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Belize eyes African palm oil amidst banana and citrus crisis

GeneralBelize eyes African palm oil amidst banana and citrus crisis

Photo: Hon. Jose Abelardo Mai, Minister of Agriculture

by Kristen Ku

BELIZE CITY, Mon. Jan. 22, 2024

In 2023, the citrus and banana industries faced significant challenges, with declining revenues and market struggles even for citrus by-products. Within a period of 11 months there was a sharp 27.1% decline in banana revenues, and the citrus industry suffered a $10.7 million drop, specifically in orange concentrate sales.

Since these two products are some of Belize’s main exports, it is a cause for concern for the agriculture sector.

“Both of these industries have been undergoing very, very difficult challenges,” stated Hon. Jose Abelardo Mai, Minister of Agriculture. Mai explained that the citrus crops have actually been ravaged by disease, prompting the introduction and testing of new varieties.

“There are new varieties of citrus being tested at this time, and some of them are starting to bear. They look pretty promising, but the disease has caused a lot of damage to citrus.”

“The Prime Minister has appointed a task force to look at the situation in citrus and to make recommendations. On that task force, my ministry is being represented by Hugh O’Brien and they are supposed to get back any time now, I think in the next week or so, with a report to determine what do we do with citrus,” he said.

The banana industry, less affected by climate change, still faces significant issues. The industry’s biggest problem is the high cost of fertilizer, which has surged by 300%, as well as Sigatoka, a leaf-spot disease that if severe can cause a reduction of the plant fruit yield, a mixture of ripe and unripe fruit in the same bunch, and even cause the plants leaves to die.

This results in decreased production and quality, making much of the harvest unsuitable for export markets. “The fruit that is harvested from the plant will not make it to the U.S. market or the European market because it ripens on the way. So that fruit has to be disregarded for the export market. This has caused significant problems,” Mai said.

To address these challenges, the government has introduced a loan facility to assist farmers in acquiring necessary inputs.

Minister Mai stated that he is deeply concerned about these developments and is actively seeking solutions.

“I believe that there are long-term solutions, but we need to implement them now. Some are saying citrus is dead. I do not believe it’s dead. We can still salvage some, but I believe that the time has come for us to think about diversifying the base in the South. A lot of land in the south has gone into coconut, some into greens. I believe that one other option is African palm oil,” he said.

Palm oil, derived from the fruit of oil palm trees, is a highly versatile and efficient, edible vegetable oil. Predominantly produced in Indonesia and Malaysia, which account for over 85% of the global supply, it’s also produced in 42 other countries.

This oil is a common ingredient in about half of all packaged products in supermarkets, ranging from food items like pizza and chocolate to personal care products such as deodorant and lipstick, and is also used in animal feed and biofuel.

Its popularity stems from its semi-solid state at room temperature, oxidation resistance, stability at high temperatures, and the fact that it is odorless and colorless, making it a popular choice in cooking in Asian and African countries.

Palm oil is also the most land-efficient vegetable oil crop, supplying 40% of the world’s demand while using less than 6% of the land dedicated to all vegetable oil production. Alternatives like soybean, coconut, or sunflower oil would require up to 10 times more land.

This shift would, therefore, be less of an environmental threat to Belize, as it would involve reusing existing farmlands rather than clearing new areas.

The idea has already garnered interest from Guatemalan investors following a presentation at an investment summit. “We’re just waiting for the results of that task force, and then we have to decide what do we do. In agriculture, there’s no break. Every minute counts,” Minister Mai added.

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