Page 13 - Caribbean-Central America Profile 2018

REGIONAL

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

AGRICULTURE

Over the last two decades, Latin America Food security is a very important issue for the fully in meeting urban food demand, policy
and Caribbean (LAC) countries have shown countries in the CARICOM region. An FAO measures are needed that: reduce the barriers
positive trends for agricultural development, project to reduce postharvest losses has enhanced limiting their access to inputs; foster the adoption
and in particular for agricultural trade. LAC has the capacities of the CARICOM Secretariat, of environmentally sustainable approaches and
become the largest net exporter of food in the its member states and regional institutions. In technologies; increase access to credit and
world, surpassing North America. This trend Trinidad and Tobago, the project, valued at markets; facilitate farm mechanization; revitalize
shows no signs of reverting. The Food and US$280 000 trained the frontline officers of the agricultural extension systems; strengthen land
Agriculture Organisation of the United Nation National Agricultural Marketing and Development tenure rights; ensure equity in supply contracts; and
(FAO) estimates that by 2024, net food exports Corporation (NAMDEVCO), farmers, and strengthen small-scale producer organizations.
from LAC will reach US$60 billion, three times microprocessors to identify critical control points No amount of urban demand alone will improve
more the value in 2000. What is particularly in the post-harvest management of cassava and production and market conditions for small-
interesting is that LAC is a net exporter of basic pumpkins and enable them to effectively use scale farming. Supportive public policies and
grains, while other regions are net importers. post-harvest technology and practices to reduce investment are a key pillar of inclusive rural
This bodes well for the food security of the losses. They drafted a post-harvest reduction transformation.
region as agricultural production is, on average, strategy for cassava. The strategy’s first priority The second pillar is the development of agro-
more than sufficient to cover local food demand. is being implemented in an FAO supported pilot industry and the infrastructure needed to
The exceptions for LAC are wheat and rice, for programme evaluating two designs of mechanical connect rural areas and urban markets. In the
which there is a net import. harvest implements, one designed by a farmer.
The second design comes from the engineering coming years, many small-scale farmers are
Agricultural policies and programs of LAC likely to leave agriculture, and most will be
Department of the University of St. West Indies,
countries are diverse and change quickly in several unable to find decent employment in largely
St. Augustine. The pilot is evaluating protocols for
countries. While many countries have a mix of low-productivity rural economies. A dynamic
storage conditions, waxes and plastics to increase
policy measures and programs, policy designs the storage life of cassava tubers. agro-industrial sector and growth of services
differ between countries. Agricultural policies can in rural areas would create jobs in local
be characterized by five different approaches: The agricultural sector and rural areas reflect the economies, especially for women and youth,
heterogeneous structure of the region and the improving incomes and supporting overall
1. Market Price Support (MPS), through challenges of structural change. The agriculture
border measures: Those policy instruments sector’s share of GDP varies between countries gains in nutrition, health and food security.
prevail in the Producer Support Estimates from below 2 percent to around 20 percent, while However, the growth of agro-industry y is often
(PSE) in Uruguay, Peru, Suriname, five extreme poverty rates range from below 1 percent held back by the lack of essential infrastructure
Central American countries, Jamaica, to over 60 percent. The region must further – from rural roads and electrical power grids
to storage and refrigerated transportation. In
Ecuador and Colombia. diversify its rural economies, in agricultural as many low-income countries, such constraints
2. Reducing costs of purchased inputs well as non-agricultural activities, and do so in are exacerbated by a lack of public- and
and capital: Subsidies to farm-purchased a sustainable manner by promoting innovation private sector investment. The third pillar of
variable inputs, such as energy and fertilizers, with inclusion, especially of young people and inclusive rural transformation is a territorial
have recently become more important in women in rural areas. focus in rural development planning, designed
Brazil, Chile, and Mexico. Concessional credit to strengthen the physical, economic, social
schemes to stimulate agricultural investments In Costa Rica investment in rural development and political connections between small urban
are cornerstone policies in Brazil and Colombia. has more than doubled. By the end of 2017, centres and their surrounding rural areas.
3. Emphasis on policies that mitigate the Costa Rica will have invested nearly 3.600
downside risks to revenue and income: billion Colones (approximately $6.3 million) The development of the agriculture sector will
This has recently been reinforced in Peru, in rural development initiatives such as added have significant and meaningful impact on
Brazil, and Mexico. value centers, promoting food production and domestic food production; food security; reduced
4. Emphasis on extension services to farmers: security, productive and social projects, rural dependence on food imports and overall economic
Recent increase in provision of extension loans, rural infrastructure, and coordinated rural and social welfare. There must be recognition of
services to farmers were observed in Chile, projects, among others. the acute forward and backward linkages between
Peru, Paraguay, and Uruguay. This also Urbanization provides a golden opportunity for agriculture and other industries, as well as the deep
includes Nicaragua, El Salvador, Honduras, agriculture. However, it also presents challenges connections between agriculture, trade, economic
Costa Rica and Guatemala. for millions of small-scale family farmers. More growth and development. Growth in the agriculture
5. Emphasis on enabling business environment profitable markets can lead to the concentration sector has the possibility therefore of contributing
for agriculture: Countries that focus their of food production in large commercial farms, to to the expansion of the agro-processing industry,
policy instruments on general services with a value chains dominated by large processors and providing new avenues for innovation; providing
public good nature include Chile, Peru, and retailers, and to the exclusion of smallholders. alternative engines of growth, promoting local
Uruguay. To ensure that small-scale producers participate production and opportunities to substitute imports.

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