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Local food production needs help

 

 

The goal should be getting the best deal for consumers and farmers as well The Government has lurched from one side to the other on the subject of food production and imports. There is a lot at stake here, and it is taking a simplistic view that can have serious consequences in the long run.

First of all, the debate is not only about pork, chicken and eggs but about other manufacturing and production sectors as well. Certainly, it’s about getting the best prices for the consumer, but also about supporting the local economy, local jobs and self-reliance.

In the latest move, Government has discarded and ignored the complaints from chicken producers who were having difficulty selling their produce because of cheaper imports. All it has done is to announce that anyone who wanted to could import pork, poultry and eggs.

Government has justified its action as getting the best deal for the consumer. That’s fine. But we cannot just abandon local farmers. A collapse of the local food production industry will have serious consequences for jobs and for the economy.

There are many things Government can do instead of just turning its back on the problem. One thing is to settle is the question of whether local producers are able to produce at a reasonable level of profit or not in the current situation. So far the two sides have stated opposite views and we don’t know where the truth is. If producers are making exorbitant profits, then competition will force them to bring down prices. But if they are already at a minimum margin, as they argue, cheaper imports flooding the market will drive them out of business.

The best deal for the consumer is not flooding the market with imports but enabling local farmers to produce cheaply enough so that they can compete. In other words, it is about getting the best deal for consumers and for farmers too. This should be the Government’s goal.

The farmers have stated their case, But they feel they have been ignored. In news reporting this week, SBC television failed to give a comprehensive view of their situation. It carried only a brief piece from a long interview with the farmers’ representative, Serge Benstrong, but gave much more time to the Minster responsible for agriculture, Joel Morgan, to state the government’s position.

The farmers have made many points. They argue that retailers take a larger share of the profits on sales than producers get, and that assistance which was supposed to be provided to them has not worked out.

But the issue boils down to the cost of production in Seychelles. Farmers point to the high prices for feed and steep operating costs, including for labour, fuel and transport. Local farmers will never be able to compete with produce from huge countries such as Brazil without help.

The question is whether we help local producers or not? The goal of self-sufficiency in food production has been loudly proclaimed. Unless we are ready to abandon this principle and leave farmers to their fate, we should take another look at tackling costs. Abandoning local producers and going for total dependency on imports can have dire consequences and end up costing the country more. If we extend the debate to other manufacturing sectors, we will realize that jobs and local business activity are at stake.

Source: Regar 3-5-10