Reducing the food import bill

This demands that there be a more aggressive approach to agro-processing and primary production to ensure that the country moves closer to food security and reduce its import bill especially in the present economic environment.

So far government has offered tax relief for many operators in agro-processing and proposes to grant tax-free status to all approved agro-processing operations to encourage expansion in Trinidad and Tobago’s agro-processing industry. There are plans to invest TT$75m in new agro-processing facilities in Moruga, as well as a TT$300m investment to develop a fishing port in the district, with work set to start in the first half of 2017.

The Ministry of Agriculture, Lands and Fisheries intends to develop a certification program to guarantee that at least 75% of a firm’s agricultural processing must be prepared in Trinidad and Tobago, and 75% of the ingredients must be produced or harvested locally. These are all good steps but is this enough?

If we are to discuss changes to agriculture, we need to know what the economic plan for the country is. How does agriculture fit into the plan? What are the objectives for agriculture and the set targets to be achieved? Any economic plan must be accompanied by a land use plan and policy. Certainly we need to stop using fertile arable land for housing. Dramatically reducing agricultural land when we are nowhere near self-sufficiency or addressing food security must be halted. Reducing the food import bill must begin with a land use plan and policy.

People’s outlook on agricultural work must also change. This includes no longer allowing agriculture to be associated with only those who have not “made it in school”. This has to be accompanied by a wages policy that properly addresses compensation for the same skills across all industries. We must tackle the ill effects of Dutch disease that have afflicted our economy for a long time. The high salaries in the energy sector have had a knock-on effect that has forced other sectors to increase salaries. This has resulted in reduced capacity to efficiently produce several crops which in addition cannot attract workers. A good example is the production of cocoa which has suffered from a lack of labour.

This means that the government must review incentives for agriculture to make the sector more attractive. Measures must include, for instance, a comprehensive crop insurance scheme. The Agricultural Development Bank (ADB) must to be restructured. The ADB should link technical information and support to agricultural production and the granting of loans. If there has to be successful use of loans, partnership with agricultural research and farmers has to be made via issuance of loans. Linkages with manufacturing has to be supported by finding economies of scale through the use of the integration movement (CARICOM). Here research must inform policy decisions. The path to reducing the food import bill must include all these elements and it is time that we see the importance of agriculture in achieving that goal