Senate passes motion to rescue banana industry
THE Senate last Friday passed a motion which had been tabled by the Opposition’s spokesman on agriculture, Senator Anthony Johnson, seeking to reverse the decline in the banana industry since 1996.
Senator Johnson’s motion originally called for the Senate to request from the minister of agriculture and lands the following:
. the reasons for the long-term decline in the industry;
. actions taken by the government to address the problems; and
. the projection for the production of bananas over the next five years.
There was general agreement between both sides of the Senate on the decline, but Government members felt that the blame should not be directed at the ministry.
The motion was eventually amended, at the request of Government member, Senator Norman Grant, who heads the Jamaica Agricultural Society (JAS) to request the minister to give reasons for the decline and to immediately engage all stakeholders in the industry in discussion to formulate a 10-year strategic development programme to restore the industry.
Placing his resolution before the Senate, Senator Johnson said there has been a secular decline in the productions and earnings from the industry since 1996. He noted that production had shrunk from 250,000 tonnes in 1996 to 50,000 tons in 2006.
“It is the Senate’s duty to face the fact that the industry has been in crisis for some time and action must be taken now to either reverse it or let it go,” Johnson told colleague senators.
Using figures to support his arguments, the senator said between 1998 and 2002 the average annual export volume was 47,846 tonnes, while for the period 2002 to 2006 the average export volume was 30,100 tonnes reflecting an annual decline of 17,000 tonnes or 37 per cent.
In terms of revenue, for the period 1998 to 2002, the average export value was US$24 million per annum while for the period 2002 to 2006, the average export value was US$15 million – a decline of 37 per cent.
“We are seeing a secular decline in the production and earnings from the industry…I wanted to bring those factors to bear for you to understand that it is a matter of significant proportion because if we continue to decline by 30 per cent every five years, eventually we will not be in the business at all and this is something of tremendous importance to Jamaica,” Johnson argued.
Noting that the parishes of Hanover, St James, St Elizabeth, Manchester, Clarendon, St Mary, Portland, St Thomas and Trelawny all had several boxing plants post Independence, Johnson bemoaned the fact that “today the industry is only apparent in Portland and St Mary and to some extent St Thomas, with one single registered grower in St Catherine”.
Furthermore, he noted that after Independence there were some 40,000 growers compared to less than 300 registered exporters of bananas now.
“That figure is so significant that you wonder how come it doesn’t seem to have hit the national consciousness,” the senator noted.
According to Johnson, “we owe it to ourselves to ensure that bananas continue to be available particularly to low-income groups…because when the banana goes it is a lot more going than just a few bunches of fruit”.
He noted further that St Mary being designated the poorest parish was as a result of the decline of the industry in that area, which had been the richest and one of the biggest producers in the 1950s. In the meantime, Johnson said the potential of the spin-off chip industry was not being fully exploited.
Against this background, Johnson said Agriculture Minister Roger Clarke must advise the nation on the reasons for the long-term decline in the industry, the actions taken by the Government to address the problems and provide a projection for the production of bananas over the next five years.
Foreign Affairs and Foreign Trade Minister Anthony Hylton, in the first of a two-part response to Johnson’s concerns, noted that while he was not in total opposition to the motion, it would have to be amended “in substantial ways” to secure the support of (the Government).
“The truth is, the premise of the motion is faulty and therefore the conclusion must be faulty and the resolution must be faulty on both counts. When we are through we will convince the mover of the motion that he has got it wrong and an amendment is in order,” Hylton said.
According to the minister, the “banana industry remains a relevant industry for Jamaica and the Government should be commended for its proactive response to the many challenges that have faced the industry” as partnerships between government, existing stakeholders and the European Union have created the conditions which now support a renewed and restructured industry.
As to the difficulties facing the industry, Hylton said they were caused by a number of circumstances including the fact that “over the last 25 years, the industry has been buffeted by a number of hurricanes”.
He said the imposition of a quota and licence regime to gain access to the European Union markets had also impacted on the industry.
“The emergence of a single market in Europe created a further restraining condition on the export regime to Europe and the United Kingdom market, and it also provided quality challenges as the market became far more competitive. If the market conditions have changed adversely it would logically suggest that the production side of the equation would be affected,” Hylton stated.
Furthermore, he said the positions argued for by African Caribbean Pacific countries were not carried in EU negotiations, placing increased pressure on the industry.
According to Hylton, it was not a lack of action and vision on the part of the government that was causing the production decline but rather the “tremendous uncertainty generated by each round of the appeals and challenges to the system which has created a level of instability and uncertainty as to where the regime will be and the conditions under which producers and exporters will be operating in the United Kingdom market”.