Conceptual Framework For Draft National Agricultural Diversification ProgrammePlan 2003

Conceptual Framework For Draft National Agricultural
Diversification Programme Plan 2003-2007

Ashle ! Cain
Agricultural Diversification "fficer an# Pro$ect %anager for ADP&'
Context within which Agricultural Diversification and Rural
Commercialization Programme must be developed and implemented
In recent years, changes in the international and regional arena, particularly changes
related to trade liberalization, have had important impacts on Caribbean economies, in
general and on the agricultural sector, in particular. Preferential markets are under threat,
trade barriers are disappearing, new trading agreements are being negotiated, and new
regional trade groupings are being formed. Also, organisations such as the International
Commission for the Conservation of Atlantic Tuna ICCAT! and the International
"haling Commission I"C! are impacting on development of the marine resources. All
these changes have serious implications for the e#port and domestic agricultural sectors
in the region.
There is still significant scope, however, for the agricultural sector, with respect to its
potential for e#ports to generate foreign e#change, linkages with tourism, import
substitution, value added products, food security and employment. To realize such
potential, however, a rapid transformation of the agricultural sector is re$uired. This calls
for a policy framework which would create the enabling environment for private sector
participation and enhance entrepreneurship in the sector.
The success of Agricultural %iversification initiatives and even the viability of the banana
industry will be driven by the e#tent to which farmers, farm workers and other
entrepreneurs see real opportunities for them to ade$uately address the imperatives of
being a citizen in &t. 'incent and the (renadines today. A new agricultural
diversification strategy must be shaped by and crafted on the foundation of what has
emerged in the society as an acceptable standard of living and e#pectations of the good
life.
It is envisaged, therefore, that the core issues outlined in this proposal would be the basis
for the fashioning of the national agricultural diversification programme. This document
therefore contains the main conceptual elements being proposed for an agricultural
diversification programme that is an integral part of a national strategy for sustained rural
and national development through increased commercialisation of rural enterprises. The
elements of the national agricultural diversification programme will be determined by the
resources available and (overnment)s policy on further agricultural sector development.
Conceptual *ramework *or %raft +ational Agricultural %iversification
ProgrammePlan ,--..doc
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Pertinent features of the agricultural and rural sector
The agricultural sector is dominated by small farmers operating on less than five 0! acres
of land. The predominance of the small farm is a conse$uence of land settlement and land
reform programmes of the past which sought to improve the lot of the rural poor by
providing access to land. 1any of these units are uneconomical and farmers and their
families often turn to other semi2commercial activities to earn their livelihoods. 1any
farm families attempt other small scale enterprises in agro2processing , marketing and
commerce. 1ost of the farmers and agricultural workers have only a primary school
education and are ageing. Their production technologies are simple and traditional.
3oung persons are showing minimal interest in traditional agricultural production and
industries. 1any young persons see agricultural production as not offering sufficient
scope for them to become wealthy and to attain a satisfactory level of living.
The land area available for agriculture is rapidly decreasing due to increased competition
from the housing and commercial sectors. In the /450657 census, the estimated total
arable area was ,4,747 acres. In the ,--- census, the total area has been estimated at
/8,854. In addition, land degradation and deforestation due to illegal cultivation of crops
pose serious threat to water $uality, soil fertility and disruption to the ecosystems. At the
same time large areas of land that were previously cultivated remain idle. 1any of these
idle areas are owned by absentee owners or title resides in family estates. &uch land is
not easily brought into production e#cept through temporary leases or share2cropping
arrangements that offer little incentive for operators to make long term and sustained
investments in improved techni$ues or farming operations. A significant amount of the
agricultural land may be considered as 9dead capital) with all the implications of this.
Agriculture)s contribution to (%P in &t. 'incent and the (renadines is also declining.
:ver the last seven years, its contribution has been fluctuating between /- to /.;. This
has been a decline from an average of /4; over the previous twenty years
There is significant rural poverty even in some communities which thrived during the era
when the banana industry was strong and brought significant foreign e#change earnings
to the country. (overnment has responded by making poverty alleviation and
empowerment of the population through education centerpieces of its national
development strategy. Agricultural diversification and the development of viable
commercial activity in rural communities are seen as essential elements of government
strategy for the rural sector. There have also been many calls from the public for a
modernized, diversified agricultural industry that is commercially viable and sustainable.
In &'( and other :<C& countries, there e#ists a wide diversity in agriculture and the
food chain :<C& ,--.!. There e#ists,
A small core of farmers carrying out commercial aspects of agriculture and who
tend to be the focus of attention by development agencies and programmes,
,
A large number of semi2commercial food producers who form the base of
agriculture and domestic food production,
A small group of small to medium sized food processing industries based largely
on domestically produced materials,
A number of fisher folk, who e#ploit marine resources and whose activities
impact on the rural communities. This fisheries sub2sector, however, has suffered
from under2investment and is constrained by a number of factors which it shares
with other =ural6Agricultural Industries,
A small group of persons who make a livelihood from e#ploitation of forestry
resources.
All these elements of the =ural Industry6&ector interact and are interrelated and some
persons 6 families may at one and the same time be farmers, fishermen, agro2processors
or users of forestry resources.
In the past the semi2commercial livelihood strategies and activities of these persons
sustained their simple lifestyle. The changing lifestyles and e#pectations of our people
resulting from our development over the years, renders the livelihood strategies of the
past no longer viable in many cases. The =ural &ector must engage in commercially
viable and sustainable activities if it is to prosper and if +ational =ural %evelopment
goals are to be achieved. The proposed national agricultural diversification programme is
e#pected to contribute to the promotion, establishment and maintenance of such
commercially viable activities in the sector.
Some underlying assumptions of the Programme
The proposed Agricultural diversification and rural commercialization programme rests
on the following behavioral 6 theoretical assumptions that,
If the economy provides proper signals of opportunity and return on investment,
and if this is supported by ade$uate technological and viable resources based
options, then the chances of a sustainable agricultural strategy being devised,
implemented and maintained increases tremendously.
+orms, values, cultural considerations are also important determinants of farmers
and workers production and investment decisions.
Attempts at transforming socio2cultural systems must move persons from e#isting
>knowns?, into uncharted territory in a way that builds confidence, understanding
and ownership of that change process and the results.
1ost persons in the Agricultural &ector are now driven by their needs to make
provision for basic re$uirements and changing e#pectations of what is a proper
and modern standard of living.
1ost of our farmers have now become commercial in their operations in that they
e#pect their farming to deliver monetary value or the means whereby they can
pursue their life goals achieving new standards of the good life >house, land,
.
good clothes, vehicle, ade$uate food, social services, health care and even access
to cable television and cell phones!.
Persons will engage in agriculture and sustain their interest in the agricultural
industry and activities as long as it remains a viable means of >Provisioning for
the needs of oneself and the family.?
Political considerations and sensitivity to partisan political concerns are likely to
have an impact on the motivation and or willingness of some farmers to e#amine,
embrace and pursue various possibilities for diversifying the agricultural sector.
In this behavioral model the success of Agricultural %iversification initiatives and
even the viability of the banana industry will be driven by the e#tent to which
farmers, farm workers and other entrepreneurs see real opportunities for them to
ade$uately address the modern imperatives of being a citizen in &t. 'incent and the
(renadines today.
An analytical framework for programming Agricultural Diversification
Figure 1 summarises the various interacting components and strategic issues which must
be addressed in designing and implementing a successful agricultural diversification
programme.
The national agricultural industry is operating in an increasingly globalised trading
environment which encourages open markets and ease of movement of goods and
services and regulation of trade through rule based institutional arrangements such as the
"T:. This globalised trading environment is determining to a large e#tent the types of
agricultural industries that will be viable in the medium to long term. It is also
influencing other types of economic activities and relative allocation of resources
between the various sectors of the national economy. The international markets and trade
issues are influencing heavily our options for overall economic diversification and our
ability to restructure the national economy in a sustainable way in the short to medium
term.
The farming enterprise is the basic production unit. Its choice of product and production
ob@ectives are influenced by such issues as farm characteristics, technology systems,
labour markets and characteristics, pricing policies, financial resources and availability of
credit, fiscal policies of government and the broader international trading environment.
The output from the farm enters a marketing system that involves domestic sales for
home consumption or goes into secondary markets for agro processing and value addition
or into the restaurant and tourist trade. At each point in the process the farmer faces a
range of issues and constraints that determine the success or failure of his farming
operations. *or the farmers to have a sustainable business then these constraints must be
addressed in a holistic way. A national diversification and rural commercialization
A
Fig 1 : Analytical Model for examining Agricultural Diversification Programme issues and options
Conceptual *ramework *or %raft +ational Agricultural %iversification ProgrammePlan ,--..doc
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strategy or programme must seek to address or influence the issues suggested in Figure 1 if it is
to be successful.
It is therefore envisaged that the national agricultural diversification programme will address as a
first priority the issues identified at the level of the farmer 6 farm6 primary production unit
production unit, financial and capital resources, labour management and technology!. It will
also target improvements to the marketing and disposal of agricultural output in ways that add
value while meeting national needs for healthy foods and viable rural communities.
Beneficiaries and the Parties involved
The programme beneficiaries will be farmers, agricultural workers, fisher2folk, agro2processors,
service providers to the agricultural industry, youth, farmers and community organizations,
Producer Associations, Credit unions and other financial institutions, other private sector
interests and the Agricultural &ociety.
ther !nterventions
The +ational Agricultural %iversification Programme will be a central component of a broader
national strategy aimed at commercializing the rural sector and meeting the poverty alleviation
ob@ectives of the (overnment. :ther related interventions includeC
The +ational Irrigation Programme and =A%CIP
The development and e#ecution of a national food and nutrition policy in the 1inistry of
Dealth.
Implementation of &'( &ocial investment *und.
The development of national occupational standards for the agricultural and other sectors
by the &TAT'<T Programme in the 1inistry of <ducation.
:ther Agricultural and rural development related Capital pro@ects in national P&IP
including pro@ects to build capacity among agricultural labour force!.
Activities and programmes of the &mall <nterprise %evelopment Enit.
Caribbean =egional <nvironmental Program activities at =ichmond and Fashum.
"overnment and #ectoral Policy
The (overnment has the following key policy ob@ectives for the agricultural sectorC
Actively create an enabling environment for entrepreneurial drive of farmers, fisher folk
and other related groups
Increase employment
Increase rural income
Increase food security
Conceptual *ramework *or %raft +ational Agricultural %iversification ProgrammePlan
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Increase net foreign e#change earnings or retention
<nsure efficient utilization and sustainability of natural resources
Community and beneficiary participation in programme formulation, implementation and
evaluation
Components of Programme
The +ational Agricultural %iversification Programme has three streams based on source of
funding C
/! <uropean Enion funded Agricultural %iversification Pro@ect
,! +ationally funded Agricultural %iversification Pro@ect activities which include four broad
areasC
Infrastructural support to the sector
Incentive support
Institutional strengthening and
Information support
.! Activities funded by other donors such as *A:, C%G, IICA, CTA etc.
The pro@ects already approved for *A: Agricultural %iversification through 'alue Added
Pro@ect support include
Coconut water bottling
Cassava production and processing
Arrowroot 6 root crop product development
Phasing of Programme Activities
The programme is being implemented in several phases. The first phase started in *ebruary
,--. with the establishment of the Agricultural %iversification Programme Implementation Enit
A%PIE! in the 1inistry of Agriculture and *isheries. =esources were provided for one year in
the first instance for the purpose of identifying, defining and developing elements of a national
agricultural diversification programme plan and mechanisms for implementing a national
agricultural diversification strategy.
Phase $% ADP!& set up and Programme Definition'Development
The <uropean Enion has already allocated an amount of <uro 8--,--- under P&IP &TAG<H
)40! support to initiate the Agricultural %iversification Programme A%P! managed by an
Interim Programme Implementation Enit A%PIE!.
The following pro@ects or programme elements are being pursued in Phase / of the Agricultural
%iversification Programme.
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&etting up an interim PIE :ffice, &taff, 'ehicle, etc.!
Programme %evelopment ActivitiesC
Consultations, %asheen 'acuum Packing facility, 1edia &upport Programmes,
=ehabilitation of office at =ivulet =esearch &tation, Pesticide <valuation &tudies, &oil
Capability &tudy, Papaya =esearch (rant, Gelmont Agriculture %epot =ehabilitation, +(:
Partnership (rants +utrition Enit 1inistry of Dealth, "I+*A , <CTA%!, A2D Programme
%evelopment, Tree Crop =evitalization Phase /, Propagation *acility Epgrades, Arrowroot
Industry &upport %riven %emand! for *eeder =oads and 1ultiplication of planting material,
CA1I% and &'1C 1arketing Infrastructure &upport and Agro2Processor &upport Phase /!
Programme <valuation
Proposed programme elements in Phase (
It is proposed that the second phase of the national agricultural diversification programme
addresses the following elements or initiatives in order of priorityC
2 %eveloping an appropriate environment for the marketing of agricultural
products including value addition products!,
2 Training and <ducation *armers, youth and entrepreneurs!,
2 =esearch and %evelopment and technology ac$uisition,
2 Guilding capacity for sustained agricultural production through public and
private sector investment programmes,
2 <nvironmental management and land use,
2 %eveloping of a strong small business Agro processing and value addition
sector,
2 Fegislation and development of institutions,
2 Guilding community linkages through health care and poverty alleviation
initiatives.
These broad programming elements were also identified as priority issues during a series of
stakeholder consultations held by the A%PIE at the beginning of the pro@ect.
Phase , of the Agricultural %iversification Programme is e#pected to have the following
componentsC
o PIE staff and operating costs
o <E funded P&IP support and Pro@ect activities
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o Pro@ects financed by other agencies and coordinated by PIE IICA, *A:,
C%G, CTA, etc!
o Pro@ects financed by (overnment of &'( in support of Agricultural
diversification and rural commercialization including but not limited to
o 1A* Capital Pro@ects
o Capacity building and Fabour *orce Improvement
o %iversification initiatives which may emerge from the ongoing attempt to
devise and implement an :<C& Agricultural &ector &trategy
%uring this A%PIE)s first year of operations several other capital pro@ects were approved for
implementation by the 1inistry of Agriculture and *isheries. They were implemented as distinct
pro@ects. In the second phase of the programme it is proposed that all pro@ects which are related
to the agricultural diversification programme would be formally incorporated and implemented
as elements of a national agricultural diversification programme. The A%PIE would therefore
be responsible for ensuring that the diversification related pro@ects are implemented in a timely
and efficient manner. To this end the PIE will interface with the technical staff of 1A* in a
structured way to facilitate efficient implementation of pro@ect activities.
Appendix 1 provides a detailed summary of results and activities to be pursued during the
second phase of the national agricultural diversification programme.
perationalising Rural Commercialisation% ) A model for ADP!&
A national commitment to =ural Commercialisation is re$uired for the advancement of this
developmental thrust. This includes decisions on the followingC
o An Agricultural policy
o Fand use, tenure and regulations
o Credit and financial institutions
o <#port and import strategy
o Ta# Policy I
o Industrial %evelopment Plan and policy
o Focal (overnment policy
*Tax Policy based on penalising wasteful behaviour
The following operational model or mechanism is being advanced for a more permanent
A%PIE. As shown in Figure 1( successful implementation of an Agricultural %iversification
and rural commercialization programme will re$uire working relationships and interactions
between a wide range of players and institutions.
"hile the A%PIE will be the central implementation agency, it must build strong networking
links with the ma@or players identified in Figure 1. The A%PIE will be provided with a pool of
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resources will be directed towards implementing activities and pro@ects with sectoral impact that
willC
2 improve the efficiency of Public &ector Investment and support in the Agricultural
&ector
2 *acilitate Private &ector entrepreneurship and investment in the Agricultural &ector, in
areas where feasibility, viability and sustainability of enterprises have been evaluated
through rigorous and theoretically sound analytical processes and procedures.
To a large e#tent the model re$uires the evaluation of %iversification &upport and Investment
options throughC
2 A specialized and e#perienced technical team. The core staff of the A%PIE!
2 A broad based &teering Committee with multi2ministry and private sector membership
and participation,
2 A priority and implementation review team 6 mechanism involvingJ a Cabinet &ub2
committee on Agriculture CCA!, and at a higher level, a Cabinet Committee on the
<conomy CC<! which would evaluate the Policy goals and general thrust and impact of
the Agricultural %iversification Programme and the efficiency of resources used in the
attainment of the policy goals set for the Enit.
The donor and support community would interface with the implementation process at the
institutional, priority setting stage, at the level of the Pro@ect &teering Committee and through the
oversight function 6 role of an <%*6P1CE type organization which would ensure that
disbursement of funds and pro@ect or programme priorities are consistent with the agreement 6
basis for providing the financial support.
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The model is consistent with a "orld Gank =ural development model advanced by "illiam
&mith, *rancis Fethem and Gen Thoolen /45-! in :rganization and <nvironment in =ural
%evelopment Pro@ects! which indicates thatC
*irstly the concept of =ural %evelopment has to be appreciated by the population, hence the
nation)s commitment.
&econdly, rural development processes take place in an environment that is influenced by
numerous institutions, issues, and agencies to include social, economic, political technological
and cultural institutions.
Thirdly, the agency responsible for promoting change must also be so positioned that it is in
control of the change process. Its ob@ectives and strategies must be carried out in direct contact
with farmers) organizations, producer groups, +(:s, input suppliers, credit providers, marketing
agencies and civic society.
The Enit shall respond to demands of the Agricultural &ector interests as established through
constituency processes or targeted studies by consultants and other $ualified or suitable persons.
It will therefore be primarily demand driven. 'arious mechanisms and procedures have already
been developed and tested by the A%PIE in the last si# 7! months for registering community
demands, evaluating such re$uests, providing resources and support to meet identified needs,
monitoring the implementation of targeted 6 support interventions, while observing or utilizing
standard and e#isting Public &ector accounting systems and processes to deliver results in a
transparent and ob@ective manner.
The disbursement of funds under the Tropical &torm Fili Assistance Pro@ect provided the A%PIE
the opportunity to build e#perience and deliver services at a >grass root? level to farmers and
other beneficiaries. It is envisaged that these processes will be further refined by the more long2
term A%PIE and utilized in ways that will facilitate $uick and efficient evaluation of financing 6
support options, speedy disbursement of funds, management 6 supervision of pro@ects and
efficient implementation of viable diversification options at the farmer6community6beneficiary
levels.
The proposed mechanism of the A%PIE is likely to be more efficient than the e#isting model,
where technical officers, whose focus should be on identifying and assessing needs and
delivering technical solutions, are engaged instead in the administrative process of ensuring all
aspects of programme implementation are managed in order to achieve stated 6 desired
diversification ob@ectives.
The proposed model should allow the technical officers of 1inistry of Agriculture and *isheries
to interface with specialist 6 A%PIE staff at critical @unctures to provide guidance, conceptual
maps and implementation support in pursuit of the broader ob@ectives of achieving sustainable
and long lasting diversification or diversification capacity6capability within the agricultural
industry6sector.
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!nstitutional arrangements to facilitate Pro*ect implementation and
integration into existing +A, Programme !mplementation processes
The work of the A%PIE must be tightly integrated into e#isting 1A* sector support programmes
if it is to fully succeed. This is so since much of the work on the ground has to be e#ecuted by
technical staff of the 1inistry. This is also important in ensuring sustainability of the rural
commercialization initiatives even after the pro@ect ends. Figure 3 shows a proposed
implementation 6 institutional model for achieving the integration of A%PIE into the 1A*)s
programme delivery process.
The Cabinet Committee on Agriculture CCA! has an oversight role in ensuring successful
implementation of Agriculture sector programmes and pro@ects. The Permanent &ecretary and
Chief Agricultural :fficer CA:! have direct responsibility for administration and technical
management of the 1A* programme. The Chief *isheries :fficer C*:! and the %irector of
*orestry &ervices %*&! have similar responsibility for *orestry and *isheries related
programmes. The country is divided into three Agricultural =egions for e#tension and
programme delivery purposes. <ach =egion has a broad based =egional Agricultural Committee
which assists the 1A* in identifying programme priorities, delivering programmes on the
ground and assessing the effectiveness of agricultural development strategies.
It is therefore proposed that the A%PIE also works, where feasible, through these =egional
committees and other beneficiary organizations to establish priorities and deliver pro@ect
benefits. It is further proposed that the staff of the A%PIE meets in a regular and institutionalized
manner with the P& , CA:, C*: and Chairmen of the =egional Committees to discuss
implementation of the =ural %iversification and Commercialisation programme. This could be
done through formal meetings convened for that purpose as well as a process of providing
formal written reports on pro@ect activities and progress.
-ey considerations for the development of the .ogical ,ramework for the pro*ect/
verall Programme b*ectives
The pro@ect will contribute to the rural economy by increasing income for agricultural producers,
fisher2folk, agro 2 processors and other stakeholders in the rural sector. The programme will
increase agriculture)s contribution to (%P formation, food security, foreign e#change earnings,
the diversity and $uantity of agricultural output, employment opportunities and the number of
commercially run agricultural related businesses in rural &'(. The pro@ect will create an
enabling environment for agricultural diversification and further commercialization of the rural
sector.
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=egional
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ADP
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2 *orestry
2 *isherfolk
2 *armer
2 Agro2processor
2 'endor
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It is envisaged that a national agricultural diversification programme plan will address
first and foremost ways of achieving these policy ob@ectives through targeted and
strategic public sector investment and improved coordination of private sector investment
in the agricultural industry. The design of the programme will also be guided by
initiatives deemed necessary as part of a broader :<C& Agricultural %iversification
&trategy or programme.
Pro*ect Purpose
The purpose of the national programme is to create an environment that will increase
investment and employment in the rural sector. The pro@ect will provide opportunities to
strengthen key institutions involved in Agricultural6=ural Income diversification and
commercialization. The pro@ect will use demand responsive mechanisms to facilitate the
flow of support and resources to entrepreneurs and other stakeholders for the
development and implementation of agricultural diversification and rural
commercialization initiatives.
Results
/. An improved environment for successful marketing of agricultural products, derived
from both Primary and &econdary 6 value added products. The Pro@ect will, in
partnership with Public and Private &ector interests and in response to market demand
facilitateC
a. <#panded 1arket opportunities for agricultural products, through new
Public and Private &ector Investment Programmes 6 &trategies.
b. Improved ability of farmers and other entrepreneurs to evaluate risks
involved in undertaking various demand driven production activities.
c. Provide Technical Assistance to develop and institute an appropriate
system for providing marketing and advisory information.
d. Increase entrepreneurs) knowledge of market opportunities and trends.
e. &upport marketing of target produce with good development potential K
Coconut, Greadfruit, Arrowroot, *isheries related and some forest related
produce!.
,. Trained and educated farmers and other entrepreneurs.
.. =esearch and %evelopment and Technology programme.
A. Guild capacity for sustained Agricultural Production.
0. Improved <nvironmental 1anagement and Fand use.
0. %evelopment of a &trong Gusiness Agro2processing &ector.
7. Getter legislation and institutional arrangements to cover.
8. &trong community linkages in support of Agricultural Industry.
Activities
The following types of interventions will pursued in order to develop an improved
environment for marketing of agricultural products and other products and services
/0
generated in the rural areas as a result of a rural commercialization support strategy under
the pro@ect.
/. The pro@ect will undertake investment with private and public sector interests in
improving marketing facilities and services, in providing marketing information
to entrepreneurs and in evaluating risks associated with various types of
investments in the rural sector.
,. In an effort to develop trained farmers, workers and entrepreneurs for a more
modern, competitive and diversified agriculture, the pro@ect will facilitate
vocational training support to farmers, young entrepreneurs, fisher folk and agro2
processors in Agricultural entrepreneurship, marketing, technical skills in
agriculture, fishing, horticulture and fisheries, farm resources management,
personnel development, food production and food processing, and development
and use of computer software for managing agricultural enterprises. The pro@ect
will assist beneficiaries with the development of business plans to enable
entrepreneurs to access financial resources which will become available under
the proposed =ural Credit *acility. The pro@ect will facilitate the formal
establishment and promotion of national competence &tandards for workers in
target industries6sub2sectors e.g. *arm "orkers, and *arm 1anagers.
.. The pro@ect will facilitate development and publication of appropriate research
and technology for target beneficiaries. It will facilitate documentation and
processing of local research information and technological findings. It will
assess what level of national investment and e#penditure for =B% as a
percentage of Agriculture (%P and (%P! that is re$uired to sustain the
Agricultural industry and rural commercialisation process. It will also provide
research grants for priority areas.
A. The pro@ect will help to build national capacity for sustained Agricultural
production by supporting establishment of a venture capital fund for agriculture
and related enterprises in the rural sector. It will assist in improving rural
infrastructure such as feeder and on2farm roads, abattoirs and other livestock
processing facilities and propagation facilities. It will assist with the establishment
and operations of at least three regional farmers markets. The pro@ect will
facilitate Private &ector investment in plant and machinery as well as access of the
private sector to development financing which may be obtained under the
Cotonou Agreement and other 1ultilateral private sector financing initiatives
which may be accessible by countries such as &'(. It will assist with the
establishment of =ural financing mechanisms through the Credit Enions and
facilitate training of loan :fficers in <valuating Agricultural Foans and
Investment Proposals. The pro@ect will contribute to the use of good agricultural
practices on farms by supporting the development and use of crop6enterprise
driven record keeping systems. The pro@ect will foster the development and use
of organoponic technology by facilitating establishment of production units by
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farmers. It will also provide financial support to the CITE for promoting viable
agricultural technology using multimedia programmes.
0. The pro@ect will contribute to improved environmental management and land use
by providing incentives and assistance to farmers operating on slope lands forC
<stablishment and maintenance of soil conservation works, Lon farm drainage
systems and establishment and maintenance of tree crop cover on slopes. It will
facilitate regular testing programmes for soil fertility and nematode infestation on
farms. It will work with community groups to undertake community led
environmental pro@ects such as beach and river clean up campaigns. It will work
with district agricultural committees to establish and promote stream and river
bank protection measures on farms. The pro@ect will facilitate the design and
implementation of a comprehensive drainage pro@ect in the *rancois 'alley in
1arria$ua.
7. The pro@ect will contribute towards the creation of vibrant agro2processing
businesses in rural communities by supporting various value addition and agro2
processing initiatives. It will assist the &tandards Gureau to improve its capacity
to provide technical support to agro2processors. It will provide entrepreneurs with
investment support financing for commercialisation of promising enterprises. It
will facilitate ongoing efforts to improve value addition in the Cassava,
Arrowroot, =oot Crop and Coconut industries.
8. The pro@ect will facilitate improvement of the legislative framework within which
the agricultural sector operates. It will finance technical assistance to review
e#isting legislation and to draft appropriate regulation for =egistration of farmers ,
Ficensing of producers and marketers, =eceipting in all business transactions,
tagging of livestock, 1anagement of the e#change process, =egistration of
Agricultural Traders, Professional bodies in Agriculture
5. The pro@ect will also contribute to building strong community linkages in support
of the agricultural industry. It will support development and improved functioning
of farmers and other rural community groups.
rganisation and !mplementation Procedures
The Agricultural %iversification Programme is primarily a programme to facilitate
commercialization of the =ural &ector. The Programme should contribute to an increase
in the proportion of core farmers who carry out commercial aspects of agriculture,
increase in the output and productivity, and diversity of products produced by food
processing industries, while enhancing the efficiency of production of small semi2
commercial group farmers.
The Pro@ect Implementation Enit PIE! will employ demand driven mechanisms to
identify priorities and needs within the rural community. Proposals and re$uests will be
/8
submitted by potential beneficiaries. They will be evaluated using appropriate criteria
developed by the PIE.
The PIE will manage and administer the programme to ensure facilitation ofC
%elivery of basic information
=esponse to demands for particular assistance
Consolidation of farmers re$uests
Assessing of e#pertise6consultants to deliver information and assistance
Community re$uests for infrastructure development which would enhance the
commercialization process.
These types of activities listed above will be treated as a menu of options to be supported
by the A%PIE. The actual activities supported would be based on relative demand by
pro@ect beneficiaries.
The pro@ect will be guided by a Pro@ect &teering Committee chaired by the Permanent
&ecretary in the 1inistry of Agriculture and *isheries. Its members will be drawn from
the 1inistries of Agriculture, Trade, *inance, <ducation and Tourism. 1embers will
also come from the Chamber of Industry and Commerce, "indward Island *armers
Association! Association "I+*A!, the &t 'incent Ganana (rowers Association
&'G(A!, the &t 'incent 1arketing Corporation &'1C! and the <%*6P1CE .
Costs and ,inancing Plan
The intention of the (overnment is to use the allocation of <uro...m obtained from
&tabe# <uro/.0m for Agricultural %iversification start2up, from &tabe# /440 and
<uro/.5m from &tabe# 947648!. The funding provided by the <E will be primarily for
demand 2driven and core pro@ect activities.
&,e proposed pro4ect financing is as outlined in &able 1
A$&+#+&56 R2S./& AR2A
2S&+MA&2D
$!S& 72$'8
2S&+MA&2D
$!S& 72uros8
S!.R$2
2.
S!.R$2
9!#&
S#9
%eveloping an appropriate
environment for the marketing
of agricultural products
/,5--,--- /,5--,---
Training and <ducation
*armers, youth and
entrepreneurs
/,7--,--- /,7--,---
=esearch and %evelopment and
technology ac$uisition
/,---,--- /,---,---
/5
A$&+#+&56 R2S./& AR2A
2S&+MA&2D
$!S& 72$'8
2S&+MA&2D
$!S& 72uros8
S!.R$2
2.
S!.R$2
9!#&
S#9
Guilding capacity for sustained
agricultural production public
and private sector investment
programmes
/,0--,--- /,0--,---
<nvironmental management and
land use
/,---,--- /,---,---
%eveloping a strong small
business Agro processing and
value addition sector
/,---,--- /,---,---
Fegislation and development of
institutions
A--,--- A--,---
Guilding community linkages
through health care and poverty
alleviation initiatives
,--,--- ,--,---
Programme Administration /,---,--- /,---,---
Programme <valuation /--,--- /--,---
T:TAF :(;<<(<<< :(;<<(<<<
&ince the programme is to be demand driven, the relative allocation of costs is presented
by result area. The specific e#penditure at the activity level will be determined by the
relative demand for resources and support from pro@ect beneficiaries
,actors 0nsuring #ustainability
9overnment=s commitment to Rural $ommerciali>ation and Agricultural
Diversification
(overnment remains committed to its policy of agricultural %iversification and Poverty
Alleviation and is willing to support the rural commercialization initiatives proposed in
this programme proposal. It is also assumed that the funding is provided for
implementation of the programme.
Policy support Measures
o A well developed legislative framework that will promote production and
marketing in the various sub2sectors. <mphasis will be on upgrading,
/4
strengthening and effecting e#isting legislations together with the development
and enactment of new legislations, where necessary.
o A proper information system is in place in the 1inistry of Agriculture, Fands and
*isheries to transfer relevant information to farmers and other users.
o Implementation of Poverty alleviation and social recovery programmes in rural
areas
o A fiscal policy regime that supports investment in agricultural diversification and
rural commercialization
o 1aintenance of a modernized and competitive banana industry to help stabilize
rural incomes and provide some savings for investment in other sector of the
agricultural industry
o Improvement and establishment, where necessary, of the infrastructural
re$uirements on farm and at the farming community level. These include feeder
roads, establishment of irrigation systems on farmers) holdings, erection of
farmhouses, storage and pack houses and improvement of on2farm roads.
!nstitutional and +anagement Capacity1 Public and Private sector
The 1A* has established a process for private sector participation in programme
implementation through a system of regional agricultural committees and involvement of
private citizens, in steering committees and working committees. As indicated earlier
these stakeholder committees will be empowered to take ownership of diversification
and rural commercialization initiatives so that they become sustainable. The demand
driven orientation of the A%P and the procedures to be employed in e#ecuting pro@ect
activities will also lead to greater ownership of the process by beneficiaries and greater
sustainability.
+onitoring and 0valuation
The Pro@ect &teering Committee, the Cabinet Committee on Agriculture, the :ffice of the
<%*6P1CE and the A%PIE will be involved in monitoring the pro@ect.
,-

Conceptual Framework For Draft National Agricultural Diversification ProgrammePlan 2003

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Conceptual Framework For Draft National Agricultural Diversification ProgrammePlan 2003

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Conceptual Framework For Draft National Agricultural

Diversification Programme Plan 2003-2007

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