washington Grant State of the Nation Presentation Friday March 14, 2014 Introduction Mr. President, today I declare that I am of the view that the State of our Nation is getting stronger and stronger at every day, every week , every month and every year and so I share with you today Ecclesiastes chapter 3 : 1 to 8. Mr. President, “To everything there is a season and a time for every purpose under the Heaven…A time to plant and a time to pluck what is planted…A time to break down and a time to build up”. Mr President, This is Jamaica’s Planting time; this is Jamaica’s Re-Building time! This is Jamaica’s Time. I am therefore through this presentation guided by the theme - “JAMAICA Overcoming the Binding Constraints to Growth……” Mr. President, I rise today and thank the Almighty God for another opportunity to make a State of the Nation address in this Chamber. I wish to thank the Prime Minister of Jamaica, the Most Honourable Portia Simpson Miller for the confidence that she has placed in me, in affording me to serve the farmers, our people and the great nation state, Jamaica Land We Love. Mr. President, Colleague please join me in commending the Most Hon. Portia SimpsonMiller, Prime Minister and her team with lead member of Economy Dr. the Hon. Peter Phillips, Minister of Finance and the Public Service for successfully passing three consecutive International Monetary Fund tests; these are initiatives that are setting the path for the country’s growth and economic development. The Government has done an excellent job so far in correcting the fiscal imbalance in the Jamaican economy and Senator Norman Grant Presentation to the Senate of Jamaica Page 2 setting it on a path for growth. This must be acknowledged, celebrated and we must now seek to expand the sectors that will make growth sustainable. Mr. President, thanks to my staff, colleagues in the various organizations I serve, Mavis Bank Coffee Factory Limited, The Jamaica 4H Clubs, the Minister of Agriculture and Fisheries, the Jamaica Agricultural Society, the Church, the Caribbean Farmers Association Network and the Caribbean 4-H Movement, to you Mr. President and my other colleagues and the workers in this Chamber; my beautiful supportive family, wife Millicent, daughters Janeen and Kimona and son Phillip; my mother Miss Leteria Hall and my siblings, other relatives and friends. Sector Overview and Performance Data Mr. President, I am of the view that what is critical to a renewed growth path and sustained economic development for Jamaica and our people is GROWTH IN AGRICULTURE which is being driven by youth empowerment, increased production and productivity, agro-processing and research and development. Mr. President, the critical pillars for the sector’s continued development are; the improvement in the agricultural and rural infrastructure, addressing critical binding constraints to growth in the sector such as praedial larceny, access to funding, land reform, crop insurance and strengthening an agricultural marketing system. Mr. President we are cognizant of the fact that as a sector we must and will take advantage of the new and emerging areas of opportunities in the global trade. The agricultural sector has been performing credibly, evidenced by: 1. The reality of Jamaica’s economic environment in 2013 placed the role of the agricultural sector into even sharper focus and confirms that this sector is the lifeblood of the Jamaican economy. More than ever, it is recognized that this sector is critical to the national drive for sustainable growth and development. It is a sector which continues to employ over 200,000 persons in the labour force, which is approximately 20 percent of the national labour force. With a multiplier effect of 5, this sector touches the lives of over 1 million Jamaicans. Real value added for Senator Norman Grant Presentation to the Senate of Jamaica Page 3 Agriculture, Forestry and Fishing industry for the calendar year 2012 grew by 2.6 percent, larger than the growth rate of the economy and contributed 6.8 percent to GDP and on Preliminary numbers for 2013 and the recovery from Hurricane Sandy this trend should hold. 2. In spite of the constant threats of crop diseases in some areas and the impact of natural disasters, which cost the sector $110 billion between 2004 and 2013, the sector continued to forge ahead with a return to growth in the latter part of the year, recording an 8.4% increase in domestic agricultural production in the third quarter ending September 2013 and an overall increase of 5% in the sector. For the fourth quarter ending December 2013, there was a 10% increase in domestic agricultural production. As this trend continues, we moved into 2014 on a positive note and anticipate that the sector will continue to contribute some over 6% to the country’s GDP. 3. This is a significant recovery given the impact of Hurricane Sandy, which struck the island at the end of 2012 and reversed the positive growth trend. We will recall that in 2012, our food import bill moved up by 2% compared to 2011; on the other hand, food exports increased by 22.4%, from US$224M in 2011 to US$274M in 2012. In 2013, the numbers will show that there is a slowdown in imports due to the impact of the “grow what we eat campaign” in addition to other deliberate initiatives by the Minister of Agriculture and his team in the Ministry. 4. Nonetheless, the Ministry of Agriculture & Fisheries continued to implement a number of important initiatives in order to address issues of food safety and security, import substitution, facilitation of markets, improvement of the agricultural infrastructure, increased agricultural output and value-added products. 5. On May 8, 2013, the Minister tabled in Parliament the National Food and Nutrition Security Policy, a watershed policy which has far-reaching implications for health, rural development, the economy and, most importantly, for our food security as a nation. This policy seeks to ensure that a sufficient quality and quantity of nutritious Senator Norman Grant Presentation to the Senate of Jamaica Page 4 foods is available to all people in Jamaica, through increased domestic production and a sustainable level of imports. Of course, Mr. President we can grow and export what we can to generate foreign exchange to purchase what we need and cannot grow or produce ourselves. 6. The Ministry, during 2013 rolled-out a number of Agro-Parks at Amity Hall in St. Catherine; Ebony Park in Clarendon and Plantation Garden River in St. Thomas; this is a major strategy to produce more of the major crops that we import. Mr. President, at Ebony Park, 70 farmers have produced and harvested over 478,523 pounds of onions, vegetables, roots and tubers, hot peppers and other condiments at an approximate value of $21.5 million. 7. The Sector expanded production in ginger and turmeric, with ginger production increasing to 1,082 tonnes, the highest over the past 20 years. 8. It also achieved an over 80% self-sufficiency rate in table Irish potato. In 2012, approximately 10 million kg of potatoes were imported – the numbers reflect that at the end of September 2012, 6 million kg had been imported compared to 600,000 kg at the end of September 2013; a reduction of 90%. We are becoming self sufficient in egg, pork and poultry production. 9. There is the rebuilding of the fishing sector with focus on inland fishing as the Minister has targeted the resuscitate Hill Run St Catherine in the Agro-Park concept expansion into areas such as greenhouse production and Sea-Island Cotton, a labour intensive crop. 10. The transformation of sugar dependent areas accelerated with the construction of “houses under the barracks relocation programme” and the rehabilitation of some Senator Norman Grant Presentation to the Senate of Jamaica Page 5 240 km of farm roads, as well as the provision of social infrastructure including health centers, play fields and basic schools. 11. The use of local produce such as liquefied eggs in the school feeding programme instead of imported milk powder. 12. Mr President there is a review process in place to design a comprehensive programme to tackle praedial larceny which is costing the sector an estimated $6 billion annually. This system will increase heavier penalty for offenders, victim compensation fund for farmers and complete traceability system to include buyers of produce as well. RADA has reported that close to 170,000 of the country 230,000 farmers have been registered and this will keep to deal with this problem together with the use of the receipt books from the JAS. 13. Mr President the Linkage Hug in the Ministry of Tourism is working for the players in Agriculture, Manufacturing, Tourism and the Entertainment. Through this Hub Tourism Enhancement fund has provided $10 million grant to fund 7 Farmers market in Negril and Montego Bay. 5 have already been stage very excellent success and here not only are the tourist expose to great food and it an market for the farmers produce. This particular project is implemented by RADA and the JAS in Hotel and Tourist Association. 14. One hundred and sixty farmers from eight communities in St. Ann and Manchester are set to benefit from a $192 million Water Catchment and Greenhouse Cluster Project, being undertaken by the Jamaica Social Investment Fund (JSIF) and the Jamaica Bauxite Institute (JBI). A total of 20 greenhouses are being constructed in each of the eight targeted communities, with a mined-out pit at each site to be converted into a surface water reservoir to be used for irrigation purposes. The project, which involves collaboration with Noranda Jamaica Bauxite Partners, is geared at placing formerly small scale subsistence farmers on mined-out bauxite lands, and providing the necessary infrastructure and equipment for them to do Senator Norman Grant Presentation to the Senate of Jamaica Page 6 greenhouse farming on a larger scale. JSIF is providing $160 million through the World Bank-sponsored Rural Economic Development Initiative (REDI), with the JBI contributing $32 million. It is estimated that there are just under 9,000 hectares of mined land in Jamaica and putting back these into agricultural production will lead to sustained growth in agriculture and the economy. Water Catchment project is a part of a $3 billion irrigation development plan. Only recently the Prime Minister commission to Yallahs Irrigation scheme as a part of the Yallahs Agro-Park an investment of over $300 million on lands owned by the Jamaica Agricultural Society. Bamboo Industry Development: I am pleased to inform the Senate, that subsequent to my presentation here on the development of a bamboo industry here in Jamaica, the bamboo sector is now expanding in a serious way. I am pleased to inform you Mr. President that Bamboo is no more classified as an invasive species by NEPA. Thanks to the intervention of the Minister of Climate Change. This is a significant stride as the door is now opened to grow the industry. This includes: • An available market for 6 Million coffee stirrers made from bamboo immediately, and an established demand to supply 4billion coffee stirrers annually. • The push for a joined up government approach is working. • The Director General and other Technical staff of the International Network for Bamboo and Rattan (INBAR) will be in Jamaica in April for a two day conference on bamboo utilization will be held at the UWI between April 14 and 15. • The Chinese have met with BIMAC and indicated their full support of the project, and is now willing to train twenty persons annually in China, up from two. • A sample shipment of Bamboo Charcoal has been dispatched to Canada that could open export potential earnings of US$12 millions. • I have had discussion with Minister Folks-Abrahams who is giving strong consideration for at least 2 pilot bamboo factories. • Mr Gladstone Rose and the BIMAC team from the Bureau of Standard Jamaica with the Jamaica Agricultural Society have intensified the education programme. Senator Norman Grant Presentation to the Senate of Jamaica Page 7 Mr. President this agricultural sub-sector is now moving rapidly and I commend the Senate for approving my proposals which has help to accelerate the development of this industry. Today we have with us in the critical players in this emerging industry. There is a need for investors to look to this sector as it linkage with tourism, food, climate change, manufacturing is very clear. IT IS PLANTING TIME. Highlighted in the operational plan 2013-2014: The Ministry of Agriculture and Fisheries seeks to provide a modern institutional and support framework for the development of a viable agricultural sector which will include: the expansion of the extension services; introduction and expansion of the application of technology; farmer education; promotion of agro-industrial development; improve production and productivity through targeted and focused intervention in specific crops production, infrastructural development, value chain development, greater use of market intelligence, renewed emphasis on research and development with a strong focus on value added produce and youth in agriculture. Youth Empowered by Agriculture Mr. President, I refer to an editorial published in the Daily Gleaner dated Saturday, February 15, 2014 entitled “Where are the big plans for agriculture?” (http://jamaicagleaner.com/gleaner/20140215/cleisure/cleisure1.html).The empowerment of youth in Agriculture is an agenda item for growth and development. The gains made over the last two years in streamlining and restoring the economy to growth must serve as a motivation to all Jamaicans. Important to this end is youth entrepreneurship and empowerment, particularly in responding to the opportunities available in the agricultural sector. Senator Norman Grant Presentation to the Senate of Jamaica Page 8 Among the agencies providing and leading this positive response, is the Jamaica 4-H Clubs established by the Jamaica Agricultural Society 74 years ago and is now an agency of the Ministry of Agriculture & Fisheries tasked with implementing A National Youth in Agriculture Programme. This is done in collaboration with CASE, Ebony Park Academy, and Sydney Pagon Agricultural Vocational/ Agricultural School. The supports provided by the Ministry to this effort over the last 5 years are as follows: • 2009-2010 - $173,625M • 2010-2011 - $160,779M • 2011-2012 - $181,154M • 2012-2013 - $204,524M • 2013-2014 - $208,708M Total: $928,790M for 5 years In addition, the Jamaica 4H Club has raised an additional $50 million each year from donors and international agencies for different programmes in its pursuits of empowerment of youth in agriculture. The Board of Directors appointed by the Minister of Agriculture, Hon. Roger Clarke has appointed a new Executive Director, Ronald Blake who with the management team across the island has demonstrated depth and capacity to lead the process of transformation being embarked. Membership The Jamaica 4-H Clubs is the largest youth development organization with a membership at February 2014 of 83,740 youth between the ages of 5-25 years in 1,124 registered Clubs. This is compared to 60,000 as at February 2013; reflecting a 40% increase in membership in 900 clubs. Mr. President, we expect to conclude the Financial Year with some 84,000 members, this is in keeping with the objective to increase membership from 60,000 in 2011 to 100,000 members by 2016 an projected weighted average growth rate of 14 percent Senator Norman Grant Presentation to the Senate of Jamaica Page 9 pa. All of clubities in the schools are having achievement days ahead of the National Achievement Day at Denbigh on April 10 and 11. Training Training, which is the Organization’s main mandate, as at January 2014 now stands at 123,000 opportunities, compared to 84,000 in 2013; an increase of 46%. These are conducted in areas of Agriculture, Agro-Processing, Home Economics, Leadership, Environmental Awareness and Healthy Lifestyle and the new areas added since 2013 of Climate Change, Entrepreneurship and Food Security. The 4-H Clubs is being repositioned to play an expanded role in the training and empowering of our country’s youths. Mr President, we recognize that there are thousands of un-attached youths with no jobs and no skills; this sometimes create a planting ground for crime. The 4-H is empowering them through various initiatives to create their own employment opportunities. Our training programmes include: Partnership with the Sugar Transformation Unit with funding from the European Union - to train in excess of 1,800 young people with the first batch of 600 presently in training, with an emphasis on youths in the Sugar growing parishes of St. Thomas, St. Catherine, Westmoreland, Clarendon, St. Elizabeth and Trelawny. The training areas are: House Keeping, Small Equipment Repair, Apiculture, Commercial Meal Preparation and Heavy Equipment Maintenance and Operation. The total cost of this programme is $46.7M funded by the European Union through the Sugar Transformation Unit and implemented by the Jamaica 4-H Clubs. The training which commenced on February 1, 2014 is taking place in the 4-H Centres at Denbigh in Clarendon, Rose Hall in St Catherine and Font Hill in St Thomas. These training will run for 6 months to August 2014 and we will have a graduation and will also aim to place them into jobs, but the focus will be to get them to start their own businesses as well. Senator Norman Grant Presentation to the Senate of Jamaica Page 10 Partnership with Heart Trust NTA and Jamaica Bauxite Institute - The Jamaica 4-H Clubs and Heart Trust NTA are currently working on an MOU aimed at certifying all the training programmes offered by the Jamaica 4-H Clubs. These programmes include Tractor Operation and Maintenance where students are being trained in batches of 25 on an ongoing basis. There is also a partnership with JBI for the training of students in batches of 50; the present group has been sponsored to the tune of $7 million. The programme aims is to respond to the impending demand to be created by the Logistics Hub for Heavy Equipment Operators in the near future. In the last year, the 4-H Clubs has 135 youths in this area and pointed them in the direction of jobs. Since we introduced the Japanese-Govt. funded programme in 2004 with the donation of a Massey Ferguson Tractor, we have trained 813 youths. Mr. President, today we have beneficiaries of the current cohort of trainees, Messrs. Lambert Johnson and Dane Anikey. Mr President, they are here with us today let us acknowledge them, a clear demonstration of youth empowerment in agriculture in our efforts to further Jamaica’s future as we overcome the constraints to growth and economic development. Agro-Parks - Twenty Youths Trained in Agriculture - were selected and trained to establish farms on five-acre plots of land received under the Agro-Parks development. The first group of 20 will be placed on the Amity Hall facility in St. Catherine each receiving 5 acres of land. There are two recipients here with us today – Messrs. Balmore Mannings and Derron Williams, who are being placed at Amity Hall. This concept will be reciprocated in other agro-parks based on the success of this initiative. There are some other important initiatives that are being undertaken such as: Rabbit Rearing, Goat Rearing, Apiculture and Broiler Rearing. Under these initiatives, young persons are given economic units as a mean of starting their own businesses. Through a programme with Jamaica Broilers, 110,000 baby chicks are given to young people on an annual basis. Senator Norman Grant Presentation to the Senate of Jamaica Page 11 School Gardens - Four hundred and thirty-three (433) gardens were registered at the end of January 2014 approximately 274.74 hectares of land is under production with vegetables, root crops, permanent crops and livestock production. The aim of Jamaica 4-H Clubs is to introduce a school garden in 1,200 public schools over 5 years and we have actively been in discussion with the Ministry of Education through an MOU. Information Technology – A programme is being established by a Global Online Institute to be marketed to 7 million 4-H Clubites across the world. Thanks to the Japanese government who have provided a specialist in this area to lead this charge for the next 10 months. Youth in Agriculture Education Programme – Annually the Jamaica 4-H Club spends $20 million in this area funded by Rio Tinto through ALCAN, Inc., Earth University in Costa Rica and the Development Bank of Jamaica. The former, provides the opportunity for Clubites to pursue Bachelors and Associate Degrees in General Agriculture and other related disciplines. Over the last two years, through Youth in Action (YIA), some six (6) scholarships have been offered to CASE, each valued at approximately $200,000.00 each. Rio Tinto – This Programme which operates through a fund by Rio Tinto Alcan is managed by the Jamaica 4-H Clubs and assists suitably qualified students in the parishes of St. Ann, St. Catherine and Manchester. Students must be at the high school level or at tertiary/vocational levels, and show need for assistance as well as preparing to pursue careers in Agriculture. Since 2010, 84 scholarships have been awarded, and these have been valued at US$150,000.00 EARTH University, Costa Rica – To date, four (4) Clubites have been selected to attend EARTH University in Costa Rica to pursue degrees in Agriculture. These fees have been offset through Chris Blackwell’s outfit, Island Outpost in St. Mary. These Senator Norman Grant Presentation to the Senate of Jamaica Page 12 youngsters will return to Jamaica with advanced training in agriculture to assist with the development of the sector. Additional Recommendations It should be noted that the work of Jamaica 4-H Clubs continues to be consistent with the main pillars of the Ministry of Agriculture and Fisheries as it relates to training. These are: 3 of 11 strategic goals of the Ministry of Agriculture & Fisheries 1. The continued promotion and development of Youth in Agriculture 2. The reduction of the average age of the Jamaican farmer 3. The strategy of the conveyance of new technologies in Agriculture The Jamaica 4H is now undertaking the development of a comprehensive Youth in Agriculture Framework that will sustain growth in the sector. Increase Production, Productivity and Development of National MicroFarmers Agricultural Marketing System Mr. President, Let me share the production performance of the sector in both domestic and traditional crops: Domestic crop production data: • December 2003 - 491,473 metric tonnes • December 2004 - 414,790 metric tonnes • December 2005 - 391,707 metric tonnes • December 2006 - 467,802 metric tonnes • December 2007 - 427,305 metric tonnes • December 2008 - 400,109 metric tonnes • December 2009 - 489,672 metric tonnes • December 2010 - 500,304 metric tonnes • December 2011- 592,108 metric tonnes • December 2012 - 610,138 metric tonnes Senator Norman Grant Presentation to the Senate of Jamaica Page 13 Analysis: In 2003, the domestic crop production was 491,473, by 2008, it had fell to just over 400,000 tonnes but December 2012 production rose to 610,138. This was an increase of 24% over 2003 and 52% over 2008. With a recovery in the sector for 2013, we should maintain a production of over 600,000. We are now working towards a production level of 1M metric tonnes by 2020; a projected production increase of 63%. Jamaica Agricultural Society Mr. President, Jamaica Agricultural Society is an organization that was formed in 1895 and is one of the oldest and most deeply rooted organizations in the agricultural sector within the Caribbean, representing over 200,000 farmers across the island and is also an umbrella organization that encompasses affiliated commodity organizations. The corporate objective as outlined in its Mission Statement is to ensure the protection and promotion of farmers’ interest through a vigorous independent and financially viable organization, providing service to farmers and assisting them to gain access to resources provided by the Government and other agencies and to take measures to improve their own economic and social well – being. Advocacy The core functions are centered on five main groups of activities. i) Policy Influence and Farmer Representation; whereby farmers are able to express their requirements for services, inputs and other needs through local level annual general meetings and half yearly meetings. ii) Extension, Education, Training and Information Technology; through the Branch organizations by supporting research and development in new methodologies and farming techniques in agricultural production and output and “best practices” in agricultural development. iii) Cooperative Development; by playing an important role in organizing farmers into cooperative groups for collective marketing. Senator Norman Grant Presentation to the Senate of Jamaica Page 14 iv) Special Projects; this is conducted with other agencies to develop with groups of farmers. v) Commercial Operations; fostering efficiency and effectiveness in agricultural production output and distribution and supporting ventures in agri-business as a means of increasing value added within the agricultural sector. The government continues to support the Jamaica Agricultural Society, and over the last five years the contribution has been as follows: Period Contribution 2009 – 2010 $76.699M 2010 – 2011 $55M 2011 – 2012 $65.71M 2012 – 2013 $69.034M 2013 – 2014 $67.76M Total $334.203M So Mr. President, the institution of 118 years is going through the final phase of its transformation to be an independent farmer's organization which advances the interest of Jamaica’s Farmers. Some of the main programmes and projects that are impacting the growth in the sector in a meaningful way include: “Eat Jamaican” Campaign launched in 2003 National Red Peas Planting Project Step-to-Walk Programme The development of a National Central Marketing System Denbigh Shows and other shows is schedule for August 4, 5 and 6, 2014. “Eat Jamaica” Campaign – seeks to highlight the fact that Jamaica’s foods are of unique and superior quality, outstanding for its taste and famous for its ability to improve our wellness and our health. Senator Norman Grant Presentation to the Senate of Jamaica Page 15 Over the last decade, imports increased from just about US $400 million to US $$959M, a per annum weighted average of US $60 million, which was US $40 million less than the US $100 million growth rate prior to the campaign’s launch. Our domestic crop production grew from 491,473 tonnes in 2003 to 610,138 at the end of 2012, an increase of 19.45%. This has only been possible because our farmers have responded by improving the quality of our agricultural produce. The Jamaica Agricultural Society is aligned to the policy advanced by the Ministry of Agriculture and Fisheries to reduce imports which now stands at $1 billion overtime, as we strive for food security, job creation and growing the economy After ten years of carrying this mantle, we have seen evidence of its impact on our local economy and the driving awareness from the nation’s youth, particularly through the Jamaica 4-H Clubs and the buying tendencies of consumers in general. Likewise, Government and their agencies; the private sector organizations to include manufacturers, exporters, and affiliate farmers organizations of the JAS such as banana, cane, citrus, coffee and cocoa, poultry, livestock and greenhouse have all endorsed the need to “grow what we eat, eat what we grow”. National Red Peas Programme – was launched by the JAS in September 2012 to lessen the importation of red peas for consumption which in 2011 was 12.5 million pounds (lbs) representing 88% of our consumption. The objectives are as follows: o To increase the production of red peas by 50% over three (3) years o To promote the production & consumption of red peas, in keeping with the “Eat Jamaican” Campaign o To train 1300 farmers in red peas production and marketing o To distribute 31,500 lbs of red peas planting material donated by Food for the Poor valuing $2.7M o To establish 664 acres of red peas by small and medium farmers producing 350 tonnes or 770,000 lbs. We estimate that we could produce 1000 tonnes annually. o Improve market access Senator Norman Grant Presentation to the Senate of Jamaica Page 16 o To improve income generation capacity of participating farmers by 15-25% and provide employment opportunities. o To establish a National Red Peas Seed Bank To date, the JAS has distributed 10,745 lbs of seeds to 284 farmers, thereby establishing an additional 238 acres of red peas. Export Data. Ministry of Labour and Social Security – the Society currently has an ongoing MOU with the Ministry, for the implementation of the Step-To-Work Project aimed at engaging working age individuals (15-64 and not attending school), members of PATH households on a voluntary basis in a set of initiatives aimed at job readiness, skills and competencies building, job matching and business development in ten (10) parishes. It therefore draws on the relevant interventions by other agencies to provide in a structured manner, job search assistance and labour market intermediation, remedial education, skills and competencies training, on-the-job training and apprenticeship, business development, micro-enterprise support, and care support services to meet the needs of poor working families. Area of focus is poultry production/management, pig and cattle rearing. The total value of the project is $14M and some 5,000 persons have benefited. THE Jamaica Agricultural Society Commercial Enterprises Limited (JASCEL) is a limited company registered under the Companies Act of Jamaica since 1995. The company was formed to implement and manage projects related to the commercial activities of the Jamaica Agricultural Society (JAS). JASCEL’s primary focus is to build out a National Micro Farmer Agricultural Marketing System (NAMFAMS) for the sale of farmers’ produce. An important component of this effort is the establishment of a Farmers’ Call Center, which will utilize an online marketing platform to capture and disseminate information on farmer’s production, market demand and prices. This platform will have the capacity Senator Norman Grant Presentation to the Senate of Jamaica Page 17 to interface with the farming community, buyers, extension services, government agencies and other stakeholders in the agriculture sector. The objective is to initially register 500 farmers as contract farmers, who will produce for the affiliated buyers of the Central Marketing System. The Universal Services Fund has approved a grant of $10M to establish the pilot for this project. The JAS has received a donation of 270 computer systems from the Korean Government valued at J$8.6M to be distributed locally. The computers will be used to enhance the Farmers’ call center by establishing Community Access Points (CAP) sites in each JAS parish office, and in certain designated communities and institutions. NAMFAMS main focus will be on five non-traditional crops for marketing in 2014. These are: Red Peas, Pumpkin, Sweet Potato, Yellow Yam, and Carrots. These will be marketed through specific buyers with whom we will have a formal relationship. JASCEL have signed an MOU with Nations Choice to supply high value produce to its clientele which include hotels, supermarkets and high value food stores. JASCEL is also in talks with Salada Foods to supply them with 50,000 lbs of grade 3 carrots for 2014, we have just made the first delivery to Salada foods on this order. This is just the beginning as we are targeting both local and international buyers for these products. Coffee –Mr President This sub-sector at its peak has 12,000 farmers and impact the lives directly of 102,000 rural persons. Our coffee production has declined from close to 6 million pounds and export sales of US$35 million industry in the 1990s and is now producing 2 million pounds and export sales of $25 million at the end of 2013. This decline in both Jamaica Blue Mountain and Non-Blue Mountain was due to the effect of Coffee Leaf Rust and Coffee Berry Borer diseases and together has estimated to cost the industry incomes losses of US $10 million over the last 2 crop years. In-addition due to the recession in 2008-2011 farm gate prices to the JBM coffee farmers fell to a low of $2,500 per box and as a result a number of farmers left the Senator Norman Grant Presentation to the Senate of Jamaica Page 18 coffee business. Mr President as prices to the coffee farmers are going back up and farmers are being paid up until recently $5,000 per box more. I would like to commend the Ministry of Agriculture for the injection of $8 million to fight these diseases last year and the industry has approached the Minister once more to assist with the funding of another National Disease eradication programme. The dealers and the CIB have been working with the farmers as well but I am declaring today that the Coffee Industry is in a State of Emergency. We must fight the berry borer and Coffee Leave Rust; we need a massive resuscitation programme for both JBM and non-JBM as in addition to the potential for export earning which is estimated at close to US$100 million and local coffee market of over J$2billion. Mr President, as a part of the strategy to re-build the coffee industry I am calling for an imposition of a cess on imported coffee which should be place in a special fund to be use to expand the local coffee industry. Banana, Mr President, The new strategy focus of the Ministry and sector stakeholder in this banana sector is geared towards increase competitiveness and the development of the local market. Banana is back!! This is important as Jamaica’s consumption of banana is estimated at 130,000 tonnes annually plus the 17, 473 tonnes of export last year at a value of US$9.2 million. The potential for more growth in the industry is there as in 2007 we exported 32, 847 tonnes of Banana. I must mention the support from The European Union through the Banana Support Programme as they have provided 40 million euros over the last 13 years as direct intervention to the Banana industry. Banana, sugar cane, pimento, cocoa, coffee, coconut , domestic crops, livestock and fishery are all identified as a critical part of the production process, as it relates to growing the economy, earning foreign exchange and making us food secure. These will continue to play major roles in this mission to grow the agricultural sector and re-Build the Jamaican economy. Senator Norman Grant Presentation to the Senate of Jamaica Page 19 Let us be a member, an active member of the planting team, the re-building team and of JAMAICA’s team. Conclusion and Recommendations Mr. President, This is JAMAICA’s time and this is AGRICULTURE’s time as sustained economic growth for the country is being realized through growth in Agriculture, and we must continue together this plan. So I conclude with some recommendations to ensure that we stay the course: 1. We must established 25 years development plan for the Agricultural sector with bi-partisan support, and we can review this plan say every 5 years. 2. We must develop a National Crop Insurance Scheme for Jamaica as this is critical to sustain the growth in agriculture and Jamaica’s economy. 3. One Road Authority that I believe will help to address the constraint of poor rural and farm road network through better allocation of scarce resources. 4. The setting up of an Agri-Venture Capital fund to help fund projects in the sector which will lead to job creation and foreign exchange generation. 5. A revision of previous sign trade agreements to explore greater support where possible for the productive sector. 6. National intensification of the Grow What We Eat Campaign. So I close with our Farmers Hymn: We plough the fields and scatter, the good seed on the land, But it is fed and watered By God’s almighty hand: He sends the snow in winter. The warmth to swell the grain. The breezes and the sunshine and soft refreshing rain. All good gifts around us are sent from Heaven above. Then thank the Lord O thank the Lord for all His love. Senator Norman Grant Presentation to the Senate of Jamaica Page 20 Mr. President, May God bless us all and Jamaica Land we love. I thank you. Senator Norman Washington Grant, JP, FMAT, FCA, FCCA, CA, MBA Senator Norman Grant Presentation to the Senate of Jamaica Page 21
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