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Agro-processing can be grouped into eight categories, based on the type of raw materials used and the resulting end products. These are:
A.Fruit and vegetable processing
Jams & jelly and fruits preserved in sugar:
Nectars:
Sauces and seasonings:
Spice grinding/packaging:
Extraction of citrus juice:
Snack foods:
Cocoa processing:
Herbal teas:
Wines & cordials:
Others:
3.6.4 Marketing systems
At present, agro-industrial export dependence is approximately 25 per cent as compared to 80 per cent for the industrial sector as a whole, which is an indication that agro-processing is geared primarily to satisfying domestic demand. Marketing is done mainly by the processor himself. Since the processor has little expertise in formulating adequate marketing strategies, marketing is poorly organized. However, a few enterprises do promote their finished products on the local and regional markets.
External markets are of extreme importance for the survival and growth of the agroindustrial sector. This importance stems from the fact that the domestic market of approximately 97,000 people with an income per capita of approximately EC$ 4,000 and an agro-industrial per capita consumption of EC$ 44.00, is much too small to permit most enterprises to operate at economic levels of production. The long term development of the agro-industrial sector will, therefore, depend heavily upon local capability to penetrate and secure regional and extra-regional markets, both for current as well as potential products.
3.6.5 Financing
Traditionally agro-processors have faced tremendous difficulties in terms of sourcing financial assistance from the banking system. In the first place, financial institutions have always been reluctant to lend money to small enterprises which are considered to be high risk 2. Secondly, where there was willingness to lend, the rates of interest on capital borrowed were high and the level of collateral/security not tailored to facilitate small businesses. Recognition of the crucial role being played by agroprocessors has led to increasing financial and other support by the following institutions.
3.6.6 Grenada Development Bank
The Grenada Development Bank (GDB) assists clients in establishing or expanding development enterprises by granting loans and other forms of financial assistance (interest rates at 8-11% p.a.). They also mobilize and coordinate available resources to be utilized in financing agricultural, industrial and tourism projects. Priority is given to projects based on the extent to which it will utilize local resources and develop depressed areas (80% of businesses are concentrated in and around St. George's, thereby depriving incomes and revenues to the rural areas).
3.6.7 Small Enterprise Development Unit (SEDU)
SEDU, of the GDB, is an ILO/UNDP funded programme which provides management training, technical, extension and ancillary services to present and future small businesses. Assistance is now being sought to provide financial assistance in the form of Soft Loan Window" to small enterprises, especially those directed by women, operating in priority areas,such as agro-processing and agri-business. Debt equity ratio is 3:1, with a ceiling of EC$ 50,000 and the rate of interest at 10 per cent p.a. over a 36 month period (6 month grace period).
3.6.8 Agency for Rural Transformation (ART)
ART is a non-governmental, non-profit, independent organization, with the overall goal to promote and assist in the development of the marginalized (women, youth, farmers, fishermen, craft producers and agricultural workers) by initiating, coordinating and supporting programmes and sustainable society. Loans are at commercial interest rates not exceeding EC$ 5,000. The client must contribute 10 per cent.
3.6.9 National Development Foundation Grenada (NDFG)
NDFG is a private, non-profit, non-political, non-governmental organization, established for the purpose of providing loans, business guidance and technical assistance to struggling small businesses and projects that normally would not qualify for commercial loans. The rate of interest is not in competition with commercial banks (14% p.a. on a declining balance, loan amount EC$ 500) EC$ 30,000 and loan repayment of 1-5 years (grace period determined by size and type of project).
3.6.10 Agriculture Venture Trust (AVT)
AVT is a financing institution funded by the United States Agency for International Development. AVT offers technical assistance, commercialization grants and investments to individuals, companies and producer associations which meet its eligibility criteria. Commercial grants are of US$ 10,000 per project (packaging, marketing, project promotion etc.) and investments at US$ 20,000 US$ 500,000 per project. Companies/associations must contribute at least 51 per cent of total investment costs.
3.6.11 Equipment and technology available
The majority of small scale processors utilise standard kitchen utensils, e.g. strainers, hand slicers, blenders etc., which of necessity were designed to accomplish relatively simple processes. In some instances, steam generators, mills, solar dyers, etc. are used. Much of these equipment in use is obsolete; efficiency is low and down-time relatively high, due to the age of the equipment and long delays in obtaining replacement parts. While it is true to say that the skills necessary for cottage scale processing are widely available, there is a deficiency in the level of technology which is applied.
3.6.12 Packaging material
All packaging materials utilised by agro-processors are imported. Some of the home industries use recycled caps and bottles though several do purchase new caps and bottles. Extensive use is made of cellophane in the packaging of ground spices, coffee, and plantain chips. There is an inadequate use of packaging technology, despite the dramatic increase in the production of packaging products in the region. It would, however, appear that the availability of packaging technology and products in the region have consistently lagged the demand. Specific areas of complaint are cost, large minimum order quantities leading to the higher costs of carrying large inventories, long order arrival times, availability and variety.
3.6.13 Government policy on agro-industrv
Acknowledging that the agro-industrial sector in Grenada is in its embryonic stage; the Government has enunciated a policy strategy to fully develop industries based on utilization of local/indigenous raw materials and to strengthen the backward linkages into both the traditional and non-traditional components of the agricultural sector. One aspect of the strategy is to encourage the commercialization of cottage industries.
In this regard, the Government has designated the Grenada Produce Chemist Laboratory (PCL) as the instrument to guide, encourage, and direct agro-industrial development. Accordingly, the activities of the PCL are inextricably Linked to activities taking place in programmes such as the Agricultural Rehabilitation and Crop Diversification Project, Model Farms and Government's overall prograrnme for strengthening the Traditional Agricultural Sector.
3.6.14 Institutional assistance
A number of public sector, private sector, and regional and international institutions which lend support to agro-industrial enterprises have been identified. These are:
A. Public sector institutions
The national institutions making up the agri-business sector in Grenada are the following:
1) Grenada Produce Chemist Laboratory: Within the framework of Government policy, the PCL has been allocated the following functions:
2)Marketing and National Importing Board: The MNIB is a Statutory Government
Body under the administration of the Ministry of Trade. Its primary mandate is to purchase and market locally produced agricultural commodities and products (excluding the traditional export crops).
3) Agricultural Rehabilitation and Diversification Project: This project is designed to revitalize Grenada's agricultural productive capacity through crop rehabilitation, expansion and diversification. This also involves improvement of marketing techniques, agro industrial development, infrastructural development and technical assistance.
4) Grenada Food and Nutrition Council: The GFNC promotes the use of nutritious local foods and provides dietary advice to Grenadians. It disseminates technical information on how to prepare, store and use local food products by using radio, bulletins in schools and news sheets.
5) Grenada Bureau of Standards: The GDBS is an institution established to promote higher standards in goods, services, practices and processes. High on its agenda is a plan for implementation of standardization and quality control in the food industry.
B. Private sector institutions
The principal private sector institutions are the following:
1) Grenada Chamber of Industry and Commerce: The Chamber is engaged in a number of activities to meet the needs of its members. These include:
2)Grenada Community Development Agency: GRENCODA is a non-profit, non governmental agency aimed at assisting (technically and financially) the development of rural communities in particular. GRENCODA focuses its attention mainly on the needs of women, small farmers, agro-processors, agricultural workers, the unemployed and other marginal groups.
C. Regional and international institutions
There are several regional and international institutions lending support to agroindustry:
1) Inter American Institute for Cooperation in Agriculture: IICA plays a major role in activities such as agricultural policy analysis and planning, technology generation and transfer, marketing and agro-industry development, organization and management for rural development. The institute es presently involved in projects for expanding our raw material base in papaya, pineapples, ginger, etc.
2) Caribbean Agricultural Extension Project: The CAEP has as its major thrust the strengthening of the national agricultural extension services and other age-business related activities through technical assistance.
3) Small Enterprise Assistance Programme: SEAP offers technical assistance and training.
4) Canadian Training Award Programme: CTAP provides training.
5) Caribbean Technological Consultancy Services: CTCS Network is operated by the Technical Cooperation Unit (TCU) of the Caribbean Development Bank, in cooperation with regional and national institutions, laboratories and industrial enterprises. CTCS Network helps to solve planning and production problems quickly by providing Caribbean expertise at an affordable cost.
6) East Caribbean States Export Development Agency: The seven member OECS territories agreed to the establishing of ESCEDA, an Export Marketing (Development) Agency, whose primary objective is to increase exports by offering technical assistance to exporting companies and organizations in member states. Technical assistance includes: product design, label/package design, training, test marketing, trade missions, etc.
7) Caribbean Industrial Research Institute: CARIRI offers a range of services: training, advice on technology and equipment, development and adaptation of technology, and equipment fabrication, to mention a few.
D. Other laboratory-based institutions
The other PCL's in the region, as well as the IAST and University of Guyana, SRC and the Bureau of Standards of Trinidad, Barbados and Jamaica, contain a wealth of resources which can be tapped.
3.6.15 Financial incentives
The vast majority of small industrial entrepreneurs do not enjoy "approved status" as conferred under the Fiscal Incentives Act. In addition to this, the measures imposed by the Ministry of Trade to regulate the importation of agroprocessed products are deemed inadequate by local processors.
3.6.16 Ministry of Trade (MOT)
The MOT has implemented a national policy to protect its local manufacturing enterprises, in the form of a "negative list" which requires that some items must obtain a licence prior to importation. This list includes items such as grapefruit, tomatoes, carrots, ground spices, jams and jellies, processed pork products, etc. Some items are on a quota arrangement and others are simply monitored.
3.6.17 Grenada Industrial Development Corporation (GIDC)
GIDC is a Government agency established to facilitate, promote and stimulate the growth of industry in the country. Its primary task is to recommend to the
Government the incentives in the forms of fiscal concessions to be granted to enterprises that meet the prescribed criteria. Local manufacturers who have been granted "approved status. under the Fiscal Incentive Act (1974) are exempted from payment of import duties and other levies on importation of plant, machinery and raw materials necessary for the operation of their enterprises. Enterprises that are not incorporated and as such do not qualify for duty free status can apply for exemption of payment of import duties under the Customs Ordinance.
Locally produced confectionery items (guava cheese, jam, jellies) are exempted from value added tax (VAT). However, one aspect of VAT that has not been taken into consideration and which continues to pose a problem to local manufacturers is payment of VAT on locally produced inputs. Most of the cottage type industries are not affected by the Business Levy due mainly to low rate of sales turnover.
3.6.18 Technical. economical and organizational aspects for development of small agroindustries - Overview of problems
A recent survey of agro-processing firms in Grenada provides a useful synopsis of constraints faced specifically by the agro-processors:
This synopsis serves to underline the point that, particularly in developing countries, facilitating business expansion requires the removal of a complex network of impediments that combine to hinder public and private sector efforts to stimulate development.
3.6.19 Requirements for development
Cottage industries constitute an important area of pioneering activity, in as much as they represent the initiatives taken essentially by local people to begin what could be called "commercial processing" of locally available agricultural raw materials. Requirements for future development are:
A.Raw material base
1)The introduction of technological innovation that would ensure higher production and productivity, thus providing for adequate supply of raw materials for processing.
2)The organization of agricultural production to ensure that what is actually required for processing is indeed what is produced. In addition, production must be planned and organized along commercial (orchard) lines, and not in an adhoc form, as presently.
3)The supply of agricultural materials must be on a guaranteed and consistent basis. This will necessitate the establishment of formal contracts between farmers and processing enterprises. Regular supply of raw materials may necessitate the establishment of collection depots at strategic points in the state; this will definitely serve as an incentive for farmers to produce more.
4)The agricultural sector must be planned, as the best means of knowing what raw materials will be available and in what quantity.
B. Equipment and technology
The following criteria is necessary for the selection of suitable technologies for small scale operations:
a)Equipment should be relatively low cost and compatible with
the economic resources of the user.
b)Equipment should allow for proper maintenance and repair by
users or at least at local level.
c)As far as possible, the equipment should utilise alternative
energies.
d)Equipment should be flexible/versatile.
e)Techniques should allow for easy assimilation and mastering by
user.
C. Financial incentives
There is an urgent need for a system that would confer benefits to the "neglected." producers in the form of an incentive package that would guarantee longer tax holiday periods, speedy reimbursement of duty and taxes paid on locally purchased materials, and a reduction in Government bureaucratic delays.
D. Marketing
The development of a viable export market to sustain local agroindustrial development will necessitate the fulfillment of a number of preconditions:
a)The identification of target markets preferable within close
proximity to Grenada, yet having a high effective purchasing
power.
b)Promotional activities in the target markets.
c)The establishment of market intelligence units to monitor the
performance of local products, and the changes in consumertastes
and preferences.
d)The provision of export support services to include credit,
guarantees and market information.
e)The establishment of export, trade and promotion facilities
locally and abroad.
f)The elimination of bureaucratic" "red tapes. which
serve only to hinder exporting activities.
g)The production in sufficient quantities and on a regular basis
so as to satisfy orders and, as such, make export economical.
E. Training and technical assistance
There is a need for training and technical assistance in the following areas:
a)Equipment operators, technicians, and mechanics in the
operation, maintenance and repair of specific equipment.
b)Establishment of testing facilities for adaptive research on
imported and repair of specific equipment.
c)Creation of a database to accommodate an inventory of equipment
park (number, type, size, age etc.) of existing equipment, and
repair/fabrication shops capability.
d)Training of local personnel to undertake export marketing
activities
e)Training in raw material procurement practices, quality
control, packaging and presentation of products.
3.6.20 Recommendations for intraregional activities
The major institution for research and development in food processing in the region are the faculties of agriculture and engineering of UWI, IICA, the FLIT of SRC, CARIRI, IAST, and the PCLS of the OECS countries. The need for an information support base for research, development and commercialization has been the subject of much attention. Given the structure of the sector with a multiplicity of small and micro enterprises and the physical separation of the islands, it is evident that synergy can only be achieved by communication.
Several initiatives exist in the region for information networking and dissemination. It should not be necessary to create an entirely new arrangement but only to strengthen and expand an existing information net to provide for the food processing sector. A paper entitled "Food Processing Technologies in the Commonwealth Caribbean" lists R and D priorities for the regional institutions (See Appendix 1) to avoid duplication and to maximize possible funding through the development cooperative research projects.
3.6.21 Proposal for development and strengthening of small commercial enterprises
A. Background and justification
Grenada's food import bill is in the vicinity of EC$ 60 million, which is 20 per cent of total imports and 46 per cent of imported consumer items. The primary elements of the food import bill are:
For a country that is predominantly agricultural, both the size and composition of the food bill is totally unacceptable. A small but significant proportion of food import (6%) is comprised of processed agricultural products, most of which can be produced locally or at least substitutes can be found. There already exists a number of food processing enterprises of which 76 per cent are of the cottage industry and home based operations, contributing approximately 6 per cent to the total industrial output of Grenada. Development and strengthening of small enterprises, especially in the rural areas (53 % of enterprises are located in rural Grenada) will therefore result in increased earnings, reduce the level of unemployment, the food import bill and post harvest losses (conservatively estimated at 9 766 ton p.a., with a value of EC$ 4 million).
B. Objectives
1)To furnish and equip existing small enterprises so that they
can improve on the type and scale of operations.
2)To strengthen the ability of these small enterprises to
undertake activities leading to consistent, well packaged
products.
3)To utilise the excess "abandoned" fruit throughout
Grenada.
4)To generate additional employment especially among women in the
rural areas (the primary raw material producing areas).
C. Programme of activities
Technical visits to generate information on the specific technical requirements for each enterprise. Identification of requirements (training, equipment, products with good development potential).
D. Training requirements
A training component to develop skills in the following:
E.Equipment requirements
Much of the equipment required by the various small enterprises fall into the following categories: blenders, choppers/slicers, pulpers, citrus juicers, mills, heat sealers, scales, thermometers, pH meters, refractometers, hydrometers (alcohol), stainless steel pots and buckets, stainless steel strainers, ladles, scoops, tongs.
F. Products with good development potential
Product lines to be designed to include products with good development potential. According to a recent survey, these include: candied nutmeg pods, snack foods from plantain, breadfruit and bananas, herbal teas, pepper sauce and seamoss, fruit juices, etc..
Table 3. List of research and development priorities
| CROP/PRODUCT | FOCAL POINT | POSSIBLE COLLABORATORS |
| Bananas | PCL St. Vincent and the Grenadines | PCL Grenada, CARIRI, Windban |
| Citrus Dominica | PCL Grenada | CARIRI, PCL St. Lucia, |
| Coconut | PCL Dominica | SRC, PCL St. Vincent |
| Cocoa & Coffee | CARIRI | SRC, PCL Grenada |
| Fruits | FTI/SRC | PCL Antigua, Grenada Montserrat, CARIRI, CARDI |
| Root Crops | IAST | UWI Food Tech Dept. SRC |
| Sea Food | To be determined | IAST, CARIRI, SRC, PCL Grenada, Jamaica, Belize |
| Spices | CARIRI | PCL Grenada |
| Vegetables | SRC | PC Antigua, CARDI |
Table 4. List of food sector support priorities
| PRODUCT/AREA | FOCAL POINT | POTENTIAL COLLABORATORS |
| Monitoring/Control | UWI Faculty | UWI Fac. of Eng., Food |
| Pesticides | of Agriculture | Tech Dept., PCL St. Lucia |
| Regional Center for Engineering Design | UWI Fac. of Eng. | CARIRI, SRC, IAST |
| Information Support System | CARIRI | CARIDI, UWI, SRC |
Table 5. List of commercialization priorities
| PRODUCT/PROCESS | HOST INSTITUTIONS |
| Banana figs, raisins, purees Grenada | PCL St. Vincent and the Grenadines, |
| Coconut dehusker | CARIRI |
| Composite/Wheatless Flours | IAST |
| Multifruit Intermediates | CARIRI |
| Small Scale Equipment | CARIRI |
| Spice Extracts | CARIRI, PCL Grenada |
| Aloe Vera | CARIRI, PCL Dominica |
Source: Food Processing Technologies in the Commonwealth Caribbean, by Hollis Charles (May, 1991).
The agro- based cottage industry in guyana
Mr. Ismay Sam Head of Commercial and Marketing Policy Unit, New Guyana Marketing Corporation
3.7.1 Summary
Agro-processing in Guyana began a long, long time ago, when preservation was done mainly by sun-drying, smoking, roasting, boiling and tanning. Later into modern times, these unsophisticated technological methods evolved into slightly less unsophistication as housewives, with the help of kitchen appliances, dried toot crops and plantains to prepare cereals and flours, and processed their own cooking oil, jams, jellies, cassava products and a range of other products for use in their kitchens. In those days, processing was done primarily as a means of preserving the excess produce from their farms and kitchen gardens; providing variety in the family's diet; saving in on hard-earned cash and, in many instances, merely expressing cultural preference.
When Guyana became independent in 1966, the Government, through a commitment to promote greater consumption of indigenous foods, and in an effort to increase production and reduce the food import bill, placed import restrictions on several food commodities. Restrictions were first placed on fresh and dried fruit, salted fish, milk, cheese and margarine, and later extended to include wheat flour and nonindigenous cooking oil.
These restrictions on food imports resulted in greater use of indigenous commodities, such as rice, yams, cassava and local fruits (carambola, gooseberries, maraca, etc.) and the stimulation of an embryonic local agro-processing industry dominated by women. The farmers were also encouraged to increase the production of orchard and root crops. Seedlings and other planting materials were distributed by the Ministry of Agriculture, either free of cost or for a minimal fee.
Several opportunities were made available to women to widen and improve their skills in food preservation, with a lot of emphasis being placed on fruit processing. Experiments were carried out with a range of fruits, vegetables and root crops; there were innovations with flavours, sauces and other products. Organizations and agencies, such as the Community Development Division, the Carnegie School of Home Economics, the Guyana School of Agriculture (GSA), the Guyana Federation of Women's Institute and the Women's Revolutionary Socialist Movement (WRSM), conducted country-wide demonstrations and promotions through newspaper publications and leaflets, in an effort to encourage women to become involved in the production of commodities to replace those that were banned, as well as in income-generating exercises.
The industry has expanded over the past twenty-five years or so, but considerably so since 1970, with the institution the "Feed, Clothe and House Yourself" programme by the Government and an intensive programme of small business development, with a lot of emphasis being placed on locally developed and adapted technology. Interestingly enough, and worthy of note, is the fact that the industry has moved from being women-dominated to include men, either as partners or as sole managers/owners.
Several Government and non-Government organizations became involved in assisting in the establishment and development of small agri-business enterprises. Small entrepreneurs have been able to utilize the services offered by the development finance corporations, such as the Institute of Private Enterprise Development (IPED) and the Guyana Agricultural and Industrial Development Bank (GAIBANK) for financing their operations. The Institute of Applied Science and Technology (IAST) provides services in research and development in the area of agriculture engineering and food science technology.
Through international programmes, such as the Food and Agriculture Organization (FAO) and the United States Agency for International Development (USAID) PL 480 programme, the cottage industry has benefitted from technical, technological and financial assistance. The cottage industry, however, continues to be affected by several problems. Among them are:
3.7.2 The present status of the agro-based cottage industry in Guyana
A. Overview
The 1970's marked the turning point for the cottage industry in Guyana. Government's ban on dried-fruit, for example -an essential ingredient of the traditional Guyanese "Back" cake- left many a housewife eager to find a suitable replacement. This resulted in the production of local dried-fruit prepared mainly from carambola, and, to a lesser extent, dunks, maraca, bilimbi, gooseberry, and many other fruits. It was during this time that the carambola industry developed and several large orchards were established. In the processing industry, the carambola had the highest preference, over other fruits among the housewives, because it was easier to prepare and the end product gave more returns on a weight basis.
Initially, many women began production to satisfy their needs at home, but soon many of them recognized an opportunity to earn some money, and began producing additional quantities to be sold in the rural and city markets. Today, foreign raisins, currants and prunes are a rarity in the local market-place. Apart from satisfying local needs, this particular commodity is enjoying a lively export trade, saving foreign exchange hitherto spent on importing foreign dried-fruits, and bringing in foreign currency through its exports.
The cottage industry today has come a long way amidst the problems it has continued to face. These setbacks, however, will be addressed in another section of this paper. Despite the constraints, the industry has also expanded in terms of the range of agricultural commodities currently utilized, the variety of products being made (Table I) and volume output. Today, most of the cottage operations are privately owned and operated by women, by men or jointly.
3.7.3 Raw materials. categories and products
It is estimated that less than 10 per cent the annual production of fruits, vegetables and root crops is channeled into the processing industry. Because the production of agriculture commodities in Guyana is highly seasonal (Table II), most of the processing activities are carried out during the peak season when produce is available in abundance and at reasonable costs. Table I shows the types of produce available and the quantities. However, too many of the cottage industries operate away from the production centres, thereby requiring that the raw materials be transported to the processing sites. This results in large amounts of waste due to poor packaging and handling techniques and lack of proper storage facilities.
3.7.4 Fruits
Fruits are used mainly in the production of jams, jellies, juices, nectar and dried fruit. However, among the most popular fruits used are the carambola, guava, pineapple, tamarind, cherries and passion fruit. Golden apple, bilimbi, gooseberries and unripe mango are stored in brine or blended with pepper and spices and made into pepper sauces and achars. Hot peppers are usually stored in brine or blended with fruits and vegetables or dried. Large quantities of these products are sold locally, while smaller quantities are exported.
Almost every rural household processes some of the fruits that are available for use in their homes, for relatives and friends in the city or overseas. However, it is only a fraction of the total production and invariably the rest is left unharvested.
More cottage industries need to operate within the production areas; this would assist in income generation for the off seasons and generally improving the standard of living.
1) Carambola: As stated earlier, the carambola is a very versatile crop. The dried fruit is in so much demand both on the local and export market that, apart from the hundreds of cottagelevel processors, several commercial operations have become involved in its production. The dried fruit is further chopped and processed into ready to-use cake-mixes, either plain or rum-flavoured or candied to be used as cocktails or ice cream toppings. Barbique sauces and table sauces are by-products of the dried fruit process. The fresh fruit is used to make juices, concentrates and relishes.
Even though the carambola is so widely used in Guyana as a fresh fruit and in the processing industry, tonnes are left unharvested annually, especially in the Pomeroon, a riverian area. This commodity has great potential and a lot more needs to be done in the area of product development.
2) Guava: Another widely used commodity, the guava products -mainly jams, jellies, nectars and "cheese' (leather)- are readily accepted and sold widely on the domestic and export market. Candied guava is produced on a very small scale as it is not very popular.
3) Pineapple: As a fresh fruit, the pineapple is a major export commodity. However, pineapple jams and juices are produced in large quantities for the domestic market. Pineapple chunks are primarily an export product.
3.7.5 Plantain and root crops
Of all the root crops, the cassava is the most versatile in the processing industry. It is used in the production of cassava starch, farine, cassava bread, tapioca and casareep. Cassava starch is utilized in the bauxite industry, cigarette production and in the manufacture of corrugated cartons. However, there is very little processing done with the other root crops, such as eddoes and yams, except for the production of flours, which are not normally utilized on a large scale.
The plantain is another widely used commodity in processing activities. It is dried and ground into a flour which is mainly used as a waning and pre-weaning food. The flour is also utilized by the snack-food manufacturers in the production of breakfast flakes and biscuits. The plantain chip, a popular salted snack, is one of the earlier products of the cottage industry and has remained popular until today. The chip is usually packaged in various sizes of plastic bags and sold in school canteens, on the streets, in confectionery shops and supermarkets.
3.7.6 Vegetables and seasoning
Very little processing is done with vegetables in Guyana. Tomatoes are utilized in large quantities in the production of ketchup and purees, while small quantities of pumpkins are used in making pickles and jams. Herbs and seasonings, such as thyme, sweet basil, celery and eschallot are dried and powdered and utilized mainly in the manufacture of table, seasoning and barbecue sauces, casareep and curry, and are also exported.
3.7.7 Packaging materials
Within the agro-industrial sector, the main types of packaging materials used are bottles, plastic bags and containers and cardboard boxes. Cardboard boxes and plastic bags are produced in Guyana. In many cases, bottles are recycled within the cottage industry but the caps usually cannot be re-used; therefore, new caps have to be imported or substitutes found. Many a micro-processor cannot afford to import the quantities required to satisfy an order and this greatly affects their business. The type of plastic bags produced in Guyana is not quite suited for the needs of the processing industry and the suitable material is sometimes imported. These setbacks severely affect the activities of the industry, resulting in reduction of output or in production being carried out on the basis of availability of packaging material or on the amount of storage space, depending upon the type of product.
3.7.8 Financing marketing systems
A. Financing
There are several development finance corporations and lending agencies in Guyana. However, because of the collateral required and the high interest rates, many of the micro-processors -particularly rural women- do not qualify for loans from these institutions. The Institute of Private Enterprise Development (IPED) offers a soft-line loan facility to small entrepreneurs. Several persons in the industry have benefitted from such loans (Table III).
The Women's Affairs Bureau, a Government organization, operates a revolving loan fund initially financed by UNICEF. Women involved in cottage operations can borrow up to G$ 10,000. The interest rates are 6 per cent on the reducing balance.
B. Marketing systems
Most of the marketing of products from the cottage industry for the domestic market is usually done by the processor or her/his employee. There is no formalized marketing system or commercial enterprise which acts as agent for their products. The processors or assistant would make contact with the business places who would place their orders directly. The "New. Guyana Marketing Corporation, apart from facilitating the exportation of fresh fruit and vegetable, also works closely with processors, advising them on general marketing requirements and market opportunities. Just only three weeks ago, NGMC assisted a micro-entrepreneur to stage an exhibition on dried, ground, powdered, fermented and related agricultural produce that could be marketed locally and overseas.
3.7.9 Equipment and technology available
A. Equipment
The cottage industry mainly utilizes simple pieces of equipment for their processing activities. In many cases, there is need for better equipment. Through agencies such as IPED and USAID-PI 480, several processors have received equipment. Recently, through a loan from IPED, a processor was able to acquire a peanut sheller and grinder. Through WAB, several women's groups received equipment, such as mixing bowls and all purposes mills for their processing activities. However, the industry needs more simple but useful equipment such as extractor, sieves, liquefiers, dryers and refractometers.
B. Technology
The technology available today in the processing industry, especially at the cottage level, though much improved, needs more work done in the area research and product development. For example, almost all our fruits can be processed into jams, jellies, chunks, dried fruits, pulps, etc. But at present, perhaps because of ignorance of the possibilities and lack of affordable technology to advance these possibilities, tonnes of fruits go waste, unused, dumped or misused. The same could be said for vegetables. The recent exhibition by a micro-processor (discussed above) suggested, for example, that dehydration by sunlight could save millions of dollars. Bora, boulangers, pumpkins, etc. taste good upon rehydration. The spoilage and waste in far flung highly productive areas of the country need not be.
The Institute of Applied Science and Technology (IAST) has been involved in research development within the industry, but they need to be more aggressive and relevant in what I consider to be this extremely important area of agro-processing and food preservation. And this is but the tip of the iceberg in the vast possibilities that are dormant and untapped.
Training institutions, such as the Carnegie School of Home Economics (CSHE) and Guyana School of Agriculture (GSA) and organizations, such as the WRSM and WAB have all been, in very piecemeal fashion, involved in the dissemination of new or improved processing techniques over the years, and the advancement and development of relevant, affordable technology and technology transfer possibilities. During 1990, the NGMC, in collaboration with FAO, conducted training sessions in "Small Scale Processing Techniques" using simple equipment, in three of the administrative regions of Guyana. During these sessions, the consultant sought to improve upon many of the existing processing techniques, as well as introduce new ones.
3.7.10 Participation of women
As was mentioned earlier, agro-processing, particularly at the cottage level, has been traditionally dominated by women. Unfortunately, there has been no record of the undoubtedly very significant contribution many of these women have been making to the national economy in this important area. Many of the operations run by women are small, because financial constraints do not allow them to expand. A large percentage is not eligible for loans from many of the lending agencies. A look at Table III reveals that of the 458 loans approved by IPED, 343 were given to men, while 28 or 6 per cent was for women, and only 34 were for the agro-industry. There is the need for much more soft-line credit for women to assist them in expanding their business.
Table 1. Loans approved by IPED
| 1990 | 1989 | 1988 | 1987 | 1986 | |
| Total loans approved | 458 | 303 | 165 | 102 | 25 |
| Loans for agro industry | 34 | 26 | 4 | 5 | 3 |
| Classificationof recipients: | |||||
| Women | 28 | 20 | 9 | 17 | 7 |
| Men | 343 | 199 | 87 | 73 | 18 |
| Joint (women and men) | 87 | 84 | 69 | 12 | - |
Source: IPED Report and Accounts 1990.