CARONI INITIATIVE FOR FOOD PRODUCTION

1. CARONI INITIATIVE FOR FOOD PRODUCTION Presented by Christine Sahadeo

2. Restructuring of Caroni(1975)ltd • Priority access of 2 acre plots- 7248 • Late applications of approximately 1100 • Introduced approx.15000 acres of land • Tenancies regularized re cane farmers- 12000acres Caroni Initiative for Food Production

3. CARONI (1975) LIMITED • RECONFIGURATION - LAND UTILIZATION POST AUGUST 2003 • AS COMPARED TO CONFIGURATION – LAND UTILIZATION PRE-AUGUST 2003 Caroni Initiative for Food Production

4. RECONFIGURATION - LAND UTILIZATION POST AUGUST 2003 Caroni Initiative for Food Production

5. RECONFIGURATION - LAND UTILIZATION POST AUGUST 2003 Caroni Initiative for Food Production

6. RECONFIGURATION - LAND UTILIZATION POST AUGUST 2003 Caroni Initiative for Food Production

7. Solution to food inflation • Inflation now stands at 15.4% • Food inflation-major catalyst of headline inflation • Expansion of domestic food supply • Vibrant local agricultural sector • Expansion of the acreage under food cultivation Caroni Initiative for Food Production

8. Support provided to former employees/cane farmers • Special concession whereby all former workers and cane farmers registered as farmers with the Ministry of Agriculture, Land and Marine Affairs- ( MALMA) • Access to Agricultural Incentive Programme • Regularization and of the status of 6000 sugar cane farmers who had tenancies or were squatting on state lands Caroni Initiative for Food Production

9. Support provided to farmers • Reduction in lease premiums to $200 per 2 acre plot per annum • Concessionary arrangements including reduced interest rates by the Agricultural Development Bank • Training in agriculture and other technical areas. Caroni Initiative for Food Production

10. Low ratio of cultivated acreage • 326.5 acres out of the total acreage of 15,000 acres – a ratio of 2.2 percent. • To date only 404 beneficiaries are actively involved in which 241 is involved in land preparation and 163 in cultivation of products as follows: Caroni Initiative for Food Production

11. Cultivated Acreage • cassava 59.70 • sweet potato 68.00 • peas 32.00 • pumpkin 18.25 • pepper 21.75 • ochro 16.50 • pineapple 16.50 • tomatoes 22.00 • eddoes 15.75 • mixed crops 55.55 • total acreages 326.00 Caroni Initiative for Food Production

12. ISSUES •  Many of the former Caroni Workers were not farmers and require additional support • The lands of Caroni are not fertile and have high levels of acidity, which requires soil testing and remedial work to determine selection of crop best suited to soil type. Caroni Initiative for Food Production

13. ISSUES • Extension support services provided by MALMR is inadequate and cannot support such a large influx of new farmers. • Training required in the area of: Soil Management Basic equipment maintenance Crop rotation Use of R+D and new technology Caroni Initiative for Food Production

14. ISSUES • Inadequate infrastructure • Agricultural Product Insurance • Praedial Larceny • Inadequate support for farmers to move along the value chain • Need for planned production and marketing of produce Caroni Initiative for Food Production

15. ISSUES • Support for the marketing of national agricultural products, to promote national food labels and national branding • Provision of increased financial support for local producers in the form of Micro credit and Small Grant programs for small and medium enterprises as farmers encouraged to move along the value chain Caroni Initiative for Food Production

16. Direct individual support to 7500 farmers is fraught with many challenges • Difficulty in providing training and support individually because of a large number of new farmers • Many of these new farmers have limited knowledge and expertise in agriculture • Difficult to develop and implement a production schedule based on the needs of the market Caroni Initiative for Food Production

17. Direct individual support to 7500 farmers is fraught with many challenges • Unscheduled planning and production will result in glut and shortages and wide fluctuations in prices • Farming by individual 2 acre plots will result in high cost and unable to take advantage of economies of scale • Not supportive of moving along the value chain and maximizing gains Caroni Initiative for Food Production

18. Direct individual support to 7500 is fraught with many challenges • Inadequate volume to engage in direct marketing that gives farmers higher margins • Inadequate volume to engage in “guaranteed markets” exports or niche markets Caroni Initiative for Food Production

19. Delivery Schedule for Agriculture Estates as at March 11 2008 Caroni Initiative for Food Production

20. Delivery Schedule cont’d Caroni Initiative for Food Production

21. Delivery Schedule cont’d Caroni Initiative for Food Production

22. Delivery Schedule cont’d Caroni Initiative for Food Production

23. Thirteen (13) large farms 267 acres Caroni Initiative for Food Production

24. Justification for establishment of Community Associations • Community Associations are platforms where farmers share knowledge on use of appropriate technology, research and development  • Allows more effective training and sharing of information  • Based on large volumes it allows direct marketing which allows farmers more effective marketing and pricing of produce  • Introduces economies of scale . Caroni Initiative for Food Production

25. Justification for establishment of Community Associations • Encourages and nurtures a business culture and entrepreneurship • Creates environment for producers to add value to certain commodities in order to yield maximum gain. • Community Associations also lends to the establishment of Commodity Associations thereby introducing further synergies. • Requires less manual labour and affords greater mechanization Caroni Initiative for Food Production

26. Role of The University of the West Indies – Faculty of Agriculture and Management Studies • 500 students registered • 1966-present successful programs in agriculture, agribusiness and entrepreneurship • Provide solutions to technical problems faced by farmers through Research & Development • Extension services provided by MALMR should be in collaboration with UWI to ensure farmers are kept up to date with technology and R&D Caroni Initiative for Food Production

27. Role of The University of the West Indies – Faculty of Agriculture and Management Studies • UWI can assist in the establishment of Community Associations and develop terms of reference  • Can undertake all soil testing and based on soil types assist in planning production schedule  • Plan a training program that ensures all farmers trained and updated with new technology  Caroni Initiative for Food Production

28. Role of The University of the West Indies – Faculty of Agriculture and Management Studies • Program to include assignment of students to farms allowing for 2 way exchange of training and education  • Development partnerships with graduates • Curriculum restructuring • Provide support to farmers in business development and entrepreneurship. Assist farmers in the preparation of business plans. Caroni Initiative for Food Production

29. Restructuring of the Agricultural Sector • Success of the agricultural sector requires the restructuring of the sector • Implementation of National Agri- Business Development Program • Implementation of programs by several agencies such as NAMDEVCO,ADB AND TTABA Caroni Initiative for Food Production

30. Restructuring of the Agricultural Sector • Moving it from a large number of small individuals, no technology and inefficient marketing systems to a large number of small and medium size agro entrepreneurs. Caroni Initiative for Food Production

31. Restructuring of the Agricultural Sector • Create a highly organized industry by: • Establishing community association • Establishing Commodity Associations • Formulating predictable contract production and marketing systems Caroni Initiative for Food Production

32. Restructuring of the Agricultural Sector • Building capacity of the sector • use of best agricultural practices • Building the human capital in the agricultural sector at the professional, entrepreneurial and labour level • Improving the efficiency and competitiveness of the local agricultural sector Caroni Initiative for Food Production

33. Restructuring of the Agricultural Sector • A very important aspect of restructuring the agricultural sector is ensuring a supply of quality labour and training. This will be achieved by: • Ensuring new technology and R&D is made available to farmers • Training in use and application of fertilizers through the education of the local farming community. Caroni Initiative for Food Production

34. Restructuring of the Agricultural Sector Training programs should include: • Agricultural Economies • Business Planning for Farmers • Crop Diversification • Basic Equipment Maintenance • Soil Management Caroni Initiative for Food Production

35. Trinidad and Tobago Agri-business Association (TTABA) • Responsible for the management of the NADP • Establish supply agreement with supermarkets, hotels • Establish buyer agreements with buyer associations • Farmers associations enter into production contracts based on supply agreements • Contracts at guaranteed prices – cost of production plus a “fair profit margin”. Caroni Initiative for Food Production

36. Trinidad and Tobago Agri-Business Association (TTABA)- Achievements • 500 acres under contract arrangements • Value added process has begun • Regular meetings with farmer’s groups • Established supply agreement with supermarkets, hotels • Negotiated production schedule and prices Caroni Initiative for Food Production

37. Implementation of the National Agri-Business Development Programme • Reposition the sector by moving it from the narrow focus on primary agriculture to the broader context of agri-business • Provide support to farmers to move along the value chain, generating higher profits and build entrepreneurship • Create linkages between agriculture, agro processing, food manufacture • Close collaboration and joint investment between public and private sector Caroni Initiative for Food Production

38. NAMDEVCO- National Agricultural Marketing and Development Company • The establishment of this State Enterprise was for the primary purpose of making strategic interventions in the market place in order to encourage improved and more effective agricultural production, processing, packaging and distribution and provide guaranteed support to farmers. Caroni Initiative for Food Production

39. NAMDEVCO- National Agricultural Marketing and Development Company • These measures included: • The provision of guaranteed prices for certain agricultural products in times of surplus; • Administration of guaranteed floor process for target crops and a mechanism to ensure targeted production through guaranteed floor prices for targeted crops; Caroni Initiative for Food Production

40. NAMDEVCO- National Agricultural Marketing and Development Company • Setting up of agro-processing and export arrangements to secure the sale of surplus crops, as well as to facilitate their processing; • The importation, in times of shortage, and with the consent of the Minister of agriculture, of food items from regional and extra-regional sources to maintain the stability of food prices • Successful in recent times in communicating food prices and the establishment of farmers’ markets Caroni Initiative for Food Production

41. Agricultural Development Bank • The Government of Trinidad and Tobago (GORTT) has mandated the ADB to be the facilitator in the planning and development of a pilot Agricultural Insurance Programme. • The proposal is for the development of and implementation of a pilot programme • This should provide a tremendous boost to farmers and provide an impetus for the revitalization of this industry. Caroni Initiative for Food Production

42. Agricultural Development Bank • Provides loans to these new and emerging farmers at preferential rates • Security for loan is also offered at concessional terms Caroni Initiative for Food Production

43. The Way forward • We must see these challenges as opportunities and develop creative solutions • Critical success factor involves the partnership of: • Government • Private sector • Tertiary level institutional support - UWI • The current issue of food security has brought the agricultural sector to the forefront in every country and as a result governments must be innovative, improve the sector competitiveness and ensure sustained production. Caroni Initiative for Food Production

44. The University of the West Indies • UWI is well positioned to lead the transformation of this initiative • Provides an opportunity for students in agriculture to become engaged • Congratulate the Dean , Faculty of Agriculture , Professor Dyer Narinesingh and other colleagues for their genuine support and commitment in supporting this intervention Caroni Initiative for Food Production

45. Thank You Caroni Initiative for Food Production