Published: Wednesday July 2, 2008
Trinidad's plan for the development of mega-farms, to boost food domestic production, has been endorsed as a model with potential to attract new capital to agriculture, with one financier describing the project as 'intriguing'.
"Will it attract investments? More than likely because that's the type of thing that can become bankable," said Patrick Williams, Chief Executive Officer of the Caribbean Investment Fund.
"That's what bankers like. That's what investors like. They like to see something structured," he told Wednesday Business.
With an estimated 210,000 acres of land available for agricultural production, Trinidad plans to grow enough crops to meet at least 25 per cent of national demand, in six major food groups, and develop 10 or more new value-added agri-products that are internationally competitive, by 2012.
The Patrick Manning-led government is negotiating joint ventures partnerships, with the private sector, for the development of big farms on nine sites spread over some 3,000 acres.
Trinidad has committed to footing the bill for administrative costs and infrastructure development.
Attract investors
James Moss-Solomon, chairman of CARICOM's task force on agriculture, said the concept of building large-scale commercial farms, using advanced technology and agronomic techniques, would be attractive to investors who are in search of bankable projects.
The selling point, he believes, is the potential economies of scale.
"It definitely will attract the kind of funding, plus, for the international donor agencies, it's a very visible statement of what they are doing in the Caribbean," said Moss-Solomon.
Williams said investors "like to see that there is a plan and they like to see that the plan is well thought out and has management behind it, in this case it is the Government of Trinidad".
Trinidad's offer was both "intriguing", and "very attractive to someone like me," he told Wednesday Business.
The twin-island republic's mega-farm plan falls within its 2020 outlook, which will see Trinidad pumping millions into agriculture to build out a sustainable and competitive sector that is technologically and market driven, Agriculture Minister, Senator Arnold Piggott, said at the agribusiness investment conference in Georgetown, Guyana in early June.
Increase in budget
Already, the Manning government has increased its budget for agriculture to TT$900 million in 2007, up TT$500 million in 2006 to propel the programme.
Agriculture's contribution to the Trinidad and Tobago economy has been declining steadily, reaching 0.6 per cent in 2006, according to data posted on the Trinidad central bank's website.
But Piggott says the idea is to redefine food production from a minor to a major enterprise, with emphasis on agro-processing, food manufacturing, food services and agro-tourism/entertainment.
Moss-Solomon said the mega-farm model could be replicated across CARICOM countries
"Trinidad has put forward a very good strategic plan. It's a workable plan in perhaps half of the countries across CARICOM," said the regional agriculture spokesman.
Each country should also have in place, Moss Solomon said, "a clearly understood and explained strategic plan" that suits their individual circumstances.
Source:
John Myers
Jamaica Gleaner
http://www.jamaica-gleaner.com/gleaner/20080702/business/business5.html
john.myers@gleanerjm.com
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