Previous - Next
The small scale agro-industry in Suriname
Ms. Rosemarie Defares Women in Development Officer Ministry of Agriculture
3.12.1 Introduction
The paper offers a view on the present situation, future potential and limitations which hinder the development of the cottage industry in Suriname. According to the present status of the cottage industry, it is necessary to admit that the Ministry of Agriculture has no explicit policy concerning the development of the cottage industry at this moment. So far as can be established, no concrete policy measures have yet been take to develop a structure for the development of small scale agro-enterprises in the rural areas. The Government participation in the agro-industry is mainly restricted to some big holding companies (on profit base) and some Government foundations and enterprises. On the other side, there is a flourishing of small scale agro-enterprises and an increase of cooperations and farmers organizations in the agro-sector. Most of them are operating on an inadequate economic and financial base, what can ascribe to the many problems resulting from the social-economic structure of the Nation. Production and distribution of agricultural products are mainly carried out for the domestic market.
3.12.2 Present status of the cottage industry
The activities carried out in this sector of rural economy can be divided into the following categories of (preserving and processing) products:
The different problems and issues which hinder the development of small commercial enterprises for processing and marketing of the agricultural produce are:
1) Lack of raw material available: With regard to the supply of raw material we can conclude that most raw material needed have to be imported, for which foreign currency is needed. The supply of raw material for the agro-industry is inadequate to meet the needs, ascribed to the fact that we have to contend with immensely economic and financial problems. There is no policy on the national level at this moment, which aim at bringing a solution in this issue: "there are other priorities..
2) Lack of marketing systems and financing: Marketing is one of the major problem and the existing structure needs reorganization. A central marketing organization dealing with the problems and prospects of marketing and financing of fruits and vegetables does not exists yet. There is an organization which is concerned with problems and needs of poor farmers and which has recently developed a structure for processing products and for training and research programmes. One of its main objectives is the stimulation of poor farmers to enable them to integrate production and management with processing and marketing. Viewing the overall picture we have to conclude that most small scale agro-enterprises are not able to reach marketing and financial goals and that most of the time they lack credit and marketing facilities. The condition required for expansion and improvement of their enterprise is "insufficient."
3) Ownership: The Government has participation in processing plants on rice, sugar, milk, fruits and vegetables, palmoil and banana. In the private sector, some small scale enterprises exist in food processing and preserving. Processing often takes place with simple and inexpensive equipment and material, on a irregular (not structured) base. Furthermore, there are a few farmer's organizations/cooperatives which operate in the food and processing industries, but their main activities are concentrated on agricultural production in the fields.
4) Processing and storage of agriculture products are totally inadequate to meet farmers needs and plan investments.
5) Lack of packaging material: This is due to the import-aspect; foreign currency needed to produce packaging material. "The business is collapsing.
6) Lack of training/extension facilities: There is a request for organizing national training courses for farmers, groups and entrepreneurs in the plants already operating, using simple equipment material and technology, adapting the training course to the needs of the rural areas of the country. There is also a requirement for the distribution of equipment and training facilities in the areas. On the other side, the existing extension programmes are not satisfactory due to the inappropriate technology transfer which is applied. Know-how on the transfer of a new structure in the processing of fruits and vegetables is necessary, as well as a structure for the distribution of technology and know-how on other rural areas in the hinterland of the country. The lack of extension officers to develop and transfer programmes to the farmers is a main problem in this context. At the organization side we meet the same problem in the implementation of services to farmers.
Finally, we can conclude that there is a lack of facilities in all areas of the cottage industry; there is hardly no inputs available nor practical training of technicians and people responsible for the effective management of the scarce equipment and resources available. Research is needed badly on every level in this field.
3.12.3 Participation of women
With regard to the enormous unemployment of women, a very strong movement of women is developing looking for employment opportunities in the traditional sector
(agriculture) and in the informal sector. Of the economic-active women, 26 per cent is facing unemployment and more than half of the economic-actives are earning an income that lies below poverty line and therefore cannot satisfy their needs and that of their children. Finding a job is one problem, but surviving is a second one, with limited incomes and high costs of living. Higher numbers of women are becoming involved in small scale agriculture activities. Women in rural areas are simply not receiving their fair share of attention or available funding for develop or setting up small scale businesses in the agro-sector. Their access to land, credit, education, skill training and employment is very limited.
Nevertheless, more women are entering the cottage industry. It offers them an opportunity for incomes and better social-conomic circumstances. They are mostly found in the mod processing and preserving of products fruits and vegetables, coconut and palmoil, peanuts, banana and maniac, fish and by-products, shrimps, etc. Women' main problems are:
a)Limited access to inputs, raw material available, credit,
training and technology/extension services.
b)Limited access to property rights and access to land.
c)Limited attention from the Government side on the level of
policy-formulation, projects and programme development.
d)Lack of technological assistance in the transfer of new
appropriate technological know-how, experience, etc.
e)Lack of experience in processing and preserving concerning the
quality of agricultural products.
The most important issue in this context is the lack of a framework in which a structure for small scale commercial enterprises can be developed in the cottage industry. Special attention has to be paid to women, given their back-work social economic position in society and their responsibility to provide for the education of their family. You have to offer them possibilities and alternatives to develop themselves and become entrepreneurs, and so making them economic strong and independent.
3.12.4 Actual policy of the Government
In reference to the actual policy and perspectives on the Government level, some plans and proposals are being prepared, which on the long term must change the situation at national and rural levels. The agricultural extension section of the Department of Agriculture have two sub-sections: a sub-section Home Economics and a sub-section Women in Development, which are concerned with women issues in rural areas. The actions intended are to develop income generating activities for women in the small scale agro-industry. On non-Government level steps are already been taken for research on the reduction of post-harvest fruit and vegetable losses through the development of the cottage industry. A growing number of non-governmental organizations (NGO's) are becoming involved with this sector. Their objectives are to reach higher agriculture quality, incomes and economic growth in rural areas. However, institutional assistance in this field is scarce and has to be promoted both from the Government side as from the side of the national industry.
Given the worse macro-economic and financial situation of the country, financial incentives are very welcome. Therefore, the need for extension service, training in handling, and technology assistance in research and development, is urgent. Intra regional cooperation and integration in this context is also urgent and will be of great help for the agro industry in Suriname.
3.12.5 Technical. economic and organizational aspects of the development of small agro industries
As stated before, the weaknesses of the small scale agro-industry in the country can ascribe to the weak social-economic infrastructure of the agro industry. The lack of raw material available, technology, know-how, efficient handling systems and foreign currency, are main limitations that hinder the development of small scale enterprises in this sector. Maintaining quality to satisfy both domestic and foreign market is of increasing importance in this matter.
3.12.6 Requirements
The small scale agro-industry in Suriname needs:
a)On the Government level, a total assistance in every stage
in the development of small scale enterprises.
b)An adequate and appropriate infrastructure to improve methods
for the handling of vegetables and fruits.
c)Technical, financial and marketing assistance.
d)A new structure for the transfer of technology and know-how of
the processing and preserving of food-products.
e)Raw material available.
f)Packing and packaging material assistance.
g)Project assistance in the field of technical, material and
financial support to maintain quality on every level.
With regard to women, special attention is needed on the level of project and programme development and implementation, just like assistance in the processing and preserving of post-harvest and vegetable losses, tubers, shrimps and fish products for the domestic market and export.
3.12.7 Recommendations for intra-regional activities
Some proposals are:
a)The institution of an Intra-Regional Board for the promotion
and development of the cottage industry in the CARICOM countries.
b)The institution of an intra-technical cooperation (task force)
group for the transfer of know-how, experience and assistance in
the field of preserving and processing.
c)The institution of an Intra-Regional Research Board for
research and actions on the different fields of development
concerning the cottage industry.
3.12.8 A summary proposal for the development and strengtbening of small commercial agro-enterprises
A. Background and justification
The agricultural sector is of great importance for the economy of Suriname. A great number of the economic actives are finding a living in this sector. Besides, a growing number of women and youngsters are looking for opportunities to create self employment in the small scale agro-sector. Because of the great number of (part-time) small farmers employed, the vegetable sector is considered a very important one. In 1989, the area comprised 1 491 ha, with a production of 15 891 tons partly destined to the local market and partly to the export market. An estimated 3 000 to 4 000 (part time) small farmers are involved in this sector.
There are plans to further develop the cottage industry, such as peanut production for local consumption and the production of several types of tropical fruit items, such as passion fruit, west-indian cherry, pine-apple, papaya, mango and carambola, destined to the local agro-industry and exports. The perspectives to develop a market for small scale agroenterprises are plenty present; however, many limitations exist which frustrate the development of this sector.
Suriname, a country of many possibilities and great potentials, is facing an enormous unemployment problem, especially among women and young people in the rural areas. The promotion of the cottage industry can be a contribution to the solution of this problem in rural areas; it can contribute to higher production and export and, most of all, it can be of great importance for the economic and social well being of the rural poor.
B.Objectives
a)Create new employment possibilities for the poor and
unemployed.
b)Development a social-economic infrastructure for the
development at the national and rural levels.
c)Call the attention of the Government to the potentials and
perspective of this industry.
d)Reach a reduction of post-harvest fruit and vegetable losses.
C. Programme of activities
As mentioned before, the agricultural extension sector covers two sub-sections Home-economics and Women in development- which are concerned with the development and implementation of project-proposals and programmes for income generating activities in the rural areas.
1) Home-economics: the activities are aimed at promoting self-employment among women and youngsters through the development of income generating activities in the agro-sector, and spreading of information on different fields. These include:
A proposal for the development of a project in the processing of cheap and healthy food is in preparation. Furthermore, some initiatives are being undertaken to stimulate women to set-up small scale businesses in food and fruit processing and preserving. However, the office cannot operate adequately, because of lack of equipment and expertise (cadre).
2) Women in Development: the sub-sector "Women in Development" of the Department of Extension-Services have different tasks concerning matters of social economic well-being and development of women in agriculture and in rural areas. The data resulting from research will be used for the development of projects and programmes in favour of the social-economic position of women in agriculture and rural areas. In this context, activities will be developed to involve women in economic activities with the object of generating incomes with agricultural products. The small scale agro-industries is a sector with many possibilities for women; it offers them opportunities to become economic strong and independent. Therefore, the cottage industry is of great importance for the employment of women in rural areas. At this moment two projects are in preparation:
a)A research project on the role and position of women in
agriculture and rural areas.
b)A research project concerning the possibilities of the small
scale agro-industry for women in rural areas, perspectives and
alternatives for self-employment and self help.
3.12.9 Equipment requirements
There is a requirement for technical assistance in the field of:
a)Processing and preserving of food products (fruit and
vegetables, tubers, shrimps and fish, etc.)
b)Transfer of appropriate technology equipment that is simple and
cheap.
c)Socio-economic infrastructure: transport, raw material, etc.
d)Research, and project and programme planning and development.
e)Material assistance: tools and equipment for workable handling
systems.
3.12.10 Agricultural extension in Suriname
A. Geographies
The Republic of Suriname lies on the north east coast of South America, between 2° and 6° northern latitude and 54° and 58° western longitude. It is bordered by Guyana to the west, by French Guyana to the east, and by the Federal Republic of Brazil to the south. The total area is 163 265 km2. The climate is tropical, with fairly heavy rainfall and average temperatures of between 21° C (70° F) and 30° C (86° F). The climatic season is divided in:
According to the climatic classification of Koppen, we mainly encounter the Wsavanna climate, the-AM-Monsoon climate (in the hinterlands) and the AFtropical rainforest climate. In the coastal area, there are predominantly clay soils and some sandy soils in a plain, fertile area. The hinterlands, which make part of the Amazonic tropical rain forest, are characterized by their low fertility acid soils and, in a lesser range, savanna soils. The majority of the country is covered with the amazonic tropical rain forest in the scarcely populated hinterlands.
Table 1. Main landscapes in Suriname
| km2 | Per cent | Elevation above sea level (in m) | |
| Residual hills | |||
| (Hinterlands) | 135 000 | 82.2 | 50 to 1280 |
| Savanna belt | 8 750 | 5.3 | 6 to 70 |
| Old coastal plain | 4 300 | 2.6 | 2 to 12 |
| Young coastal plain | 16 200 | 9.9 | 1 to 4 |
The population numbered 398 998 people in 1988, of which nearly fifty per cent lived in the capital, Paramaribo, sited at the coastal area. The majority of the population lives in the coastal area, while some 50 000 people live in the hinterlands. The population consists of Creoles, East-Indiana, Javanese, Chinese, Amerindians and European descendants. The official language is Dutch. The majority of the people can speak the native language, Sranang Tongo (lingua franca); Spanish, French, Hindustani, Javanese and Chinese are also spoken. English is spoken by all the people who have attended secondary education.
The date of independence was 25 November, 1975. The flag of Suriname consists of a field in the form of a rectangle, with five horizontal bars and a yellow five-pointed star on it. The bars are, from top to bottom, green, white, red, white and green, successively, in the proportion of 2:1:4:1:2. Green symbolizes the fertility of the country, white symbolizes the justice, red expresses the love which urges on the action, the star symbolizes the unity of the nation and yellow represents sacrifice.
B. History
The name Suriname is considered to originate from an Amer-Indian tribe, which was driven away by the Caribe. The first successful settlement was founded in 1651 by an Englishman, Francis Lord Willoughby, of Parham, Suffolk. In 1667, Suriname was ceded to the Dutch in exchange for New-Amsterdam (NewYork). The colony developed a prosperous plantation economy based on slave labor imported from Attica, producing sugar, cotton, cocoa an coffee.
The following century was one of economic decline and political turmoil. Many slaves rebelled and fled into the jungle, banding together and conducted raids on the plantations. Military expeditions against the marrons resulted in repeated defeats for the army and in the exhaustion of financial resources. When the abolition of slavery in 1863 produced a critical labour shortage, the Dutch colonizers began to import contract workers from China, lava and India. While the Creoles improved their agricultural activities without many help of the colonizers, the Indians and Japanese were installed as independent small farmers after the ending of their contracting period. In 1890, 90 per cent of all agricultural products were grown on plantations and 10 percent on small farms. These figures were reversed in the subsequent half century with the plantations crops such as rice, bananas, and oil palm. There also some state plantations, which are very unprosperous due to a management problem, and there is a number of large private enterprises, especially in the rice sector.
The economy is based mainly on the Alcoa Foundation and Bilitonb Group controlled mining of bauxite, which together with its derivatives (alumina and aluminium), provides 80,0 per cent of the export earnings. The agriculture, animal husbandry, fisheries and forestry sector earns about 10,2 per cent of the GNP. The agricultural sector earns 4,9 per cent to the gross national product (GNP) which was Sf 2,504.9 (millions) in 1989 (official rate US 1.00 = Sf 1.79. Our main export product is rice, followed by fishing products, particularly shrimps and bananas. There is also an export of wood and wood products.
Table 2. Information about the three most cultivated crops
| Crops | Total area (ha) | Production (tone) | Jobs offered |
| Rice (in 1989) | 50 000 | 260 000 | 8 000 |
| Bananas (in 1987) | 2 000 | 54 000 | 1 662 |
| Oilpalm (B. giuneensis) ( in 1989) | 6 128 | -- | 636 |
As a result of the armed disorders in the hinterlands, which started in 1986, the oilpalm sector suffered serious damage and the exports of palmoil -which totalled 663 ton in 1986- fully ceased in the following years. Because of the great number of (parttime) small farmers employed, the vegetable sector is considered a very important one. The 1989 area was 1 491 ha, with a production of 15 891 ton, partly destinated to the local market and partly to the export market. An estimated 3 000 to 4 000 part-time small farmers are involved in this sector. The animal husbandry sector consists of some 76 000 cattle and 20 000 ha grassland, mostly natural. The number of poultry totals 6 210 000 and the number of pigs, 21 000. The 1988 estimated milk production was 14 400.00 liters, which by large is not sufficient for the local market. The eggs production of 64 400.00 was satisfactory for the local market.
While the country is focussing on a further sustainable development of the subdescribed sectors, there are also plans to develop some other sub-sectors, such as the soy-bean production for cattle fodder and edible oils; peanut production for local consumption and agro-industrial activities; and the production of several types of tropical fruit items, such as passion fruit, west-indian cherry, pine-apple, papaya, mango and carambola, destinated to the local fruit agro-industry and exports. There also exists plans to further improve the fishery sector and develop the populational fishery, which is practiced by small fisherman both at the Atlantic coast and the inland Avers, which are some times very turbulent.
C. Institution
The Ministry of Agriculture, Animal Husbandry and Fisheries is divided into six staff divisions:
Furthermore, there are three Departments: Agriculture, Animal Husbandry and Fisheries. The main task of the Department of Agriculture, which is by far the largest, is to execute the Government's agriculture policy towards the agricultural sector and to retain contacts with the agricultural population. The tasks of the agricultural extension section are the transfer of knowledge, the improvement of farm-management, the organization of agricultural producers in cooperatives, the propagation of the Government's agricultural policy, the diagnosis and solution of field problems and the improvement of the rural living conditions. The tasks of the agricultural education section are the organization of in-service training and training for the farmers and other clientele groups. Home economics and 4-H activities are covered by the section of the same name.
The country is divided into three regions, each one with two or more districts. Each district has a local office, which acts as an overall representation of the Ministry of Agriculture. One of the most important tasks of these local offices is agricultural extension, which is fulfilled by several lower and middle level extensionists. The local office is headed by a higher educated extensionist. There are none or very few extensionists in the districts. The head of the local office, apart from leading the extension activities, has to guarantee the in-flux of agricultural inputs and implements at his district, which takes the majority of his working time.
C. Employment
The total labour force has been estimated to be 30 per cent of the population, half of which corresponds to the 15-29 age group. It is estimated that nearly 40 per cent of the economically active population (15-65 age group) is either unemployed or underemployed.
Table 3. Distribution of employment compared with the total number of employment
| 1984 | 1985 | 1986 | 1987 | |
| Agriculture, Animal Husbandry, Fisheries and Forestry | 16 700 | 16 260 | 15 884 | 14 360 |
| Total number of employment | 99 123 | 98 003 | 95 841 | 92 361 |
In 1985, almost 85 per cent of the 17 000 farm operators were classified as parttime, with only 15 per cent full-time. Currently, there are thought to be about 16 000 farm operators, with the majority having a second or main source of off-farm income, particularly in the Government sector or as labourers.
E. Land tenure
Table 4. Land tenure
| Tenure | Area (ha) | Per cent |
| Private ownership | 37 000 | 21.7 |
| Rented for private | 3 600 | 2.1 |
| Long lease from Government | 46 500 | 27.4 |
| Rented from Government | 26 200 | 15.4 |
| Other forms of occupancy 1/ | 56 700 | 33.4 |
| TOTAL | 170 000 | 100 |
1/ Domain (Government) land and communal ownership.
The distribution of land corresponds to the Ministry of Natural Resources and Energy. One of the pre-requisites for the acquisition of land is a technical advice from the Ministry of Agriculture.
Table 5. Farm size distribution
| Size | Number of holdings | Number (%) | Area (ha) | Area (%) |
| Less than 5 | 16 825 | 82.5 | 21 590 | 20.3 |
| 5 to 10 | 2 123 | 10.4 | 11 270 | 10.6 |
| 11 to 20 | 836 | 4.1 | 8 070 | 7.6 |
| 21 to 100 | 414 | 2.0 | 10.270 | 9.7 |
| More than 100 | 130 | 0.6 | 55.090 | 51.8 |
| TOTAL | 20 328 | 100 | 106 290 | 100 |