Agriculture's Impact On Belize's Economy

Agriculture is a key part of Belize's economy, contributing about 20% of the country's GDP and employing about a fifth of the population. The country's main agricultural exports are sugar, citrus fruits, and bananas, with sugar alone accounting for 48% of Belize's total exports in 2019. Belize's agricultural sector is characterised by small farms, with most being smaller than 100 acres (40 hectares).

Sugar exports

The sugar industry is critical to Belize's macroeconomic and social stability, especially in Northern Belize, where most sugarcane is grown, and about 85% of the population depends on the sector. The industry accounts for about 4-5% of Belize's GDP, 9-10% of total exports, 8% of employment, and 5-6% of foreign exchange earnings. Additionally, sugarcane bagasse, a residue from the sugar production process, is used for electricity cogeneration, supplying about 15% of the country's electricity needs.

However, Belize's sugar sector faces challenges, particularly regarding production costs, which are pushed up by low cane field productivity, low cane quality, inefficiencies in harvesting and delivery, and high transportation costs. To remain competitive in the global market, Belize needs to reduce its production costs. The country's current production costs of $0.20-$0.22 per pound need to fall by at least $0.04-$0.08 to ensure the industry's viability.

To address these challenges, Belize has implemented various measures, such as amending the Sugar Act to facilitate the establishment of new farmers' associations and attract more private sector investment. The government has also expressed commitment to developing a Strategic Development Plan that will outline concrete steps to enhance the industry's sustainability.

Belize's sugar industry has also benefited from foreign direct investment. In 2012, American Sugar Refining Inc. (ASR Group) acquired a majority ownership stake in the country's single domestic sugar manufacturer, Belize Sugar Industries Limited (BSI), investing $100 million, equivalent to 6% of GDP that year. ASR has since invested an additional $15 million to improve mill efficiency and strengthen BSI's business viability.

In conclusion, sugar exports play a significant role in Belize's economy, contributing to its GDP, exports, employment, and foreign exchange earnings. However, the industry faces challenges related to production costs and infrastructure that need to be addressed to maintain its competitiveness in the global market.

Banana exports

Banana production in Belize has a long history, dating back to the late 19th century when the country was a British colony. Initially, American and British investors established large-scale plantations. However, over the last 70 years, the industry has gradually shifted towards smaller-scale, localised indigenous farming, primarily targeting the European market.

The pattern of banana exports from Belize has been influenced by various factors, including privatisation, market conditions, and production techniques. In the mid-1980s, the government sold off land under cultivation by the Banana Control Board to the private sector, leading to a tripling of production within five years. The primary export market for Belizean bananas was Britain, which guaranteed artificially high prices due to the Lomé Convention's Banana Protocol. However, the preferential access granted by this agreement was under advisement by the EEC in 1991, in connection with its single-European-market program.

In the early 1990s, banana production in Belize faced challenges due to cold weather and black sigatoka disease. Additionally, the susceptibility of bananas to diseases and possible changes in preferential access to the British market posed potential limitations to the sector's growth. Despite these challenges, the banana industry in Belize has shown resilience, with expectations for a good turnout in 2015 due to yields from new farmland.

The main export destinations for Belizean bananas in 2022 were the United Kingdom, Ireland, Spain, the United States, and Belgium. The fastest-growing export markets between 2021 and 2022 were the United States and Poland.

Citrus fruits

• Concentrate
• Not from Concentrate
• Freeze Concentrate
• Pulp
• Oil
• Feed

Income from the citrus industry has increased from over $33 million in 2002 to $95 million in 2011. However, the industry has faced challenges such as sharp price and production fluctuations, as well as diseases like citrus greening and the greasy spot rind blotch (GSRB) disease.

Timber production

Belize's economy depended on forestry well into the 20th century. Logwood, used for making dye, was the country's initial main export. However, as the supply outstripped demand, and with the development of synthetic dyes in Europe, loggers moved on to mahogany. This industry was lucrative for many merchants and traders, but as the trees were slow-growing, new trees were not being planted to replace those that were cut down. As a result, loggers had to go deeper into the forests to find trees, increasing labour costs.

Mahogany was prized for its use in cabinets, ships, and railway carriers, and was used in boat building, railway cart construction, furniture production, and airplane propeller engineering during World War I. The British Honduras mahogany was the most highly prized variety.

In addition to mahogany, cedar, Spanish cedar, Santa Maria, granadillo, rosewood, redwood, jobillo, nargusta, mylady, red mylady, che chem, katalox, salmwood, zericote, cabbage bark, sapodilla, bullet tree, prickly yellow, billy webb, yemeri, Caribbean pine, and Tecún Umani pine are all important forest trees in Belize.

Belize has kept over 36% of its forest under protection, the highest rate in Central America. This protection is important as it helps to prevent environmental disasters such as changes in weather patterns, the disappearance of pollinator species, landslides, heating of the environment, scarcity of clean water, air pollution, and the lack of wood for building.

Despite this protection, much of Belize's forest has been destroyed by logging. As part of efforts to increase foreign income in the 1990s, the Belizean government granted long-term contracts to foreign logging companies, which led to the destruction of thousands of trees in traditional Mayan territory. This sparked protests among Maya communities, who successfully argued in the Belizean Supreme Court in 2007 that their rights over their communal landholdings had been violated.

Fishing

The fishing industry directly employs over 3,000 fishers and provides livelihoods for more than 15,000 people, or around 10% of the country's labor force. In 2012, the wild-capture fishery sector brought in approximately $29 million and employed 3,000 Belizeans. The commercial capture fishing industry for lobster and conch is an important export and a source of employment for approximately 15,000 Belizeans.

Belize's barrier reef, the second-largest coral reef ecosystem in the world, is a significant contributor to the country's fishing industry. The Inter-American Development Bank (IDB) has approved a $7 million loan to help Belize sustainably expand its blue economy, increase the earning potential of artisanal fishers, and keep fishery exports high while promoting the sustainable use of the country's commercial marine resources.

Belize has implemented a Managed Access program for its fisheries to address concerns about overfishing and declining stocks. This program includes the creation of nine Managed Access fishing areas and aims to protect the health of the coral reef ecosystem while ensuring the livelihoods of fishers and fishing communities.

The health of the fishing industry in Belize is closely tied to the management of marine sites. The country has a network of marine protected areas, including the Turneffe Atoll Marine Reserve, which is managed by the Turneffe Atoll Sustainability Association. These protected areas help reduce the loss of biodiversity, support healthy ecosystem balance, and protect endangered and economically important species.

According to the Turneffe Atoll Sustainability Association, the Turneffe Atoll Marine Reserve contributes an estimated BZ$151.6 million annually to the tourism industry. Additionally, the impact of bonefish, tarpon, and permit fishing in Belize contributes BZ$112 million to the national economy.

Overall, the fishing industry in Belize is a significant contributor to the country's economy, providing jobs, food security, and revenue, with a focus on sustainable practices to protect the country's marine resources.

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