Agriculture in Guyana
Encyclopedia
Agriculture was once the chief economic activity in Guyana
Guyana
Guyana , officially the Co-operative Republic of Guyana, previously the colony of British Guiana, is a sovereign state on the northern coast of South America that is culturally part of the Anglophone Caribbean. Guyana was a former colony of the Dutch and of the British...

, despite the coastal plain which comprised only about 5 percent of the country's land area being suitable for cultivation of crops. Much of this fertile area lay more than one meter below the high-tide level of the sea and had to be protected by a system of dikes and dams, making agricultural expansion expensive and difficult. In the 1980s, there were reports that the 200-year-old system of dikes in Guyana was in a serious state of disrepair. Guyana's remaining land area is divided into a white sand
Sand
Sand is a naturally occurring granular material composed of finely divided rock and mineral particles.The composition of sand is highly variable, depending on the local rock sources and conditions, but the most common constituent of sand in inland continental settings and non-tropical coastal...

 belt, which is forested, and interior highlands consisting of mountains, plateaus, and savanna
Savanna
A savanna, or savannah, is a grassland ecosystem characterized by the trees being sufficiently small or widely spaced so that the canopy does not close. The open canopy allows sufficient light to reach the ground to support an unbroken herbaceous layer consisting primarily of C4 grasses.Some...

. 2% of the land is arable
Arable land
In geography and agriculture, arable land is land that can be used for growing crops. It includes all land under temporary crops , temporary meadows for mowing or pasture, land under market and kitchen gardens and land temporarily fallow...

 land.

Today sugar and rice are the most important primary agricultural products, as they had been since the nineteenth century. Sugar was produced primarily for export whereas most rice was consumed domestically. Today in Guyana sugar production generates the most revenue in the primary industry, at around 15% of the total annual GNP
GNP
Gross National Product is the market value of all products and services produced in one year by labor and property supplied by the residents of a country...

. Other important crops include wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...

, banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....

s, coconut
Coconut
The coconut palm, Cocos nucifera, is a member of the family Arecaceae . It is the only accepted species in the genus Cocos. The term coconut can refer to the entire coconut palm, the seed, or the fruit, which is not a botanical nut. The spelling cocoanut is an old-fashioned form of the word...

s, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...

, cocoa, citrus fruits, pepper
Black pepper
Black pepper is a flowering vine in the family Piperaceae, cultivated for its fruit, which is usually dried and used as a spice and seasoning. The fruit, known as a peppercorn when dried, is approximately in diameter, dark red when fully mature, and, like all drupes, contains a single seed...

 and pumpkin
Pumpkin
A pumpkin is a gourd-like squash of the genus Cucurbita and the family Cucurbitaceae . It commonly refers to cultivars of any one of the species Cucurbita pepo, Cucurbita mixta, Cucurbita maxima, and Cucurbita moschata, and is native to North America...

 and livestock commodies from the country's various cattle ranches including beef
Beef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...

, pork
Pork
Pork is the culinary name for meat from the domestic pig , which is eaten in many countries. It is one of the most commonly consumed meats worldwide, with evidence of pig husbandry dating back to 5000 BC....

, poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...

, dairy
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...

 products and fish
Fish
Fish are a paraphyletic group of organisms that consist of all gill-bearing aquatic vertebrate animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish, as well as various extinct related groups...

, notably shrimp
Shrimp
Shrimp are swimming, decapod crustaceans classified in the infraorder Caridea, found widely around the world in both fresh and salt water. Adult shrimp are filter feeding benthic animals living close to the bottom. They can live in schools and can swim rapidly backwards. Shrimp are an important...

. In some areas peanuts
Peanuts
Peanuts is a syndicated daily and Sunday American comic strip written and illustrated by Charles M. Schulz, which ran from October 2, 1950, to February 13, 2000, continuing in reruns afterward...

 are also an important crop. Many of these products including rice are of extreme importance to national food security within the country. Small amounts of vegetables, vegetable oil and tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...

 are also produced. During the late 1980s, some farmers succeeded in diversifying into specialty products such as heart-of-palm and asparagus
Asparagus
Asparagus officinalis is a spring vegetable, a flowering perennialplant species in the genus Asparagus. It was once classified in the lily family, like its Allium cousins, onions and garlic, but the Liliaceae have been split and the onion-like plants are now in the family Amaryllidaceae and...

 for export to Europe.

Sugar

The extent of Guyana's economic decline in the 1980s was clearly reflected in the performance of the sugar sector. Production levels were halved, from 324,000 tons in 1978 to 168,000 tons in 1988.

A number of factors contributed to the shrinking harvests. The first factor was nationalization. The rapid nationalization of the sugar industry in the mid-1970s led to severe management difficulties and an emigration of talent. The Guyana Sugar Corporation
Guyana Sugar Corporation
The Guyana Sugar Corporation, best known by its acronym GuySuCo, is a Guyanese sugar company owned by the government. It is the country's largest cultivator and producer of sugar, a commodity which is responsible for approximately 20% of Guyana's annual revenue and 40% of all agricultural production...

 (Guysuco), which took over the sugar plantations, lacked needed experience. Perhaps more important, Guysuco did not have access to the reserves of foreign capital required to maintain sugar plantations and processing mills during economically difficult periods. When production fell, Guysuco became increasingly dependent on state support to pay the salaries of its 20,000 workers. Second, the industry was hard-hit by labor unrest directed at the government of Guyana. A four-week strike in early 1988 and a seven-week strike in 1989 contributed to the low harvests. Third, plant diseases and adverse weather plagued sugar crops. After disease wiped out much of the sugarcane crop in the early 1980s, farmers switched to a disease-resistant but less productive variety. Extreme weather in the form of both droughts and floods, especially in 1988, also led to smaller harvests.

Guyana exported about 85 percent of its annual sugar output, making sugar the largest source of foreign exchange. But the prospects for sugar exports grew less favorable during the 1980s. Rising production costs after nationalization, along with falling world sugar prices since the late 1970s, placed Guyana in an increasingly uncompetitive position. A 1989 Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....

 report estimated production costs in Guyana at almost US$400 per ton, roughly the same as world sugar prices at that time. By early 1991, world sugar prices had declined sharply to under US$200 per ton. Prices were expected to continue decreasing as China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

, and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 boosted sugar supplies to record high levels.

Production of Raw Sugar: 1990–2001


Source:Guyana Sugar Corporation>
Year Production (M/T) Exported (M/T)
1990  132 132
1991  162.5 150
1992  246.9 229.5
1993  246.5 236.8
1994  256.7 239.4
1995  253.8 225.4
1996  280.1 255.5
1997  276.4 247.4
1998  253.9 236.8
1999  321.4 270.9
2000  273.3 -
2001  284.5 252.3


In the face of such keen international competition, Guyana grew increasingly dependent on its access to the subsidized markets of Europe and the United States. The bulk of sugar exports (about 160,000 tons per year in the late 1980s) went to the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...

 (EEC) under the Lomé Convention, a special quota
Quota
-Commerce:* Import quota, a type of trade restriction* Production quota* Sales quota, a minimum sales goal for a set time span* Tariff-rate quota, a type of trade restriction-Electoral systems:* Droop quota* Election threshold* Hagenbach-Bischoff quota...

 arrangement. The benefits of the quota were unmistakable: in 1987, for example, the EEC price of sugar was about US$460 per ton, whereas the world price was only US$154 per ton. (The gap between the two prices was not so dramatic in other years, but it was significant.) Guyana was allowed to sell a much smaller amount of sugar (about 18,000 tons per year in 1989, down from 102,000 tons in 1974) in the United States market at prices comparable to those in the EEC under another quota arrangement, the Caribbean Basin Initiative
Caribbean Basin Initiative
The Caribbean Basin Initiative was a unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" . The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central American and Caribbean countries....

. Maintaining preferential access to the European market was a priority in Guyana; in 1988 and 1989, production levels were too low to satisfy the EEC quota, so Guyana imported sugar at low prices and reexported it to the lucrative European market. Even so, Guyana fell 35,000 tons short of filling the quota in 1989 and 13,000 tons short in 1990.

The government of Guyana restructured the sugar industry in the mid-1980s to restore its profitability. The area dedicated to sugar production was reduced from 50,000 hectares to under 40,000 hectares, and two of ten sugarcane-processing mills were closed. Guysuco also diversified into production of dairy products, livestock, citrus
Citrus
Citrus is a common term and genus of flowering plants in the rue family, Rutaceae. Citrus is believed to have originated in the part of Southeast Asia bordered by Northeastern India, Myanmar and the Yunnan province of China...

, and other items. Profitability improved, but production levels and export earnings remained well below target. In mid-1990, the government took an important step toward long-term reform of the sugar industry – and a symbolically important step toward opening the economy – when Guysuco signed a management contract with the British firms Booker and Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...

. The Booker company owned most sugar plantations in Guyana until the industry was nationalized in 1976. A study by the two companies reportedly estimated that US$20 million would be needed to rehabilitate Guyana's sugar industry.

Rice

Rice production in Guyana reached a high of over 180,000 tons in 1984 but declined to a low of 130,000 tons in 1988. The fluctuating production levels were the result of disease and inconsistent weather. Droughts and heavy rains had an adverse effect on rice crops because the irrigation and drainage systems in rice-growing areas were poorly maintained. The area under rice cultivation fell from 100,000 hectares in 1964 to 36,000 hectares in 1988, according to the Guyana Rice Producers' Association.

Most rice farms in Guyana were privately owned; the government operated the irrigation
Irrigation
Irrigation may be defined as the science of artificial application of water to the land or soil. It is used to assist in the growing of agricultural crops, maintenance of landscapes, and revegetation of disturbed soils in dry areas and during periods of inadequate rainfall...

 systems and rice-processing mills. This division of the industry resulted in several difficulties. According to the United States Embassy, the government neglected irrigation and drainage canals because private farmers refused to pay taxes for their maintenance. Meanwhile, the government-run mills were reportedly slow in paying farmers for their crops. In addition, the government-controlled distribution system for tractor
Tractor
A tractor is a vehicle specifically designed to deliver a high tractive effort at slow speeds, for the purposes of hauling a trailer or machinery used in agriculture or construction...

s, fuel, spare parts, and fertilizer
Fertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...

 was highly inefficient, according to some reports. In 1990 the government began privatizing the rice industry by putting several rice mills up for sale.

The bulk of Guyana's rice production was consumed domestically. Even so, exports took on increasing importance during the 1980s as a source of foreign exchange; there were even reports of rice being smuggled out of the country. Guyana shared a quota
Quota
-Commerce:* Import quota, a type of trade restriction* Production quota* Sales quota, a minimum sales goal for a set time span* Tariff-rate quota, a type of trade restriction-Electoral systems:* Droop quota* Election threshold* Hagenbach-Bischoff quota...

 for rice exports to the EEC
EEC
EEC is an abbreviation that usually refers to the European Economic Community, the forerunner to the European Union.It may also refer to;* The East Erie Commercial Railroad, a shortline in Pennsylvania...

 with neighboring Suriname
Suriname
Suriname , officially the Republic of Suriname , is a country in northern South America. It borders French Guiana to the east, Guyana to the west, Brazil to the south, and on the north by the Atlantic Ocean. Suriname was a former colony of the British and of the Dutch, and was previously known as...

 but was unable to fill the quota during the late 1980s. In 1988 the government set a 1991 production goal of 240,000 tons and an export goal of 100,000 tons. In the first quarter of 1990, however, exports fell to a record low of 16,000 tons, for an annual rate of less than 70,000 tons. Half of these exports came directly from private farmers, the other half from the Guyana Rice Milling and Marketing.

Peanuts

Peanut production plays an important role in some areas of the country. In the remote Rupununi
Rupununi
Rupununi is a river and region in southern Guyana, South America, originating in the Kanuku Mountains. The Rupununi River runs from near the Brazilian border into the Essequibo River. The river during the flood season actually shares a watershed with the Amazon...

 region of Guyana, peanut farming dominates the local economy and farmers depend upon the crop as their main source of income. Recent agricultural developments have enhanced production from 1,100 pounds per acre to over 2,500 in four years. As a result of increasing yields Guyanese farmers have not only benefited from local markets in Guyana but have increasingly seen the export of Guyanese peanuts in the Caribbean market..

In Guyana, peanut exports have been notably affected by food safety concerns. In the Rupununi region in particular, the local peanut crop needs to be tested for aflatoxins, a group of carcinogenic toxins that occur in the soil. Guyanese farmers are obliged to comply with the Guyanese Food and Drug Department (FDD) and cannot sell peanuts unless they are certified as free of all aflatoxins.

Forestry

Timber was the least exploited but most abundant natural resource in Guyana in the early 1990s. Forests, many of which reportedly had commercial potential, covered three-quarters of the country's land. Over 1,000 different species of trees were known to grow in the country.

The two main difficulties in timber production were the limited access to the forests and electrical power problems at the major lumber mills. The government and interested groups overseas were addressing both difficulties. The government launched the Upper Demerara Forestry Project in the early 1980s to improve hardwood production on a 220,000-hectare site. In 1985 the International Development Association
International Development Association
The International Development Association , is the part of the World Bank that helps the world’s poorest countries. It complements the World Bank's other lending arm — the International Bank for Reconstruction and Development — which serves middle-income countries with capital investment and...

, part of the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

, provided a US$9 million loan for expansion of the forestry industry. In 1990 the government sold the state-owned logging company and announced plans to allow significant South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

n and Malaysian investment in the timber industry. Showing concern for the longterm condition of its forests, the government also planned to set aside 360,000 hectares of rain forest for supervised development and international research into sustainable management.

Fisheries

Fishery products took on increasing importance during the 1980s as potential earners of foreign exchange. By the end of the decade, shrimp
Shrimp
Shrimp are swimming, decapod crustaceans classified in the infraorder Caridea, found widely around the world in both fresh and salt water. Adult shrimp are filter feeding benthic animals living close to the bottom. They can live in schools and can swim rapidly backwards. Shrimp are an important...

 had become the third leading earner of foreign exchange after sugar and bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...

. Fisheries production in Guyana totaled about 36,000 tons in 1989, down from 45,000 tons in the mid-1980s. The most valuable portion of the catch was the 3,800 tons of shrimp. Many fishermen reportedly sold their shrimp catch at sea to avoid taxes and earn foreign currency. Thus, shrimp exports may have been much higher than recorded. Shrimp exports were expected to continue increasing as Guyana developed shrimp farms along its coast; Guysuco began operating one such farm in the late 1980s. The bulk of the fisheries catch was sold at the dockside and consumed domestically. A US$5 million fish-processing plant was under construction on the Demerara River
Demerara River
The Demerara River is a river in eastern Guyana that rises in the central rainforests of the country and flows to the north for 346 kilometres until it reaches the Atlantic Ocean. Georgetown, Guyana's largest seaport and capital, is situated on the east bank of the river's mouth. The Demerara's...

 in 1990, raising the possibility of frozen fish exports. The government sold Guyana Fisheries Limited, which employed about 5,000 people, to foreign investors in 1990.

Livestock

Livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...

 production was not a major activity in Guyana because of a shortage of adequate pasture
Pasture
Pasture is land used for grazing. Pasture lands in the narrow sense are enclosed tracts of farmland, grazed by domesticated livestock, such as horses, cattle, sheep or swine. The vegetation of tended pasture, forage, consists mainly of grasses, with an interspersion of legumes and other forbs...

 land and the lack of adequate transportation. In 1987 there were an estimated 210,000 cattle, 185,000 pigs, 120,000 sheep, and 15 million chicken
Chicken
The chicken is a domesticated fowl, a subspecies of the Red Junglefowl. As one of the most common and widespread domestic animals, and with a population of more than 24 billion in 2003, there are more chickens in the world than any other species of bird...

s in the country. The country imported Cuban Holstein-Zebu cattle in the mid-1980s in an effort to make Guyana self-sufficient in milk
Milk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...

 production; by 1987 annual production had reached 32 million liters, or only half the target quantity.

Agricultural institutions

There are numerous important institutions and organizations which are involved in agriculture in Guyana:
  • Agriculture In-Service Training & Communication Centre (AITCC)
  • Faculty of Agriculture, University of Guyana
  • Guyana Rice Development Board (GRDB)
  • Guyana School of Agriculture (GSA)
  • GUYSUCO
    Guyana Sugar Corporation
    The Guyana Sugar Corporation, best known by its acronym GuySuCo, is a Guyanese sugar company owned by the government. It is the country's largest cultivator and producer of sugar, a commodity which is responsible for approximately 20% of Guyana's annual revenue and 40% of all agricultural production...

  • Hydrometeorological Service
  • Inter-American Institute for Cooperation on Agriculture (IICA)
  • Lands and Surveys Commission
  • Ministry of Agriculture (MOA)
  • National Agricultural Research Institute (NARI)
  • Fisheries, Crops & Livestock (MFCL)
  • Dairy Development Programme (NDDP)
  • Drainage and Irrigation Board (NDIB)
  • New Guyana Marketing Corporation (NGMC)

External links

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