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July 27, 2007

Agricultural diversification critical to Rural Transformation

The facets detailed in the diversification process are by no means the embodiment of a recent construct. Genesis Chapter 1 verse 29 is instructive when it states, “I have given you every herb bearing seed, which is upon the face of all the earth, and every tree, in which is the fruit of a tree yielding seed; to you it shall be for meat”. Hence, the impulse which finds resonance in a culture which seeks haven in circumstances where the lack of diversity prevails, is not only impractical, but is also contrary to historical spiritual directives.{{more}}

Today, two extremely important concepts, critical to our national economic development, are captured within the unveiling of the successes to be achieved by a properly planned, structure and conceived agricultural diversification programme, and its resultant positive impacts on the processes detailed in rural transformation.

Diversification defined in the simplest form, reflects a change in business activities based on the flexible and differentiated responses to changing opportunities created by new production technology and market signals. What does this mean for our farmers? At the farm level, a sound diversification plan will represent a change in the underlying characteristics of the farm system such as farm practices and products to become aligned with the current social and economic contexts.

Diversification will invigorate sustainable growth independent of development parameters. For example, adjusting crops to microenvironments of soil and land, spreading the demand for labour, machinery, and other inputs, improving cash flows, and reducing production and marketing can all spur sustainable growth in agriculture.

Further, diversified production promotes dietary diversity or new food processing opportunities. Herein resides the bedrock upon which our cottage industries must be built and begin to thrive. All these attributes of diversification induce sustainable productivity growth in agriculture for the benefit of the nation as a whole. Therefore, three important questions to be addressed if we are to be successful in our attempts at agricultural diversification are as follows: How are small producers connected to the changing markets? How can small producers obtain information about market demand? How quickly can they adapt to these demands? If the diversification process is to be seamless it must at all times be facilitated by an extremely high level of expertise which in our context would only be properly provided by the effective functioning of an Agricultural Diversification Unit.

The vision of the Hon. Dr. Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines is clear and revitalizing when he noted in his work: “The Modern, Competitive Post-Colonial Economy: The Case of St. Vincent and the Grenadines”.

“A series of challenges attend the transition from a colonial economy to a modern competitive post-colonial one which is at once national and regional. These include the transformation of the rural economy in an era of sharply declining trade preferences in the traditional markets for bananas as the dominant agricultural export crop. Among other things, a commercially-based diversification of the agricultural sector around, not away from, bananas has to be effected. The government’s efforts at a managed revival of the arrowroot industry in some geographical areas; its thrust towards a greater local value-added focus, for example in the cassava factory, the root-crop vacuum packaging plant, and the coconut-water bottling plant; and its emphasis on agricultural diversification through the Agricultural Diversification Unit to facilitate production in poultry, root crops, fruits and vegetables, chickens, pigs, goats and cattle.”

Although the emphasis here is on rural transformation, one cannot escape the spilloffs which will directly facilitate urban transformation. This is clear since positive changes in the rural areas would impact positively on the urban demographics. At this point diversification is not at the instance of choosing an alternative for the mere sake of so doing. Instead, it is a natural and clear response to the changing international economic environment.

Within the context of shifting trends towards more service driven sectors at the heart of which is the tourism industry and the capacity for increased workings in informatics and technology, we must at all cost ensure that indeed live in the issues for our contemplation are aspects of food security, employment of citizens with an interest in agrarian production, and the creation of a diversified economy.

The world’s agricultural markets of both the developed and developing countries are in a new paradigm of diversification for international competitiveness. We must not allow ourselves to be left behind. Apart from income generation, diversification will in most instances increase employment for the vulnerable groups in rural communities. This must become an urgent priority.

In recent times I have had the opportunity to work closely with the Fair Trade Organizations in the Windward Islands and the Windward Islands Farmers’ Associations, and it must be noted that efforts to strategically diversify the economies of the sub-region will play a critical role in the sustainable development of these groupings. Our efforts as a people have been forthcoming, but our efforts must be intensive. Policy innovations should stimulate market mechanisms to develop small farmers’ organizations for the purpose of overcoming the economies of scale problems we face. The transition is timely.

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