The
Development Planning Unit
Government of the British Virgin Islands

NATIONAL INTEGRATED DEVELOPMENT STRATEGY

Emerging Issues, Agriculture
(continued)

2.0   GEOGRAPHICAL & HISTORICAL BACKGROUND

The British Virgin Islands (BVI) consists of a chain of mountainous islands, mainly volcanic in origin, most of which rise straight up from the sea. Exclusively of small rocks and reefs, there are 40 – 50 islands (of which 15 are inhabited) with a total of 60 square miles. The main islands are Tortola (on which is located the commercial capital and seat of government – Road Town), Anegada, Virgin Gorda and Jost Van Dyke.

Tortola, the largest with an area of 26 square miles, is a hilly island with unbroken ranges running its full length. Virgin Gorda which is 8.3 square miles, consists of a southern flat peninsular almost cleared for grazing and farming, and a northern half which rises straight from the water to hills reaching up to 1359 feet. Jost Van Dyke is a small, hilly island. Anegada is 14.9 square miles and the only coral island of the group. It consists almost entirely of limestone with very little subsoil and limited water resources. Its agriculture traditionally consists of the cultivation of some fast growing crops during the rainy season.

Out of the 37,000 acres (Klumb & Robbins, 1960) estimated that 10,000 acres are not suitable for any form of agriculture, as they are too precipitous and rocky. And, out of the 27,000 acres suitable for agriculture, only 2% is flat land. The soils are derived from granite schists and shales, and can support as good a vegetative cover as the depth of soil, nutrient status and rainfall will allow. A notable feature of the topography is the existence of some natural ponds, which collects a fair amount of run-off water. Some of these ponds dry out in the dry season and many near to the coastline become saline. Several wells are dotted along the coastline, but during the drought periods they tend to become too saline and unfit for any agriculture use. The sixty-year average rainfall recorded for Road Town is 52.8 inches, with the highest being 88.5 inches in 1932 (Wilson & Campbell, 1963).

Similar to the historical production patterns in the other colonies of the Leeward Islands, BVI’s agriculture depended on production of cotton and sugarcane. However, the extent of production, compared with other colonies was low. Obviously, the above-described geographical features prohibited large-scale farming.

Agriculture Department Report for the year 1923, states that cotton production had steadily declined since 1920 from exports of 49,682 lbs of lint to 200 lbs in 1922, and finally in 1924 only 329 lbs. The decline of cotton has been attributed to the incidence of Cotton Pink Boll Worm, a devastating pest much difficult to control. Several attempts were made to revive the cotton industry including implementation of close season and change in planting time to control the ravages of the Pink Boll Worm.

Tobacco was promoted as an alternative for cotton from the year 1923. In the same year a cigar factory was established. In 1924 the factory produced 32,400 cigars, the number increased to 118,400 in 1927.

Livestock production also took a prominent place during the 20’s. In 1923, 1600 heads of cattle were exported. The other products that substituted included coconuts, charcoal and other fruits and vegetables.

2.1   AGRICULTURE – THE BACKBONE OF BVI ECONOMY (1940 – 1960)

During the period 1940 to 1960, agriculture had been the main economic activity in the British Virgin Islands and was predominantly small farmer oriented. Census reports indicated that during the 40’s almost 65% of the population were involved in agriculture, but in 1960 the number decreased to 36%. Estate agriculture, which was practiced in the other islands, was non-existent in the BVI. All farms were owned and operated on a family basis with practically no wage labour. There was however, a certain amount of free reciprocal farm help. Cultivation had been entirely by hand implements. At the end of 1956, the Department of Agriculture acquired two tractors for hire to the farmers. The impact was not greatly felt due the steep terrain of the island.

The method of cultivation was rotational, alternating from food crops to pastures and ultimately to secondary bush. The cycle begins again after the land had been rested for a period of two to three years. Most of the fertile land was to be found on hill slopes at higher elevations and in the valleys. This greatly increased the labour component of the production costs.

Produce harvested was marketed directly to the consumer by the producer himself or his family, or sold in St. Thomas. In the instance where the produce was exported to St. Thomas, it was done through the sole export market, through an agent. This person was usually the captain of the sloop which carried the produce.

The principal crops grown during that period were:

Sugar Cane: Sugar was mainly grown for the manufacture of rum for export. Because of the small scattered plots, it was difficult to estimate the exact acreage under sugar cane. The territorial reports estimate an average of 80 acres under cultivation for the period. On average $3,620 worth of rum was exported annually. The highest recorded export was in 1959, an amount of $7,200 and the lowest record was in 1949 and amount of $79. Again the principal market was USVI.

Limes: These were extensively grown throughout the colony. There were no large scale orchards of pure limes, but almost all farm units as well as backyards consisted of a few lime trees. Lime production was both for local consumption as well as exports. Between 1950 and 1960, the average annual export were valued at $400.00.

Bananas: Bananas took a prominent position during the late 30’s and early 40’s. But, the greatest increase in production was seen in the mid 50’s. Once again, because of small scattered plots the exact acreage was not estimated. The average annual of exports for bananas between 1950 to 1960 is recorded as $3,400. All exports were destined for USVI.

Coconuts: Demands for coconuts were very high, both locally as well as for exports. Territorial report of 1957 estimates 100 acres under coconut cultivation yielding approximately 50,000 nuts per annum. Average annual exports, both for green as well as dried nuts, is valued at $2,800.00. Coconuts were also used as the source for pig and poultry feed locally.

Food Crops: Food crops mainly consisted of ground provisions (sweet potatoes, yams, cassava & tannia) and to a lesser extent vegetables. These crops were mainly grown for domestic consumption during the early 40’s and 50’s. During mid 50’s, there had been an outstanding increase in production and large quantities were exported to USVI. The average annual exports (including fruits and charcoal), during 1952 and 1960 was $28,300.

Apart from the above principal crops, charcoal was another product, which played a significant role in the agricultural sector. Many of the farmers/land owners produced charcoal both for local as well as for export to USVI. There are no detailed figures of production available. But, the practice was questioned in some documents as it leads to deforestation, soil erosion and finally environmental degradation.

LIVESTOCK

The topography and climate of the BVI lends itself more to animal husbandry than crop production. Hence, livestock production played a very significant role in the economy. The territorial report for 1959 states…

"The livestock industry continues to be the backbone of the economy, the islands being topographically and climatically suited to the cultivation of grass and the production of livestock."

Practically any land in the BVI could have been used for livestock rearing. The only limiting factor was water. Farmers went through difficult periods during drought.

Livestock population recorded during the year 1954, 1958 as well as 1963 show the following numbers:

Table 1

Livestock was the major source of income for the farmers, both as exports as well as domestic consumption. Livestock exports steadily increased from late 40’s to all the way up to 1959. Almost 80% of the incomes from exports were attributed to livestock. The main export markets were French West Indies, St. Thomas and to a lesser extent to Leeward Islands. The average annual value of livestock exports is recorded as $186,00. The highest recorded exports were in 1954 for a value of $231,188. And the lowest being in 1960 for $2,941. There were some exports recorded after 1960 but the accuracy was negligible. All livestock exports were in the form of live animals. Though the exports were significant, there was no marketing organization. The Department of Agriculture provided inspection and weighing services. Traders paid direct cash to the livestock farmers. Prices ranged from 10 to 17 cents per pound live weight. Chart 1 shows the agricultural exports for the period of 1950-1975.

2.2    DECLINE OF AGRICULTURAL PRODUCTION

Since 1960, agriculture in the British Virgin Islands took course of steady decline. It is natural consequence of development, that fewer and fewer people become engaged in agricultural production. Normally this is because as the efficiency in the agricultural sector increases, less human resources are required to produce the same unit of output and the labour is released for employment in other industries. In the British Virgin Islands, however, the drift of agriculture labour did not indicate increase in efficiency. It was to the detriment of agriculture sector the labour was released to construction and tourism.

In a paper presented to the Economic Development Advisory Committee in 1977, then Chief Agriculture Officer, E. N. Vanterpool states:

"That the agriculture sector declined absolutely rather than relatively was an indication of poor economic planning for the territory at the time by both the Home Government and the Local Government. The indications are that the drift from agricultural production in the sixties was simultaneously accompanied by withdrawal of Government’s moral and financial support."

The decline in agriculture is a result of several forces. Firstly, as Vanterpoool states, neglect of the sector. Changes in the macro-economic conditions such as a buoyant economy in the USVI, experienced through rapid expansion of tourism facilities, the Government’s policy to devout much of the resources to infrastructure development to promote tourism in the BVI and the resulting increase in construction industry, changes in the eating habits and clear preference to imported foods have been some of the forces.

Labour Movements: It is a natural tendency for labour to move into areas of higher remuneration, and agricultural workers in the BVI are no exception.

The Territorial Report of 1961 states:

"The economy of the Colony is closely affected by the events in adjacent United States Virgin Islands and the Commonwealth of Puerto Rico. The rapid economic expansion in these territories has in many ways made its impression on the economy of British Virgin Islands, particularly by drawing away labour and forcing up local wage rates."

"The Proximity of USVI and the traditional ties between the two groups of islands, give British Virgin Islands a specially favoured position with regard to employment. It has been estimated that more than 10% of the total population of the British Virgin Islands is employed in St. Thomas at any one time."

So along with labour from other sectors, agricultural workers migrated to St. Thomas for higher wages. With the demand for labour increasing, and the high wages paid in St. Thomas, wages in the BVI had to increase and the labour intensive agriculture in the BVI could not stand up to the competition. This resulted in lower agricultural production.

The Territorial Report for 1962 states:

"Government policy has been to devote bulk of substantial grant-in-aid and generous grants from the Colonial Development and Welfare funds to projects which will improve communications, increase trade and promote tourism."

With this Government’s policy of promoting tourism, and investing in infrastructure development, increased demand for labour became apparent. Consequently there was further movement of manpower from agriculture to construction and tourism. Chart 2, in appendix Employment by Sector clearly explains the movement of labour out of the Agricultural Sector. In the year 1960, 36.7% of the workforce was engaged in Agriculture, where as in 1970 only 5.36% remained in agriculture. Tourism & Services employed 17% of the work force in 1960, but in 1980 took over 36% and in 1990 38.61%.

The Territorial Report for the year 1970 states:

"The economy of the British Virgin Islands is estimated to have grown at the average rate of 20% per annum over the period 1966-1968 and 60% in 1969 as a result of tourism and growth of construction and related industries. The territories growth rate between 1955 and 1969 was considered to be the highest in the Caribbean."

With this phenomenal growth in the economy and steady increase in tourist arrivals, demand for food increased tremendously. Unfortunately, agriculture was not in a position to take advantage of the market. The result was a steep rise in the imports of food. Statistical abstracts show that the tourists arrivals increased from 16,800 in 1965 to 317,670 in 1990 (Chart 3 in appendix). At the same time the foreign exchange earned was being depleted by increase in food imports. In 1965 the territory’s food import bill was $259,000 by 1990 food imports increased to $16 million.

With the rapid growth in economy came in the affluence in society, and the increase in food imports to cater for the tourists, provided the variety of food. This led to changes in the eating habits. Local diets changed from ground provisions and local meats to imported vegetables, fruits and choice cuts of meats. Also the increase in supermarket trade made it much easier to purchase imported foods off the shelves than going to Saturday morning market. This preference to imported food dealt a further blow to the local production, which was unable to compete either in price or quality or variety.

The other factor which could have contributed to the decline of agriculture is the land value. With the growth in the economy, real estate demand increased and so did the value of land. The opportunity cost of keeping land in agriculture was too high. Furthermore, BVI never did have preferential land values for agriculture. All land exchanged hands at market price. This prevents entrepreneurs from investing in land for agriculture.

With the possibility of importing any quantity of food and being able to pay for it, the local agricultural sector became a forgotten entity, rather unfairly.

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