Agriculture Market in Belize
From International Business Wiki
Next to tourism, agriculture is the second largest industry in Belize. In 2006 Belize had an estimated Gross Domestic Product of $2.3 billion, of which 23 percent was generated in agriculture. The economy specializes in producing sugar, bananas, citrus, clothing, fish products, molasses, and wood for export into the world markets. Of the 113,000 total citizens in the workforce about 22 percent are employed in agriculture. The agriculture industry has seen growth in the over the last several years. In 2001 agriculture accounted for only 14 percent of Belize total GDP. This growth in production can be accredited to a few influences.
Since 2001, citrus fruits have grown in production to equal that of sugar, which prior to that had been the primary export. The reason for this noticeable increase in production and export can be accredited, in part, to the expansion of the Caribbean Basin Initiative. The CBI was initially launched in 1983 but reformed and substantially expanded in 2000 to include a total of 24 countries. Expansion of the CBI provided new opportunities for the agriculture industry in Belize. The initiative allows for Citrus fruits that are processed and frozen into concentrated or single-strength juices to be imported duty free and quoted free into the United States, and duty free into the European Union. Along with the effect of the CBI, efforts are being made to diversify the agricultural products being produced. Attempts to grow more non-traditional crops like papaya, soybeans, cashews and chili peppers have added to the diversity of exports which may have helped strengthen the market. Another factor believed to be contributing to the growth in the industry is a segment of the population called the Mennonites.
A strong community called the Mennonites, primarily in an area called the Spanish Lookout in Belize, has begun to stimulate the agriculture industry. Through the establishing of global networks the Mennonites have been able to acquire new technology and increase efficiency. Experimentation with methods for cultivating their land has yielded better gains for export. The Mennonites have created a more diverse economic system in the commercial agriculture business in Belize, which could be contributing to the growth seen in the industry.
The more diversified and differentiated commercial agriculture industry has been influenced by innovations in technology and social changes. Though the agriculture market in Belize has shown growth over the last several years, it is still reasonably small and underdeveloped. Also the industry faces some challenges in the near future. For example the CBI expires in 2008 and the country is faced with trading without its current advantages or creating new ones. Also increased competition in the region will continue to challenge the industry’s ability to compete in the world market.
Sources:
CIA world fact book- [[1]]
EIU ViewsWire. New York: Oct 16, 2003 - Belize: Economic background
Carel Roessingh, Amber Schoonderwoerd. Journal of Developmental Entrepreneurship. Norfolk: Apr 2005. Vol. 10, Iss. 1; p. 65 (13 pages)- TRADITIONAL FARMERS OR MODERN BUSINESSMEN? RELIGIOUS DIFFERENTIATION AND ENTREPRENEURSHIP IN A KLEINE GEMEINDE MENNONITE COMMUNITY IN BELIZE
