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Investing in Agriculture
‘Terrance’ is a young "Vincy" agri-
preneur. He comes from a farming
background, producing fruits and vegetables for sale to hotels
promoting a wider
appreciation of and restaurants. He has ten years of experience in installing
information and greenhouses for other farmers. He has a vision of becoming a
knowledge successfully entrepreneur; his plan- invest in his own
management for greenhouses.
agricultural
development Using his acquired expertise in greenhouses, ‘Terrance’ started off in
generally and 1997 with three greenhouses specializing in three crops- sweet peppers,
specifically, lettuce and tomatoes. The market was growing and he maximized the
support for the enabling environment; government policy promoted diversification and
IICA/CTA modernization; and financial, technical and business support that
MEAgrISys project matched his growing needs. As his business grew, expansion was
inevitable. Terrance needed additional financing to purchase more
greenhouses. While the financing was being negotiated, he did not wait!
He used his own resources and invested in used greenhouses, increasing
#6, 2008
from three to eleven in about seven years.
Research and
Preparation: His initial investment of his ‘time, treasure and talents’ paid off! His
Naitram Ramnanan carefully planned efforts for success included thorough preparation by
CaRAPN Member educating himself in greenhouse technology; taking risks through his
initial investments in greenhouses; matching his technical know-how
Concept, Artwork, with business sense through systemized farm management practices and
Editing: outsourcing services where appropriate, such as, land preparation
Diana Francis
Trade Policies and
services. Now, in 2008, he has 28 greenhouses with an additional range
Negotiations Programme of crops, which now includes red and yellow sweet peppers, cucumbers
IICA Caribbean Region and cabbage that made him even more sought after in the market place.
But, he did not do this all alone! He was able to secure one essential
partner – a micro-financing institution whose mission is to support the
Financed by: growth of a vibrant micro and small enterprises by providing client-
Technical Centre driven services. Terrance and his micro-financier took the ultimate
for Agricultural and plunge– they invested in agriculture and by extension St. Vincent and the
Rural Cooperation
(CTA –ACP)
Grenadines together.

Some lessons? Investing in agriculture does not depend on million-dollar

externally financed government projects. Investing in agriculture
requires preparation and smart partnerships between producer/investor
The Views expressed
herein are not necessarily and a financier that offers more than just money. Investing in
those of the CTA and IICA agriculture can start at any level, and one business at a time can make
a big difference!
There is no doubt that agriculture urgently and absolutely needs financing and new
investments. The right environment must exist for these investments to take place. The
national policy framework must recognize the pivotal role of entrepreneurship and take every
measure to ensure that it is developed, in all sectors, including and especially in agriculture.
The story of the Terrance our young Vincy farmer is essentially a story of entrepreneurship.
Entrepreneurship must be facilitated by a well balanced investment portfolio that
governments’ must provide. This portfolio must translate policy into reality for appropriate
financing mechanisms that include client-driven incentives, functional physical infrastructure
system, such as good access roads, reliable and affordable water supplies, electricity and other
utilities, and critical services, such as market intelligence, communication technologies, such
as telephone and internet, technical and business advice, best provided through public-private
sector partnerships.

What are some benefits to investing in
agriculture?

Increased output leading to higher
availability of fresh local food products
with positive impacts on stability of food
supplies, prices and food and nutrition
security.

Reduced unemployment, especially among
vulnerable groups both directly in
agriculture and from downstream and
service industry.

Development of rural areas, enhancing the
lives and livelihoods of rural peoples and
reducing the tendency to relocate into
urban areas in search of perceived better
prospects.
What are some key information needs to
support these investment decisions?

Trends in consumer demands for market-
based products to allow agri-businesses to
make the necessary timely adaptations ;

Research and Development in production
technologies to ensure access and use of
most efficient and competitive processes;

Product-specific cost of production and
marketing vis-à-vis competitors to ensure
capacity to maintain market presence and
generate returns to investments;

Details on service providers both in the
public and private sectors that will allow
individual businesses to grow and proper
by accessing them.

Arguably the most important factor in creating the right environment for investment in
agriculture is a general positive attitude to business in general and also agriculture in
particular. This must start in the school from a very early age. School gardens and programmes
like junior achievement should an integral part of any school curricula.

The right INFORMATION, provided to the right people, at the right time and used
in the right manner, can stimulate INVESTMENTS.
Investment opportunities exist in virtually all aspects of the agri-food value chain, such as:

Pre-Production Services: from soil testing and land suitability assessment, land preparation,
environmental friendly inputs and planting material, etc;

Production and Post Production Services: from technical advice in fertility management,
pest and disease control and other areas of crop husbandry, marketing and value adding;

Production: an ever-growing range of fresh and processed products that are in high demand;

Marketing and Distribution: specialized supply chain and business management services etc.

Is the Agricultural Knowledge and Information System (AKIS) ready to

identify opportunities and advance investments?
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 Building a Viable AKIS: Information for Investing
Information is key to making good investment decisions at all levels:- from policy that creates
the 'enabling environment' that significantly reduces the 'riskiness' of agriculture and provides
more confidence for persons to choose to invest in agriculture amidst all the other investment
options; to the actual investor who needs to secure and maximize his invested dollars and
sense! Increasingly, the complaint is that there is not enough or even current information on
agriculture to help investors to decide 'where' to invest in a business; to help financial
institutions to determine whether an agri-business proposal is technically sound enough to
make financial sense; and to help policy makers tailor the polices to suit the needs. An
effective AKIS must be able to respond to all these information needs on a timely and
consistent manner. The Agromatrix provides an indication of the 'who, what, when and why' of
information for effective decision-making.

"INDICATIVE List; Certainly not EXHAUSTIVE"

From Idea to Information that helps Entrepreneurs make
Business: wise decisions and Financiers provide the
Information Needs Investment financing.

Idea
What is the need for the product (s) or
generation: service (s)?

How much will it cost to start the business?

How long will it take to start-up business?

What are some key pitfalls and errors to
avoid?

What is 'Plan B' - another business option?

From Idea to
Where does the business fit in the value
Business Plan chain - where are its allies and competitors?

Is it a part-time or full time business?

What are the risks and what is the risk
tolerance level?

What are its strengths and weaknesses?

What development support is needed to plan
start-up and where is it available?

How will cash flow be optimized?

What compliance issues exist?

Starting up:
How will the business be registered?

Is there start up funding available and where?

What, when, how and how much to produce?

Where is best location?

Is the business on par with industry standards
(GAP, GMP, HACCP, ISO etc)?

Where can I access information on standards
and best practices?

How can the product /service be diversified:
value-adding, waste processing etc?

What is the risk management plan?

Growth and
Who can provide product development
Expansion: support for diversification and meeting niche
markets?

Will there be continuous business
development support to reduce cost,
enhance quality and maximize profits?

What are the options for joint ventures,
locally, regionally and internationally to
foster expansion and increase market share?
Some Information Sources for Business
Development
Statistics Departments compile a range of
social and economic information that can
provide ideas; Supermarket shelves and
shoppers can suggest products on which
businesses can be formed. Government
service agencies also have information on
'how to get ideas' and start a business.
All countries set up special agencies to
provide business development financing
and services, especially to small
enterprises. These agencies have the
information and advice needed to help a
potential entrepreneur work through how
to move from 'idea' to business by
planning the process and defining the key
information needed to make good
decisions.
This is the most critical part of a
business. It is critical to have the right
information at the right time to avoid the
many pitfalls and errors of
entrepreneurship. Several government
ministries, including Agriculture,
Marketing Boards, can assist with the
start-up. Unfortunately, there are not
enough facilities in the Caribbean that
finance start-ups and work with the
enterprise during the starting phase.
Regional and international agencies can
be a good source on information to
answer these questions. They can also
assist with forming strategic alliances and
provide assistance to national agencies in
promoting and facilitating growth and
expansion, especially in terms of working
with government to improve the policy
environment for competitive business.

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Information
and the Agricultural
Development
Agenda - The Bigger Picture!
Development is a long-term process
that requires partnerships at all levels
and among all social partners. More
important than ever before, is the need
for information that leads these
partners to practical actions.
Investment is the vehicle for effective
actions. Information is the lighthouse
for landing viable investments that lead
to and sustain growth and
development.
Investing in agriculture can include:

micro-financing to under-resourced
women producers to start and
sustain small business such as,
community seedling nurseries,
home-based food processing and
green grocers etc;

public spending to provide the
infrastructure, access to new
technologies and critical services
that facilitate business;

public-private sector partnerships
that bear the cost of development
financing and risk mitigation;

collaboration between industry and
academia to stimulate and
commercialize innovation;

time and expertise of a few caring
people, through mentorship and
shepherding that help to start and
grow entrepreneurs - one business
at a time.
There are several such success stories
to be found in the Caribbean.
Developing an AKIS that documents and
promotes these success stories will
stimulate more such efforts and
effectively stimulate more investment
in agriculture.
“Never believe that a few caring people
can’t change the world. For indeed that’s all
who ever have”
Margaret Mead, Source: Chicken Soup for the Entrepreneur’s Soul
2006 © Jack Garfield and Mark Victor Hansen
The above quote is an apt motivator for us to take on the
task of Mr. Lloyd Best as he commented on the Annual
National Budget Speech of 2001. He noted then that the
“issue is not therefore diversification….it is the breeding,
for the first time, inshore entrepreneurs, meaning
autonomous producers and managers”. For agriculture,
taking on this challenge will require the 'breeding of agri-
preneurs and innovative investments'. Information plays a
key role in facilitating agri-preneurship and agri-investments.
Information management is central to this task. It needs
to go beyond analysis of challenges, which have remained
virtually unchanged over the past four decades, and must
include documenting of experiences and success stories in a
strategic and systematic way. Who is involved?
▪ the agri-preneur, who has an idea, takes the risk to start-
up, but needs the support of financial institutions to
continue business;
▪ Agri-Business groups; that must promote and actively seek
the interests of their members to strengthen their lobby
and networking for more result-oriented actions;
▪ Financial Institutions, that need to operate outside of their
'comfort zone' and tailor the package of financial services
to the needs of the small and medium agri-preneur, who
form the base of the agri-economy, including available and
affordable food;
▪ Business Development Support Agencies that must be more
client oriented and provide services from idea to business,
especially at the start-up stage, including mentoring;
▪ Research and Development institutions that need to match
their research priorities with the real demands in the fields
and processing plants;
▪ Extension services, that must and urgently make that shift
from technology transfer in the field, to entrepreneurship
and business development;
▪ Information systems, that must populate, promote and
spread right information, to the right people, at the right
time to be used in the right manner, including for
stimulating investments;
Just as in marketing the key to success is location,
location, location! In promoting agri-preneurship and agri-
investments its collaboration, collaboration, collaboration! If
all the above players come together to grow a few
agripreneurs, one at a time, and agri-enterprises, one
business at a time, indeed a few caring people would turn
the perceived negative outlook for Caribbean agriculture into
a positive, dynamic and results-based sector. This will go a
long way to stimulating continuous investment,
entrepreneurship that will lead to affordable food prices and
a more competitive agriculture.
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 ……. an information learning process for a difference!
Information binds all of us in the agricultural development process.
We all play a role in providing key pieces to fill the agriculture
information puzzle. Building that puzzle takes partnerships!
MEAgrISys is>
. . . a project on “Building a Monitoring and
Evaluation Agricultural Information System”
managed by IICA and the CTA to strengthen the
quality of information generated by and used for
decision making in agriculture.
MEAgrISys development philosophy is that>
. . . agriculture has evolved “beyond the farm,
food and rural areas”;
. . . development must be built on principles of
‘full participation, integration and
sustainability”;
. . . information must evolve beyond statistical
economic indicators”.
MEAgrISys originated from>
. . . a hemispheric wide process in 2001 that
recognized agriculture as of strategic importance
to sustainable development and took a political
decision to include it on the agenda of the Summit
of the Americas. In 2003 Caribbean Heads of State
and Government and Ministers of Agriculture
endorsed actions towards improving agriculture
and rural life, including the development of an
information system to facilitate the process and
follow-up on progress.
MEAgrISys is built on three pillars>
. . . Expectations of leading social partners that
express the opinions of their peers on progress and
prospects for developing agriculture;
. . . Experiences (actions, results and challenges)
of social partners, including Ministries of
Agriculture, as they implement development
projects and activities for agriculture;
. . . Performance Indicators that measure, in
quantitative terms, the results, progress and
impact of these projects and activities against the
stated objective.
Integrating these three types of information into an
information system can provide, for example:

a more balanced explanation on the situation in
agriculture;

more actor-specific issues, challenges and
development requirements leading to more
practical and focused interventions and actions.
The Bottom-Line…Absolutely!
“The competitiveness of the United States in many
commodities has stemmed from its large
investment in agricultural education, research,
and extension. As the priority of these activities
diminishes, so too will the competitiveness of the
agricultural sector”. from Impacts of globalization on
agricultural competitiveness: The case of NAFTA, Journal of
Agricultural and Applied Economics, Aug 2002 by Kennedy, P
Lynn, Rosson, C Parr III.
Information is central to agricultural education,
research and extension. Hence investing in
information systems that support and help to
sustain the benefits from investments in these
areas is a must for agriculture. A critical area for
agriculture in the Caribbean is investment in
human capital through ‘entrepreneurship’.
Effective entrepreneurs internalize all types of
information from all types of sources to start a
business, access markets and maintain their
presence in the ‘value chain’.
Just like the Vincy greenhouse entrepreneur, many
of us have ideas and have access to information
that can be used to convert the ideas into viable
business. However, for many of us, information on
investment options and tools is not so common.
Information systems that can efficiently provide
that type of intelligence tailored meet the needs of
would-be, new and established entrepreneurs is
critical to agricultural development!
What is that information? Where does it come
from? How can it be harnessed and channeled to
strengthen the efficiency and efficacy of decisions,
at all levels that benefit most, if not all?
Information is a right!
Its use is not an option!
We must work together to build good
information systems.
MEAgrISys will help build the puzzle.
What can You do to fill the missing pieces?
What’s in it for YOU!
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