what is jamaica trying to improve food stystem

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Jamaica^[84]

i Introduction

1.ane Structure of the agronomics sector and contribution to the economy

The total agronomical land area of Jamaica was 407 434 ha representing 187 791 holdings at the fourth dimension of the last agronomical census in 1996. Eighty percentage of the land is hilly or mountainous. The island is crossed past a range of mountains reaching 2 256 m at the Blueish Mountain Peak (the highest point) in the e and descending towards the west with a serial of spurs and forested gullies running north and south. Jamaica has a tropical climate. Daytime temperatures hover effectually 32.two°C, with nights nearly 9°C libation. The vegetation is mainly tropical.

Jamaica's agrarian landscape is typified by inequities in land size and quality between small farms and plantations. Large plantations and pastures dominate the fertile coastal plains while modest farmers are confined mainly to the rugged interior. Modest farmers - those with farms of five acres (2.02 ha) and less - constitute some 78 per centum of the farming customs and produce mainly root crops, pulses and vegetables. Big-scale farms account for less than 1 percent of the total number but occupy near 39 percentage of subcontract lands producing mainly sugar, bananas, coffee, pimento and, to a lesser extent, citrus and cocoa for the export market.

Between 1991 and 2000, agronomics'due south contribution to Gross domestic product ranged between 9.2 percent in 1995 and 7.1 percent in 2000. When agro-processed appurtenances are added, the contribution to GDP is well-nigh xvi percentage. Agricultural production has a multiplier effect on the economy equally it links with other activities such equally transportation, marketing, tourism and local commerce. In Jamaica, agriculture continues to exist integrally related to rural development. Its contribution to containing criminal offence and maintaining social stability in both rural and urban areas continues to be significant as it helps to reduce problems of rural/urban migration.

Agronomics employs about 22 pct of the labour force (roughly 250 000 persons), supports 150 000 small farm families and contributes to the food security of the nation. In view of the problems of widespread poverty, high unemployment and the importance of agriculture as a major employer of labour, agriculture volition continue to play a vital office in the land's overall development.

1.2 Recent sector functioning

Agronomical production in the flow 1981-1990 with 1981 = 100 fluctuated betwixt a low of 90 points and a high of 110. This was followed past a steady increase in full general farm production over the period 1990-1996 during which the overall increase was virtually 52 percent. However, later a significant decrease in 1997, product has continued to decline until 2000. In 2001, full production increased by 5.five pct over the previous year. Flood rains experienced in May and June 2002 are expected to have a negative bear on on product for 2002.

A number of factors contributed to the buoyancy in production over the 1990-1996 menstruum. This was notably a period in which the agronomical sector was recovering from the destruction of Hurricane Gilbert. The Jamaican dollar was devalued considerably during this period. Increases were too propelled past the imperative to amend productivity in the confront of increased competition in the global economy.

Since 1996, the reject in production has been attributable to adverse weather weather condition, high involvement rates on subcontract loans and the consequent contraction of investment in the sector as well every bit the overall decline in the economy. The touch on of adverse atmospheric condition conditions during a detail agenda year continues to take an affect on successive periods of production equally the tendency is for farmers to plant less in the ensuing years, perchance equally a effect of reduced funds available for replanting. Too, during the 1996-2001 period, the surge in imports of agricultural products started to have an bear on on domestic product every bit some sections of the local market were replaced with more competitively priced and packaged imported products.

Exports of traditional commodities, mainly sugar and bananas, continue to dominate the sector in terms of strange commutation earnings, contributing about 65 per centum of full export earnings in the year 2000. Preservation of preferential trade agreements for these products is disquisitional to Jamaica'south brusk- to medium-term WTO strategy.

Non-traditional crops, e.one thousand. tubers, fruits, vegetables and spices, experienced significant increases since 1990, owing to the positive effects of devaluation and ambitious marketing strategies adopted for papayas, yams, plantains, pumpkin and sweetness potatoes. Irish potatoes and onions, however, were displaced to a large extent by imports as they were non competitive. Despite the increased contest on the domestic marketplace, a number of non-traditional products were able to hold their own in the market. Nearly lxxx percent of purchases of food items past hotels in Jamaica in 1997 consisted of domestically produced crops. This is an important linkage that needs to be strengthened.

1.three Policy changes and programmes over the terminal two decades

During the 1980s and 1990s, Jamaica implemented extensive policy changes under Globe Bank and International monetary fund-led structural adjustment programmes, which defined the parameters of trade liberalization in Jamaica. This course is at present beingness institutionalized by the WTO. The specific policy changes included:

• elimination of all quantitative import restrictions and the use of reference prices;

• adjustment of nominal protection to make protection specific (no tariff to exceed 100 percentage afterward reductions);

• reduction of tariff rates over a 5-year catamenia - for some products iii-7 years;

• elimination of all transfers to the Jamaica Article Trading Visitor;

• elimination of general food subsidies;

• removal of credit subsidies and adoption of market-related credit terms;

• deregulation of several Commodity Boards, e.m. Cocoa Industry Board, Coffee Industry Board, Saccharide Marketing Board and Citrus Industry Board;

• divestment of land and publicly owned enterprises;

• in the sugar industry, sale of authorities-owned plantations and mills to private investors.

In add-on, there were other liberalization policies adopted at the macroeconomic level that besides had an impact on the sector, for case, the abolition of foreign substitution controls.

The full general cess of the touch of these changes on the agronomical sector is that the sector still needs to make farther important adjustments to become more competitive. The changes were accompanied by both costs and benefits for the economy and various interest groups. Some fence that the process of removal of tariffs and quotas, etc. should have taken place over a longer menstruum of time ("they were as well much and likewise fast"). A number of pocket-sized producers of crops such as onions and Irish gaelic potatoes were ruined as a result of the superior quality and more than competitive prices of the imported products.

On the positive side, liberalization assisted the Article Boards to adopt a more business-oriented approach more often than not, and more private individuals were able to participate in improving their management and general operation. Equally a consequence of increased competition on the domestic marketplace, some small farmers became more conscious of standards mostly as well as the need to improve the presentation of their products particularly in the supermarkets.

Consumers benefited from some of these developments. In detail, imports of milk powder became more affordable for lower-income groups. The government's policy to maintain a low- or single-digit charge per unit of aggrandizement in the economy was also helped by lower prices of imported milk and other products. All the same, the domestic milk manufacture has been severely decimated equally a event of opening the domestic market to unfair competition from heavily subsidized milk imports.

Importers and retailers more often than not were besides large winners as their businesses thrived while some small farmers lost market share and, in some instances, were forced out of business.

The Government in its Agricultural Policy Framework has reaffirmed its commitment to achieving the post-obit goals:

• enhanced product and productivity in the various subsectors including sugar, banana, coffee, cocoa and citrus;

• increasing the levels of exports of both traditional and non-traditional commodities;

• provision of support through research and development and extension services with emphasis on improving crop care services to farmers;

• increasing value-added product through measures to improve agroprocessing;

• delivering business organisation development training to farmers;

• increasing the capacity of the Ministry of Agriculture for planning and policy assay, and for negotiating partnership, financing and trade agreements in different forums.

These objectives guide and direct the trade policies that the country will seek to articulate, promote and defend in the WTO and other negotiating forums.

1.4 Participation in regional and multilateral integration efforts

Jamaica is committed to an open up and liberalized trading arrangement and has participated actively in several rounds of multilateral merchandise negotiation since becoming a Member of GATT in 1963. Jamaica participates in several merchandise arrangements including CARICOM, Caribbean Bowl Initiative, Caribcan (Canada'south preferential merchandise agreement for the Republic Caribbean), the CARICOM/Venezuela and the CARICOM/Republic of colombia agreements on Trade and Economic Cooperation, and the CARICOM/Dominican Democracy Free Merchandise Agreement. Jamaica is as well engaged in the FTAA process and in the ACP/Eu trade negotiations that commenced in September 2002.

Trade liberalization in Jamaica has been driven, firstly, by the World Banking concern-led structural adjustment programmes in the 1980s and 1990s and, later on, past the WTO agreements in 1994. These twin processes are having a stiff affect on the agricultural sector in Jamaica, which is faced with a reduction of agro-exports and the risk of being displaced in the domestic market past increased food imports.

Negotiations on agriculture are in progress concurrently in the WTO, the FTAA and the ACP/EU processes. The challenge presented by three parallel and meaning negotiations is quite daunting for a small developing state like Jamaica. Still, they also present an opportunity to codify a wide and consequent trade and economic policy for the sector as it interfaces with both traditional and new trading partners at the hemispheric and multilateral levels.

Traditionally, the country has depended on not-reciprocal merchandise agreements such every bit the ACP/EU Lomé Conventions and the Caribbean area Basin Initiative to provide preferential arrangements for its agricultural exports. As the global and hemispheric liberalization processes gather momentum, these traditional arrangements are likely to exist transformed into reciprocal free merchandise agreements provided for in Article XXIV of GATT. This procedure could consequence in the reduction of preferential margins in traditional export markets equally well as further opening of the domestic marketplace to imports from industrialized countries such as the Eu, U.s.a. and Canada. This will pose a formidable challenge for a small land with a relatively weak and uncompetitive agricultural sector. At the same time, Jamaica must go on to position itself to do good from the expected increases in trade and investment flows that are likely to result from these new forms of trade arrangements.

ii Feel with implementing the WTO agreements

2.1 Market access

Tariffs

During the UR, Jamaica opted to bind all its agricultural tariffs at a ceiling of 100 percent. Other duties and charges were jump at 15 percent except for a list of 56 products for which rates were bound at 80 percent, while 3 carbohydrate products were leap at 200 per centum.

The applied tariff in Jamaica, which is the CARICOM CET ranges betwixt 0 and 40 per centum. The simple average applied MFN tariff on agricultural goods (HS Capacity i-24) was about 20.2 percent in 1997.

Import licensing

At that place is an automatic licensing procedure for milk products.

Tariff rate quotas

Jamaica does not use tariff rate quotas.

Legislation regarding trade remedies

Jamaica is non able to utilize the special agricultural safeguard mechanism provided by the AoA.

The ceiling bindings on agronomical products are the simply expanse of policy flexibility available to Jamaica, and information technology has been used rarely since the inception of the WTO. It is besides the merely effective instrument that can exist used to defend domestic manufacture confronting dumped or subsidized imports. The classic merchandise remedy instruments of the WTO are non convenient for pocket-sized developing countries, merely Jamaica has fabricated the arrangements to use them if it becomes necessary.

Jamaica enacted the Safeguard Act in 2001. Nether this Deed, the Authorities is able to pursue safeguard action to protect domestic industries against import surges which threaten or crusade injury to those industries. This Human action complies with the WTO general safeguard understanding. Prior to this, the Government updated the national anti-dumping legislation to arrive consistent with the WTO. This legislation provides for the establishment of an Anti-dumping and Subsidies Commission and the imposition of anti-dumping and countervailing duties against dumped or subsidized appurtenances.

Customs valuation

Preparations to implement the WTO customs valuation agreement in Jamaica have been in progress for some fourth dimension. The new customs valuation organization is expected to commence operation before long. This organisation will provide for the valuation of goods on the basis of the transaction or invoice value rather than the current organization, which uses a reference price or a derived price which tends to be higher than the invoice value. It is expected that the state volition incur revenue losses on a number of agricultural commodities, and therefore, the Authorities has agreed to increase the duty on chicken parts, except necks and backs, and a range of vegetables to compensate for the predictable revenue shortfall. These increases fall within Jamaica's bound tariffs in the WTO.

2.2 Domestic support

A number of agronomical back up services are provided by the Regime in order to heighten competitiveness and develop the agricultural sector generally. These services include research and extension, the development of technology, human resource and marketing, plant quarantine/produce inspection and veterinary services.

The Authorities also provides income taxation exemption for upwards to ten years for farmers with approved farmer status. Farm production inputs are exempted from general consumption tax payments, and farmers are eligible for a 20 percent duty concession on the importation of farm vehicles.

These policies fall mainly within the WTO Light-green Box measures that are exempt from reduction commitments. Government expenditure on roads, bridges and water would also fall under Green Box support measures. The Government's use of Greenish Box measures up to at present has been sparing, compared with its use by the industrialized countries, and this difference is likely to continue considering of the express resources available to Jamaica. However, increased expenditure in this area will become necessary to assist the aligning process in the sector if it is to increase production and meliorate its efficiency and competitiveness in the future.

Jamaica did non indicate in its WTO schedule of concessions any trade-distorting domestic support measures. This implies that all measures fall within the Light-green Box or at least do not exceed the de minimis requirement of 10 pct for developing countries for production-related AMS back up and 10 percentage for nonproduct- related AMS support. The flexibility to use trade distorting domestic support measures, which are currently used by many other countries, should be bachelor to Jamaica and non constrained by the current de minimis limit. The emphasis here is on measures to back up and aid the development process.

2.3 Export subsidies

Jamaica did not notify the WTO of the utilize of export subsidies in its schedule of commitments. This implies a binding of export subsidies at nothing.

2.iv Marrakesh Ministerial Decision

Jamaica is a net food-importing developing country and supports the Marrakesh Decision on NFIDCs as well as efforts to operationalize that decision. Information technology might exist necessary for both Government Agencies and NGOs to access any kind of financial help that might exist provided for NFIDCs to offset increases in the price of basic food imports. In Jamaica, bones food imports are traded not by Government Agencies simply by the private sector and NGOs. Jamaica would likewise take difficulties if this kind of funding were linked to IMF-type conditionalities.

ii.5 Country trading enterprises

To the extent that country trading enterprises and other individual companies distort markets, they demand to be regulated past the international trading organisation. The issue of market dominance and distortions displayed by some multinationals could be addressed under rules governing competition policies. Jamaica does not operate whatever land trading enterprises of significance, except for the trade in raw sugar and a portion of its small pimento production. These operations result in petty or no market distortions. In whatsoever event, minor developing countries might need to maintain state trading enterprises to attain some level of efficiency in their trading operations and to compete with much larger global individual and state companies.

2.6 Sanitary and phytosanitary measures

Jamaica has a Notification Signal for matters related to SPS measures, as is required by the WTO. In the area of SPS measures, Jamaica has encountered difficulties with the following:

• Yams exported to the United states of america - the apply of Imazalil every bit a chemic for the post-harvest treatment of yams was not adequate.

• Chicken exports to the United States were prohibited on the grounds that Jamaica has non submitted show to the United states to demonstrate that Newcastle disease has non occurred in the state for the past fifty years.

• Jamaica is unable to export dairy products to the European union until it has satisfied EU requirements for countries exporting these products to the EU.

With respect to imports, Jamaica has stepped up the enforcement of national nutrient safe laws in relation to meat products and poultry.

Jamaica recognizes the importance of the WTO SPS agreement for both the export and import of agricultural and fish products. SPS measures are important for the protection of man, animal, or found life or health, just countries can likewise employ these unfairly as barriers to merchandise. Developing countries such equally Jamaica are sometimes at a disadvantage in the utilize and awarding of these measures as their scientific and institutional capabilities are considerably less developed than those that exist in the industrialized countries.

Like many developing countries, Jamaica's SPS standards, laws and institutions need to be modernized and strengthened in order to comply with the WTO SPS Understanding. The Government of Jamaica, through the Ministry of Agriculture, has already instituted several steps which are part of a wider strategy to better export regulation and SPS systems. These initiatives include: legislation, such every bit the Aquaculture, Inland and Marine Products and By-Products Inspection, Licensing and Consign Human action, 1999 and the Meat, Meat Products and Meat By-Products (Inspection and Export) Act 1998; the institution of consign "one stop" pre-clearance centres at Norman Manley International and Sangster International Airports, respectively; the establishment of a residue testing laboratory at the Ministry of Agriculture; besides as participation in international agencies such as the Codex Alimentarius, the International Office for Epizootics, and the International Convention for Phytosanitary Protection. Authorities is besides seeking to strengthen the state's systems through the evolution of an umbrella system - the Jamaica Animal And Found Health Inspection Arrangement - to administer the land's SPS Programme.

Jamaica will need technical assistance from the international community to continue the implementation of measures aimed at upgrading generally its SPS systems. Assistance is required in the areas of upgrading legislation; development of man resources; provision of equipment for laboratories; and institutional reorganization and strengthening.

It is recognized that, in future, countries might reduce their use of the traditional protectionist measures such as tariffs and diverse non-tariff measures, and that more than emphasis could be placed on the use of SPS measures every bit a barrier to trade. This area of agricultural trade policy therefore needs to exist monitored closely by Member countries in the various standard-setting bodies and in WTO to ensure that those countries that are more avant-garde in their scientific and technological capabilities practise non use these assets as a basis for frustrating the efforts of less developed countries to expand their trade.

2.7 Dispute settlement system

As a upshot of Jamaica's experience as a 3rd party to the Eu-U.s. et al. dispute regarding bananas, Jamaica was able to observe closely how the WTO Dispute Settlement Agreement operated. Every bit a effect, Jamaica has identified sure weaknesses in the system from the perspective of a developing state.

Jamaica agrees that the dispute settlement machinery is essential to the effective functioning of the multilateral trading organization. The specific weaknesses identified in the system concern:

• Legal representation: Legal assistance provided by the WTO Secretariat is inadequate and needs to be strengthened.

• Participation of private lawyers: If the WTO secretariat is unable to evangelize the full legal support required by developing countries, these Member States should be allowed to include private lawyers in their delegations both at the panel and appellate stages.

• Participation of third parties: As a pocket-size trading state, Jamaica could be involved in several cases every bit a third political party and is therefore concerned that these countries be allowed to participate effectively in the panel and appellate stages of dispute settlement.

• At that place should be consideration at all stages of the dispute process involving developing countries, whether as complainant, respondent or 3rd party, of the social and economic impact on developing countries of the decisions that are taken by the WTO. We at present refer to them as non-trade concerns, and these are expected to attain prominence in the current WTO negotiations on agriculture.

Information technology is evident that, apart from the provision of legal assistance by the WTO secretariat, developing countries volition need to develop expertise in international trade police to ensure that their interests can be adequately defended by their ain lawyers. Therefore, technical assistance from the WTO should be committed to the provision of such training for those developing countries that crave this course of assistance.

three Review of food and agricultural merchandise

3.1 Macroeconomic context

The performance of the agronomical sector in Jamaica has been influenced over the past decade by a number of macroeconomic variables as well as the extensive merchandise liberalization programmes that have been implemented in the sector and in the wider economic system. The principal macroeconomic factors influencing specifically the production and trade surround include foreign commutation liberalization, interest rate movements, inflation developments and the boilerplate loan charge per unit. Tabular array i gives an indication of how these factors operated over the menstruation.

Between 1990 and 2000, the strange exchange rate for the Jamaican dollar to the The states dollar moved from 7.18 to 43.32, an increase of near 600 percent. While this motion increased Jamaican dollar earnings for exports of agricultural products, the cost of inputs such as fertilizer and raw materials for agroprocessing also increased and in turn pushed up production costs.

Table i. Move in key factors influencing trade

Yr	Average almanac $J/US$ exchange rate	Boilerplate deposit interest charge per unit	Inflation rate	Average loan charge per unit
1990	7.eighteen	18.8	29.viii	34.5
1991	12.85	16.46	80.2	35.78
1991	23.01	xx.37	forty.24	53.49
1993	25.68	18.fourteen	30.ten	51.33
1994	33.35	18.96	26.8	62.34
1995	35.56	17.68	25.vi	fifty.26
1996	37.02	17.97	15.8	57.99
1997	35.58	xiii.91	9.2	45.32
1998	36.68	12.fourscore	7.9	41.74
1999	39.33	11.8	6.viii	36.nine
2000	43.32	9.8	6.1	32.9

Source: Banking concern of Jamaica, Statistical Digest.

The average loan charge per unit is a significant factor influencing investment in the sector. During the period under consideration, the charge per unit moved from 34.five percent to a peak of 62.34 per centum in 1994 and was gradually reduced to 32.9 percent in 2000. This is yet considered a loftier rate for many farmers and acts every bit a disincentive to investment. The inflation charge per unit was reduced from 40.2 percent in 1991 to more manageable levels in 1999 and 2000 of 6.8 percent and half dozen.ane percent, respectively. While the lower level of inflation augured well for the growth of the economy, the consistently high involvement rate has contributed to a general wrinkle in the economy. In an try to alleviate the situation regarding high loan rates, the Regime established a special interest rate regime for loans administered past evolution financial institutions such every bit the Ex-Im Banking concern, National Development Bank and the Agronomical Credit Banking company. This allowed exporters and specific subsectors of the productive sector to access loans at between 11 and 13 percentage.

Another meaning cistron which inhibits growth and development of the wider economy is the toll of servicing the country'south debt. In the budget for the fiscal twelvemonth 2002/2003, debt servicing will stand for about 64 percent of Regime's full expenditure.

three.two Agricultural and food merchandise balance

From 1990 to 1998, Jamaica'south agricultural exports grew past about 28 per centum, while imports increased by about 134 percent during the same period. During the most recent 1996-2000 period, Jamaica has run a deficit on its agricultural trade (Tabular array two).

Table 2. Jamaica'south rest of trade on food products (U.s.$ million)

	1996	1997	1998	1999	2000
Imports of nutrient products
Consumer goods	212	258	280	274	265
Raw materials	180	219	225	202	202
Total	392	477	505	476	467
Exports of traditional and non-traditional agricultural products	265	284	266	236	241
Balance on agricultural trade	-127	-193	-239	-240	-226

Source: Planning Found of Jamaica.

iii.3 Exports

Exports of traditional crops for the catamenia under review continued to account consistently for between 65 percent and 70 percent of total export earnings, and therefore, these crops continue to be important to the sector and the economy in general. Developments in the production and marketing arrangements for these products bear on significantly on the country'due south trade policies and programmes.

Exports of non-traditional crops over the period 1995-2000 have been relatively stable, although these are expected to expand in hereafter as the country pursues further diversification policies and programmes. There has been meaning progress since the earlier period 1991-1995 with an increase in their share from 15 per centum of the total to 32 percent (Tabular array three). Even so, information technology could crave a long flow too every bit investment and Authorities support for this group to replace or compensate for the earnings of the traditional crops.

Table iii. Value of selected agronomical exports, 1991-2000

	1991-95	1996-2000
Sugar	88 536.6	98 188.viii
Banana	42 459.4	34 962.four
Citrus (fresh fruit)	iii 489.4	4 309.8
Pimento	4 254.0	iv 441.0
Cocoa	2 441.half dozen	one 523.6
Java	eighteen 192.2	27 960.8
Subtotal	159 373.2	171 143.0
Non-traditional	27 945.0	79 175.two
Total	187 318.2	250 318.2
Memo detail: Share of non-traditional exports in the total (%)	xiv.nine	31.8

Source: Ministry of Agriculture, Jamaica.

Saccharide

The traditional commodities, namely sugar, bananas, coffee, cocoa and citrus, continue to make the about significant contribution to production, employment, development of agro-industry, exports and, to a lesser extent, domestic food consumption in Jamaica. The sugar industry is the third largest earner of foreign commutation in the Jamaican economy after bauxite and tourism. Sugar cane remains Jamaica's unmarried most important agronomical crop. The industry is the 2nd largest single employer of labour and employs approximately 41 000 persons during the cropping flavor and 28 000 persons out of crop. An estimated 200 000 persons derive their livelihood straight or indirectly from this industry. Sugar earns nigh Us$100 meg of foreign exchange annually, which is about l percent of the total value of the country'south annual agronomical exports. Approximately 40 000 ha of country are under carbohydrate cane cultivation, of which 46 pct are on manor farms and 54 per centum located on modest and medium-sized independently owned farms.

The Jamaican sugar industry has contracted steadily over the years since sugar production peaked at 523 234 tonnes in 1965. Since 1992, the industry has had an output target of 300 000 tonnes per year just has fallen well beneath that goal. In 1996, output was 239 192 tonnes, 186 978 tonnes in 1998, and 204 634 tonnes in 1999. Production in 2000 was 216 869 tonnes. Despite these disappointing production figures, however, exports in the post-1995 catamenia were on boilerplate 20 percentage college than in the two before periods (Table four).

Tabular array four. Agronomical exports by article, 1985-2000

Chemical element	Averages			Percent increment/subtract between periods
	1985-89	1990-94	1995-2000	(A) to (B)	(B) to (C)
	(A)	(B)	(C)
Carbohydrate (raw equivalent)
Exports (tonnes)	142 973.6	143 139.8	173 393.0	0.i	21.1
Exports (US$ thou)	68 275.half-dozen	84 892.4	97 259.4	24.3	xiv.6
Unit of measurement value (US$/tonne)	478.7	592.6	560.ane	23.eight	-5.5
Cocoa beans
Exports (tonnes)	one 740.8	1 829.eight	1 104.2	5.1	-39.7
Exports (US$ grand)	four 080.8	2 604.4	1 506.6	-36.2	-42.2
Unit value (US$/tonne)	two 291.four	one 430.1	1 361.iii	-37.vi	-4.viii
Bananas
Exports (tonnes)	27 311.0	71 060.viii	63 248.2	160.2	-11.0
Exports (US$ thousand)	thirteen 482.viii	41 593.two	35 685.2	208.five	-fourteen.2
Unit value (US$/tonne)	476.1	586.6	566.ii	23.ii	-3.5
Fruit and vegetables
Exports (tonnes)	61 241.8	107 497.2	97 314.0	75.five	-9.v
Exports (US$ thousand)	36 990.4	70 789.eight	seventy 812.0	91.4	0.0
Unit of measurement value (The states$/tonne)	602.eight	660.8	732.5	9.6	10.eight
Coffee (green)
Exports (tonnes)	883.four	one 069.0	one 443.6	21.0	35.0
Exports (US$ yard)	8 118.viii	14 639.ii	26 881.0	80.iii	83.half-dozen
Unit value (U.s.a.$/tonne)	9 173.eight	thirteen 709.3	18 546.4	49.iv	35.3

Source: FAOSTAT.

The most hitting feature of the industry is its low productivity in both farm and factory operations including depression gross render per hectare, low labour productivity per capita, low sugar cane yield, and low tonnes of cane per acre. A five-twelvemonth carbohydrate industry policy document (1999-2004) is currently existence implemented to accost these problems. The 2 main problems facing the industry are developments concerning preferential arrangements in the European union market for ACP sugar and the relatively high cost of producing carbohydrate in Jamaica.

Virtually 65 percent of the sugar produced is exported to satisfy quotas in the EU-154 000 tonnes raw sugar and a minimum quota of 11 500 tonnes to the Us. The prices that Jamaica obtains from the consign of raw carbohydrate under preferential marketing arrangements are approximately three times that of the earth market price. For example, the cost of Carbohydrate Protocol sales to the Eu are US$631/tonne, for special preferential sugar sales to the European union effectually US$521/tonne, and for U.s. quota sugar sales, around United states of america$466/tonne. The price of carbohydrate on the world market is about US$198/tonne. Jamaica does non sell saccharide to the world market place.

There will be increased pressure on the continuation of the EU sugar preferences arising from the EU "Everything Only Arms" initiative, which will allow 48 LDCs to export all their goods except artillery to the Eu on a duty-costless footing. Phasing out important duties on sugar is scheduled for i July 2006 to 1 July 2009. The current complaint by Brazil and others in the WTO against Eu carbohydrate policy is likely to add together to this pressure.

These developments are a articulate signal to the industry to reduce its costs of operation/product significantly to survive in the EU market competing against exports from the LDCs where prices could approximate the world market place price. Preferences for saccharide could be eroded further by continued liberalization of agriculture trade in the WTO, the expected enlargement of the EU, as well as by the determination of costless trade agreements betwixt the European union and several Latin American and other countries.

Bananas

The banana industry makes a very of import contribution to the Jamaican economy. It is 2nd merely to saccharide every bit an agronomical export and is a vital component of export earnings and Gross domestic product. This manufacture is a source of jobs for many Jamaicans and accounts for 12 percent of agronomical employment. An 1995 approximate suggests that the industry provides employment for about 45 000 persons. The majority of those employed are engaged in the production process, merely employment is as well provided for persons in battle plants, on the wharves and in transportation.

Taking the five-yr averages in Table iv, the export of bananas appears to accept flattened out in the virtually contempo 5-year period. Nonetheless, since 1997, the volume of banana exported has shown a declining tendency, and the volume exported declined from 88 917 tonnes in 1996 to 52 208 tonnes in 1999 and to 41 000 tonnes in 2000. These export volumes correspond the lowest output level for the 1990s. Consequently, Jamaica'south share of the United kingdom market savage to 10.2 percent in 1999, down from 11.5 pct in 1998. The poor performance of the industry was attributed to the following factors:

• The impact of the drought in 1998, which deemed for a loss of approximately 5 000 tonnes during 1999.

• The removal of marginal productive fields from production past some farmers in an try to better competitiveness of fruits in the European market;

• The exit of some farmers from the manufacture attributable to the marketing uncertainty created past the ruling confronting the Eu banana regime by the WTO.

Cocoa

Cocoa is a small-farm family crop, with the majority of farms existence under 2 ha. Larger farms (greater than 8 ha) are estimated to be but 1 percentage of all farms just account for 20 percent of total production. Production and exports have been declining in recent years. This has been attributed to the unfavourable weather conditions in the latter years coupled with poorly maintained fields and farmers' dissatisfaction with prices. Likewise, a lack of funds has prevented the Cocoa Lath from providing any major aid to farmers to enable them to rehabilitate their fields.

Citrus

The Jamaican citrus industry in 1999 employed approximately 18 500 persons (manufacture-wide and inclusive of agro-processing enterprises) with 6 012 employed past citrus farmers island-wide. The majority of growers have small to mediumsized farms, and among the varieties cultivated are orange, grapefruit, ortanique and ugli. The full value of the citrus industry to the Jamaican economy is estimated at $J2 849 282 760.00. The value of exports by multifariousness in 1995-1999 is shown in Tabular array 5. Oranges constitute about l percent of total citrus exports, and the main markets are United Kingdom, Barbados, United States and Canada.

However, the domestic marketplace continues to be the industry's main economic base of operations and deemed for 87 percent of national production in 1998/99.

Table v. Citrus fresh fruit exports by variety and value, 1995-1999

Variety	1995	1996	1997	1998	1999
Sweet orange	1 734 836	2 715 547	2 243 606	2 027 380	two 157 975
Ortanique	322 775	915 398	513 997	460 336	458 934
Ugli	ane 233 676	1 333 270	1 147 336	1 147 152	1 487 223
Grapefruit	130 232	145 207	115 848	32 570	8 701
Lime	614	653	ane 357	699	3 171
Total	3 422 133	5 110 075	4 022 144	3 668 137	iv 116 004

Java

In the 1980s, deregulation and liberalization of the coffee industry were instituted equally role of the general deregulation of the economy. The rapid deregulation of the manufacture resulted in an expansion in production of Blue Mountain coffee and an increase in the number of producers who attained grower/exporter condition and exported coffee in their ain right.

During this flow, the production of blue mount coffee increased from forty 000 boxes in 1978 to 430 428 boxes in the 1996/97 ingather. Notwithstanding, there was a large reduction in the product of lowland coffee from 322 857 boxes in 1987/88 to 164 404 boxes in 1998/99.

Despite the financial problems of the Asian market, Nippon continues to exist the major importer of Jamaican java. Without disrupting the traditional trade with Nihon, Northward America and the United kingdom of great britain and northern ireland, the Coffee Industry Lath will exist actively pursuing penetration of new markets. This will involve sustained promotional programmes in the targeted markets for which substantial funding will be required.

3.4 Imports

Jamaica is a net importer of agricultural products. The import statistics for Jamaica demonstrate that for the decade of the 1990s, food imports (US$ane.64 billion) accounted for just over half of Jamaica's total import nib (US$iii.23 billion). Traditionally, the main imported products have been cereal and cereal preparations (just over eighty percentage), fish and meat (approximately 12 pct), dairy products (just over 3 pct) and vegetables (less than two percent). More recently, there has been an increase in imports of fruits and vegetables as a issue of the reduction in tariffs and not-tariff measures in Jamaica. The US has been the major supplier to Jamaica of most of the vegetables, meat (including poultry) and processed foods. Several food items are also imported from the EU.

Over the period 1990-1998, full imports of food and beverages increased steadily from US$281.3 million to U.s.$510.9 million. 1991 was the only year in which a decrease in nutrient imports was recorded. The figures for this menses also showed a consistent food arrears except for 1992.

Table half-dozen. Agronomical imports by commodity, 1985-2000

	Averages			Percentage increase/decrease betwixt periods
	1985-89	1990-94	1995-2000	(A) to (B)	(B) to (C)
	(A)	(B)	(C)
Poultry meat
Imports (tonnes)	25 992	27 019	36 126	four.0	33.7
Imports (U.s.a.$ yard)	14 890	17 688	21 848	18.8	23.v
Unit value	575	659	621	fourteen.6	-5.9
Rice
Imports (tonnes)	51 598	76 452	76 610	48.2	0.2
Imports (U.s.$ thousand)	17 238	24 594	30 557	42.7	24.2
Unit of measurement value	331	320	399	-three.iv	24.viii
Wheat and flour
Imports (tonnes)	181 651	137 312	147 478	-24.4	7.iv
Imports (U.s.a.$ thousand)	30 952	20 739	29 623	-33.0	42.8
Unit value	171	153	214	-10.4	39.v
Milk equivalent
Imports (tonnes)	133 537	93 742	ninety 072	-29.viii	-3.9
Imports (US$ k)	25 303	26 758	32 156	five.vii	20.ii
Unit value	193	287	361	49.1	25.5

Source: FAOSTAT.

A breakdown of trends past commodity for selected import commodities intended for terminal consumption is available from FAOSTAT. In quantity terms, imports of poultry meat increased significantly in the post-1995 menses, while imports of wheat and flour increased post-1995 after declining in the 1990-1994 period compared with 1985-1989. Dairy imports have fluctuated considerably from year to year merely were generally smaller in the later periods compared with 1985-1989. Dairy imports peaked in 1997, although they were shut to that level again in 2000. The industry continues to struggle with competition from subsidized imports of milk products and inefficiencies in domestic marketing and product. Moreover, autonomously from poultry meat, where the unit value of imports was slightly smaller in 1995-2000 compared with the earlier period, the unit of measurement value of all the other commodities increased significantly in the most recent catamenia - milk by 26 percent on average, rice by 25 percent on boilerplate and wheat and flour past xl pct on boilerplate. These increases in unit values assist to explain the significant increase in expenditure on food imports that took place in the post-1995 flow (Table 6).

four Food security

4.1 Trends in food security indicators

Jamaica's nutrient security in terms of the availability of adequate food to feed the nation is provided past nutrient imports, domestic product and the proceeds from exports to purchase food imports. Government policy in Jamaica is targeted at all iii pillars of food security.

Growing competition on the world market place for basic foods produced by agronomical surpluses (frequently subsidized) in the industrialized world has led to a relatively cheap supply of food globally, particularly since the 1970s. It is arguable that this process has created dependencies and increased the vulnerability of small producers. However, the cost of food to importing nations was reduced, provided that they could generate foreign substitution to support these purchases.

Information on the trend in cocky-sufficiency ratios for some important imported foods shows that the ratios generally increased in the 1990-1994 catamenia, compared with 1985-1989, but declined once more in the 1995-2000 period. Notwithstanding, despite increased imports of poultry meat, domestic product increased more rapidly, allowing an increase in the self-sufficiency ratio for this product in the most recent period (Table 7).

Jamaica's chapters to pay for its nutrient imports is examined using 2 indicators. Food imports as a proportion of agricultural exports savage somewhat between 1985-1999 and 1990-1994, but a faster growth of nutrient imports in the most recent flow widened the gap between food imports and agricultural exports, and the ratio increased again in the most recent menstruation. The share of nutrient imports in total merchandise consign receipts follows the same design, with a sharp fall between 1985-1989 and 1990-1994, only to increase once more in the about recent menses.

Tabular array seven. Evolution of selected food security indicators, 1985-2000

	1985-89	1990-94	1995-2000	Changes (%)
	(A)	(B)	(C)	(B)/(A)	(C)/(B)
Diet
Total energy intake (kcal per capita per day)	2 576	2 542	2 651	-1.3	four.iii
Sources
Vegetable products (%)	86	86	89	-0.5	three.five
Animal products (%)	xvi	15	16	-v.2	8.5
Protein intake (g per capita per day)	66	64	67	-3.7	5.5
Sources
Vegetable products (%)	57	57	sixty	-0.5	4.six
Animal products (%)	47	43	46	-7.8	6.9
Self-sufficiency ratios				(B)-(A)	(C)-(B)
Beef (%)	71	81	72	9	-8
Poultry meat (%)	57	65	67	8	2
Meat (%)	62	69	67	7	-two
Milk (excluding butter) (%)	25	33	23	9	-ten
Food import capacity ratios
Ratio of nutrient imports to agricultural exports (%)	110.1	91.8	115.2	-18.4	23.v
Ratio of food imports to
total merchandise exports (%)	25.8	19.7	21.9	-6.1	ii.3

Source: FAOSTAT.

The market-oriented approach to nutrient security contends that Jamaica could maximize its use of scarce resource by purchasing imported food cheaply rather than supporting or protecting uncompetitive food producers if their products tin can exist grown elsewhere and imported more than cheaply. The island's deficient resources could then exist better invested in commodities or services, e.one thousand. tourism, where a comparative advantage is identified to maximize foreign exchange earnings. This argument is especially persuasive when one considers that both urban and rural poor have benefited from cheap imports of powdered milk and poultry meat among other products in Jamaica.

Jamaica has been very committed to this approach to food security as it seeks to contain the cost of living and nutrient prices for both the urban and rural poor. The trouble is that these cheap nutrient imports accept more to practise with unfair advantage and privilege enjoyed by the industrialized countries in the form of their ain high levels of subsidies and other forms of protection than with comparative advantage.

Further programmes of liberalization in the global agricultural sector are expected to increment the prices of certain food imports over fourth dimension, and cyberspace food importing developing countries could and so exist faced with significantly increased food bills. In Jamaica's case, this would exacerbate the already acute issues of a persistent food deficit and debt burden. In the 2002 Budget, Regime announced that approximately 64 percent of its expenditure would exist used to service existing debts. This upkeep has an allocation of virtually two percent for agriculture.

4.2 Poverty and undernutrition

Data on boilerplate daily calorie intake per caput show that this average dropped in 1990-1994 every bit compared with 1985-1989, despite the comeback in agricultural output during this period, only increased over again in the mail service-1995 period (Tabular array 7). These data correspond to a recent assessment of nutrient security in Jamaica conducted by the Ministry building of Agriculture, which concluded that between 1994 and 1996-1998, there had been a significant reduction of persons who can be regarded as food insecure in Jamaica. For 1996-1998, FAO estimated that ten percentage of the population or approximately 250 000 persons were undernourished. In 1974, the Caribbean Food and Nutrition Institute (CFNI) estimated that 783 000 persons were undernourished.

During the 1986-1998 period, several factors contributed to the reduction of malnutrition in Jamaica, namely, the reduction in inflation, the reduction in poverty levels from 29 percent in 1994 to 15.ix per centum in 1998 as well every bit regime programmes and policies aimed at reducing the level of poverty in the state.

On the negative side, the 1999 survey of living conditions indicates that the pattern of inequity in consumption in the society persists. For case, in 1998, the lowest decile consumed 2.six percent, while the highest decile consumed 29.9 percent of total consumption.

In summary, the issue of poverty alleviation is still a priority. It is believed that the agricultural sector has the potential to create additional employment, particularly in rural communities

Another important aspect of food security is the composition of nutritional intake. According to the CFNI, there has been a major change in Caribbean dietary, nutritional and health patterns over the past 3 decades every bit food availability has increased significantly while diets have become laden with saturated fats. On the positive side, there has been a decline in malnutrition. On the negative side, there has been a dramatic increment in lifestyle-related chronic diseases in the Caribbean - heart disease, diabetes, hypertension, stroke, cancer, etc. According to a written report conducted by the CFNI, these new epidemiological problems are primarily linked to a dietary design in which the consumption of food from animals and sugar and table salt has been increasing steadily while the consumption of complex carbohydrates, such as fruits, vegetables, roots, tubers and legumes, is low or declining.

The CFNI study states that to accost these gimmicky wellness problems, there is an urgent demand to re-examine Caribbean food availability and dietary patterns and to ensure that agricultural policies emphasize and encourage the expansion of domestic fruit, and vegetables production and availability. These health and nutrition arguments support the case for the evolution of the Jamaica food crop sector.

5 WTO negotiations on agriculture - implications for Jamaica

CARICOM, of which Jamaica is a member, is negotiating as a group based on the fact that CARICOM is not just a customs marriage (the countries sharing a CET) merely is currently in the process of deepening its integration through the establishment of a single market and economic system.

CARICOM has submitted eight proposals in the WTO negotiations, which cover the following topics:

• trade preferences;
• special and differential handling;
• safeguards;
• not-trade concerns;
• food aid;
• market place access;
• domestic support;

• Light-green Box measures.

Jamaica too supported a proposal submitted past a grouping of SIDS.

Jamaica's negotiating position is driven by the following policy objectives:

• develop a modern, competitive and sustainable agri food sector;
• maintain and expand market share for existing exports in existing markets;
• develop new markets and new products;
• develop agro-processing and intersectoral links;
• develop domestic production to meet rural development and food security needs;
• importation of competitively priced, healthy and safety foods;
• food security;

• links between WTO, FTAA and ACP/Eu negotiations on agriculture.

Jamaica's negotiating positions are influenced by the over-riding consideration of its small-scale geographical and market size, relatively loftier product toll, concentration of exports around a few products, loftier dependence on world trade, participation in a small percentage of world merchandise and other structural characteristics that render the state highly vulnerable in a fully liberalized market place. Jamaica shares these characteristics with its CARICOM colleagues.

Special and differential treatment

Jamaica supports the emphasis on evolution, which was mandated past the Doha Ministerial Council as an integral office of all elements of the negotiations on agronomics. Jamaica therefore supports the post-obit, particularly for small developing economies (SDEs):

• full general development focus for the negotiations;

• sufficiently longer time frames for adjustment and implementation of commitments;

• lower concessions in areas of market access and domestic back up, export competition, etc.;

• exemption, where appropriate, from reduction and other commitments;

• increased technical and financial assistance from the developed countries to assist with the adjustment process.

Market admission

• Existing non-reciprocal preferences should be preserved in WTO.

• Margin of tariff preference to be spring and maintained over a long period to allow for adjustment in these economies.

• Pocket-size developing economies should be granted flexibility in tariff reduction commitments.

• Tariff reduction linked to reduction of tariff levels in other countries and after export subsidies and other merchandise-distorting measures are eliminated.

• Rebinding of low tariff bindings specially on sensitive products of importance to nutrient security and other non-merchandise concerns.

• Quota- and duty-gratuitous admission for products from SDEs.

• Stricter disciplines and improved transparency in the administration of tariff quotas.

• Elimination of tariff peaks and tariff escalation that render SDE exports uncompetitive.

• Exemption from further reduction commitments by SDEs which undertook liberalization under SAPs.

• Elimination of NTBs, including unjustified use of SPS measures, which militate confronting exports from SDEs.

Domestic support

• Expenditure to promote development objectives of non-trade concerns, poverty alleviation, food security and rural development should be exempted from reduction commitments.

• Should not be restricted to de minimis level.

• To exist divided into two categories - exempt and non-exempt.

• Due restraint clause extended indefinitely to cover support used past SDEs to deal with not-trade concerns.

Consign competition

• Progressive reduction and long-term elimination of all forms of tradedistorting export contest measures - export subsidies, credits, insurance programmes and guarantees, with special consideration for the needs of NFIDCs and countries that benefit from non-reciprocal trade preferences.

Others

• Establish a safeguard mechanism for SDEs to address import surges or decline in import prices.

• Provision for technical and financial help, and the strengthening of these commitments to make them legally binding.

• Implementation of the Marrakesh decision on NFIDCs.

• Article XXIV of GATT should exist reviewed to provide for special and differential treatment for SDEs entering into FTAs with developed countries.

• Advisable provisions should be adult with respect to products of interest to developing countries for inclusion in the disciplines in the expanse of geographical indications.

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^[84] This affiliate is based on a longer case study prepared for FAO by Mavis Campbell, Ministry of Agronomics, Jamaica.

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Source: https://www.fao.org/3/y4632e/y4632e0m.htm

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