Launching of BERU


		Ministry of Agriculture, Forestry and Fisheries



	Remarks by Minister of Agriculture Hon Senator Calixte George on the Launching of the Banana Emergency and Recovery Unit July 28, 2002 As the Minister with responsibility for Agriculture, Forestry and Fisheries, the banana industry has become a sector of great importance to me. The performance of the agricultural sector and the economy as a whole continue to be linked to the future of the banana industry. The industry provided employment, both directly and indirectly, for over 20,000 persons in the 1990’s. At the same time, it is noticed that there has been some changes beginning in 1997 when exports declined to 71, 397 tonnes valued at EC$85.9 million from 132,854 tonnes valued at EC$184.8 million in 1992. This precipitous decline in banana output impacted negatively particularly on farmers’ income and the country’s foreign exchange earnings as a whole. The introduction of the new EU banana import regime in July 1993 increased access to the United Kingdom of lower cost, high quality bananas from Latin American. This competitive pressure together with increased volumes of fruit, forced prices down and increased the demand for cheaper higher quality bananas. Meanwhile, returns to farmers continued to decline, with low prices, low productivity and, a lost of confidence. The decreased output has resulted in lower returns to farmers causing them to invest less in their banana operations. As a result, over the last five years, there has been a significant farmer migration out of the local banana industry. In order to stop further decline in the industry the Government of Saint Lucia has decided to implement a Banana Emergency Recovery Programme with the following objectives: To restore farmer confidence in the banana industry; To arrest the dramatic decline in production and quickly restore it to the level that would satisfy the requirements of the market place; To begin the process of targeting farms with the potential to provide high yields necessary for viability and to meet the product certification standards set by the market; To assist with the improvement of fruit quality and in particular, liaise with the industry and provide technical guidance on the subject of pest and disease control; To increase revenue at both the farmer and company levels, thereby ensuring financial viability of these entities; To provide information and guidance to farmers/producers for making strategic business decisions; To ensure the long-term survival and international competitiveness of the industry beyond 2008; To enhance the competencies of farmers in the production of bananas as required in the market place. To have the island produce bananas on a consistent basis throughout the year so that its quota could be met; thereby avoiding the risk of being labeled an unreliable supplier. The establishment of the Banana Emergency Recovery Unit (BERU) is to assist in realizing the objectives of the programme. The launching of the BERU marks the beginning of a new era in banana production initiatives aimed at greater productivity and efficiency at all levels in the sector. In the present era of globalization and market competition, banana production has to evolve into a system that emphasizes increasing productivity, efficiency and capture of market share. Only the low cost producers can survive in this environment where the price of the commodity is relatively low. The work of the BERU shall be directed towards obtaining some measure of increasing productivity and greater efficiency in the banana sector. The Unit, through a targeting exercise, will pay particular attention to production units located in agro-ecological zones that are naturally more suitable for the production of the crop, i.e. stable soils with good natural fertility; farms that are responsive to proper management, have low soil erosion hazard and, receive adequate rainfall. Where possible tillage of soil and replanting of fields will be promoted as a strategy for enhancing productivity and optimizing efficiency in use of inputs especially fertilizers and soil ameliorants. Great emphasis will be placed on training in order to cultivate a new attitude and a business approach to banana farming. Training will be comprehensive in scope and will target both farmers and technicians. Record keeping and the use of those records in decision making at the farmer level shall be an important thrust in the work of the BERU. Further, all efforts will be made to widen the farmers knowledge base in order to improve on his/her management capability. In effect farmers and technicians will be given a more profound understanding of the entire production to market spectrum of the industry. Under-pinning all of the above is the principle of projecting a unified voice with a common message to all players in the industry. Consequently, representatives of all banana companies, individual farm operations, Ministry of Agriculture technicians, and all industry stakeholders shall be invited to participate in the BERU’s programme of work. There will also be initiatives that will promote the technological modernization of the industry, all in an effort at improving productivity and efficiency. The systematic drainage of low lying lands will be encouraged as a means to improving the rooting environment for the plant. Support will be given for the introduction of irrigation technology on farms as a means of mitigating against production losses in the dry season, and also for enhancing efficiency in use of other inputs. In this instance, the use of fertigation techniques for improving on the efficiency of use of fertilizer will be promoted. The BERU’s programme will, in particular, also promote and support the use of tissue culture planting material as a means of reinvigorating the production base through the introduction new and higher yielding banana cultivars. There are also other benefits to be derived with this technology such as improved disease tolerance by plants and reduced pesticide use on farms. The timely application of the appropriate inputs is a necessary requirement for good production. However, this is not always obtained because many farmers do not have the resources to purchase those inputs. The BERU’s Programme will support the continuation of the Input Supply Credit Scheme operated through the Banana Industry Trust. This is to ensure that much needed inputs reaches the farms on a timely basis. The BERU shall provide the necessary technical guidance on the use of those inputs. The efforts and initiatives described above, if successfully implemented, will invariably result in an increased production of fruit. In anticipation of this increase in output there is, at present, on going dialogue with WIBDECO on the matter, with a view to placing the largest amount of fruit possible on the favourable end of the market and thus yielding a fair return to the farmer. Meanwhile, the issues of competitiveness o the industry will be promoted by the BERU through the attention to be paid to fruit quality and farm/farmer certification. Compliance to industry standards shall be vigorously pursued. It is well known that the industry is vulnerable to a few natural phenomena most important of which are leaf spot disease manifestation and destruction due to hurricanes and other tropical storm events. In the past, such phenomena have affected the industry resulting in financial hardships at the farmer level and economic problems for the country as a whole. Therefore, it is imperative that measures are in place to mitigate against losses, especially when substantial investments have been made in the sector. In this regard leaf spot control and crop insurance would need special attention given that they can be considered as an inescapable, essential and universal common services. Farmers are urged to consider the establishment of a compulsory Universal Common Services fund to pay for such services, thus ensuring equity in payments and reducing the sector’s vulnerability. Overall, the Banana Emergency Recovery Programme and the work of the BERU seeks to do in the banana industry the following: Increase productivity and efficiency Provide training for stakeholders Effect technological Improvements Get greater market penetration Provide access to credit. I am sure that with the implementation of the above initiatives and the co-operation of all stakeholders, the banana sector will experience a revitalization that would yield benefits for the farmer in particular and the country as a whole. This is our last chance to get it right. The changes in world trade dynamics are happening at great speed. The latest WTO ruling has given us a reprieve until December 2008. This is not far away. Therefore, I wish to urge that we all co-operate in this drive towards repositioning the banana industry as the engine of economic growth in Saint Lucia. Finally, I would like to wish the BERU every success in this endeavor and to assure it of the fullest support of the Government of Saint Lucia. Thank you, once again, for the opportunity to present this address at such a special occasion.