GMC, National Hardware (Guyana) Limited seal $66.3M contract
- for procurement of refrigerated trucks and containers
Georgetown, GINA, February 3, 2010
The Ministry of Agriculture through Guyana Marketing Corporation (GMC) today sealed a $66.28M contract with the National Hardware (Guyana) Limited for the procurement of four refrigerated trucks and five refrigerated containers for use by farmers and exporters.
The procurement of the material is a component of a project entitled “Improving the Cold Chain for Non-Traditional Agricultural Produce” and is financed through a programme supported by the Venezuelan Government at a cost of US$859,600 to assist Guyana with its diversification and modernization programme and to expand the non-traditional agriculture sector.
Agriculture Minister Robert Persaud witnessing the signing of a contract to improve the cold chain for non-traditional agricultural produce. Signing for the Guyana Marketing Corporation is Nizam Hassan, General Manager (centre) and for National Hardware, Mohamed Razack, Sales and Marketing Director
The project's activities are closely supported with country-led processes reflected in Guyana's National Development Strategy (NDS), Poverty Reduction Strategy Paper (PRSP) and the National Competitiveness Strategy (NCS) which all state the need for agricultural diversification, market-led change, and small-scale enterprise development directed at poverty reduction and rural area growth and development.
Witnessing the signing of the agreement were Minister of Agriculture Robert Persaud, Venezuelan Ambassador to Guyana Dario Morandy, Venezuela's Counsellor, Carlos Pestana-Macedo and representatives of GMC and National Hardware Guyana Limited.
Minister Persaud said the signing of the contract is significant for Guyana since the country is trying to build a non-traditional export sector.
He said while his Ministry is restructuring and modernizing the traditional sector, the institution is at the same time building new sector to diversify agriculture and the country's economy.
The Agriculture Minister said that the intervention being made in the procurement of the trucks and refrigerated containers was never in existence for the facilitation of non-traditional exports and recognizing that it is a new sector (non-traditional sector), the Agriculture Ministry was able to source the funding.
Minister Persaud noted that investment being made would benefit cash crop farmers who supply export markets since their produce will be transported from their farms to the processing facility. It will in turn improve the livelihood of poor rural communities especially small-scale producers by increasing productivity, developing market strategies and business plans for cold chain development.
The project will include: the purchase of field crates for use by farmers to minimize post-harvest losses from the field to the pack house; the construction of a produce collection area for farmers' produce and the building of a fresh produce pack-house at Timehri International Airport, which will be used by producers to prepare produce for export. The operations of the project will be highly subsidized by government to ensure affordability for farmers.
Agriculture Minister Robert. Persaud and Mr Dario Morandy, Venezuelan Ambassador to Guyana (second left) observe the signing of a contract to improve the cold chain for non-traditional agricultural produce. Guyana Marketing Corporation's General Manager Nizam Hassan (second right) and Mohamed Razack, Sales and Marketing Director, National Hardware (right) sign on behalf of their respective company. Looking on (far left) is Venezuelan Counsellor Carlos Pestana Macedo
The Ministry of Agriculture, he said, will be collaborating with the private sector to develop an export facility.
He said with this investment the Ministry would also be able to put cold storage infrastructure at its two packaging locations at Sophia and Parika.
“This is very significant, it is one of the missing links we have had in terms of developing as it were the cold storage chain or export chain needed and farmers and exporters will tell you of the difficulties they would have faced in not accessing this type of service. They will get better value, better prices and certainly would allow greater export,” he said.
The Agriculture Minister also noted that during 2009 exports of non-traditional crops increased by 30 percent.
He said Government has implemented a massive agriculture diversification project and with this type of intervention will support such project.
The Minister explained that the role of the GMC has evolved over the years and as such it is an export facilitation and chief marketing agency for non-traditional export by linking producers with buyers.
“This is just a start up that the new GMC is doing. I am quite sure it will catalyse and it bring some energy and much more investment in the non-traditional sector as we move to diversify our national economy but more so to expand on the growth we are seeing in the non-traditional agriculture sector, the Minister stated.
The Minister expressed gratitude to the Venezuelan Government for its support adding that their contribution is a grant with no conditionalities.
Venezuela's Ambassador to Guyana, Dario Morandy noted that the Venezuelan government was happy with the cooperation agreement since it is (non-traditional sector) an important area for development.
He said that both countries have been cooperating over time on many investments which will be continued in the near future.
Where infrastructure is not yet developed by the private sector, the Ministry of Agriculture in recent times has been providing same through its agencies and departments. In relation to marketing of non-traditional agricultural produce, the Ministry through the GMC has made two packaging facilities available for use by farmers and exporters. These are at Parika and Sophia. In 2009, 2,031 tonnes of fresh produce was prepared for export at these facilities.
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