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Regional News>Guyana's quest to be king of agricultureJohn Myers Jr - Business Reporter |
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THE EMERGENCE of a world food crisis, large acreages of undeveloped lands and more than sufficient water resources are assets that the Guyana government are using to promote that Caribbean Community (CARICOM) coun-try as a place for investment in mass food production.
The country has over 200,000 acres of fertile lands that are ready for cultivation and president President Bharrat Jagdeo has said his administration is prepared to grant concessions and waivers to prospective investors with viable projects.
As a hook to prospective investors, Guyana is offering zero-rated customs duty and value added tax (VAT) on most plant, machinery and equipment, and raw materials and packaging used in the production of goods.
Spending On Infrastructure
Companies are allowed un-limited carry-over of losses from previous years, and the option of accelerated depreciation on plant and equipment.
Guyana has no restriction on the repatriation of capital, profits and dividends and has in place double taxation treaties with countries like the United Kingdom, the United States, Canada and CARICOM, a 15-member bloc.
Jagdeo, in an interview with the Financial Gleaner at the June 6-8 CARICOM Agribusiness Invest-ment Conference in Georgetown, Guyana, said the government has been spending big sums to improve the infrastructure, such as drainage and irrigation, to facilitate expansion of the country's agricultural industry, which contributes an estimated 35 per cent to GDP.
The improvement to drainage and irrigation is being done under a US$15.5 million Agricultural Sector Support Programme.
"We spend a substantial part of our budget on drainage and irrigation because that is critical for the agricultural sector," said Jagdeo.
"Here in Guyana drainage is important because we are below sea level on the coast."
Easy Access To Land
Access to land has been made fairly easy and inexpensive.
"In Guyana we have fairly good policies in terms of access to land. The maximum lease rate for the best quality lands in Guyana is US$5 per acre per annum and that's the best quality soil, so it is very encouraging for those who may want to get into the sector," Jagdeo said.
But Agriculture Minister Robert Persaud stressed that "it is not land that we are just going to hand out", but allocated and distributed upon presentation of an investment proposal.
"A serious investment proposal with an early take-off. So no one can come and say give me 50,000 acres and five years later he is still watching the 50,000 acres and bush growing there," said Persaud.
Agri History
Guyana, a member country of CARICOM, is located on the northern tip of South America and is bordered by Suriname, Brazil and Venezuela with a total land area of 214,970 square kilometres.
It has a population of about 770,000, with a labour force of about 418,000.
Main industries include bauxite, sugar, rice milling, timber, textiles and gold mining.
The main agricultural products include sugarcane, rice, shrimp, fish, vegetable oils, beef, pork, poultry and dairy products.
With the imminence of a global food crisis, agricultural production in the region has once again propelled to the forefront of discussions at the CARICOM level.
"If we can become food sufficient and food sovereign, because food sovereignty is very important to food security, I think it means a lot for all of us in the region," said Persaud.
Which is why Guyana has extended an offer to its CARICOM partners to acquire lands for food production.
By mass producing food in the land-rich country, the Guyana agriculture minister said the region could become a food sovereign and be protected from the vagaries of high commodity prices and shortages.
"If Guyana is a strong food production base and satisfies the region, we will be less exposed to the vagaries of protectionism, bad policies, prices, fuel and all the rest of them," Persaud said.
There are opportunities, he said, for investments in small ruminant - sheep and goat; fruits and vegetables - both fresh and processed; sugar; biofuels; and aquaculture production.
john.myers@gleanerjm.com