Professional Documents
Culture Documents
The business of
agriculture has
never looked
healthier
No Kidding!
They say ...our children
are our future, feed
them well and watch
them grow! With
concerns over child
obesity and the future of
agriculture, getting our
children interested in
‘eating what they grow’,
literally, may be the
most sustainable model
to link good business,
good agriculture and
good health. The goat
industry is shaing up
to be one of these
sustainable models for
agriculture and rural
development.
Go-at cheese?
In this Issue...
AV zeroes in on two main topics. One promotes the process and shakers’, ‘affected and interested’ stakeholders that will share a
agenda of the Fifth Ministerial on Agriculture and Rural Life of the common platform for dialogue and decision making in Jamaica.
Americas, taking place in Jamaica in October; the other promotes Integral to the positioning of agriculture and rural
a sound methodological and strategic approach to agricultural life issues on the agenda of the Summit of the Americas and
development using the Value Chain Analysis or Methodology. management of the process thereafter, through the Ministerial
Both areas are inter-related and complement each other. AV Process, is the promotion of agriculture as strategic to the lives
combines these two topics in this issue to underscore that and livelihoods of millions of rural peoples and economies of the
hemispheric and regional policy dialogue, at the highest level, Americas. A key strategy that will enable agriculture to contribute
is inextricable linked to national actions to develop and integrate to rural and economic development is business development.
sustainable livelihoods and business in agriculture. Recently, countries of the Americas have been taking a
AV includes a special 4-page supplement on the Fifth very serious look at the Value Chain Approach for business
Ministerial for your information and guidance. The Fifth Ministerial development. This means building integrated value chains
Meeting will focus on the challenges faced by countries of the forged through partnerships, alliances, dialogue and cooperation
hemisphere in agriculture and rural life, food security and and commitment of actors from farm-to-table. The success of
sustainable development, as well as the strategic response CARICOM in enhancing food security and rural life, harmonising
required to address those challenges, including capacity building agriculture policy within the CSME Single
at the local and hemispheric level. These will be reflected in the Development Vision and growing competitive business,
adoption of Jamaica 2009 Hemispheric Ministerial Agreement (s) one enterprise at a time, will all depend on how far and how fast
updating the AGRO 2003-2015 Plan. The supplement begins with the region can build successful agriculture on the principles of
an identification of the main topics for discussion, for each, noting the value chain approach. In this regard, AV highlights models
key aspects that stakeholders, particularly those unfamiliar with and experiences for developing business in agriculture and
the process, should seek to clarify. AV also provides a Caribbean perspectives on the role of regional policy in adding value to
Ministers ‘Who’s Who’, among the 34 Ministerial ‘movers and national agricultural development efforts.
1 Upscaling the marketing of small ruminant products in the Caribbean - The challenges. Asiedu F H, Gibson N, John M and Ansari H. 2007 Caribbean
Agricultural Research and Development Institute (CARDI), A paper presented at the 43rd Annual Meeting of the Caribbean Food Crops Society, San Jose,
Costa Rica, 16-21 September 2007 3) http://cfcs.eea.uprm.edu/CFCS%20Proceedings.htm
AV>This VC analysis and/or RR>Yes, because what it does is that it allows one to identify and
methodology is not really a new to remove constraints to gain access to particular markets, even if
methodology, is it? these markets are local/regional, and in so doing, to position oneself,
in a competitive manner on a continuous basis. In other words, our
RR>Value chain analysis and the market is a market for our products and as such our farmers are
methodology have been used having a challenge in accessing new market segments, for instance
quite extensively in North America for some time now basically in the fast food chains and in countries with a more recent, yet rapidly
the industrial sector and the car manufacturing business. So it is developing hotel and hospitality segment, even too the large super-
nothing that is actually new to the world, but has been more recently market chains. So the methodology is appropriate both for export
promoted within the Caribbean. As far as agricultural activities are and domestic market development.
concerned, there has been a lot of use of the approach in Asia and
more recently in Latin American countries, so we in the Caribbean AV> If it is appropriate; if it is not new; if it is being applied in Latin
are basically recent users of this approach. American countries and elsewhere, then why has it taken so long to
‘catch-on’ in the Caribbean? Does it have anything to do with defi-
AV> I recall in the early 90s when IICA was actively involved with the ciencies in policy planning for agriculture?
French Mission for Technical Cooperation (FMTC) was very active in
the Eastern Caribbean States (ECS), they were promoting what was RR> Well, for things to catch on, we must have people to articulate
the ‘commodity chain analysis’ (CCA). Is there a difference? IICA it. And I think that you have not had many persons involved in agri-
is a common thread in Latin America and the Caribbean. Was IICA business per sé who are promoting the whole concept that’s one.
instrumental in introducing the methodology in agriculture in CARI- Secondly, we are not having persons even taught agribusiness and
COM? the whole value chain concept coming out of our regional education
institutions. We teach people about discrete things; plant pathology,
RR>Both IICA and FAO have been promoting the methodology, as etc., but never training them to think about an integrated circuit of
well as other private agribusiness concerns that using that approach. activities.
All analytical tools for assessing competitiveness by themselves
don’t make you arrive at a competitive position. With globalisation AV>Can the VCA/M, therefore add value to accelerating progress in
people have now come to a position that we need to match analy- the current strategy aimed at alleviating nine key binding constraints
sis with dialogue and a competitiveness agreement between actors to agricultural competitiveness?
along a particular value chain. So whereas we had the commodity
analysis approach, which was straight analytical work, not matched RR>It must! It must! It is not a scientific thing by itself; it is a mixture
to dialogue and agreements among chain actors. of what they call socio-economic theory. In other words, people have
to sit down to have dialogue, to come to consensus about where
AV>Is it just terminology or is there a major difference between the they want to go. So the approach is valid; wherever we are going
CCA and the VCA/M or should the emphasis be on the process? with the JI people need to communicate and not to think of them-
selves and discrete entities in a movie.
RR>I would not be splitting hairs over what it is defined as; what is
more important is that we start to develop the capacity to use the in- AV> You are convinced that the VCA/M is the way to go in agriculture
struments and tools of analysis. Those tools are broken down to a 5- at this stage of its development, the challenges ahead and expecta-
stage process where we look at the impact of the international trade tions of elevated pressures for food security?
and production and domestic trade and production on value chains;
we look at functionality of these chains; and create circuits; and then RR>I don’t see any other approach! I have used the methodology for
we do interpretation. Once we put all of that together, then we have the development of the pork industry in Jamaica and we have seen
dialogue among the actors. So forget about how it is described. Think whereby the final cut is now competitive to its international supplies
instead of the process - that is “the full range of activities required to out of Canada. I think that the approach can be applied. I don’t know
bring a product or service through the different phases of production if there is another approach that can have any greater benefit. But
(including physical transformation, and the input of various produc- you know as we develop over years, we have experiences, there is
ers and services), in response to consumer demand”. now talk about ‘new generation’ producer organisations and you are
saying, ‘how does that fit into the value chains?’ Because here you
AV>In the past, and even now, the emphasis has been on export are taking about farmer groups now not just being farmer groups or
agriculture and building value added for expanded exports. Is there producers by themselves but taking more of the action downstream,
an understanding that the instrument and tools can be as effectively in terms of developing products for the market. So you will have new
applied to build value chains for domestic/regional food security concepts and new ideas coming to bear, but I think the VCA/M will
needs? stand for some time within this region.
The VC in Brief
Extracted from “A Handbook for Value Chain Research”
By Raphael Kaplinsky and Mike Morris (undated) available at http://www.globalvaluechains.org/docs/VchNov01.pdf
At the simplest level value chain analysis (VCA) plots the flow of goods and services up and down the chain and between different chains to
final consumers. This is in itself a valuable task. There is a considerable overlap between the concept of a value chain and similar concepts
used in other contexts. One important source of confusion is that of terminology. There was the ‘value stream” (by Womack, J.P. & D.T Jones,
1996) to refer to what is now called the value chain. There is the French concept of the filiere (translated literally to mean “thread”) that is
essentially no different from value stream or value chain. A third similar concept is that of global commodity chains, introduced by Gereffi, G.
during the mid-1990s, which have enabled important advances to be made in the analytical and normative usage of the value chain concept,
particularly because of its focus on the power relations which are imbedded in VCA or the role of ‘governance’ in terms of either ‘buyer-driven
commodity chains’ or ‘producer-driven commodity chains’.
In this era of rapid globalization, there are three main sets of reasons why VCA is important.
1. With growing division of labour and global dispersion of production of components, systemic competitiveness has become increasingly
important
2. Efficiency in production is only a necessary condition for successfully penetrating global markets
3. Entry into global markets which allows for sustained income growth – that is, making the best of globalisation - requires an understanding
of dynamic factors within the whole value chain
VCA focuses on the dynamics of inter-linkages within the productive sector, especially how firms and countries are globally integrated. It:
• overcomes a number of important weaknesses of traditional sectoral analysis which struggles to deal with dynamic linkages between
productive activities that go beyond that particular sector, whether they are inter-sectoral in nature or between formal and informal sector
activities.
• allows for an easy uncovering of the dynamic flow of economic, organisational and coercive activities between producers within different
sectors even on a global scale by its concentration on inter linkages beyond just the firm-specific analysis.
• makes it easy to analyse the inter-relationship between formal and informal work (with workers, particularly in developing countries,
moving often seamlessly from one to the other) and not to view them as disconnected spheres of activity.
• is particularly useful for new producers – including poor producers and poor countries – who are trying to enter global markets in a manner
which would provide for sustainable income growth.
• is useful as an analytical tool in understanding the policy environment which provides for the efficient allocation of resources within the
domestic economy, notwithstanding its primary use thus far as an analytic tool for understanding the way in which firms and countries
participate in the global economy.
A key strength is that it highlights the systemic interconnectedness of Fig. 1 : V al ue ch ai n m apping : T he o ry and r e a lity
individual enterprises and links in the chain. However, value chains are
complex, and particularly in the middle tiers, individual firms may feed into
a variety of chains. Which chain – or chains – is/are the subject of enquiry
therefore very much depends on the point of entry for the research inquiry.
Some points of entry are retailers, independent buyers, key producers, sub-
suppliers, commodity producers, agricultural producers, small farms and firms,
informal economy producers and traders and women, children and other
marginalised and exploited groups. In each case, the point of entry will define
which links and which activities in the chain are to be subject of special enquiry.
For example, if the concern is with small and medium sized firms which feed
into a number of value chains, then the point of entry might require the research
to focus on final markets, buyers and their buyers in a number of sectors and
on a variety of input providers. Once the point of entry is defined, one of the
problems which arise is that the theory of value chains suggests simplicity and
an easy clarity of focus. However, the real world can be much messier, and the
researcher will sometimes have to make arbitrary decisions on what to map in
charting a path through complex value chains (Fig.1).
The Fifth Agriculture and Rural Life of Agenda Issues: What Should Be Your ‘ NB’s’
the Americas Ministerial in Jamaica
Report on the - How, why and when did that process start?
is a much-anticipated event. It takes
Ministerial - What does/how can it make a difference to my business,
place from 26-29 October 2009, as
Process operations, livelihood?
part of the Week of Agriculture and
- Who makes the decisions in this process and what is my
Rural Life in the Americas. scope/opportunity to influence?
Outside of issues related to the Draft Hemispheric - What is this/how is it drafted/who signs it?
management of process itself and Ministerial - Is it legally binding/what are the mechanisms for compliance
its fit within the wider inter-American Agreement and non-compliance?
Development Agenda under the Summit - How is/will it be implemented/what has been the progress to
of the Americas, the agenda of the date?
Ministerial is all about agriculture, - Where can I get a copy?
placing issues, such as ‘food security’,
State and Outlook - Who prepares this report? Where can I get a copy?
squarely on the table. AV provides
for Agriculture, - Is the Caribbean (CARICOM) sufficiently visible within the
information on the Provisional Schedule
Food Security Latin America and Caribbean (LAC) bloc?
to stimulate interest in the process itself
and Rural life in - What is the objective of preparing this report?
and more importantly, in encouraging
the Americas - Does it provide clear ‘ways forward’/ Who will use it and how?
active participation in the dialogue. Just
as the Summit process does not belong Challenges for - Are these new challenges in addition to the several old ones?
to the Heads of State and Governments, Agriculture and - What new strategies will be proposed to address them more
the Agriculture Ministerial does not Rural life effectively than the old remaining challenges?
belong only to Ministers of Agriculture - How equipped are Caribbean countries, given predictions of a
and their public servants. It belongs to 2+year recession, to meet these challenges?
the people of the Americas, especially Situation, - How will all the ideas from such diverse perspectives be
the mass of micro and small farmers, Public Policies, forged into a feasible set of strategies?
entrepreneurs and processors and the Private Sector - Who approves the strategies and who will implement them?
families and communities that continue Contribution and - What is the role of national, regional, hemispheric and
to depend on them for job, income and Working Together international organisations in implementation?
food security and environmental health, for Food Security - What is the role of CARICOM’s trade and economic
among others. and Sustainable agreements in enabling the region’s response?
Development - What mechanisms exist to avoid repeating past mistakes?
AV jumpstarts your thought process by
A new model of - What were the old models and where did they go wrong?
suggesting key issues you should seek
development- a - How did this new model emerge /what are the ‘new’
to understand, obtain clarification or
proposal for considerations/conditioning factors?
influence decision making. We would building capacity - Is this model only limited to food security/can it be applied to
be quite happy to furnish some possible for food security sustainable agriculture development?
answers and/or provide information as a in the Americas. - Are countries and regions ready for this new model?
guide in coming up with your own. This - What is the process of moving from model to action?
is not in any way meant to question the - Where can I get a copy?
validity or efficacy of the process, but
a reflection of the curiosities, queries,
concerns and comments noted over Just as the process did not end after the Summit concluded, the process for agriculture
the last 18 months and especially, in will not end after the Ministerial concludes on 29 October. How it continues and
the aftermath of the Fifth Summit of the what impact it makes beyond the months-long preparations and the two or three
Americas held in Trinidad and Tobago. days of meetings is also up to all of us! Be informed, get empowered, stay involved
Perhaps the fact that for the first time, and demand accountability. In Jamaica, the process will continue for agriculture in
these top-level hemispheric meeting are October.
being hosted by Caribbean countries,
partially explains the heightened This year, the process for agriculture in the Americas will also coincide with a change
curiosity. AV urges all stakeholders in administration of IICA, the Secretariat for the Ministerial Meetings. The Inter-
to go beyond the curiosity and ‘study’ American Board of Agriculture (IABA) will receive an accountability report for the
the agenda items and contribute, in 2002-2008 period and a proposed 2010-2011 programme budget from the outgoing
any way possible to the identification Director General, Dr. Chelston W.D. Brathwaite. Ministers will also elect a new
of challenges, sharing of positive Director General of IICA for the next four year period, commencing in January 2010.
experiences and best practices and Other activities of the Week of Agriculture and Rural Life in the Americas include
definition of feasible strategies and a 3-day Exhibition under the theme ‘Agriculture-Advancing Rural Life to 2015 and
projects for implementation in countries. Beyond’ and the 2006-2008 Inter-American Awards in the Rural Sector.
‘Food security’ will remain a priority on the development agenda of the Americas to year end. As a continuation of the Summit
of the Americas process, Ministers of Agriculture from 34 countries of the Americas meet in Jamaica, in October, to discuss
ways to build capacity for enhancing food security. In 2007, food prices around the world rose suddenly and sharply and the
reach and extent of the impact caused the World Food Program (WFP) to describe it as the “silent tsunami”.
The causes of crisis in food supply and prices have been been producing. After years of drawing down stockpiles, in 2007
well documented and include increased demand from emerging the world saw global carryover stocks fall to 61 days of global
economies, such as, China and India, weather-induced failures consumption, the second lowest on record! The situation was so
in major crops, such as, wheat and rice, rising fertiliser prices critical that at the end of 2008, the World Bank announced its “New
and the shifting of crop use from food to fuel. Global wheat prices Deal for Global Food Policy”, that aimed to combine immediate
increased a staggering 181% between 2005 and early 2008, financial assistance to hard-hit countries with long-term lending to
contributing to an overall increase of 83% in global food prices. boost agricultural productivity. Why target agricultural productivity?
In its June 2009 issue feature of National Geographic, Because according to Joachim von Braun Director General of the
an article on ‘The Global Food Crisis - The ‘End of Plenty’ by Joel International Food Policy Research Institute in Washington, D.C.,
K. Bourne Jr., pointed to a more serious problem: for most of the “agricultural productivity growth is only one to two percent a year…
past decade, the world has been consuming more food than it has too low to meet population growth and increased demand.”
“Modern society has relieved us of the burden of growing, harvesting, even preparing our daily bread, in
exchange for the burden of simply paying for it. Only when prices rise do we take notice. And the
consequences of our inattention are profound” (Joel K. Bourne Jr. 2009, June 2009 National Geographic)
Indeed, Caribbean countries are now grappling with the serious development thrust has essentially been one driven by export
consequences of decades of inattention paid to agriculture as the expansion and competitiveness in extra-regional markets leaving
main source of food security. Agriculture, at least in Caribbean several Caribbean countries vulnerable to rising food prices and
countries, is still trying to avert a crisis of decades of misaligned disruptions in food supplies either from trade and/or hurricanes
policies and dis-investment that have undermined the capacity for and other similar extreme weather event. With the food crisis
food production. In the 1970s, countries throughout Latin America still fresh in the minds of Caribbean citizens, headlines in some
and the Caribbean were encouraged by the International Monetary national newspapers are already reporting that ‘food prices are
Fund (IMF) and the World Bank, to develop their export sectors falling’, suggesting that the crisis is, or may soon be over. This is
and downplay economic policies prioritising self-sufficiency, both not likely to be the case as global projections suggest that prices
in terms of food production and manufactured goods, such as, may not revert to their previous lows any time soon.
import substitution. The result was priority development of ‘cash Bourne Jr. (2009) warned that ‘even though prices
crops’ for exports, such as banana, sugar, coffee, etc, to developed have fallen with the imploding world economy, they are still near
countries. record highs, and the underlying problems of low stockpiles, rising
For decades, export earnings from these commodities population, and flattening yield growth remain. Climate change—
financed the imports of agricultural and food products, until the with its hotter growing seasons and increasing water scarcity—is
1986 Uruguay Round of multinational trade negotiations led to a projected to reduce future harvests in much of the world, raising
liberalization of agricultural domestic regimes and world markets, the spectre of what some scientists are now calling a perpetual
resulting in sharp declines in export prices. As a response food crisis.’ This adds to a long list of serious challenges already
strategy, the region has emphasised agricultural diversification faced by small Caribbean countries trying to reverse the effects of
and industry development based on a handful of commodities decades-long neglect of agriculture to maintain a reasonable level
with perceived good export potential. While there were some of food security.
efforts to develop food production capacity, the agricultural
. . . . identifying the principle challenges inherent to sustainable development of agriculture and rural life
The theme of the Fifth Ministerial is ‘Building Capacity UN News Centre, the Food and Agriculture Organisation (FAO)
for Enhanced Food Security and Rural Life in the Americas. Director-General, Jacque Diouf, stressed that the Summit, to
Issues related to capacity building, as a key and indispensable be held in Rome at the 36th Session of the Conference of the
development strategy, are expected to feature prominently in the Organization, would reach tangible results by securing broad
discussions. Of necessity, the issue of building capacity must consensus on the total and rapid eradication of hunger and setting
be viewed from a long-term perspective that must provide clear a new world food order. The FAO’s DG expects the Summit to
directions with respect to raising agricultural productivity, among ‘lead to greater coherence in the global governance of world
other things. Agriculture Ministers of the Americas are not the only food security. It will define how we can improve policies and
leaders that will be talking ‘food security’. the structural aspects of the international agricultural system by
The United Nations (UN) is calling for a ‘2009 Summit on putting forward lasting political, financial and technical solutions to
World Food Crisis’ in November, which has apparently received the problem of food insecurity in the world’.
support from CARICOM Heads of State, as well as President Luiz The Agriculture Ministerial could jump-start discussions
Inácio Lula da Silva of Brazil and President Michelle Bachelet of in the proposed FAO Food Crisis Summit that could also feed into
Chile at the end of the recently concluded Fifth Summit of the the Commonwealth Heads of Government Summit scheduled for
Americas in Port of Spain, Trinidad and Tobago. According to the November in Trinidad and Tobago.
3 Development Partners
12 Development Purposes
4 Development Priorities 1. Stimulate 2. Forge links, 3. Develop
enterprise and integrate chains; national policies
Economic: competitive and improve for competitive
business … productivity …. business ….
Competitiveness
4. Promote good 5. Promote 6. Create pro-
Ecological: environmental integrated environment
practices … environmental policies and
Sustainability management… institutions …
Rising Food Prices: Trends, Causes, Implications and Policy Approaches to the Global Food Crisis in the Caribbean, September, 2008. Research
Paper by Alisa Mitchell.
National policy responses to the food crisis were diverse. However, the main focus has been on increasing access to food and in
strengthening the relevant actions needed to ensure that adequate food is available by ensuring production and that it is affordable
to be accessed by consumers. These were intended to be temporary short-medium term measures to alleviate pressures of rising
food and fuel prices.
• price controls: most common response, targeted mainly at consumers to increase affordability and thus access to the commodity
foods;
• subsidies to inputs and distribution of inputs: targeted mainly at producers to strengthen production, make more food crops more
available and build resilience and sustainability in food supply;
• income transfers and food distribution programmes: to increase purchasing power and access to food especially of the more
vulnerable;
While short-term measures are important, building capacity for food security is a long-term issue and policy responses must include
appropriate financing for production, public information and promotion, science and technology, technical advisory information and
services. While such policy responses have the potential to transform a relatively dormant agriculture into a vibrant industry, less than
half of the countries for which data were available, incorporated these elements into their responses.
‘When women and youth are empowered, decently employed Economic growth can only be sustained through a
and encouraged to take full economic participation and their sequence of successful enterprises,
abilities to start and grow businesses are strengthened, all ‘One High Performance Enterprise
stakeholders will see tremendous benefits.’ after Another’.
Marcia Brandon, Executive Director of the Barbados Youth Basil Springer, Caribbean Business Enterprise Trust (CBET)
Business Trust (BYBT).
What happens when you combined youth, women and enterprise? Basil Springer, for the past seven years, has been developing
Birth and growth of small business, such as that spawned and the Caribbean Business Enterprise Trust (CBET) Shepherding
nurtured in 2001 by Nelva Magloire. Nelva saw an opportunity to Model™ in response to what he describes as ‘entrepreneurs faced
start a new business within her community – plantain chips to sell with the mantra from traditional financial institutions “we do not
to students of the Ross University School of Medicine (RUSM) in fund start-ups”’. The Barbados model is based on the operation
Portsmouth, Dominica. She took the opportunity and set to work of four elements that together, provide a national focus to develop
in her mother’s kitchen. Soon demand for her chips outstripped a family of successful high performance agricultural enterprises
supply; customers were impressed by its quality. This motivated one enterprise after another using. These are the (1) National
Nelva to look beyond RUSM expanding her market into tourism Agricultural Trading Trust, (2) The CBET Shepherding Model™,
sites in her immediate community. (3) Barbados Quick Response Seed Capital Revolving and Growth
The business was growing and Nelva needed a new Fund and (4) Barbados Quick Response Venture Capital Fund.
location, new and improved equipment, and most of all, she Regarding the latter two, this twin fund concept, in combination,
needed training. As a member of the National Association of provides a robust alternative to the traditional model.
Youth in Agriculture (NAYA), she was awarded assistance under The CBET Shepherding Model™ promoted as necessary
an IICA/FAO funded project ‘Strengthening and Expanding Rural and sufficient for sustainable business success. The CBET
Income Streams’. This project enabled her to purchase new model (researched in 12 Caricom Countries) was a Caribbean
stainless steel tables, a slicer, a 50lb gas deep dryer, a heat sealer Development Bank Initiative passed on to the Private Sector
and a refrigerator, and other operating materials, such as, hair (2001).The shepherding element should be of particular interest to
nets, knives, aprons and mitts. The project also assisted Nelva to agencies desirous of innovative and flexible models of supporting
undertake nutritional analysis of her product and enhance product start-up and small businesses. A feature of the shepherding model
labelling and packaging. Critically, the ‘capacity gaps’, i.e., areas is that funds will not be made available to the entrepreneur unless he
outside the scope of the project, were filled by IICA, NAYA and agrees to have a Shepherd assigned to him/her. The shepherding
the Ministry of Agriculture, Fisheries and Forestry. With access to process is designed to reduce the risk of failure and, in that sense,
family land, an independent facility, designed for efficient plantain the concept “shepherding as collateral” has emerged. Shepherds
chip production, was constructed for “Nelly’s Chips”. It includes are selected based on significant experience and ‘learning’ in some
a water bath for washing raw materials and new state-of-the-art field related to business and not necessarily on Ph.D qualifications.
processing equipment. She now employs an agro-processor who This new initiative is presented as a partnership between CBET,
is knowledgeable in processing technology and food safety issues. the Government of a sovereign country and local and foreign direct
Nelly’s Chips is now one of six model projects supported by IICA in investors. CBET Inc. Barbados Government-Private Sector Seed
collaboration with FAO in the Eastern Caribbean States. While Nelva and Venture Capital Partnership were rolled out in Barbados in
is considered the primary November 15 2008. Other clients are expected to be rolled-out
beneficiary, the Project during the course of 2009.
is expected to impact Contact Basil Springer at basilgf@caribnet.net or www.cbetmodel.
her family, community, org.
country and region There are many similar stories throughout the Caribbean.
as it will be used as a Unfortunately, many of these aspiring opportunity-driven
model for training and entrepreneurs still struggle to find ready finance and
encouraging like-minded business support that matches their specific needs at the
individuals or groups to time when they need is greatest. With models, such as,
follow in her footsteps. CBET, this problem could be easily solved. Agriculture is
Source: Adapted ripe with opportunities to start and grow business, literally.
from the IICA ECS What better time than to subscribe to a new mantra, that of
Newsletter ‘breeding and growing agripreneurs’ “one high performance
enterprise at a time.”
Q: But how different is the TTABA model from was attempted in agricultural
development in the past?
A: No other organization has the degree of public-private sector
collaboration that we have right now. TTABA is essentially a one stop
shop (Contract-Produce-Process-Market). We contract farmers to grow
the crops that we want as well as provide them with support in terms
of establishing associations; we engage in research and development,
in terms of new products and better crop yields, we add value to the Processing papaya
produce by developing a wide range of products which we market locally,
has increased the demand for its range of products.
regionally and internationally. TTABA’s private Not-For-Profit organization
The producers, processors, policy makers, distributors,
legal status also differentiates us, as it allows us to source public funds
consumers were ready.
for investment and for managing private sector projects.
14
Investing in Nutrition - Building Capacity for CARICOM’s Food Needs
‘a biodiversity hot spot’, with 365 days of tropical weather, that provides a perfect landscape for agri-tecture, i.e., layout of
a diverse range of agricultural, forestry and fisheries production. However, such diversity has been overshadowed by the
sheer level of chain organisation, scale and investments in crops for the raw material export market (banana, rice and sugar)
at the expense of securing food needs.
The following is extracted from ‘Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture
and Food Industries in CARICOM’ IICA-CTA, 2009.
In September 2007, CARICOM Heads of Governments signed among others. Such investment should also encourage value
Identifying Potential Investment Opportunities in the
the Port of Spain Declaration Uniting to Stop the Epidemic
of Chronic Non-Communicable Diseases (CNCDs). Among
adding, such as, mixed veggie packs, that is being done on a
small scale in some CARICOM countries. The issue with fruits
Issue 2: do import-reliant Dr. Patrick Antoine: Strategic Trade & Policy Advisor
agribusinesses contribute to regional A regional framework for agricultural development should deliberately
development? make no distinction between products manufactured/processed from
Most regional large food and beverage local/regional raw materials and those manufactured/processed from
processors depend heavily on imported non-regional or imported raw materials. There are Member States
materials. They earn profits, provide jobs who have competitive advantage in transforming “raw materials”,
and are successful. But are such industrial wherever sourced, into higher value added processed products,
models really agricultural development while for others, their advantage lies in actual production of such raw materials. A
and, if so, at what social costs? regional approach to agriculture must continue to accommodate both orientations
to create opportunities for regional sourcing and regional production integration.
of their most fundamental challenges are as necessary and sufficient for sustainable business success. The actions are to
CB ET I n c . B a rb a d o s G o v ern m e n t-
Priv at e Se c to r Se ed a n d V e n tu re
securing financing for working capital, provide Quick Response Seed and Venture Capital, i.e., very early stage finance to
Cap ita l P a rtn e rsh ip wa s rol le d o ut in
Bar b a d o s i n N o ve mb e r 1 5 2 008
product innovation etc. an individual or entity with potential for high performance. All types of financing are
being explored with the explicit exception of loans due to the prohibitive collateral
requirements.
The CARICOM Secretariat, which has the mandate for agricultural policy in CARICOM is currently spearheading the development of a
‘Strategic Plan for Regional Development (SPRD)’, which is a natural follow-on from the Single Development Vision approved by CARICOM
Heads of Government in July 2007. The Single Development Vision has a focus on agriculture, fisheries, forestry and links to tourism, which
reflects the the Revised Treaty. The Strategic Plan will focus on regional public goods. In a regional approach to agriculture determination will
be made as to what are the particular public goods that the region should focus on to foster integration. Some public goods, ie., goods and
services whose benefits are shared in the integration process, are market intelligence and information, R&D, quality assurance and standards
systems, security, financing, transportation, and training and development. ‘Background Papers’ on Caribbean Agro-tourism and Intra-regional
agricultural production and trade policy will inform the plan for agriculture. The CCAP proposal and the outcome of the CCAP meeting will also
provide input into the process.
The ‘measurement’ issue is based on the growth of agricultural GDP (AGDP), as is normally
published. It is an important economic indicator used to measure progress in, or the rate of
expansion of agriculture capacity to produce and supply finished products for consumption and
intermediate use. In many cases, ‘real’ AGDP has been used as if it were an indicator of the level of
wellbeing of agricultural families, even though it only represents the amount of net production (discounting all inputs) valued at the prices
of a certain base year. Therefore, because real AGDP is calculated at ‘constant prices’, changes from one year to the next in same way,
only reflect changes in the ‘volume’ of agricultural production and do not take into account changes in relative prices, which often have
a greater impact on agricultural incomes. It is not uncommon in agriculture, for increases in production levels to lead to decreases in the
income of producers, inasmuch as agricultural prices also fall due to over-supply factors. ‘Good’ agricultural performance, from the point
of view of the domestic supply of products, often leads to ‘unhappy farmers’ who see their incomes decline as a result of lower prices.
To consider only the AGDP paints a very limited picture of what is happening in the sector. (Measuring agricultural GDP performance,
a technical note by Julio Paz, Henry Benavides and Joaquin Arias, Policies and Trade, IICA, COMMINIICA Fifth Year, January-April,
2009 ISSN 1992-4933)
a 21st Century
Model of situation
and
Agriculture’s
Chains
Development
ourook for
This publication discusses the subject of There is need to give thought to the Agriculture’s situation is traditionally
articulating and implementing a CSME indispensable role of agriculture and rural measured by macro-level statistical
Community Agricultural Policy (CCAP). It communities in the building of economies in indicators which report generally poor
includes perspectives on the topic, the base the Americas. Development must proceed performance. This publication uses the
paper prepared as an input to the regional in a manner that ensures human prosperity Agro-matrix framework to promote a modern
policy dialogue process and highlights of the and security in all its dimensions and concept of agriculture, discussed, not as a
main issues that emerged from a regional environmental sustainability. Sustainable sector, or ‘primary agriculture, or traditional
meeting on implementing the CCAP. The development is a central part of the agenda industries, but as a set of ‘chains’ that
purpose of this contribution is not to rewrite for the Fifth Summit of the Americas create and add value. The chain approach
community policy as articulated in the Article and Fifth Agriculture Ministerial, both conceptually and operationally eliminates
56 of the Revised Treaty of Chaguaramas, meetings hosted by Caribbean countries the long-standing disconnect between
nor to propose a new policy, strategy or in 2009. Protected markets for agricultural farms and other aspects of the agriculture
initiative in the context of what already exists, products have virtually disappeared and and food industry. The discussion blends
nor is it intended to elaborate a full blown the Caribbean is challenged to find new less used ‘soft’ information (experiences of
CCAP. On the contrary, the CCAP proposal economic pillars on which to build its individuals and institutions) with traditionally
offers a ‘synthesis’ of the critical issues and economies and to achieve the goals of used technical analyses to present a more
options, process and imperatives for policy sustainable development. It describes the ‘balanced’ and optimistic view on the
harmonisation in agriculture at this stage context and elements for what Dr. Cheltson commitments, progress, innovation and
of development in the CSME. It seeks to W.D. Brathwaite Director General of IICA partnerships in developing agriculture in
form an input into the regional dialogue and refers to as ‘a new development model’. CARICOM.
consultations.
Any and all contributions and comments are most Inter-American Institute for Cooperation on Agriculture (IICA)
welcome. Office in Trinidad and Tobago
P.O. Box 1318, Port of Spain
ISSN 1991-2315; CaRC/TT-01/09 #10 Austin Street, St. Augustine, Trinidad and Tobago, W.I.
Tel: (868) 645-5020; 4555. Fax: (868) 662-8253; Email: diana.francis@iica.int