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BY BALFORD HENRY Observer writer balfordh@jamaicaobserver.com
Wednesday, November 19, 2008
The government has decided to go ahead with the creation of the proposed Jamaica Dairy Development Board (JDDB) to develop policy and coordinate its milk production enhancement programme.
TUFTON... the dairy sector is too important not to have this framework for development
"Since I came on board as minister, we have decided that the dairy sector is too important not to have this framework for development," Minister of Agriculture Dr Christopher Tufton told the Observer Friday.
Dr Tufton has now re-tabled in the House of Representatives the Jamaica Dairy Development Board Act (2008), which seeks to provide for the establishment of the board as a statutory authority.
Subject to the general directions of the Minister, the primary responsibility of the board will be to develop policy and coordinate government's milk production enhancement programme.
Its main objectives include promoting efficiency in the production of milk and other dairy products and mobilising resources for and on behalf of the dairy sector.
This is not the first time that the bill is being tabled.
Former Minister of Agriculture, Roger Clarke, chaired a Joint Select Committee which started reviewing a similar bill in April, 2005. However, the committee met only twice that year and by the following year got stopped in its tracks by a number of controversial issues.
Clarke had gone ahead and appointed the JDDB, with Dr Paul Jennings as its chief executive officer, prior to the passage of the bill. The board started making certain proposals, including a 75 per cent duty on imported ice cream, which it calculated would choke off most of the foreign imports and free up the market for an additional five to six million litres of local milk.
The Fair Trading Commission (FTC) raised concerns about a proposal to give the JDDB the authority to establish farm gate prices for local milk, after Nestle Jamaica, Lasco and the Jamaica Livestock Association (JLA) criticised the proposal.
There were also concerns about a provision in the bill that the proposed JDDB, with the minister's approval, would impose a cess on the trade in dairy products to finance its operations.
These differences led to the fade-out of the JSC and nothing had been heard about the bill, until Dr Tufton tabled it again in the House of Representatives two weeks ago. The new minister is convinced that this is timely and that he can successfully guide it through the House.
"This is a sector that has been in steady decline for the past decade and a half. In 1992, we were producing 40 million litres of milk, annually. We had a dairy population of just under 30,000 heads. Last year we did just under 14 million litres, and we have a dairy population right now of just under 16,000 heads," he pointed out.
He added that, during the period, over 500 dairy farmers have left the sector and the country has become overly dependent on imports.
Asked what he felt was the reason for the decline, Tufton blamed the policy of the previous government during the period.
"The government gave preference to trade in subsidised milk, primarily sourced out of Europe, because there was an abundance there which was heavily subsidised by the European government. The local farmers just couldn't compete," he responded.
He explained why he thinks the re-tabling of the bill is timely.
"Now we have a situation in Europe where their subsidies have been discontinued and Europe is, in fact, imposing on their countries quotas limiting output in protection of their dairy farmers. In fact, in one particular European country, they allocate quotas in regions of the country to ensure that the production can be taken off.
"We don't have the subsidised imports anymore but, at the same time, we have marginalised our dairy sector and we are now in a situation where we have to build back. So the bill is quite timely at this time," he said.
He stated that the tabling of the bill demonstrates the government's commitment to rebuild the dairy sector. This is being supported by a $140 million programme, which he announced in the budget, to help provide loans to dairy farmers.
"So, over the past year, a number of farmers have taken up these loans and grants. The ministry is now in dialogue re importation of additional stock, improving lab services for artificial insemination of eggs to expand the stock and all of this is supported by the bill," he went on.
"It is a long-term process but we need to cauterise the decline and then build up," he said.
However, the minister insists that for his ministry to succeed, the dairy industry has to become more united.
"There are too many institutions claiming to speak on behalf of the dairy farmers. There are about three currently. We need to bring dairy and beef farmers together. They say they are willing to work with us if we provide institutional- building support, but I want to be satisfied that they are united," he said.
http://www.jamaicaobserver.com/news/...MENT_BOARD.asp
Wednesday, November 19, 2008
The government has decided to go ahead with the creation of the proposed Jamaica Dairy Development Board (JDDB) to develop policy and coordinate its milk production enhancement programme.
TUFTON... the dairy sector is too important not to have this framework for development
"Since I came on board as minister, we have decided that the dairy sector is too important not to have this framework for development," Minister of Agriculture Dr Christopher Tufton told the Observer Friday.
Dr Tufton has now re-tabled in the House of Representatives the Jamaica Dairy Development Board Act (2008), which seeks to provide for the establishment of the board as a statutory authority.
Subject to the general directions of the Minister, the primary responsibility of the board will be to develop policy and coordinate government's milk production enhancement programme.
Its main objectives include promoting efficiency in the production of milk and other dairy products and mobilising resources for and on behalf of the dairy sector.
This is not the first time that the bill is being tabled.
Former Minister of Agriculture, Roger Clarke, chaired a Joint Select Committee which started reviewing a similar bill in April, 2005. However, the committee met only twice that year and by the following year got stopped in its tracks by a number of controversial issues.
Clarke had gone ahead and appointed the JDDB, with Dr Paul Jennings as its chief executive officer, prior to the passage of the bill. The board started making certain proposals, including a 75 per cent duty on imported ice cream, which it calculated would choke off most of the foreign imports and free up the market for an additional five to six million litres of local milk.
The Fair Trading Commission (FTC) raised concerns about a proposal to give the JDDB the authority to establish farm gate prices for local milk, after Nestle Jamaica, Lasco and the Jamaica Livestock Association (JLA) criticised the proposal.
There were also concerns about a provision in the bill that the proposed JDDB, with the minister's approval, would impose a cess on the trade in dairy products to finance its operations.
These differences led to the fade-out of the JSC and nothing had been heard about the bill, until Dr Tufton tabled it again in the House of Representatives two weeks ago. The new minister is convinced that this is timely and that he can successfully guide it through the House.
"This is a sector that has been in steady decline for the past decade and a half. In 1992, we were producing 40 million litres of milk, annually. We had a dairy population of just under 30,000 heads. Last year we did just under 14 million litres, and we have a dairy population right now of just under 16,000 heads," he pointed out.
He added that, during the period, over 500 dairy farmers have left the sector and the country has become overly dependent on imports.
Asked what he felt was the reason for the decline, Tufton blamed the policy of the previous government during the period.
"The government gave preference to trade in subsidised milk, primarily sourced out of Europe, because there was an abundance there which was heavily subsidised by the European government. The local farmers just couldn't compete," he responded.
He explained why he thinks the re-tabling of the bill is timely.
"Now we have a situation in Europe where their subsidies have been discontinued and Europe is, in fact, imposing on their countries quotas limiting output in protection of their dairy farmers. In fact, in one particular European country, they allocate quotas in regions of the country to ensure that the production can be taken off.
"We don't have the subsidised imports anymore but, at the same time, we have marginalised our dairy sector and we are now in a situation where we have to build back. So the bill is quite timely at this time," he said.
He stated that the tabling of the bill demonstrates the government's commitment to rebuild the dairy sector. This is being supported by a $140 million programme, which he announced in the budget, to help provide loans to dairy farmers.
"So, over the past year, a number of farmers have taken up these loans and grants. The ministry is now in dialogue re importation of additional stock, improving lab services for artificial insemination of eggs to expand the stock and all of this is supported by the bill," he went on.
"It is a long-term process but we need to cauterise the decline and then build up," he said.
However, the minister insists that for his ministry to succeed, the dairy industry has to become more united.
"There are too many institutions claiming to speak on behalf of the dairy farmers. There are about three currently. We need to bring dairy and beef farmers together. They say they are willing to work with us if we provide institutional- building support, but I want to be satisfied that they are united," he said.
http://www.jamaicaobserver.com/news/...MENT_BOARD.asp
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