News Releases

Nov 5, 2009

Belize to boost agricultural competitiveness with IDB assistance

A $5 million loan will help stimulate growth and reach new markets for farm products

The Inter-American Development Bank today approved a $5 million loan to promote Belize's agricultural innovation and animal and plant health protection to boost competitiveness, stimulate growth, and expand market access for its products.

Belize has long relied on traditional commodities that benefitted from trade preferences that are now waning. Sugar, citrus and bananas account for 75 percent of total farm exports. Additionally, Belize's agricultural innovation system lags behind both in staff training levels and in research and development (R&D) funding. As a result, output per hectare is well below regional levels.

In light of this, the government in 2008 launched the National Export Strategy to promote increased market and product diversification, focusing on continued expansion of non-traditional products, notably tilapia, shrimp, papayas and more processed goods such as hot pepper sauce.

The IDB will support these efforts by providing funding for two key components. The Applied Agricultural Production Innovation component will provide matching grants of up to $100,000 to a series of research and extension projects.

The Plant, Animal and Food Safety Risk Management component will provide staff training on sanitary and phytosanitary standards (SPS) and other issues.

Results expected at the end of the five-year program include:

• Achieving official status of country free from: brucellosis, tuberculosis, Newcastle disease, white spot; yellow head; and mad-cow disease; official status maintained and certified free from: foot and mouth disease, rinderpest; and classic swine fever.
• Boosting competencies in four key areas measured by the World Organization for Animal Health from current "good" to "fully satisfactory" levels.
• Completion of four export protocols and ISO17025 certifications.
• Advances in agricultural innovation in order to close the yield gap with other regional nations in weak areas such as maize, sorghum and bananas.

The loan is for a 25-year term, with a five-year grace period, and carries a Libor-based interest rate. The Government of Belize will provide $500,000 in local counterpart funds.

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