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An

Overview

of the

Agriculture Situationin

Trinidad

and

Tobago

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TABLE OF CONTENTS

Page

Title Page

Abbreviations

Table of Contents

1.0

Situation and Context

1.1

Objectives, Status and Trends

1.2 Challenges

1.2.1

1.2.2

1.2.3

1.2.4

1.2.5

1.2.6

1.3 Opportunities

2.0

The Priority Programme Framework

2.1

Fostering an Environment Enabling of Competitiveness

2.2

Enhancing the Climate for Sustainability

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1.0 THE SITUATION AND CONTEXT

The petroleum industry dominates the Trinidad and Tobago economy. It is therefore susceptible to

external shocks induced by movements in energy prices. Economic policy and strategy place

great emphasis on growth of the non-oil foreign exchange earning and relatively labour-intensive

sectors of the economy, such as financial services, tourism, agriculture, and agro-processing.

The 2004 Agriculture Census confirmed that the agriculture sector has been in relative decline for

several decades (and continues so to be). For instance, between 1984 and 2004 contributions to

GDP and the share of the labour force in agriculture fell from 4.2% to 1.02% and from 12.4% to

5.0% respectively. Nationally, between 1982 and 2004, the number of farmers declined 37.5% (in

Tobago 50%) and in terms of area by 35.4% (in Tobago 65.3%).

Other noteworthy characteristics of the sector that the Census highlighted are that: most holdings

are small nationally 87.1% of holdings were less than 5 ha with 22.0% less than 0.5ha; in Tobago

45.8% of holdings were under 0.5ha. 76.5% of private farmers listed farming as the only or mainoccupation and 55.3% received in excess of half of their income from farming. 14.7% of farmers

were female. 3.7% of farmers had no formal education while 60.2% had primary and 27.9% had

secondary. The age profile of farmers is skewed towards the elderly -- 35.4% of farmers were over

55 years with 15.4% over age 65. Nationally, 11.3% of the agricultural land was subject to

irrigation and 33.6% subject to flooding. 82.9% of the land area (representing 69.3% of parcels) is

owned/rented/leased and 8.4% (representing 17.2% of parcels) is held under squatting. Chronic

labour shortages are a feature of agricultural endeavours. This may be partly because the sector

provides the lowest returns and wages in the country.

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Farm output is broadly classified into export agriculture, sugar and domestic agriculture.

Production of cocoa and coffee (the two export commodities) and sugar are on the decline. Cocoa

output declined at an annual average rate of 3.5% between 1994 and 2004; coffee at 9%.

Sugarcane production which averaged 1.29 million tonnes during 1994-2002 fell to 0.68 million

tonnes in 2004. (The sugar industry was restructured and downsized in 2003 with closure of one

of the two factories and a reduction in area under cultivation.) Domestic agriculture has been

growing but also changing in the structure of output: since 2000: output of the livestock sub-sector

has increased while the crops sub-sector has declined. The 7.6% annual average growth of

livestock production is due primarily to expansion of broiler meat, pig meat and table eggs. The

output of the crops sub sector has been affected by declines in sugarcane and rice production,

which overshadowed increases in root crops, vegetables and pulses.

The sector is afforded access to a range of services for furthering the process of agricultural and

rural development. The Ministry of Agriculture, Land and Marine Resources (MALMR) and the

Tobago House of Assembly (THA) are both involved in providing research, extension, regulatory

and administrative services to the agricultural sector. There are a number of public agencies whosemandates address specific areas of intervention: the National Agricultural Marketing and

Development Corporation (NAMDEVCO) and the Marketing Division of the THA - marketing; the

Agricultural Development Bank - agricultural finance; the Cocoa and Coffee Industry Board -

development of the cocoa and coffee industries; the Sugar Manufacturing Company (SMC) - for

manufacture and export of sugar; and the Livestock and Livestock Products Board (LLPB) for

effectively managing the development of that sub-sector. Additionally, there are a number of farmer

and industry organizations, which include the Agricultural Society (a broad umbrella organization

for all farmers) and industry organizations such as the Poultry Association.

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Campus. The country has offices of the Inter-American Institute for Cooperation on Agriculture

(IICA) and the Food and Agriculture Organisation (FAO) of the UN.

There are only a few agriculture projects in the funding pipeline of the International Financial

Institutions and agencies. The Government of the Republic of Trinidad and Tobago (GoRTT) is

preparing one project for the Inter-American Development Bank (IDB) to fund. (The IDB previously

provided loan funds for the land component of the Agriculture Sector Reform Programme (ASRP)

that sought to upgrade the legislation and infrastructure for land management in the country.) This

Land Adjudication and Registration Programme (LARP) will seek to provide secure titles to land

and thereby stimulate the land market. The Inter-American Institute for Co-operation on Agriculture

(IICA) is providing technical assistance to review the system of agricultural incentives. The FAO isproviding technical assistance for the establishment of market facilities in Scarborough, Tobago;

national preparedness for the avian flu; the establishment of a mandatory health certification

scheme for citrus; and the national component of the FAO/CARICOM Food Security project that is

implementing pilot projects in optimal irrigation techniques.

1.1 Objectives, Status and Trends in National Policies

The strategic framework for agriculture is outlined in Sector Policy for Food Production and the

Marine Resources2001-2005. In it, agricultural decline is viewed as a consequence of external

factors that negatively affect competitiveness and attractiveness and in respect of which the sector

had not made the requisite adjustment. External factors identified included: economic structural

transformation, Dutch disease, and changes in the global trading environment. Domestic

constraints are identified as weak research, extension and marketing systems, insufficient land

areas under irrigation flooding and praedial larceny

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production risk. The core strategy is still valid in spite of the recent changes in macro-economic

fortune and changed circumstances of the dominant sugar industry.

The Ministry of Agriculture has initiated a review precedent to a rewrite of the 2001-2005-policy

document. Tobagos perspective is to be further enhanced with access to a number of documents,

primarily the Economic Development Plan for the island and the Agricultural Sector Plan. The

review has identified that the current policy document needs to be revised since (i) it was written

during a period when the macro-economic picture and outlook were very different the current

boom was not apparent at that time, (ii) it ignored the sugar industry and as a consequence does

not integrate the potential of the land, labour and other sugar industry resources into a holistic

policy and strategy of national agricultural development, (iii) it did not take into account theimpending changes in international trade and in particular the Caribbean Single Market and

Economy (CSME), and (iv) it now must respond to recent national-level developments in particular

increasing emphasis on food security and moderation of food prices, and changes in the

agricultural land and labour markets1. Additionally, the sector policy document must now address

the issue of part-time farmers and setting the environment for their meaningful inclusion inagricultural development. Part-time farmers, in the report of the 2004 agriculture census,

comprised 42% of farmers.

2004 saw the development of an agricultural strategy document2 with policy objectives, and the

Agriculture Sub-committee of the Vision 2020 national planning exercise producing an Action Plan.

The Vision 2020 exercise aims for the country to achieve developed country status by the year

2020. The agriculture report, while accepted as part of the Vision 2020 exercise, is not formally

accepted as an official policy document. Nonetheless, it provides policy objectives and an action

plan for the short and medium terms The report set a vision of Agriculture by the year 2020 will

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sustainable improvements to efficiency and competitiveness, food security, rural development and

environmental protection. The report identifies ten (10) key drivers for achieving a 2020 vision for

agriculture based on perceived weaknesses in the sector, and which ought to be addressed as a

matter of priority. These drivers, which formed the basis of an action plan, are as follows: (i)

Research, Technology, Development and Extension, (ii) Drainage, Irrigation and Water

Management, (iii) Land Use Rationalization, (iv) Finance and Credit, (v) Marketing, (vi) Access

Roads, (vii) Policies and Regulations, (viii) Fisheries Management and Infrastructure, (ix) Building

Human Capital, and (x) Information and Communication Technologies (ICTs) and systems

linkages. The overall objective of actions to be implemented under the proposed national medium

term investment plan is to increase farm profitability and international competitiveness.Two broad

strategies advanced for achieving the increased farm profitability and competitiveness involve: (i)increasing labour productivity, and (ii) increasing land productivity. The activities proposed all form

part of the Governments overall priority investment programme.

At the regional level, the Jagdeo initiative3 that the GORTT has endorsed provides a framework

and strategy for regional agricultural development. Spearheaded by President Bharrat Jagdeo ofGuyana, it encompasses the entire CARICOM agri-food/product system and aims forthe creation

of an enabling economic and business environment for competitive and sustainable agricultural

and rural development. Key critical constraints affecting agriculture in the region were identified

and strategies developed to overcome these constraints within the context of improved

international competitiveness. The strategies identified: (i) creating an enabling environment for

business and private sector enterprise, including farmers; (ii) improving supply capacity and

competitiveness; (iii) establishing and strengthening of private sector organizations; and (iv)

refining the resource management capabilities for business and trade efficiency. The actions

outlined in Trinidad and Tobagos Medium Term Investment Priority Framework are designed to

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1.2

Challenges

1.2.1 Uncompetitiveness of Agricultural Production

The agriculture sector in Trinidad and Tobago is in relative decline with respect to

importance in the economic (e.g., contribution to GDP) and social life (e.g., number of

persons employed) of country. In the period 1982 to 2004 there has been a 37.5%

reduction in the number of farmers and a 35.5% reduction of the land in agriculture. In part

the loss of land and labour is due to agriculture having the lowest average incomes and

returns (as measured for example by GDP per worker) in the economy. The rates of

agricultural decline likely will increase in the current petroleum and tourism induced boom.

Further decline of the agricultural sector goes against the economic and national

development plans that point to growth of output and employment of the non-oil sector ofthe economy.

Another recent significant development is government and consumer sensitivity to rising

food prices, which has been the biggest contributor to inflation. This sensitivity has led to

calls and action for increased domestic production, further support for farming, and arequest for the implementation of a system of guaranteed prices as a means of reducing

production risk.

The uncompetitive nature of agricultural production is attributable to a number of factors:

lack of an appropriate enabling environment and in particular, inadequate and weak

infrastructure and institutional support systems. For instance, the regulatory oversight for

health and safety is shared by Ministries of Health, Agriculture, Local Government and the

Tobago House of Assembly (THA); Research capabilities reside with the University of the

West Indies CARDI the former CARONI (1975) Limited and the Ministry of Agriculture;

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At present Trinidad and Tobago is a beneficiary under the Government of Italy-funded/

FAO directed and facilitated, Regional Food Security Programme that seeks to address

some of these concerns. A scaling up of this can lead to increased positive benefits for the

country.

1.2.2 Low Returns to Farming

The profitability or lack thereof of agricultural endeavour acts as a disincentive to

investment in the sector, further eroding the viability of the existing asset base. The

GORTT is desirous of partnering with FAO to address issues such as post-harvest losses,

land and labour productivity, value-added activities and more efficient systems of

production. In partnership with other public and international agencies, government hason-going programmes that speak to the skewed (older) farming population (YAPA, Women

in Harmony) to encourage infusion of creativity and innovation in production processes

while broadening the scope of agriculture-related endeavours.

1.2.3

Praedial LarcenyIn the 2004 Agricultural Census, farmers cited Praedial Larceny as their greatest challenge

and the biggest disincentive to productive efforts. The MALMRs previous initiatives

(largely legislative) have not borne the desired outcomes, principally because the

legislative authority for its control is under the purview of the Ministry of National Security

that accords this mandate a relatively low priority, and farmers themselves appear ignorant

of the latitude that the law allows them. GORTTs recent initiatives point to the

implementation of an insurance scheme complemented with a safety net to address the

issue of losses as a result of natural disasters in addition to further strengthening the

legal and regulatory framework

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management is effected through a multiplicity of agencies. The GORTT is open to co-

operative and collaborative approaches that would see the climate for sustainability much

improved and the needs of the agricultural community addressed in a holistic way as

provided for in an Irrigation Master Plan. More to the point, farmers are responsive to the

need for ensuring sustainability in the context of securing their livelihoods.

1.2.5 Disorganised and Fragmented Private Sector

Partnering of public and private sector entities in developmental efforts is practically non-

existent. This is due in part to the disorganised and fragmented nature of the private

primary agriculture sector (the Poultry Industry being an exception, along with the more

progressive farmers belonging to the Agricultural Society or represented on the Livestockand Livestock Products Board). Medium and large agro-processors are represented in the

Trinidad and Tobago Manufacturers Association. It is the small and micro-entrepreneurs in

the primary and processing sub-sectors who are without a voice, and who through their

own efforts (few are able to access incentives) are the mainstay of the domestic agriculture

sector. A review of the current package of incentives with a view to restructuring them willfacilitate more proactive decision-making from an informed position.

1.2.6 The Dynamics in the Global Trading Arena

The changing global trade arena puts considerable constraints on the opportunities to use

farm subsidies/incentives as a means of sustainable development of agriculture. Farmers

are caught in a cost-price squeeze, facing rising costs on the input side but meeting great

resistance to increased output prices. This increases the need for international

competitiveness on grounds of cost and quality as the mainstay of the domestic agriculture

fruits vegetables and root crops can be negatively impacted as a consequence of

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Tobago produces sugar that is sold to the European Union at preferential prices under the

ACP-EU Sugar Protocol. Despite the fact of EU prices being 2-3 times above the world

price, the sugar industry operated at a loss because of high production costs. In fact,

agriculture is likely to be faced with a situation of loss of resources (land and labour) to

other more profitable sectors and activities. The option for agriculture is to increase the

productivity of land and labour used in farming as an avenue of increasing farm

profitability. Increasing land and labour productivity also will address the constraints

currently posed by critical labour shortages and low returns to farming. Hence FAOs

commitment as a development partner in supporting efforts to treat with the issue of

competitiveness is actively sought.

The process under the World Trade Organisation (WTO) is leading to more liberalized

markets and increasing food safety standards, which presents many challenges and few

opportunities for the national farming sector, though more opportunities would be afforded

to agro-industries. Preferential access to the European market for commodities of sugar

and cocoa is under threat. Tariff escalation is of concern to the GORTT given the countrysvibrant ago-industrial sector. As well there is the challenge to be confronted in light of a

possible free trade area of the Americas with countries that include the USA and Brazil,

and consequent competition for its agro-industries and for industries that have good levels

of trade protection, such as poultry and citrus. In effect, the agriculture sector in Trinidad

and Tobago is very vulnerable to being negatively affected by trade changes in large

measure because the current structure of exports and production - two commodities, sugar

and cocoa, directed to the European Union, and commodities that enjoy protection from

regional or national tariff regimes. The current and potential changes in the global,

regional and bi lateral trade regimes all point to the need for increased international

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potential area of strength. The petroleum boom that impacts the sector negatively does provide

the government with revenues that can be used to address the institutional weaknesses affecting

the sector. In addition, there is a fairly extensive infrastructure to support activities in research,

extension, training, marketing and the provision of infrastructure. More opportune is the coming into

being is the CARICOM Single Market CSM that offers a distinct advantage in terms of a larger

market space in which goods, services, people and other resources have increased mobility.

CURRENT FAO TECHNICAL ASSISTANCE

57. FAOs Regular Programme budget is funded by its members through contributions set bythe FAO Conference. The portfolio of FAO national programmes in Trinidad and Tobago as at

March 2006 was around total value US$822,782. Of this amount US$772,782 was allotted forTechnical Cooperation Projects, namely:

TCP/TRI/2902 - Establishment of a Mandatory Health Certification Scheme for Citrus US$217,397TCP/TRI/3001 Agricultural Census and Statistics US$99,559TCP/TRI/3002 Technical Assistance in Support of the Regional Special Programme for FoodSecurity (RSPFS) at Country Level US$61,934

TCP/TRI/3003 Assistance to the Planning and design of a new market in Scarborough, Tobago US$101,564COOP/TRI/Y/075574 Water Management US$ 11,938COOP/TRI/Y/076929 Water Management Project US$ 75,896COOP/TRI/Y/078468 Water Management Project III US$ 204,494

The amount for the on-going TeleFood Fund projects was US$50,000 as at March 2006comprising five projects, namely:

TFD-01/TRI/001 Grow-box Vegetable Production for Toco Young Farmers US$10,000TFD-01/TRI/002 4 H Clubs of Trinidad and Tobagos Rabbit Production Project US$10,000TFD-03/TRI/001 Organic Gardening in Primary Schools in Tobago US$10,000TFD-03/TRI/002 Organic Gardening in Primary Schools in Tobago US$10,000TFD 03/TRI/003 Grow box Production in Schools in Victoria US$10 000

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2.0 THE PRIORITY PROGRAMME FRAMEWORK FOR FAO ASSISTANCE

The Priority Programme of Work focuses on three broad areas: Fostering an Enabling

Environment; Enhancing the Climate for Sustainable Action; and Strengthening the InstitutionalFramework.

2.1 Fostering an Enabling Environment

This initiative spans several of the challenges inhibiting the development of the sector and will

involve:

Physical Infrastructure

1.

Rehabilitation of Public Irrigation structures

2.

Development of new public Irrigation structures (inclusive of identification of

appropriate areas)

3. Establishment of a Packing House Facility in Tobago

4.

Upgrading and Modernisation of Existing public Marketing and Distribution Facilities

5.

Improvements to Research and Diagnostic Facilities

6.

Establishment of Bio-diversity and Bio-technology Centres

Institutional Support Services

1.

Development of an Irrigation Master Plan

2.

Development of a Physical Land Use Plan focusing on land to be kept in agriculture

3.

Technical Assistance in evaluating various commodities, forestry and agri-business

alternatives for unused sugar lands

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7.

Creation of a Contestable Fund for Agricultural Research and Technology

Development

8.

Design of Agendas for research and further development on issues pertinent to the

sector

9.

Review of Incentives for Irrigation

10.

Technical Assistance for Needs Analysis (followed by capacity building and

institutional strengthening measures designed to encourage and strengthen the

participation of farmer and industry groups in the processes of agricultural

development).

2.2

Enhancing the Climate for Sustainable Production and Management of ProductionSystems

Issues of sustainability and management of natural resources are of particular significance as food

prices continue to rise to sustain livelihoods in the face of demand exceeding supply (on the world

market), low domestic productivity, and the high energy costs associated with production and

distribution. Marginal lands and fragile ecosystems are subject to degradation as encroachment on

agricultural lands continues and competition for their use intensifies. The interventions here are

multifaceted. Technical assistance will (i) guide the implementation of a system of guaranteed

minimum prices for a set of agricultural commodities while satisfying WTO and other trade

agreements; (ii) review and make recommendations for changes to the system of compensation for

losses due to natural disasters; and (iii) identify systems required to strengthen linkages between

the farm and large buyers (super markets, packing houses), tourism, food service industries, agro-

processing and the School Nutrition Programme.

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levels (farmer organisations, public institutions, private sector) aimed at facilitating efficiencies in

the provision of services as well as interactions (integration, co-ordination and information sharing)

among stakeholder entities; (ii) Training, Technical Support and Advice towards reducing post-

harvest and marketing losses consistent with Good Agricultural Practices (GAPs); (iii) Technical

Assistance to assess needs with respect to public infrastructure and systems for marketing of farm

produce (inclusive of location, operation and management; (iv) Technical Assistance in the

Establishment of a Packing House Facility in Tobago; (v) Technical Assistance towards the

Implementation of a system of Guaranteed Minimum Prices for a set of Agricultural Commodities;

(vi) Technical Assistance to the Agricultural Planning Division in respect of Technical

Backstopping, Introduction of Methods of Operations more responsive to and involving greater

input from farmers and industry organisations; (vii) TA for a needs analysis, governance issues,work programmes for Research and Extension, Monitoring and Evaluation Methodologies, and

Linkages and Efficiencies among the prior areas; (viii) an holistic view of the needs for and supply

of agricultural training and education in the country; (ix) assistance to the GORTT in addressing

issues related to the creation of an agricultural health and food safety institution; (x) Assistance to

farmers to implement irrigation systems; and Faster approval mechanisms for winning and/or

accessing water.

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2

IDENTIFIED NATIONAL PRIORITY

AREAS FOR ASSISTANCE

KEY AREA OF SUPPORT TYPE OF PRIORITY ACTION4

Management of Production Systems)

Institutional Strengthening - Guide the implementation of a system of guaranteed minimum prices for a set of agriculturalcommodities while satisfying WTO and other trade agreements(Enhancing the Climate for Sustainable Production and Management of ProductionSystems)

- Capacity Building at various levels (farmer organisations, public institutions, private sector)aimed at facilitating efficiencies in the provision of services as well as interactions (integration,

co-ordination and information sharing) among stakeholder entities

- TA for a needs analysis, governance issues, work programmes for Research and Extension,Monitoring and Evaluation Methodologies, and Linkages and Efficiencies among the prior areas

- Technical Assistance towards the Implementation of a system of Guaranteed Minimum Pricesfor a set of Agricultural Commodities

AGRI BUSINESS DEVELOPMENT STRENGHTENING LINKAGES

- Identify systems required to strengthen linkages between the farm and large buyers (supermarkets, packing houses), tourism, food service industries, agro-processing and the SchoolNutrition Programme (Enhancing the Climate for Sustainable Production and Managementof Production Systems)

POST HARVEST TECHNOLOGY ENHANCEMENT- Training, Technical Support and Advice towards reducing post-harvest and marketing lossesconsistent with Good Agricultural Practices (GAPs)

TRADE FACILITATION/AGRIBUSINESS- Technical Assistance to assess needs with respect to public infrastructure and systems formarketing of farm produce (inclusive of location, operation and management)- Technical Assistance in the Establishment of a Packing House Facility in Tobago- assistance to the GORTT in addressing issues related to the creation of an agricultural healthand food safety institution

- PA + CB

- PA

- PA

- PA

- PB + PA

- CB

- PA

- PA- PA

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3

IDENTIFIED NATIONAL PRIORITY

AREAS FOR ASSISTANCE

KEY AREA OF SUPPORT TYPE OF PRIORITY ACTION4

Institutional Strengthening EXTENSION EDUCATION- an holistic view of the needs for and supply of agricultural training and education in the country - CB

1Six types of Priority Actions categorized: 1. SK = Applying and Sharing Knowledge; 2. PA= Policy Advice and Advocacy;

3. CB= Capacity Building; 4. RM= Resource Mobilization; 5PB= Partnership Building; 6. ER= Assistance in Emergency and Rehabilitation