Farm theft a major concern as DBJ on-lends $1B to sector
Published:Friday | July 22, 2022 | 12:05 AMChristopher Serju/Senior Gleaner Writer
AS THE Development Bank of Jamaica (DBJ) prepares to on-lend $1 billion to farmers through a network of approved large and microfinance institutions, its Managing Director Anthony Shaw has expressed concern about the major risks posed by praedial larceny.
Addressing Tuesday’s launch of the DBJ AgriBiz loan facility at the Ministry of Agriculture and Fisheries, at Hope Gardens, St Andrew, Shaw noted that he would be placing priority on the agricultural sector as the new managing director of the development bank. However, he admitted that the perennial issue of praedial larceny posed significant financial risks for DBJ and would, therefore, want to see what measures are being implemented to deal with the scourge.
“Another thing I haven’t seen so far in the speech is the risk of praedial larceny which is a significant risk. As the new MD, I will be making agriculture one of my priority areas of focus. It is my deep conviction that food security is critical and especially in Jamaica,” Shaw said.
Speaking with The Gleaner afterwards, Minister of Agriculture and Fisheries Pearnel Charles Jr acknowledged the concern, pointing out that farm theft has evolved from a petty crime into a major organised criminal activity in Jamaica, which cost an estimated $6 billion each year. He disclosed that the agriculture ministry has been working closely with the security forces to develop a range of responses but for security reasons, he could not disclose details of those plans.
“Conservative estimates are that 18 per cent of the value of farm output regionally is taken by thieves, resulting in the loss of millions of United States dollars annually. This does not account for future loss to agriculture production and productivity when farmers leave the sector or when high-quality genetic breeds of livestock and crop varieties are stolen from breeding stations and agriculture research facilities and sold as food. Nor does it take into consideration the likely consequences or public health and subsequent industry fallout should tainted, uncertified produce gain entry into the domestic food chain,” Charles Jr emphasised as he outlined the severity of the issue at both the national and regional levels.
This has also been highlighted by the United Nations Food and Agricultural Organization (FAO), which did a comprehensive study of the impact of praedial larceny across the Caribbean, titled ‘An Analysis of the State of Praedial Larceny in Member States of CARICOM’.
“Policing and programmes to combat praedial larceny have become an integral consideration in how agriculture producers, processors and distributors function in the region in an effort to secure their on-farm investments, and in how policymakers build strategies to secure the economic gains from public investment in the sector,” an extract from the study stated.