Panama has come a long way in boosting the yield per acre in various Ag industries yet it is still far behind and needs a great deal of improvement. That too will change.
It is not the poor who are taking advantage of Central America’s vast agricultural potential but those who are able to access technology and financing.
The is one of the sectors with the greatest demand and growth opportunities, but funding and intervention is needed in order to gain a greater advantage.
Lucydalia Baca Castellon conducted and interview for Laprensa.com.ni with Ernesto Gallo, professor at the Escuela Zamorano de Honduras, who says that agriculture is not an activity for poor people, but one of the most difficult and demanding businesses there is.
Gallo believes it is “… absurd to accuse poor producers of not using more technology to enhance their productivity, when it is obvious that they lack the resources to access these technologies, and that banks, for reasons which they consider reasonable, are not able to grant the funds they need to help them obtain it. ”
With regard to areas where there are the most opportunities for the agro sector in Central America, Gallo says, “it is in what I call the 12 F’s: Food, fuel, forestry, flowers, furfural, F & F, fun, fools, pharmacy, fish, fiber and feed. There are some products that are not necessarily foodstuffs. These are fibers, decorative flowers, pharmaceuticals, agroturism, fish, and forestry “.
Gallo makes a case for bringing producers together and ensuring that they “use the best technology, the best seeds, the best materials and working capital to guarantee the harvest and also that it is sold and at a good price”. As long as producers are not prepared in this way banks will not provide financing.
“Business is tough and banks have a number of international constraints when it comes to lending money. They can not give lightly,” he said. Gallo says that entrepreneurs through partnerships with producers should provide the technology needed to “produce more and produce cheaper”.
“… producers should get together, because in a group they can negotiate better and sell more.” Companies should put into action corporate social responsibility programs. “For example, a large mill should work with its suppliers. A large corn processor should work with farmers. ”
Source: laprensa.com.ni