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C. Role of Agriculture in the Economy
ANNEX III
Page 10 of 23
The agricultural sector constitutes the largest productive
sector in the economy of Guyana. It is more heavily dependent
upon this sector than any of the other more developed countries
of the Commonwealth Caribbean. The sector's share in gross
domestic product at current factor cost average 23% in 1960-73,
although it was generally on a declining trend over the period.
The surge in sugar prices in 1974-75 boosted the sector contribution
to an average of 31%, but, with sugar prices retracting in
1976, the sector's contribution declined to 25%. Real growth in
the agricultural sector has not kept pace with population growth
In the period since 1961, resulting in increasing dependence on
imported food. With the increase in import prices beginning in
1972, and the consequent pressure on the balance of payments,
the Government began to intensify its efforts towards selfsufficiency
in most food items.
This drive to increase production was subsequently
complemented with the imposition of strict controls on nonessential
imports. Price increases which would normally have
developed under these conditions were kept down by controls on
several basic items and there was energetic surveillance against
parallel market activities. Althotu,h the Government's accelerated
iroduction program is still in its emergent stage some limited
?rogress has been made in this drive for self-sufficiency in basic
food supply. This, together !iith the controls on consumer good
imports, is reflected in the decline of food imports as a per cent
of t.otal merchandise imports from an average of 13.5% per year in
1960-63 to an average of 6.53' in 1974-76, a trend which is
expected to be maintained into the foreseeable future.
By and large all major sectors maintained their relative
shares of GDP up to 1974. Since 1974, howiever, agriculture has
improved its position due to: generally favourable weather conditions;
the influence of government production stimulus; and favourable
export prices. Agricultural crops purely for domestic consumption
and livestock have not done as well as in the case of export
oriented crops. To date Guyana has been unable to produce moderate
cost poultry and swine rations even though the country has the
potential, given the ready available by-products from the sugar,
rice and coconut crops, complemented by some forms of ground
provisions and corn. Overall prospects in the case of cattle are
good, but the pace of development is being hampered by high
investment cost and constrained external market possibilities
Sluggish growth in agricultural production has been
associated with a decline in the proportion of the labor force
employed in this sector, from 45Z in 1950 to 31% in 1975.