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Presently, Belize's economy is based on agriculture. More than a third of Belize's land (2.2 million acres) is suitable for agriculture and accounts for about 20% of GDP and 71% of export earnings. This sector employs 25% of Belize's labor force. Total land area used for agriculture is 265,000 acres, of which 146,000 acres are for crops and 119,000 acres utilized for the livestock industry. |
The key objectives of economic development are to expand the existing agricultural industries and diversify into related activities such as agro-industry. Belize has great potential for the domestic and export production of fruits/vegetables. The traditional export commodities such as sugar, citrus and bananas constitute 53% of total agricultural output. With the liberalization of markets and the imminent erosion of preferential market access for Belize's traditional commodities, emphasis is being placed on non-traditional commodities such as papaya, mango, pineapple, etc.
Banana Production
The banana industry is a significant contributor to the Belizean economy, contributing an average of 10% to GDP annually and one of the countries fastest growing agricultural industries. As a non-seasonal crop, bananas are produced and exported throughout the year providing a constant revenue stream to the economy. Over the last ten years banana production has averaged over 2.5 million boxes of fruit each year with all fruit being exported to the EU.
After the long-standing dispute over the banana trade regime, there is now resolution. The European Commodity on July 1, 2001 effectively introduced an interim tariff rate quota system that would lead to a tariff-only system by 2006. Under the new regime, licenses are granted to marketing companies, for the importation of fruit originating in ACP states.
The Banana Growers Association maintains its marketing arrangement with Fyffes for the sale of Belize's bananas. Nevertheless, efforts are concentrated on seeking alternative marketing arrangements of Belize's produce.
Citrus Industry
The citrus industry plays a key role in the economy, as it is the second largest earner in the agriculture sector. It accounted for 21% of exports and contributed an average of 6% to GDP over the past ten years. Citrus production is concentrated in the Stann Creek and Cayo districts of Belize and accounts for an estimated 48,000 acres. Approximately, 90% of total area under cultivation is dedicated to orange production, with remaining for grapefruit. Presently, there are 1,055 registered citrus growers of whom 640 are 'production' growers in the industry. Approximately, 1,300 persons are directly employed, in addition to 2000 people who are employed seasonally. According to the Belize Citrus Growers Association (CGA), almost 20% of the Belizean population directly and indirectly works in the citrus industry.
Of the 48,000 acres under production, 42,800 are dedicated to orange production, with the remaining for grapefruit. Del Oro Belize Ltd. (Del Oro) is the only processing facility in the industry. At full capacity, they can process ten million boxes per year. Currently, five to seven million boxes are processed.
Citrus Production
Citrus ranks among the top three export products of Belize, with sugar and bananas being the other crops. Growth in citrus exports over the last ten years averaged 24% per annum, making it the fastest growing agricultural industry. The United States, Europe, Japan and CARICOM are the main importers of Belizean citrus products. Belize continues to heavily depend on preferential duty-free access to these markets under the following trade agreements: Caribbean Basin Initiative (CBI) for the United States, The Cotonou Agreement for the European Union and the CARICOM Market. It is estimated that 70% of shipments go to the United States, while the rest are sent to CARICOM and the EU. A small portion of citrus exports goes to Japan, which is an emerging market that has growth potential.
Organizations that assist in the development of the citrus industry are the Citrus Control Board and the Belize Citrus Growers Association. The Citrus Control Board was formed in 1967 by the Government of Belize to regulate the organization and activities of the citrus industry. The Belize Citrus Growers Association (CGA) represents the interest of the growers of the industry. Their role is to provide technical and financial services so as to increase grove yield, improve fruit quality, lower cost of production and secure higher prices for farmers' output.
Sugar Cane Industry
Most of the sugar cane farmers are situated in the Corozal and Orange Walk districts and their crops dominate exports and contribute to over 40% of hard currency earnings. The cane industry is comprised of two major sectors, processors and growers.
The Tower Hill Factory is the only sugar processing factory in the country and has the capacity to grind approximately 1,150,000 tons of cane from which about 120,000 tons of sugar is extracted.
All the sugar cane processed at the Tower Hill Factory is grown by some 9,299 licensed farmers with license ranging from 25 tons to 3,000 tons per farmer. The farmers produce about 1.2 million tons of cane.
Sugarcane Production
Substantial reduction in price for sugar in virtually all our sugar markets require that the industry be restructured with a view to increase efficiency, productivity and output. Of vital importance to the future of the industry are strategies focusing on improving efficiency and productivity in the cane production sector and reducing the unit cost of production.
The manufacturer, Belize Sugar Industries, has indicated that the Tower Hill factory will expand to increase output so as to remain as competitive as possible.
Papaya Industry
In Belize, papaya production for export started in 1987 and is concentrated in the Corozal, Stann Creek and Cayo Districts. The export papaya production system is based on the production of small fruit, known as the Solo variety. There is a great potential for papaya as a foreign exchange earner and alternate crop for farmers in northern Belize. Demand should expand given the interest in tropical fruits and fruit juices as health products, and the expanding ethnic markets in US cities.
There are three varieties of Solo papaya grown in Belize, Sunrise Solo, Kapoho and Tokita Sunrise. These fruits are at the most 1.25 lbs and take 8-9 months to come into production. Larger papaya varieties weighing 10-15 lbs include Princess Scarlet, Maradol Rojo, Tainong II and Santa Barbara.
Papaya Production & Export
Papayas in Belize are treated and packaged for export. Currently the rejected fruit is not being processed, but there is a potential to use this fruit for juices, chutney or even possibly papain. Papayas are exported to the EU and to the USA by Belizean companies where there are attractive markets.
The average yield for one acre is 5,000 to 6,000 boxes. Given the current production and marketing costs and papaya prices, this makes papaya very profitable.
There presently are three packing sheds in the country Belize Fruit Packers, Western Fruit Packers and Mayan King. Belize Fruit Packers is located in the EPZ zone in Corozal. This is a new facility, mainly owned by the grower and shipper, Brooks Tropicals. A Western Fruit packer is located in the Cayo district and Mayan King is located in the Stann Creek district.
Hot Pepper Production
Belize is known on the U.S. market for producing quality peppers. The hot pepper is one of the non-traditional crops that have a bright future in Belize. Government is supporting the growth of the hot pepper industry, as it is an integral component in the movement towards diversification.
Hot Pepper Production & Export
Hot peppers are being grown commercially throughout Orange Walk, Corozal, Cayo and Stann Creek districts.
Major exporters of hot peppers to the fresh export market include Food Limited and Agroworld. Food Limited in Belmopan has been in the pepper business since 1995. They ship red, green, and red and green mixed peppers currently to the United States. Agroworld located in Chunux, Corozal District, exports hot peppers to the United States.
Source: Belize Trade and Investment Development Service
Address: #14 Orchid Garden St, Belmopan, Belize
Tel: (501) 822-3737 / 0178
Fax: (501) 822-0595
Email: beltraide@belize.gov.bz
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