Belize's Economy: Agricultural Percentage

Agriculture is a vital part of Belize's economy, contributing about 20% of the country's GDP and employing around one-fifth to one-third of the population. The country's main agricultural exports are sugar, bananas, and citrus fruits, with sugar being the largest export, accounting for 50% of domestic export revenue. Other agricultural exports include tropical fruits, chili peppers, papayas, and organic cocoa. Belize's agricultural sector faces challenges such as small farm sizes, lack of infrastructure investments, and natural disasters such as hurricanes. However, the country has made efforts to improve its agricultural practices and technology, with a focus on sustainability and climate resilience.

Sugar is the largest agricultural export

Sugar production in Belize began in the 1960s, with commercial production taking off in the 1963-84 period. In the latter part of the 20th century, sugar production increased tenfold, but it suffered a setback in the 21st century due to the destruction of sugarcane fields by a hurricane in 2000. In recent years, sugar exports have been impacted by the loss of preferential market access to the European Union, leading to a decline in prices. Despite these challenges, sugar remains a vital sector for the Belizean economy, contributing an estimated 4-5% of GDP, 9-10% of total exports, 8% of employment, and 5-6% of foreign exchange earnings.

The sugar industry in Belize has received significant foreign investment, with American Sugar Refining Inc. (ASR Group) acquiring a majority stake in the domestic sugar manufacturer, Belize Sugar Industries Limited (BSI), in 2012. This investment has helped expand mill capacity and boost production. Additionally, the Santander Group, one of the largest independent sugar growers in Guatemala, has started building a second mill in Belize, further increasing production capacity.

Sugar exports from Belize are mainly destined for the European Union, the United States, CARICOM, and the United Kingdom, which is the country's primary export partner for sugar. Preferential quotas and tax rates granted by the United States and the European Union have helped keep sugar revenues high. However, upcoming changes to the EU sugar regime, including the removal of limits on beet sugar production and distribution, are expected to significantly impact the industry, requiring Belize to reduce production costs to remain competitive in the global market.

Citrus fruits are the second most important crop

Citrus fruits have been an important part of Belize's economy for over a century. The industry began in 1913 when Dr. Smith Osborne Browne, the colonial doctor at Stann Creek, began shipping grapefruit to the region. The industry grew steadily, finding customers in the United States, Canada, and the United Kingdom. The implementation of the Caribbean Basin Initiative (CBI) in the 1980s was a boon for Belize's citrus industry, allowing the country to undercut competitors and achieve new heights.

Citrus fruits are vulnerable to weather conditions and international market fluctuations. For example, in the 2015/2016 crop year, citrus deliveries dipped by 1.0% to 4.7 million boxes due to a prolonged dry season. However, grapefruit deliveries surged by 25.3% to 0.7 million boxes due to crop management practices aimed at controlling citrus greening and the greasy spot rind blotch (GSRB) disease.

The citrus industry in Belize is closely linked to the country's history and has experienced spikes and valleys over the years. It is an important source of income for the country, contributing to its export earnings. In 2013/2014, citrus exports to the US, Japan, Latin America, the Caribbean, and the European Union contributed to the country's GDP.

Banana production is significant

The consistent rainfall and reliably moderate heat and humidity in Belize make the region perfect for banana farming. The industry, however, has experienced serious ups and downs. In the 1920s, an outbreak of Panama disease wiped out banana trade between British Honduras and New Orleans. Plantations were also destroyed by hurricanes in 1975 and 1978. Despite these setbacks, the banana industry in Belize has persisted and adapted.

The town of Stann Creek, for example, became an important trade port due to the arrival of the banana industry in the larger Stann Creek region. The British Honduras Syndicate consolidated many of the region's farms, eventually operating over 14,000 acres of banana farmland. The United Fruit Company, formed from a merger between Minor Cooper Keith's operations and the Boston Fruit Company, also became a major player in the industry. However, the appearance of Panama Disease in 1916 led to the quick demise of many banana plantations, and by the mid-1930s, most banana farming operations were non-operational.

In the mid-20th century, there were multiple attempts to bring back banana plantations, with varying degrees of success. The development of new disease-resistant strains of bananas helped raise hopes of a farming renaissance. The Banana Control Board was formed to help steer the industry, but it eventually sold off to private interests after accumulating significant debt. Today, the Banana Growers Association serves as the guiding hand for the industry, working to create sustainable and manageable policies for the future of banana production in Belize.

Fishing is an important part of the economy

Belize has a small, developing free-market economy that is based primarily on agriculture, tourism, and services. Fishing is an important part of the economy, providing food for domestic consumption and an important source of foreign exchange.

Belize exported over 5,200 tons of marine products in 1999, most of which was lobster and shrimp. 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. On average, fisheries and aquaculture accounted for 12% of total exports from 2015 to 2021.

The wild-capture fishery sector contributes significantly to the country's economy, bringing in approximately $29 million in 2012. 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 major impetus behind the country's fisheries management system. The reef is acclaimed for its beauty, biodiversity, and economic bounty. Prior to 2011, Belize's fisheries operated under an open-access system, which led to concerns about overfishing, declining stocks, and reduced economic benefits for fishers.

To address these challenges, Belize implemented a coordinated Managed Access program for its fisheries, including lobster and conch, which are the country's main seafood exports. The program aims to protect the health of the reef while ensuring the livelihoods of fishers and fishing communities. It utilizes harvest controls, catch data, and replenishment (no-take) zones to rebuild and sustain lobster and conch populations.

Belize's fishing industry faces challenges such as the lack of comprehensive scientific data, limited access to financing, and the impact of events like the COVID-19 pandemic. However, the country is committed to promoting sustainable practices and has received support from organizations like the Inter-American Development Bank (IDB) to strengthen the management of its fisheries sector and enhance the livelihoods of small-scale fisherfolk.

Belize's economy depended on forestry until the 20th century

Belize's economy was dependent on forestry until the 20th century. Logwood, used for making dye, was the country's primary export initially. However, as the supply exceeded demand, and with the development of cheaper, synthetic dyes in Europe, loggers turned to mahogany. This hardwood was abundant in Belize's forests and was highly valued for its use in furniture, ships, and railroad carriers.

The mahogany industry brought wealth to many merchants and traders, but it also had a volatile market. The slow growth rate of mahogany meant that new trees were not being planted, and the rate of natural regrowth required long-term investments in tree farming. As loggers had to venture deeper into the forests to find mahogany, labour costs increased.

Improvements in hauling methods allowed loggers to access previously inaccessible areas, and the introduction of cattle, tractors, and lorries in the 1800s and early 1900s led to a significant increase in production levels. However, when accessible timber supplies dwindled and logging became unprofitable, Belize's economy had to shift to other sectors.

By the 1960s, the combined value of sugar and citrus exports had exceeded that of timber. Sugarcane cultivation, which covers about half of Belize's arable land, became the principal export. Citrus fruits, bananas, seafood, and apparel have also contributed significantly to the country's exports.

Belize's economy has since diversified, and it is now primarily based on agriculture, tourism, and services. The country's rich biodiversity and natural attractions have made it a popular tourist destination, with tourism contributing significantly to foreign investment and the country's GDP.

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