There continues to be the recognition that agro-industrial development, even at the small and cottage industry levels, is critically important to the expansion and diversification of the agricultural sector in the Caribbean community. In Dominica, agro-industrial development could make a significant contribution to the transformation of agriculture and, by extension, rural and national development. Vibrant agro-industrial activities can expand the markets for primary agricultural products, add value by vertically integrating primary production and food processing systems and minimize post harvest losses. In addition such activities would reduce seasonality of consumption of a range processed foods, increase the viability, profitability and sustainability of production systems through their impact on increasing farm incomes, rural employment and foreign exchange earnings, while reducing marketing risks. However, with few exceptions, the agro-industrial sector remains rudimentary, underdeveloped and largely without significant institutional, technical and financial support. Thus being mindful of the pitfalls and obstacles to agro-industrial development, it may thus be instructive to re-examine some of the problems and constraints which have continued to plague this sector.
Some of the constraints which seem to bedevil the development of the agro-industrial sector in Dominica and the wider CARICOM region include:
These problems have been enunciated and debated ad infinitum in many local and regional fora and a range of practical recommendations advanced. However in most, if not all, of the states concerned implementation of these recommendations appear to be non-existent. The very absence of implementation strategies may well be the result of the lack of well thought-out, planned strategies for agro-industrial development. It may be helpful to examine some of these individual constraints.
It is highly questionable as to whether the present state of the agro-processing sector in Dominica is due to a lack of suitable indigenous raw material and availability of such raw materials in desired quantities. In addition to bananas, plantains, sugar cane and coconuts, the Caribbean countries are endowed with a wide variety of exotic primary commodities, much of which have been used in the agro-processing sector with excellent results. Most of the commonly known fruits have been used in jam and jelly manufacture and the production of fruit nectars and drinks. Other commonly used materials include herbs, spices and root crops. It has however been advanced that very few of these commodities are available in the required quantities throughout the year, and thus a viable agro-processing sector cannot be sustained. Based on his experience with the agro-processing sector in Grenada, the author firmly believes that this view is not correct. One clearly needs to differentiate between seasonality of growth and availability of raw materials for processing. Hot peppers and seamoss, for example, are available for processing throughout the year simply because we have developed semi-processed forms in which they can be stored. Similar attention has not been given to the range of exotic tropical fruits with tremendous year round processing potential. This constraint needs to be addressed by conducting fundamental and applied research aimed at developing know-how for better, innovative processes for the utilization of indigenous resources.
Dominica has also given considerable attention to crop diversification. However this programme is geared once again for the fresh fruit export market, and little, if any, attention has been paid to the production of selected commodities for processing. The thinking continues to be that the surplus from the fresh fruit market will feed into the agro-processing sector. The reality is that surpluses generated from the fresh fruit market varieties may not be best suited to agro-processing or the prices asked by the farming community for such may be prohibitive. One possible solution to the problem of adequate raw material supplies throughout the year is the development of state farms. Here selected commodities which would be channeled into the agro-processing sector could be propagated and grown on a phased basis to meet the demands of the processing sector. Another possible solution is to develop a mechanism that would guarantee adequate raw material supplies throughout the year from the farming community. This approach will be expanded on later when we examine a vertically integrated agricultural/agro-processing sector.
National policy then must be set within a framework for the structural transformation of primary production and the establishment of linkages for the development of a vibrant and profitable agro-industrial sector. Adequate attention must be given to the promotion and organization of domestic production to supply raw material for the development of this sector. The lack of a clear policy framework regarding the production and utilization of these commodities is perhaps the most critical constraint that needs to be resolved.
The process of making jams, jellies, fruit nectars and other beverages is well established in the Caribbean. However the technology utilized in the small scale processing sector has remained relatively static and traditional. Thus in many respects other crucial constraints to the development of the agro-processing sector are the lack of proper utilization of research and technology, a lack of trained personnel, inadequate technical and managerial and marketing support. Both the state and the private agro-processing sector have not invested in the development of the most effective research, nor have they readily embraced and adopted the most appropriate and current technology. These problems are even more serious in the case of small farmers since they generally do not have the financial resources or credit facilities at their disposal to invest in new processes, human resource, management or technological innovation.
In the OECS Countries, the food processing sub-sector has been for some years now been served in a limited way by Produce Chemist Laboratories. In other CARICOM Countries there are better organized and staffed facilities serving the agro-processing sector. These include the Food Science and Technology Unit, Department of Chemical Engineering, U.W.I., and CARIRI in Trinidad, IAST in Guyana, and the Jamaican Scientific Research Council and the Food Technology Unit of the Ministry of Agriculture in Jamaica. What seems evident however is that the agro-processing sector, even with limited technical assistance, has generally been unable to absorb and fully utilize the technological packages and services provided by these research and development agencies. We can cite the example of the development of "instant yam" by George Sammy and Gidden in the 1970’s, and the development of "composite flour" in 1973, and pose the question "are they on the market in any of these islands today?" If not, then why not? Here what is evident is that we, in the region including Dominica, have access to research and development and the capacity to develop excellent ideas, but we are either unable or unwilling to capitalize on these ideas.
In addition to trained professional staff in the Produce Chemist Laboratories, technical assistance in agro-processing is also readily available from regional institutions such as U.W.I. and CARIRI. These linkages however need to be strengthened via outreach programmes. This is absolutely necessary since one always hears that there is need for the services of food technologists to assist with the training of local persons from the public and private sector food processing institutions in new innovations, techniques and uses of indigenous products. One can go further and suggest that both public and private sector food processing institutions in the region remain largely unaware of the existence of the Food Science and Technology Unit at the U.W.I. This is incomprehensible since the Unit has produced over sixty (60) Food Science and Technology graduates who work throughout the region. Thus the need for training and technical assistance in the basic principles of processing, hygiene and sanitation, quality assurance and standards, product development, food microbiology, labeling and packaging can all be addressed once the political and financial will exist.
In summary, a science-based approach is mandated for setting standards in the processing of food products. This will also have implications for national, regional and international trade as the industry and other institutions, such as a National Food and Drugs Administration and a Bureau of Standards develop. Furthermore, food science and technology is the foundation discipline for research and development in the food industry. Thus professional development in this area must be seen as the cornerstone in any agro-industrial/food processing development programme. This reality must be seriously addressed in agricultural and agro-industrial development policies at the national level.
Another serious constraint to the development of a viable agro-industrial sector is the scarcity of financing and the low level of entrepeneurship and management training of the large majority of persons engaged in agro-processing and cottage enterprises. Generally most of these operators have had little or no formal training in the technical aspects of the operations and less in small business organization, marketing and management. Furthermore in contrast to the large agro-industrial enterprises, the small processors have had little consistent support from the government and have not shared in any coherent programmes or projects specifically designed to support their development. On the contrary, in the most critical area of marketing, domestic products have had to compete with a wide range of imported products in the domestic market. Agro-processors are aware that their products need to be competitive in all aspects with imported products. In many cases, they have studied their competitors’ products, sourced relevant technologies and upgraded packaging in order to compete on price and quality. Such individual successes can be attributed to a determination to succeed in spite of an environment seemingly insensitive to the need to support the growth and development of the agro-processing sector.
The lack of consumer education and market research has also contributed to the slow pace of development of the industry. There has always been the tendency to treat local consumers as a captive market with little or no investment into consumer education and market promotion of locally processed products. Similarly, very little resources are spent on investigations and promotions on the export markets, regional or extra-regional. As a result little attention is given to the importance of such factors as standards, quality control, packaging and product presentation.
Throughout the region, there is a general recognition of the importance and potential role of the small farmers and agro-processors in the development of agriculture and agro-industry. What however has not been adequately recognized is the need to vertically integrate these sectors, so that the primary producer has a direct financial interest in the viability of the processing sector. Regrettably however, while financing for such a venture might be available through banks and other financial institutions, it may not always be accessible on account of the collateral requirements. One possible solution to this constraint may involve Government intervention by considering guarantees in order to encourage banks to offer lower interest rates to farmers involved in such agro-processing ventures. A second Government option is that of an equity partner or direct shareholder in financially viable agro-processing ventures. The fundamental interest here is that of a facilitator with Government divesting its shares over time.
Another attractive alternative for farmers and agro-processors is the possibility of sourcing financing from their credit unions that offer better rates than banks, or the credit unions themselves become partners in such a venture. The credit union could then provide financial and other critical management services as deemed necessary for the viability and success of the enterprise. From this type of arrangement, it would become impossible to either marginalize or ignore the contribution of the agricultural and agro-industrial sectors when formulating national policies and programmes. This arrangement would insure that both sectors would be fully incorporated in the mainstream of economic planning and development.
There are tremendous opportunities to the successful establishment of a vibrant and potentially profitable agro-processing sector. This will however require stronger, more meaningful linkages between the farming community, the agro-processing sector, Government and financial institutions. Of course private sector companies would also play a critical role in the marketing of products from the agro-processing sector.
Success of the agro/food-processing industry must be based on:
The development of a national, well coordinated, Government-led policy would impose extremely exacting conditions of organization, production, training, technology and management which, in the long-run, would assure a viable agro-processing sector with acceptable product standards not only for export but equally for the domestic and regional markets.
Finally, it would be absolutely necessary to sensitize the private sector to the merits of fully participating in the development of agro-processing sector, not only through possible direct investment but also in the marketing of the processed commodity.
In conclusion, I remain firmly convinced that the potential for a viable, profitable and sustainable agro-industrial sector in Dominica is tremendous. There are success stories in other Caribbean islands without even the raw material base that Dominica possesses. These successes should be closely studied and relevant methods and approaches adopted.
Buckmire, G. 1989. An Overview of Small Scale Agro-Processing and Trade in the Caribbean. Constraints and Potential for Development. Presented to the Regional Workshop on Problems and Development Strategies for small Agro-Processing and Marketing. GUYSUCO Management Training Centre, East Coast Demerara, Guyana.
Caribbean Community Secretariat. 1998. Documentation for the Regional Consultation on Agro-Industrial Development. September 28-29. Port-of-Spain, Trinidad and Tobago.
Caribbean Community Secretariat. 1998. Recommendations and Conclusions of the Regional Consultation on Agro-Industrial Development. September 28-29. Port-of-Spain, Trinidad and Tobago.
Dixon, J. A. 1998. Technical Support Services for Agro-Industrial Development-Jamaica. Paper presented at the Regional Consultation on Agro-Industrial Development. September 28-29. Port-of-Spain, Trinidad and Tobago.
Jones, G. 1971. The Role of Science and Technology in Developing Countries. Oxford University Press, London, England.
URL http://www.uwichill.edu.bb/bnccde/dominica/conference/papers/Lambert.html
© Ian Lambert, 2001. HTML prepared using 1st Page 2000, revised February 5th, 2001.