Multibillion-dollar plan to rescue the Panamanian Agriculture

Panama has launched an ambitious strategic plan to reverse the deterioration that has accumulated over 15 years the agricultural sector.

Its goals include increasing local production, training farmers and turn the country into a food.

However, Gerardo Escudero, representative of the Inter-American Institute for Cooperation on Agriculture (IICA) in Panama, to achieve this goal not only require an excess of $ 5,000 million investment, but also a 80% share of the private sector .

According to the expert, the whole system is collapsing agriculture in Panama for many years.

He argues that in the context of all sectors, agriculture does not respond to the dynamism of the economy, showing signs of exhaustion in its dynamics, as agribusiness and agro structuring.

The expert says that when considering a basket of agricultural products throughout the region and in Panama, it appears that in most of those 30 products, Panama does not reach even 50% of what in other countries is achieved in physical yields per hectare.

It is therefore no coincidence that the country is falling contribution to the national gross domestic product (GDP) is the most pronounced, said Escudero.

According to official figures, the participation of the Panamanian Agriculture in GDP rose from 7.2% in 2000 to 2.6% in the third quarter of 2015.

IICA analysis also shows that while the signing of the FTA, agreements and conventions of the past 15 years has enabled most of the countries of Central America to increase between 200% and 300% of their agricultural exports, Panama has reduced sharply.

In this regard, official figures show that the export of products such as watermelon fell in 2015 by 9.5%, while others, such as pineapple and coffee, fell by 31.4% and 82.6%, respectively.

Similarly, the export of beef and veal fell by 22.2% in 2015, according to Comptroller.

This, according to Escudero, makes the food deficit in food trade balance has been triggered by several fold higher amounts than what is generated annually flagship events such as the Panama Canal.

Challenges for agriculture

According to Escudero, quantity, quality, timing and costs are the strategic priorities to achieve a recovery of agriculture.

Another big challenge is to achieve public-private partnering with vision of nation and state.

"Panama is in the context of other countries in the region, which has had the biggest public budget in agriculture, better financial conditions, as many technicians and extension, which has implemented visionary programs for agriculture, without results, "he said.

Panamanian Agriculture is urged immediate intervention, but not without a vision and strategic action, detailing the IICA.

However, it notes that Panama has every chance of becoming a "food" for its excellent geo-economic and logistical position make it have comparative and competitive advantages globally.

Hermann Gnaegi, domestic producer, values ​​the investment of more than $ 50 million that will make the State in collaboration with the French Society of Educational Resource Export (SFERE) to develop an educational excellence in the sector; however, it reiterates the need to support existing producers.

As for private investment, it argues that the lack of long-term stable policy decreases intend to invest in the agricultural sector.