Promoting Diaspora Investments in Agriculture and Agro-Parks

Introductory Remarks Ladies and gentlemen, The Ministry of Agriculture and Fisheries continues to vigorously pursue its mandate to modernize, optimize and make the agricultural sector a sustainable pillar of the Jamaican economy. It is our belief, in this context, that our Diaspora Community can play a powerful and integral role in investing in and promoting this sector. It is, therefore, my intention in this brief presentation to present our scorecard on the recommendations emanating from the last Diaspora Conference held in 2013, by highlighting our strategic programmes and the opportunities that exist for investment. 1. Achievements of the Agro Park Programme The Agro-Park programme is our flagship programme and part of the Government’s overall strategy within the Economic Reform Programme monitored by the International Monetary Fund (IMF). It is, however, important to note that as a central strategy for restructuring the agricultural sector, the agro-park concept did, in fact, predate the Extended Fund Facility with the IMF and will also survive those arrangements. As you would have seen from the short feature, to date, nine Agro Parks have been successfully implemented. These are:

1. Amity Hall - St. Catherine

2. Hill Run - St. Catherine 3. Ebony Park - Clarendon

4. Spring Plain - Clarendon 5. Yallahs - St. Thomas

6. Plantain Garden River – St. Thomas 7. New Forest/Duff House - Manchester, St. Elizabeth

8. Meylersfield - Westmoreland 9. Sweet River (multi-species)Abattoir - Westmoreland The current Agro Parks have a total of 396 participating farmers/investors with approximately 754 hectares under production. The main crops include sorghum and hay for local animal feed substitution; onion, ginger, vegetables, fruits and tubers. To date, a total of 18,880 bushels of sorghum, 7,200 bales of hay, 210,833 kg of onions, 34,500 kg of fish and 1,625,863 kg of vegetables, tubers and fruits have been harvested. Along with the 396 farmers, the Agro Parks employ 1,032 labourers. Future Development of Agro Parks The GoJ is proposing the development and implementation of additional Agro Parks. Those being considered are as follows:

1. Hounslow/ Spring Ground - St. Elizabeth

2. Unity/Nonsuch - St. Mary 3. Seven Rivers - St. James

4. Sunderland - St James 5. Shettlewood - Hanover The implementation of these Agro Parks would see an additional 1,533 hectares of underutilised lands being brought into production. Investment Opportunities in which the Diaspora can Participate Opportunities exist in the current Agro Parks to do further value chain development with respect to post-harvest management and agro-processing. There is need for additional facilities and intermediary agro-processing facilities thus maintaining an unbroken cold chain management. Service provision specifically related to machinery and equipment as well as input supplies are other opportunities in which investors from the Diaspora can participate. Investment opportunities exist in the production of the following crop mix:

 Ginger

 Irish potato

 Onion

 Pineapple

 Yam

 Turmeric

 Sweet potato

 Melon Investment opportunities exist in the production of the following tree crop mix:

 Breadfruit

 Guava

 Ackee

 Nutmeg

 Soursop  Cocoa

 Coconut

 Pimento Investment opportunities exist in the production of the following livestock mix With the establishment of abattoirs through Public Private Partnership and the clustering of farmers, the import substitution/replacement of the some meat products will target the following livestock:-

 Cattle (beef)

 Small Ruminants (goat, sheep)

 Pigs

 Fish Incentives Offered To All Investors

 Duty-free importation of equipment and machinery, as well as revised tariff rates ranging from 0% to no higher than 20% (with some exceptions).

 Employment Tax Credit (ETC) and thus an effective corporate income tax rate as low as 17.5%

 Capital Allowances that cover, among other things, a broadened definition of ‘industrial buildings’. The Omnibus Incentives regime provides for an initial 20% allowance on capital expenditure related to construction, alteration and renovation of industrial buildings.

 Productive Input Relief (PIR) that provides for duty free importation of certain agricultural-related equipment, machinery and raw materials that would have normally attracted customs duties and the Additional Stamp Duty (ASD) when these are being purchased for productive use. Criteria for all prospective investors including the Diaspora All prospective investors in the Agro Park Programme must meet the following criteria:

 Business plan

 Proof of funds to implement proposed project if self-financed

 Proof of ability to secure loan funding from accredited financial institution of choice. The investor must also provide:

o Collateral or security for the loan

o Recent valuation of the security (no older than 6 months)

o Proof of equity contribution (up to 30% of project cost)  Credit reference from financial institution

 Evidence of current and future market arrangements

 Willingness to enter into marketing contracts

 Pro-forma invoices for equipment and material required for the project

 Willingness to sign a lease agreement and abide by respective clauses therein. All prospective investors must submit a lease application form along with the required documentation as outlined. The duration of lease varies depending on the type of project. Expectations of all investors including the Diaspora Investors in the Agro Parks are expected to:

 Provide capital;

 Provide marketing;

 Lease land;

 Provide and install on-farm irrigation systems;

 Provide expertise in crop production /animal husbandry;

 Provide entrepreneurship;

 Provide Branding;

 Transfer technology;

 Contribute expertise to specific areas. 2. Divesting of SCJ holdings into other activities The Sugar Company of Jamaica Holdings Limited has been leasing lands to both large and small farmers over the past 3-4 years and, to date, has leased approximately 7,420 hectares of land to small farmers and approximately 87,000 hectares to the larger farmers. The land to the larger farmers has been used for the following:

- Sugar cane production - Livestock farming - Aquaculture - Agro Park - Quarrying Requirements and application procedures for investors:

 The investor would write a letter to the property manager or CEO requesting the land of preference and what it is proposed to be used for;

 He/she will then prepare a business plan;  The plan will then be evaluated by a technical working committee;

 Based on its feasibility a decision will be made if SCJ is to enter in an agreement with the investor;

 SCJ surveyors will then map the area indicated;

 A lease agreement will then be drafted setting out the terms and conditions. 3. Obtaining a lease agreement under the Agro Park and Project Grow Initiatives There are plans to reclaim some 8,093 hectares (20,000) acres of Government lands into Agro Parks in the long term. Of the current 2,711 hectares targetted, 1,821 ha are under the direct management of Agro Invest Corporation (AIC) the investment arm of the Ministry. Development of Sustainable Agricultural programmes Several crop areas, as follows, are being targeted to increase import substitution and aid sustainability of the sector and require constant investment. The National Irish Potato Programme The Irish Potato Programme is geared toward achieving 100% of table Irish potato by 2015. This initiative requires increased production and improved productivity, along with unified efforts of all key players in the agriculture sector including farmers, buyers, extension personnel and researchers. Achievements Since the initiation of the programme in 2009, the level of self-sufficiency in fresh Irish potato has moved steadily from 32 % in 2008 to approximately 87 % in 2013, the highest level of import substitution since the programme started. The Onion Production Programme Onion is of economic importance in Jamaica, the condiment is required in the fresh market as well as the agro-industry. Approximately 10 million kg of onion is consumed in Jamaica annually. The Onion Production Programme is geared towards facilitating the sustainable development of the onion sub-sector, thereby reducing permanent dependency on imports, and achieving self-sufficiency in onion production. The programme is managed by a Technical Working Group which comprises representatives from various departments of the Ministry of Agriculture & Fisheries (MOAF). The group ensures that participating farmers are trained in the various aspects of Onion Production.

Site Selection, Land Preparation, Pest and Disease Control, Crop Establishment, Plant Nutrition, Irrigation, Post-Harvest Practices, Marketing etc. are some of the areas on which focus is placed. The programme which is funded through a combination of grants, loans and personnel investments is also supported by buyers who enter into marketing contracts with the farmers. Achievements Various strategies have been employed not only to increase production but productivity. There has been great enthusiasm on the part of those involved in the programme and the possibilities which it offers. Farmers in the Yallahs area, in particular, have increased their production by over 100 percent (100%); moving from 10 ha. in 2013/2014 to 21.3 ha. For the 2014/2015 period, a total of 150 hectares of onion was targeted. Of this amount a total of 65.3 hectares has been established to date to include some 165 farmers. A youth and women component is proposed for the 2015/2016 period. With a total of 69.2 hectares established in 2014 yielding some 691,300 kg of onions, it can be said that the estimated dollar value to the economy calculated at an average farm gate price of J$ 50 per lb. would be J$34,565,000. Goat Programmes Since 2013, the Rural Agricultural Development Authority (RADA) has had a number of programmes which support the development of small ruminants in Jamaica and so address the approximately 80% rate of importation for goat and sheep meat. Protected Agriculture In recent times, Jamaica has been addressing the challenges of Climate Change with climate smart agriculture initiatives including the introduction of greenhouse technology, water harvesting and storage. During the severe drought of 2014 an additional 138,000 square feet of greenhouse capacity was established to produce varying combinations of tomatoes, sweet peppers and Romaine Lettuce during the drought periods. The potential exists for the production of an additional 375,000 lbs. of tomatoes and 188,000 lbs. of coloured sweet peppers and 336,000 lbs. of Romaine Lettuce on a year round basis, utilizing greenhouse technology. Praedial Larceny Prevention In closing, I wish to draw attention to the fact that despite the ongoing challenge that praedial larceny and farm theft pose to the agriculture sector, there has been successful implementation of several strategies to address this issue. In March 2015 a Praedial Larceny Prevention Unit was established at the Ministry of Agriculture and Fisheries. The Unit is headed by a senior police officer, supported by a Praedial Larceny Prevention Officer, also from the Jamaica Constabulary Force and a Praedial Larceny Prevention Coordinator who has responsibility for policy direction and administration. Since the inauguration of the Unit, there has been tremendous success. As part of the overall strategic approach to praedial larceny prevention, legislation is also being promulgated to enforce stiffer fines and in November 2014, the National Animal Identification and Traceability System (NAITS) for cattle was introduced. The NAITS will focus on the traceability of live animals. However, traceability has to be extended from the place of slaughter to the fork. In this regard, the Ministry commissioned a study which recommended the rationalization of the network of abattoirs. The intent is to have four (4) abattoirs which are equipped to international standards to provide meat processing services as well as an outlet for distribution of meats. These, in a nutshell, are some of the priority programmes and projects being pursued by the Ministry of Agriculture and Fisheries to make the Jamaican Agricultural Sector Sustainable. The Diaspora Community can play an important part in helping us to achieve these goals. Thank you all very much.