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11/26/2006
Discussion Brief on AGRICULTURE - National Budget Consultation

CATEGORY:AGRICULTURE
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MAIN PROGRAMMES AND ACHIEVEMENTS IN AGRICULTURE FOR 2006

The Ministry of Agriculture in the 2006 intensified its efforts to revitalize the sector in a more organized way through an approved Capital Budget of EC$31. During that period several projects including new and ongoing interventions such as the Agricultural Enterprise Development Programme (AEDP), Agricultural Recovery Programme, Farm Roads Project, Reorganization of the Extension Division, Support to Irrigation and Drainage and the Food Security Programme were implemented.

Under the Agricultural Enterprise Development Programme, which was successfully launched, farmers were able to access a maximum of $40,000 at 5% interest to engage in profitable agricultural activities. The Ministry of Agriculture provided technical assistance by providing advice on the many agribusiness options that are available, given each farmer circumstance and in the development of farm business plans. Approximately 435 farmers have applied and approximately EC$3 million has been approved as loans under the programme. Of the loans disbursed, 40% were used for rehabilitation of Cocoa, nutmeg and banana fields, 38 % were used for livestock and poultry rearing and 18% went into vegetables and fruits production.

In addition to providing loan financing, the AEDP provided $300,000 in support of a drainage programme for nutmeg and cocoa farmers, $433,000 for the purchase of 9,000 bags of fertilizer and $986,000 for purchasing Irrigation Equipment and Supplies to strengthen the Irrigation Loan Scheme programme,

Preliminary works began for the rehabilitation of many of our farm roads, which were severely damaged by the hurricanes. Feasibility works, including the drawings for the 24 roads identified under the project, have been completed. The construction of the roads will begin in 2007.

Another area of major focus in 2006 was the expansion and improvement of irrigation infrastructure. Under the Support to Irrigation and Drainage Programme, 90 farms were assessed and the designs and installation of irrigation systems were completed for 50 of them. The total acreage for which irrigation system were installed during the period is estimated at 105 acres. In addition, 27 farmers were trained through two training workshops in Irrigation System Management and Operation. The Irrigation Management Unit of the Ministry of Agriculture also facilitated, in conjunction with the National Youth Council, a National Dialogue on Water in Sanitation, for over 60 students.

During 2006 the Ministry of Agriculture also implemented a programme to strengthen the extension service. Through the Reorganisation of MOA Extension Service Project, 90 youths were put through a two week training course involving various aspects of agriculture education. Subsequently, these trainees were awarded a two year contract as Extension Trainees during which time they will undergo ongoing training in several disciplines of agriculture. Additionally, the trainees are providing support to the Extension staff in areas where they are best able to.

Continuing support was provided to the agricultural sector through the Food Security Programme in 2006. The main activities undertaken included:
- Purchased and distributed 10 cattle to improve the breeding stock on the island;
- Purchased and distributed 50 bags (2,500 lbs) of corn;
- Purchased and distributed 5,000 lbs of ginger;
- Provided support for procuring propagation supplies, especially 2,450 lbs of avocadoes
- Provided support for training officers in developing telefood projects
- Provided support for promotional work in preparing and consuming local foods
- Purchased and distributed peas, sorrel and ochro seeds.

Through the Agricultural Recovery Programme over 100,000 banana plants and 50,000 plantain plants were purchased and prepared for distribution. 10 power tillers were also purchased to enhance the Ministry’s capacity to improve its provision of ploughing services to our farmers. Additionally, $500,000 was provided as support to the cocoa industry workers as a result of problems from Hurricane Ivan and Emily.

Under the Support to the Nutmeg Association Programme, $572,500 was provided to the nutmeg workers who were severed as a result of Hurricane Ivan.

PLANS AND PROGRAMMES FOR 2007
During 2007 efforts will be made to continue to modernize the sector in light of the increasing impact of trade liberalization, especially with reference to the CSME. The major areas of focus will be to continue rebuilding of the physical infrastructure including roads and supporting buildings, strengthening of institutional capacity including the Ministry of Agriculture, Cocoa and Nutmeg Associations and farmers groups, and improving the standard and quality of agricultural outputs through an enhanced marketing programme.

One of the major projects that the Ministry of Agriculture will be undertaking is the rehabilitation of the cocoa and nutmeg sub-sectors. Undoubtedly, it is fully recognized that these two sector are critical for the sustainable development of agriculture in Grenada, and in particular, the rural sector. Efforts will be made to provide support to assist in the clearing of many of the cocoa and nutmegs fields that were not destroyed by the hurricanes. The Government, in collaboration with the FAO, has already developed a project to source additional assistance from the international community for this important project. In addition, the Government in keeping with the recommendations for the rehabilitation of the nutmeg industry submitted by the Commonwealth Secretariat, has sought additional technical assistance both from the Indian Government and the Commonwealth Secretariat for this project.

A second area of continued emphasis in 2007 will be the enhancing of the Agricultural Enterprise Development Programme. Through this programme farmers will continue to access low interest financing for viable agricultural enterprises. Increased monitoring of operations in the field will occur to ensure that farmers’ enterprises are meeting the goals and objectives of the programme and to provide greater technical guidance where necessary. Farmers will also be given exposure to increased training to improve the productivity and marketability of their farm and its produce.

In 2007 the Ministry of Agriculture will seek to enhance its institutional capacity to better serve the agricultural sector through the implementation of SFA 2003, which is funded by the European Union. Under this programme, Ministry staff and other key stakeholders will be afforded training in critical areas such as strategic planning, project management and evaluation and policy analysis and formulation. Additionally, several feasibility studies will be undertaken and project developed in many important areas of the sector. The tendering process for the implementation of this programme is already completed and a contract is soon to be awarded.

Another area of emphasis in 2007 will be the Agricultural Marketing Improvement Programme. Through this programme, the Ministry of Agriculture will increase its collaboration with the Marketing and National Importing Board and the Food and Nutrition Council to promote the consumption of locally grown food as a healthier choice. Increased investment in the collection and dessimination of market information to agricultural stakeholders will be a major focus of the programme. Under the SFA 1999 Financing agreement a market feasibility study will be undertaken to inform a major increase in production of fresh fruits for the regional and international markets. In addition, attempts will be made to strengthen the linkage between our hotel, supermarkets and restaurants and farm producers and to improve the general standard and quality of produce delivered to the market. Farmers will be given training in computing cost of production and commodity pricing.

Priority will also be given to the revitalization of the forest through the Forest Rehabilitation Project in 2007. The World Bank has agreed to fund to this project in the amount of US$3.1 million. The main components of this project include the rehabilitation of the forest rector sector, restoration of key watersheds, the planting of 300,000 seedlings and the restoration of key forest recreation infrastructure. The Agency For Reconstruction and Development and the Forestry Department of the Ministry of Agriculture will be working closely to implement this project.

Further improvement in the fisheries infrastructure is also a major area earmarked for assistance in 2007. The Coastal Fisheries Development Project will begin in the fishing town of Gouyave with funding from the Japanese Government estimated at US$9 million. The project has the following outputs:
- a safe breakwater habour;
- a fish retailing centre;
- a fishermen workshop; and
- a refrigeration and ice-making facility.

In the area of pest management, significant resources will be devoted to the eradication of the Black Sigatoka disease under the Black Sigatoka Management Project. The Government of Grenada with assistance from WIBDECO will work to ensure that the black Sigatoka disease, which has the potential to entirely wipe out the banana industry, is eradicated. Banana remains one of Grenada’s major food source and a special taskforce has already been set up to manage this project.

Implementation of the Farm Road Rehabilitation Project will continue with loan funds from the OPEC/Kuwait Fund. Twenty four roads are earmarked for construction over a three year period.


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