Guyana Chronicle Business Supplement 31 October 2020 by Guyana Chronicle

GUYANA CHRONICLE - BUSINESS NEWSLETTER - Saturday, October 31, 2020

Guyana targets

GUYANA CHRONICLE - BUSINESS NEWSLETTER - Saturday, October 31, 2020

food import bill ― NAREI Director says country well-positioned to capture sizeable share of market

By Navendra Seoraj

OR years, Guyana’s ‘potential’ to become the breadbasket of the Caribbean has been under the spotlight, and, while the rhetoric has outweighed action on this front, the country will be looking to realise its potential in the coming years, with immediate focus on tapping at least 15 per cent of the

US$4 billion regional food import bill. Most of the commodities, which form part of this huge bill, are sourced from the “developed world” while Guyana, a member state of the Caribbean Community (CARICOM), has the potential to supply a sizeable amount of those commodities. It was reported that 10 commodities – food preparations, wheat, rice, chicken, non-alcoholic beverages, maize, soya bean, sugar and

palm oil -- account for more than 40 per cent of CARICOM’s food import bill. Immediately, based on this list, Guyana has the potential to supply rice, sugar and poultry, among many other things. And, there have already been attempts by Government to create a business-friendly environment by removing Value Added Tax (VAT) on the poultry industry and removing VAT and duties on machinery and equipment for mining, forestry, agriculture and man-

ufacturing. These efforts are seen as part of a broader attempt to making Guyana a hub for business and investment. Chief Executive Officer (CEO) of Go-invest, Dr. Peter Ramsaroop, even went the “extra mile” by saying Guyana is poised to be the “agriculture capital” of the world. “We have land mass for many produce and products, so if Guyana can go into largescale plantation farming, it can easily absorb part of the Caribbean’s food import bill,” said Dr. Ramsaroop, during a recent interview with the Guyana Chronicle. He is confident that the country is capable of supply-

Government has promised to reduce by 50 per cent within the next five years. “The Government has talked about reducing energy costs by 15 per cent, but you cannot wait until the energy cost comes down… you need to start building… you got to start building and investing now in those areas.... This will help us to capture at least 1012 per cent of the food import bill, which is a large portion of the country’s GDP (Gross Domestic Product).” STRESSED BUDGETS The United Nations Food and Agricultural Organisation (FAO), in October 2013, had said the region’s high food

CEO of Go-Invest, Dr. Peter Ramsaroop

Director of NAREI, Dr. Odhu Homenauth

ing almost anything that the Caribbean has on its bill. But, to do this, there needs to be investment in large-scale projects, such as cattle ranching, mega farms and other big agricultural and agro-processing initiatives. Persons, in the past, were discouraged from investing in agro-processing and manufacturing, mainly because of the high cost of electricity, something which the new

import bill puts pressure on already-stressed Caribbean national budgets, through the need for increased foreign exchange to purchase imports and the fact that higher food prices also require increased social protection programmes. So, if Guyana is able to tap this bill, it would also mean that the country would be able to supply commodities at reduced costs because the overhead expenses such

as shipping would not be exorbitant. “We need to start positioning ourselves to do this… so we are looking for investors, both foreign and local, who will invest in the cattle industry or open a pasteurisation plant to produce milk at a lower cost,” said Dr. Ramsaroop. Not just CARICOM, but Guyana also spends millions of U.S. dollars on the importation of milk and other dairy products. So, an investment in this area would be beneficial to the entire region. This, however, is just one example of Guyana’s potential to become the breadbasket of the Caribbean. Director of the National Agricultural Research and Extension institute (NAREI), Dr. Odhu Homenauth, in adding his voice to this topic, said Guyana, in preparing to tap the food import bill, would have to thoroughly examine the bill to see what is being imported and where Guyana could have the competitive advantage. “We have to determine where we have competitive advantage and for which commodities… we also need to ensure that all the trade barriers are lifted… already, we are supplying a lot of commodities to Barbados, Antigua and some of the other small islands,” said Dr. Homenauth during an interview with the Guyana Chronicle on Friday. Although the country is already a major producer and exporter of rice and sugar, these commodities cannot be ignored in the effort to tap the bill. “We can also supply rice and sugar to CARICOM… so it is not just fruits and vegetables… we could supply significant quantities,” Dr. Homenauth reasoned. In addition, the country is capable of exporting and currently exports coconuts, coconut water, watermelons, ground provisions, plantains, pineapples, processed pepper and pumpkin, a m o n g TURN TO o t h e r PAGE 7 things.

GUYANA CHRONICLE - BUSINESS NEWSLETTER - Saturday, October 31, 2020

―shipping 36,000 ‘water nuts’, continues to supply local consumers

By Indrawattie Natram

UYANA’S role as the ‘breadbasket’ of the Caribbean remains important in maintaining food security and sustainability in the region, a role which local producers, like Henvil Coconut Farm, have capitalised on, tapping the Trinidad and Tobago market for “coconut water.” Henvil Coconut Farm located at Malbrough, Lower Pomeroon, in Region Two (Pomeroon-Supenaam), has been adding value to the local coconut industry by supplying both local and international consumers, with raw and refined products. The company sells dry coconuts, bottled coconut water, and virgin coconut oil.

Chief Executive Officer (CEO) and owner of Henvil Coconut Farm, Vilma De Silva told the Guyana Chronicle that the demand for coconuts, internationally, had decreased due to the novel coronavirus (COVID-19) pandemic. But there was a “ray of hope” for the company in October, when the demand for coconut water increased in Trinidad and Tobago. “Currently, 22,000 bottles of coconut water and 14,000 water nuts are en route to Trinidad and we continue to supply our major local customer, Sterling,” said De Silva. On a weekly basis, the company, which has 24 employees, processes 12,000 ‘nuts’, acquired from its 30-acre farm. And, when the demand increases the company purchases coconuts, both dry and water, from other farmers. In addition to penetrating the regional

market, the company’s product, branded Henvil Coconut Water, has become a household name, particularly in Region Two, where it can be found on the shelves or in a refrigerator at almost every supermarket. The company is seen as a trailblazer in the coconut industry, setting the pace for others to follow. Outside of rice and sugar, not many know that coconut is the third major agricultural export, earning some US$7M in export revenues in 2017 and there are concerted efforts afoot to transform the industry in the years to come. It was reported, recently, that amidst rising global demand for coconut, Guyana, with the right positioning, could get a fair share of the global market. Currently, there are massive investments, both at the private and public levels, geared at putting Guyana

on the right path. The local coconut industry currently has about 1,800 farmers who collectively cultivate some 24,000 acres of coconut in Regions One (Barima-Waini), Two (Pomeroon-Supenaam), Three (Essequibo Islands-West Demerara), Four (Demerara-Mahaica), Five (Mahaica-Berbice), Six (East Berbice-Corentyne) and Ten (Upper Demerara-Berbice). Guyana on average produces 92 million nuts annually, much of which is exported for coconut copra and water, mainly to Barbados, Trinidad and The Dominican Republic. The main varieties of coconut grown in Guyana are the Jamaican Tall, Malaysian Dwarf and the Suriname Brown, the latter being the most popular of the set due to its shorter time to mature and higher sucrose content in its water.

Workers working on the farm

Women working on De Silva Farm in Pomeroon River

GUYANA CHRONICLE - BUSINESS NEWSLETTER - Saturday, October 31, 2020

Insanely decadent Cheesecakes!

ANDY

FIELDS, owner of Tootie

Fruities Home Cakes, is in business for about two years now. Tootie Fruities provides an assortment of baked and non-baked cheesecakes for anyone with a cheesecake craving

and sweet tooth. Being a business owner means the world to Mandy. She stated: “Cooking has always been a passion of mine, and, over the years, it has extended into baking.

Operating this business has allowed me to share my creations with others and allowed me to actualise my dreams and goals.” Mandy’s greatest influence has been her mother

who was an entrepreneur in her own right. She has always admired her strength and determination to stand on her own as a woman. Even tod a y, s h e Mandy Field

continues to be her biggest inspiration. “If you want your business to be successful, you need to listen to your customers and put their needs first,” she noted. Mandy has made it her duty to accept, with humility, both the positive and negative feedback by customers

social media. However, she is adamant to learn and understand how to better maneuver herself around the two by seeking advice and guidance from those more ‘tech-savvy’ people. Another big problem she has encountered was locally sourcing ingredients and packaging materials for her cheesecakes but she did not let that hinder her business and decided to improvise and use substitutes available on the local market. She also imports and stocks some items she readily needs and uses. Mandy is still learning how to balance time with work, family and her social life but she is slowly overcoming same by learning about time management. For Tootie Fruities Home Cakes, it does not end with cheesecakes. Mandy explained that plans are underway to expand her product content by introducing the Tootie Fruities line of fruit- flavoured salad dressings. Mandy also constantly experiments with new flavours to expand her variety of cheesecake offerings. As a small business owner, Man- d y believes

and Delicacies made by Mandy Fields s h e c o n stantly strives to perfect her in being polite and kind, no products utilising the advice matter the situation, because received. such has served her well over In terms of growing the last two years. When not her business and building working, Mandy relaxes by a strong customer base as taking long drives to unknown well as promoting her brand, destinations. The suspense Mandy found that the most excites her. As a last word, effective marketing medi- she wants her readers to know um for her type of business that any person can achieve was social media. She uti- anything he/she sets his/her lised both Facebook and In- mind to and that challenges stagram since they are most are temporary. Persistence popularly used in Guyana and consistency are key in and are both budget friendly. the success of any of one’s Even though Mandy’s endeavours. greatest professional accomIf you would like to place plishment was starting her your cheesecake orders, you own business and developing can contact Mandy on +592 the Tootie Fruities brand, the 679 5111 or via her social startup was not a smooth pro- media pages on Facebook cess. She experienced many via https://www.facebook. challenges but managed to rise com/tootiefruitieshomeabove and overcome them. madecakes or on Instagram While Mandy is great at work- via https://www.instagram. ing in the kitchen, she is not com/tootiefruities_homeso good with technology and made_cakes.

GUYANA CHRONICLE - BUSINESS NEWSLETTER - Saturday, October 31, 2020

Pre-pandemic oil prices expected in 2021

― World Bank says global commodity recovering slowly

IL, like most global commodities, has taken a hit because of the novel coronavirus (COVID-19) pandemic, but the World Bank has reported that oil prices are recovering slowly and will return to pre-pandemic levels in 2021. According to the World Bank’s Commodity Market Outlook report for October 2020, almost all commodity prices recovered in the third quarter of 2020, following steep decline early in the year, due to the COVID-19 pandemic. The energy sector, however, has not recovered well. In April, oil prices sharply declined (even going sub-zero for a short period) due to the reduced demand caused by the pandemic and the collapse of the “oil pact” to limit oil production between two of the globe’s largest oil producers - Saudi Arabia and Russia – resulting in their oil flooding the global market. According to the World Bank’s data, oil prices were $23.34 per barrel (Brent) and $16.52 per barrel (WTI) then. Prices have been slowly recovering since then and, at the end of September, the prices were $41.09 (Brent) and 39.60 (WTI). These prices, the World Bank related, are only one third of the pre-pandemic levels. The West Texas Intermediate (WTI) crude price is a benchmark used for US oil prices, whereas the oil-producing nations in this part of the globe (that is, Trinidad and Tobago, Guyana and Suriname) use the Brent North Sea Crude, the international benchmark for oil prices. “The pandemic is likely to have lasting impact on oil consumption by changing consumer and employment behavior. Air travel may see a permanent reduction, as business travel

Guyana targets

PROVING ITS ABILITY Guyana is capable of producing a lot more, not just for its people but for the entire region. And, this was evidenced by the country’s ability to remain food secure amidst the novel coronavirus (COVID-19) pandemic, which has toppled economies across the world. The World Food Programme (WFP) says people are considered food-secure when they have adequate access at all times to sufficient, safe, nutritious food to maintain a healthy and active life. It also lists “food availability,” “food access” and “food utilisation” as pivotal, central planks of food security. “I would say that, without any doubt, there was no case where there was a shortage of anything in particular and, even with this pandemic, the country, in October, surpassed its exports in 2019… this alone is an indication of Guyana’s ability,” said Dr. Homenauth. For the period January to June 2020 alone, a total of 5,160 metric tonnes of non-traditional agricultural commodities valued at G$1.3

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billion or US$6 million were exported from Guyana. This represents a 13 per cent increase when compared to the same period in 2019. According to a release, of the total non-traditional agricultural exports, 99 per cent (5092 metric tonnes) was shipped via sea, representing a 20 per cent increase from 4267 metric tonnes. This increase is due to a 41 per cent (3036 metric tonnes) and 25 per cent (153 metric tonnes) increase in the export of dried coconuts and coconut water respectively. Exports of coconut products such as coconut water, coconut oil, and coconut choka have all shown significant increases when compared to the same period in 2019. The country also saw a 22 per cent increase in regional exports and a 12 per cent increase in extra-regional exports. The major regional export destinations were Barbados, Trinidad, Suriname, and Antigua, while the extra-regional export destinations were the Dominican Republic, USA, Canada, and France.

is curtailed in favor of remote meetings, reducing demand for jet fuel. A shift to working from home could reduce gasoline demand, but this may be offset by increased use of private vehicles if people remain averse to using public transport,” the World Bank stated. Previously, in an interview with the Guyana Chronicle, Senior Trinidadian Economist, Dr. Roger Hosein said that the current global decline in the demand for oil, resulting in lower-than-usual oil prices, provides a “valuable lesson” for Guyana on the volatility of the oil industry which it has now become part of.

GUYANA CHRONICLE - BUSINESS NEWSLETTER - Saturday, October 31, 2020

Senior Dispatcher of the Trooper Taxi Service, Kevin Alphonso

By V i s h a n i Ragobeer

N a normal day, the “blue shop” located in Sixth Street Cummings Lodge is one of the go-to spots for a hearty, budget-friendly home-cooked meal. Random queues of people would surround the small snackette, impatiently attempting to make a quick purchase of chicken curry or rice and bora. But, business has not been normal, at least not since March. The close proximity of the snackette to the entrances of the University of Guyana (UG) and the Cyril Potter College of Education (CPCE) allows the business to attract the “target population” effectively. In March, when Guyana detected its first case of the novel coronavirus (COVID-19), schools were forced to close

wash your hands and a few tables inviting you to sit and enjoy a creole lunch or any of Guyana’s beloved street foods. At lunchtime, no one is there eating though. The only customer that eventually comes by is a man searching for a cold beverage. Maduraj Mohan, the son of the proprietor, told the Guyana Chronicle that business has been reduced by nearly 60 per cent. Quantifying this, he related that, normally, the shop would sell 30 Dhal puris and more than 20 egg balls daily. However, since the pandemic, this number has been reduced to about 15 puris and maybe eight egg balls. Mohan said that the decrease in sales has been disheartening for the family, given that the building is being rented and the family also lives in a rented space. But even so, the pandemic cannot just be wished away, and schools cannot unilaterally be reopened. “In this

sons a day, to roughly about 10 or 15 persons a day but we’re trying to stay positive and hopeful,” Foster said. Another integral part of this ecosystem is the transportation sector. Minibuses, replete with their “UG” sign on the dashboards, would travel in and out of the campus, up and down UG road. It would not be uncommon to see these buses parked in front of the Education Lecture Theatre (ELT) waiting for students who were finished with classes and ready to head home. Those buses drive by infrequently now. But, there is still the steadfast Trooper Taxi service, which is based on UG road. Senior Dispatcher, Kester Alphonso, an employee of 13 years, would spend his days answering calls and coordinating the transportation of customers with his drivers. Since the calls for taxis were less frequent, Alphonso was able to chat with the Guyana Chronicle.

The guys at the Lifestyle Barbershop with nothing else to do but enjoy cricket on the television

in order to mitigate t h e spread of the virus, inevitably causing the target market to disappear. “If we used to sell 100 boxes of food a day, now is about half we does make,” Regina (only name given), one of the two cooks in the snackette said, adding: “We make less food now cause if you make more you might have to give it away or throw it away.” If you peer through the glass case at the front of the snackette, it is evident that there are smaller portions of food on display. Usually, that would be due to a steady stream of purchases, but that was not the reason on an average pandemic Monday (which is just another seemingly mundane day), when the Guyana Chronicle visited the snackette. The blue shop, which is actually called Sherry’s snackette, mirrors the general business atmosphere in this university area:- monotonous. Regina explained that there might be some rush at lunchtime; after all, the blue shop’s reputation precedes itself. Beyond that, the customers are “near and far”. At the intersection of Sixth Street and UG Road, there is a double complex: an eatery on one side and a printer on the other. As you enter the eatery, there is a sink set up to

world and in this life, there are sacrifices that need to be made. We have to try to hold on until the time is right for school to reopen. If it means you don’t buy that KFC for yourself to just hold on, you have to do that,” Mohan reasoned. This business also offers catering services but the dip in the demand for food services has eliminated any catering orders for the family. Nevertheless, Mohan was optimistic that, with the upcoming Christmas season, persons may be more inclined to cater with his family. He remains hopeful. On the other half of the complex, at the printery, the manager, Kevin Foster, has a different approach to coping with the reduction in business. “For me, I try not to think about it,” he said, adding: “I’m trying to stay positive and do something else in the meantime.” The printery offers every service you would expect it would be offering: printing, laminating, selling stationery supplies, assisting with home-work and research. Just like many businesses in the area, the business has been part of the business ecosystem which was developed to target the university and the college. The success of the businesses is contingent upon the thousands of students and staff frequenting these institutions. “Our customers changed from 200 per-

safety of the population is paramount. Unlike Ramcharran, teacher and expecting mother, Shamia Carter said that business has been good for her. She sells snacks such as chicken foot, plantain chips and fudges at a small snackette just at the side of the road. Though she has only been plying this trade for one month, and will only be there for another month- until she is due to give birth- she was happy about the sales she has been able to secure daily. She said that the preparation and the sale of the snacks were just her “ketching a hand”; she explained that she was trying to earn a bit extra during the pandemic. Natasha, who sells the same snacks on the line-top, has not had the same luck as Shamia. Instead, she related that business has been “really slow”. The woman h a s been selling at that spot for

Natasha’s stall on the line-top

“Many of our drivers are not working because it is difficult for them to work a car for $20,000 a week when they’re only making $23,000 (a week),” he lamented. Of the 176 drivers the taxi service works with, he estimated that more than 60 drivers were not working. In addition to the financial woes, he said many of the drivers prefer to stay home with their families to ensure their safety since, as taxi-drivers, they have a higher exposure to many persons. Though the pandemic has reduced business, he related that business is not at its lowest point. The slowest period for these taxi drivers is usually during the vacation period at the end of the school year. Then, Alphonso explained, there would be fewer students and staff to transport, and the numerous students renting apartments in the area would return to their home communities. Ramcharran (only name given), a shopkeeper on UG road, disclosed that he had to tap into his personal savings in order to keep his business afloat. Even though he relieved two of his employees of their duties, that was still not enough to compensate for the loss of the students who would come to buy snacks and beverages throughout the day. “On any given day (before the pandemic), we would do good business. One person could not have stood in this shop between 10 (am) and 12 (pm) but now I do it by myself and even with one hand,” Ramcharran said very seriously. He, however, emphasised that the institutions should not hurriedly reopen because the

several years; she benefitted from vehicles stopping due to the stoplight and passengers making their purchases, or passersby deciding that they needed something to munch on. Back on UG Road, three men were enjoying a game of cricket. They were glued to Nicolas Pooran’s devastation of the bowling attack. Aside from the occasional exclamations of the commentators or the men’s response to the next boundary Pooran smashed, the barbershop they were in was calm. The manager, Jarvin Davenand, sat behind his desk, a barber relaxed in a barber chair and a visitor sat on the couch usually reserved for customers. There was nothing else to do but enjoy the cricket. That was the scene in the Lifestyle barbershop. When asked to speak about how business has been since March, he laughed and replied, “Well, you can see what’s going on here.” According to him, the traffic at his barbershop has been significantly reduced and his revenues barely cover the cost of his expenses. While the reopening of UG would return his business to some semblance of normalcy, he is cognisant that the pandemic could have a potentially devastating effect if the virus spreads among the student population. “It’s a crisis, we can’t do anything about it,” he said. Much like the rest of the business owners in the ecosystem, he reasoned that the situation was an uncontrollable and unprecedented one. There is no clear plan of action to stimulate business, but he posited that small businesses and self-employed are “feeling the squeeze”. What remains is how long the businesses would be able to pinch and save until a semblance of normalcy is returned.