Guyana self sufficient in terms of food security
Georgetown , GINA, August 11, 2004
A GINA Feature
Over the years, Government has implemented several initiatives to enable Guyana to be self-sufficient in many areas, especially agriculture, fisheries, other crops and livestock. The poultry industry has benefited from several interventions from Government including concessions to poultry producers.
The regulatory framework governing the poultry industry has enabled it to become sustainable, while simultaneously realising a profit. As a result, the regulatory framework, designed to help the industry grow, has been encouraged.
As the money spent on imports of chicken dropped between 1998 and 2003, local production rose significantly as the table below shows.
Domestic production of poultry
Year |
Production (Tonnes) |
1998 |
11,277 |
1999 |
12,432 |
2000 |
11,769 |
2001 |
12,489 |
2002 |
16,732 |
2003 |
23,681.1 |
2004 (First Quarter) |
5,480 |
Government, through the Ministry of Tourism, Industry and Commerce, made a policy decision, in November 2002, to increase tariffs on imported chicken from 40 percent to one hundred percent.
This decision was taken because local chicken was retailed at a higher price than the imported chicken. In order to sustain the local industry, protection from cheaper foreign chicken was required.
In October last year, Government agreed to further subsidise the industry by granting duty-free concessions on machinery and equipment imported by local producers.
The results of these governmental interventions have been the creation of a state-of-the-art industry, designed to compete on the international market. Already, Government and local producers are negotiating exports to the Caribbean region.
Financial assistance to the poultry industry is not a new occurrence. Prior to these recent developments, several local producers have benefited from Government's intervention in the form of both concessions and import tariff.
An analysis conducted by the Ministry revealed that while there have been some increases in the prices by some producers, the retail price in major supermarkets has remained relatively stable. This has been due mainly to increased domestic production over a three-year period.
It has been discovered recently that an artificial shortage is being created by restriction on local production to increase the price of chicken on the market. But, Government has again stepped in and cautioned producers that this may cause some amount of reservations on its part as it relates to concessions offered to the industry.
The policy of Government to increase tariff protection and grant duty-free assistance to poultry producers led to a decrease in imports of chicken and stabilisation and lowering of prices on the local market.
Today, Guyana 's poultry industry is a long way from where is was ten years ago. To protect its poultry industry from cheaper American imports, Guyana increased import duties from 56 percent to 125 percent on other poultry products.
Due to recent increases in price and a shortage of chicken on the local market, Government has announced that it will be importing chicken to supply local markets. Domestic production has increased from 2003 to 2004 in corresponding months but in the month of June there has been a shortfall in production by 613.2 tonnes when compared to the same period in 2003 as the table below shows.
Production in Tonnes
Month |
Production (2003) |
Production (2004) |
January |
851.6 |
1205 |
February |
1348.9 |
2194.4 |
March |
1386.3 |
2080.6 |
April |
1555.6 |
2671.7 |
May |
1761.8 |
2256.6 |
June |
1968.9 |
1355.7 |
July |
1330 |
|
August |
1628.3 |
|
September |
1262.5 |
|
October |
2044.9 |
|
November |
3476.6 |
|
December |
5065.9 |
|
The importation of chicken has declined significantly due to the implementation of import tariffs, which have led to the rapid increase in domestic production.
Period |
Imports (2003) |
Imports (2004) |
January – March |
274.9 |
183.4 |
April – June |
24.5 |
8.4 |
June – September |
9 |
|
September - December |
21.4 |
|
TOP
Wednesday, August 11, 2004