BUSINESS corporations are concerned about reduced profits over Caricom’s plan to slash the annual US $5 billion food importation bill.
The “25 in 25” strategy calls for a lowering of the region’s food importation costs by a quarter in three years’ time.
The move toward Caricom food security has been engineered by Guyanese President Dr. Irfaan Ali and Barbadian Prime Minister Mia Mottley.
Trinidad and Tobago’s Prime Minister Dr. Keith Rowley, who had not made any previous efforts at curbing food imports, has given support to the measure.
T&T imports the value of $6 billion in food each year, with the agricultural sector making a negligible contribution to Gross Domestic Product (GDP).
Ali and Mottley, in particular, have voiced alarm over increased costs of food, supply chain issues and other critical matters that cause a “misalignment between supply and demand”.
The leaders are also bothered over the lack of proper nutrition by many Caricom nationals.
After stalling for several years, regional leaders have expressed resolve in fully implementing the Caricom Single Market and Economy (CSME).
They have vowed to remove barriers to intra-regional trade.
Most Caricom food imports are undertaken by large corporations, which are mainly based in T&T and Jamaica.
The publicly-traded companies have reported increased profits after the Covid-19 lockdown, but are anxious about their respective futures.
Ali touched briefly on the subject at a media conference, alongside Rowley, last Thursday, saying there should be no need for concern.
In an effort to bolster their trade, business corporations have been pushing for a widening of the growing Guyanese market.
A new Guyanese local content law has prioritised the purchase of goods and services by businesses from that country.
A total of 40 such services were specifically identified.
Regional conglomerates baulked that this measure was a breach of the Treaty of Chaguaramas.
The plan to optimise regional food production is almost sure to hurt food imports by large corporations, whose operatives have been deemed “The One Percent” because of their tiny numbers.
Most food importers add processing or re-packaging before merchandising the products.
The importers are involved in virtually all foods, including meats, cereals, beans, oils, food preparations and wheat.
Guyana is also pioneering a plan to utilise its vast arable lands to become the region’s food basket.
The South American neighbour – one of the world’s fastest-growing economies – is currently improving rural infrastructure, which would also serve to aid in food production.
Ali has pledged to diversify Guyana’s economy away from energy.
But his vision for Caricom food sovereignty is troubling large importers.
