3.4 Belize

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The cottage industry in Belize

Ms. Brenda Garbutt Women Development Officer, Department of Women's Affair Ministry of Social Development

3.4.1 Summary

The cottage industry in Belize is comprised of micro branches scattered all over the country; these are small business managed by grassroots farmers and market vendors. Belize being an agriculture country, is blessed with an abundance of raw materials (fruits, vegetables, roots and tubers). Main exports include sugar, citrus and bananas. The cottage industry is further supported and strengthened by input from local government through the village councils and Town Board, and from the central Government through the Marketing Board and finance corporations. The Government Agriculture Department provides technical assistance to the farmers, while the National Development Foundation and other agricultural federations conduct training for them in entrepreneurship development.

The majority of the cottage industries are managed by women trained by the Government department of Women's Affairs, and most of the raw materials are produced by these same women in the fields. The Government and NGO's (nongovernment organizations), through funding agencies, such as the U.S. Agency for International Development and the Inter-American Foundation, provide for training overseas and the entrepreneurs enjoy this opportunity. The cottage industry continues to grow and expand and it is hoped that soon there will be one unified private sector or small business association, complemented and supported by the government and people of Belize.

3.4.2 Country report

Belize is one of the less developed countries of the Caribbean Community, with a multiracial population of about 200,000, in an area of about 9,000 square miles (23,326 square kilometers); it has a population density of about 20.2 per sq. mile. It is situated on the Central American mainland with big neighbors like Mexico, in the North, and Guatemala, in the West. Yet, this tiny nation, which on 21 September, 1991, marked its tenth year of independence from the British after about two centuries of colonial rule, has a crucial role to play, as an English and Spanish speaking country, with a stable Government which operates on the principles of British (Westminster system) parliamentary democracy in bridging the two sub-regions of the Caribbean and Central America.

This small country has a small productive sector, which is very limited in the development of its resources and with an economy heavily dependent on agriculture, mainly sugar; this crop is the country's most important source of foreign currency and when the price of sugar dropped, the farmers diversified, especially with citrus fruit, bananas, vegetables, roots, tubers and products from the sea. Belize is now boosting its tourism potential with a new thrust towards the promotion of ecotourism and El Mundo Maya. El Mundo Maya is an integrated private sector achievement in the facilitation of regional cooperation with the objective of developing and promoting the archaeological, environmental and cultural attraction of the region.

The Government recognizes the important role which the private sector, led by the Belize Chamber of Commerce and Industry, has to play in the process of development and has declared that it is committed to the maintenance of an economic environment conducive to private investment. The Belize Chamber of Commerce and Industry, as a major proponent of the entrepreneurial spirit, fully endorses a new world order based on economic rather than political ties, especially for small peripheral economies such as Belize's which are forced to develop their industries and other potential with little resources.

It is a signal that despite the maxim that small is beautiful, there is less and less advantage to being small and more advantage to being big -or both- in that we must do everything within realism and common sense to strengthen the Caribbean Community, the Latin American/Central American Economic/Caribbean partnership and not fall prey to the dazzlement of foreign products.

The key to survival means that the country must become more competitive. The following are some important ingredients which should contribute to the survival of businesses in small, fragile economies like Belize if we are to face international competition. There is need for development of product ranges in which the country has comparative advantage and a competitive edge. We must also keep abreast of technology to conditions prevailing in the country. A serious approach should also be taken towards the development of appropriate technology. It is necessary to put into higher gear the training required to boost a skilled and productive workforce, which will be appropriate to our development needs. Roads, tale-communications, drainage, irrigation, storage facilities, adequate quarantine monitoring, and support facilities and port facilities, must be put in place.

Whilst market opportunities exist, if the country cannot respond to take advantage of these markets because of lack of flexibility in production due to poor physical and institutional infrastructure, then market opportunity will pass us by. We recognize that while these developments have been taking place on a sustained basis, there is clearly a need for massive investment with assistance from international development agencies. At the same time the institutional infrastructure such as an extensive, financial system for provision of credit, government support facilities and a capital market must also be put in place.

The Agriculture Department in Belize has the mammoth task of co-ordinating and overseeing all agricultural-related activities in the country. This task goes beyond just providing technical advice, seeds, seedlings, pesticides, fertilizers and other farming inputs. The Agriculture Department also aids by providing land clearing land preparation and harvesting equipment as well as threshers. The Ministry of this department has acquired its own road unit, which has been very busy opening new farm roads and maintaining existing ones, in collaboration with the Ministry of Works.

Until 1984, Belizean business-persons engaged in small business ventures found it virtually impossible to get credit to establish or expand their business. For one thing, the traditional credit institutions were not usually prepared to lend money without adequate an collateral and needed a high degree of certainty that the loan would be repaid. In other words, traditional credit institutions took little risks since they were in business primarily for profit. There was a need, therefore, for a non-conventional funding source for small business people who did not qualify for loans from traditional credit agencies. That longfelt need was fulfilled with the formation on 5 January, 1983, of the National Development Foundation of Belize (NDFB). The Government of Belize and the United States Agency for International Development (USAID) contributed 1.0 M for a three year project which led to NDF/B's establishment. The private sector business community provided seed funds amounting to $150,000.

NDF/B is administered by business and civic leaders to provide loans, business guidance and technical assistance to struggling small businesses and projects that normally would not qualify for commercial borrowing. NDF/B haps the small person improve herself/himself and the family's well-being economically and socially, by improving production, productivity and management with loan funds and technical assistance.

For non-storable commodities, such as fruits and vegetables, national policy focuses on food processing to utilize produce that is surplus for fresh market use. Government policy encourages the increase in food processing where feasibility studies demonstrate potential success. The objectives are to increase income, become more selfsufficient in food supply and reduce foreign exchange expenditure on these items. Our food items include, for example, fruits such as mangoes, pineapple, etc. Mango production in Belize has been quite variable from year to year, mainly due to weather conditions during blossom time. The vast bulk of production in recent years has been from the 1,000 acre mango farm of the Tropical Produce Company. This firm has exported most of its production. Potential production from the Tropical Produce farm is estimated at up to 5 million pounds from presently bearing trees.

Belize was the third largest supplier of mangoes to the U.S. market, behind Mexico and Haiti. Mangoes entering the U.S. market must be treated for fruit fly and they fit the profile of good fresh fruit export crop for Belize, that is a relative high priced highly perishable item which must be air freighted to many parts of the U.S. market by all competitive suppliers. Vegetable production for local markets has been characterized by numerous small scale producers providing items of quite varied quality, with periods of gluts and scarcity of supply. Farmers are cultivating over 6000 ares of vegetables for export, with a value of $12-15 million. Local markets prices for fresh vegetables have shown wide fluctuation for locally produced seasonal crops, such as tomatoes and sweet peppers, with much less variation for that mainly imported items, such as potatoes and onions.

Because of the small size of the domestic market, any large increase in vegetable production (with the exception of onions, potatoes and cabbages) would have to be exported. Attempts to export fresh winter vegetables to the U.S. have not been profitable on a sustained basis. Factors which have negatively affected the industry are transportation problems, high cost of inputs, unexpected plant disease and insect infestation, and lack of post harvest technology.

Because Belize is at a competitive disadvantage in supplying vegetables which can be trucked from Mexico or shipped from deepwater ports in Honduras, Guatemala and the Caribbean, it would seem advantageous to concentrate on high value, quickly perishable vegetables which must be airfreighted by competitors as well. Roots and tubers such as cassavas, cocoa, sweet potatoes and yams are grown through the country and are sold to the small trade persons, cottage industries and other market vendors. There is greater demand for cassava in the southern-most parts of the country, where it is processed and converted into bread for consumers on a daily diet. Because of the perishability of these crops and the lack of appropriate technology, they are grown mainly for local consumption, with very little being exported to neighbouring border towns.

Agriculture development is an essential and high priority national goal. Success means food security for the citizens, economic expansion for farm families, improved management of our human and natural resources, and a more positive investment climate. We believe Belizean agriculture is entering a dynamic period of growth and change. It is incumbent upon Government that we seize the initiative and design national policies that maximize the opportunities before us.

3.5 Dominica

Cottage industries in Dominica

Ms. Claudia Bellot Produce Chemist Ministry of Agriculture

3.5.1 Summary

Cottage agro-industries in Dominica are based on citrus, bananas, soya beans, sorrel, spices, cocoa beans, herbs Spices and fruits. The total numbers of industries have declined over the past five years due to migration of persons involved. However, the operating industries are functioning satisfactorily. The Government supports agroindustry as a means of diversifying the island's economy and fiscal incentives are available to qualifying projects. Various institutions have been set up to assist entrepreneurs with finance and technical assistance. The constraints include availability of appropriate and constant supply of raw materials, suitable equipment for processing and quality control measurements. An extension service for small agro-processors is also required. Intra regional cooperation should include information sharing and training. Support services by the private sector would also assist industries growth. These include suppliers of packaging, ingredients and equipment.

3.5.2 Status of cottage agro industries

Cottage industries are created in different ways: private entrepreneurs with processing ideas and capital; cooperative groups initiated by governments departments, e.g Youth Development Division, Women's Bureau, private entrepreneurs with ideas supplied by R&D Institution and capital from bank or lending agency. Ownership is mainly private and 57 per cent of owners are women. Very few farmers own processing operation.

Financing for small scale agroprocessors is available from agencies such as the National Development Foundation, a private non-governmental organization which provides loans at reduced interest rates and technical assistance to small business. The agency provides business counselling through field officers on a regular basis. The agricultural industrial Development Bank also provides loans for processors, but operates along commercial bank policies.

Marketing is usually done directly by the processors to retail outlets all over the island. The products are sold in supermarkets, small shops and stores (in various parts of Dominica), and in tourist stalls and booths. Financing originates from development agencies in the form of small loans, grants and small amounts of private capital. Equipment and packaging material is not available in Dominica, except for small kitchen type balances and polyethylene bags. Most equipment and packaging is imported from the United States, Europe and the Caribbean. Equipment and packaging tends to be costly and can comprise as much as 50 per cent of the total product cost.

Table 1. Products manufacture at present

Training is usually accomplished on-the-job, and from participation in workshops and short courses in the region. The Caribbean Development Bank's CTCS programme organized a one week workshop for small agro-processors in January, 1990. The produce chemist laboratory of the Division of Agriculture provides an extension and advisory service for small scale processors. Research and development is also carried out by the laboratory on behalf of processors and on products regarded as having marketing potential. These processing packages are then offered to private companies/groups for full commercialization.

3.5.3 Government policies

The Government encourages agro-processing as a means of diversifying the economy away from bananas. The main thrust of the Ministry of Agriculture's policy is agricultural diversification, the objectives of which are to:

• increase foreign exchange earnings
• increase productivity and profitability in agriculture
• promote processing, preservation and storage of agricultural produce
• improve food security and the nutrition status of the population.

The Government provides budgetary allowance to the Produce Chemist Laboratory for research and development purposes in the field of food processing. Projects to further develop agro-processing are also well supported and presented to funding agencies for financial support. Through the laboratory, small processors benefit from advice, use of pilot plant equipment and lease of small equipment and instruments. The laboratory also carries out research and development activities in its pilot plant on behalf of processors.

Fiscal incentives are given to qualifying industries. The incentives includes duty free concessions on vehicles, equipments and supplies; product quality control checks is also provided for all small processors by the Produce Chemist Laboratory. The Government has also recognized the importance of allocating adequate man-power to work in the area of agro-processing. Budgetary constraints have limited the staff employed to service the processing sector. Presently, one member of the staff of the Division of Agriculture is pursuing studies in Food Technology in the United States.

3.5.4 Agro-processing is limited in dominica by several factors:

a)High cost of equipment and packaging material.
b)Lack of reasonably priced raw material.
c)Small domestic market for marketing product.
d)Lack of on-going training for workers in processing plants.
e)Lack of extension service for agro-processing.
f)Competition between fresh fruit market and processing sector for raw material supply. This often results in high cost of raw material.
g)Competition for production of raw material for processing from export crops, e.g bananas.
h)Insufficient attention given to varieties of raw material suitable for processing.
i)Lack of utilities, pipeborne water and electricity in some rural areas.

The requirements for stimulating greater development of the agro-processing sector must be included in the country's agricultural sector plan, so that it can be integrated into the development plan for agriculture. The policy on agro processing must take into account its close dependency on continuous production and availability of raw material, sound infrastructure (e.g. electricity, water) reliable markets and a well trained work force. There must be a support organization, well equipped and staffed, to provide advisory services, technical assistance and quality control services on a regular basis.

Further stregthening of all these subsectors is required. Intra-regional activities should support the national programmes and not put added burdens on the currently over-worked national system. Intra-regional activities which help to strengthen national programmes could include:

a)Information sharing through the CAIDEN Newsletter.
b)Improving the documentation of research activities through the use of acomputerized data base.
c)Providing research and development institution with more access to literature; journals, reference books, etc.
d)FAO to make available a Caribbean Agro-industries Officer who would visit the islands and conduct training programmes for agro-processors on an annual basis.
e)Upgrading research and development organizations in areas of need, e.g equipment, instruments.

3.5.5 Summary proposal

A. Background and justification

The contribution of agro-industry to Dominica's economic growth and development is significant for several reasons:

a)The country's need to diversify the economic base away from bananas.
b)The need to increase export earnings.
c)The need to increase the income of rural population.
d)The need to reduce losses of agricultural crops.
e)The need to transform primary raw material into convenient and nutritious products for use by the population.

The agro-processing sector has been constrained by several factors. These factors must be removed or minimized if further growth is to be realized. In its efforts to diversify the economy, the Government has been placing greater emphasis on tourism. Tourist arrivals into Dominica have increased in the last five years. The Tourism Division is looking to the agricultural sector to support its emphasis on nature tourism. The Division is encouraging hotels and guest houses, and rural community to make locally produced foods available for tourists. Hence, further demands will be placed on the agricultural sector to produce these foods. Agro-processing, particularly in rural areas, will become critical. The objective of this proposal is, therefore, to provide training and infrastructure to support further development of agro-processing to meet these needs.

3.5.6 Objectives

1) To provide training to current and potential processors, particularly in the rural areas on an annual and on-the-job basis.
2) To upgrade the equipment and instrumentation and literature at the Produce Chemist Laboratory to enable the lab to better service and advise agro-processors.
3)To investigate the market potential of new products.

3.5.7 Programme of activities

At least one national training programme will be held annually for small scale agroprocessors. The programme will be conducted in two areas of the island, the North and South. Training will be based on principles of agro processing and quality control.

3.5.8 Activity - two trueing workshops for small agro processors annually

1)Locate and purchase equipment, instruments and literature for the Produce Chemist Laboratory.
2)In collaboration with the Dominica Import Export Agency, conduct trials on potential processed products and conduct test market exercises to determine the market potential of these products.
3)Establish a system of on-the-job training for worker of agro processing operations. This activity will depend on the availability of additional trained staff at the P.C.L.

3.5.9 Equipment requirements

The Produce Chemist Laboratory requires equipment for its Pilot Plant for research and development activities. These include: Food freezers, Food choppers and slicers, Deep fat fryer, Bottle cappers, Heat sealers (vacuum), Citrus juice extractors, Bottle sterilizers, Small pasteurizer, Steam generator.

3.6 Grenada

Country presentation

Ms. Heida Rahim Food Technologist, Produce Chemist Laboratory Ministry of Agriculture

3.6.1 Summary

In spite of Grenada's comparative advantage vis-a-vis the other OECS territories in the area of agricultural raw material production, agro-processing remains relatively undeveloped, contributing very little to total industrial output (6%). The agro-processing sub-sector, which is the smallest segment of the local industrial economy, is dualistic in nature, with production and employment dominated by only a few enterprises operating along commercial lines, while there are several individual producers operating along "home industry" or cottage lines.

Production is geared towards satisfying an internal consumer market. Although limited export opportunities exist at the moment, the potential can be tremendous, if only measures are taken to expand the current production base, and improve on product quality, packaging and presentation. The importance of the agro-industrial sector at the present time, therefore, is derived not from its ability to contribute to the GDP and the growth of a working class society, but from its ability to foster self reliance, independence and the growth of indigenous skills, through self generating income opportunities, and ultimately the creation of an agro-industrial culture in the rural communities of Grenada.

This report examines the current status of agro-industries throughout the country, and the need for a suitable climate to facilitate the proper operation and development of these industries. The roles of the Government, non-governmental organizations and the private sector are outlined.

3.6.2 Current status of agro-processing in Grenada

It is clear that there has been significant growth in the number of commercial businesses active in the food and beverage processing sector over the past six years. A recent survey (1990) identified 83 agro-processing businesses in Grenada, as compared with 19 in 1984. As shown in Table 1, 20 were classified as factory-based, 22 as cottage industries, and 41 as home-based. Of these enterprises, 42 per cent are owned and directed by women.

Table 1. Agro processing Organizations in Grenada - 1990

Table 2: Raw material available - 1990

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