Agriculture’s contribution to economy dips

By Marlon Madden The Central Bank of Barbados is warning of adverse impacts on the island’s agriculture industry as temperatures continue to rise. That caution came as the sector’s contribution to the economy declined for the first six months of this year when compared to the same period last year, despite an increase in overall production. For the January to June period, the sector contributed $44.8 million to gross domestic product (GDP), compared to $50.4 million during the same period last year. Although challenged by adverse weather conditions, the Central Bank reported, agriculture production increased during the review period. “Anomalous warm temperatures in the Atlantic promise more frequent and intense storm activity. The forecasts of rising global temperatures indicate the likelihood of stronger storm activity which can negatively impact food crop production and damage infrastructure,” the Central Bank warned in its latest economic report. “It is therefore imperative that efforts towards ensuring food security are continued and disaster mitigation and management systems are fortified. The focus on attracting climate-related financing is expected to yield results over the medium term and will assist in improved climate resilience,” it added. Presenting the economic report on Thursday, Governor of the Central Bank Dr Kevin Greenidge indicated that during the first six months of the year, vegetable and fruit crop output increased by 15 per cent, led by chives, thymes, cantaloupes, and okras. “The increased output was offset by declines in tomatoes, lettuce, eggplants, watermelons, and hot peppers. Increased root crop production was led by sweet potatoes, countering a decline in yam production. Milk production increased by 2.7 per cent assisted by increased herd sizes,” he said. Greenidge reported that fish landings declined due to scarcity brought on by the influx of sargassum seaweed and historical overfishing. Meanwhile, chicken production benefited from heightened economic activity, growing by an estimated 3.5 per cent by the end of May 2023. “Overall meat production, not including eggs and fish, increased by 2.9 per cent during the first five months of the year,” he added. During the review period, sugar production expanded by 9 per cent when compared to the prior year. “Excess rainfall late last year improved cane quality which, when coupled with an early start to the harvest, facilitated higher crop yields and an expansion in sugar production. New mechanical harvesters also led to shorter downtimes in the fields and at the factory, resulting in a crop of approximately 7 230 tonnes of sugar produced for the season,” the Central Bank reported. Sugar production contributed an estimated $4.4 million to the economy during the first six months of this year, compared to an estimated $4 million for the same period in 2022. Explaining the lower GDP contribution of the agriculture sector despite increased agricultural output, the Central Bank Governor said it was based on the selected items that were reviewed. He said that given the change in consumer tastes and consumption patterns, as well as the technology being used in the sector, there was a need to change the basket of goods on which data was collected and analysed. As such, he said Central Bank officials were scheduled to have a meeting with representatives from the Ministry of Agriculture and the Barbados Statistical Service, from which the Bank sources its data, to review how data is being collected on the agriculture sector. “So what we have had is that the structure of the agriculture industry in Barbados has changed with many more products coming on stream, but the basket remained constant for the past three decades or so. So we need now to go back and revisit that basket and see what outputs are being produced that are more representative of consumption and production patterns in agriculture,” explained Greenidge. marlonmadden@barbadostoday.bb]]>