NEW MECHANISMS are being examined to develop regional agriculture and get farmers to become suppliers to the tourism sector.

During the opening session of a two-day workshop under the theme Factoring/ Receivable Discounting: A Financing Tool For Agriculture Sector Development, Minister of Agriculture Haynesley Benn said that over the last two decades agricultural output as a percentage of GDP had declined but if the trade finance mechanism was utilised correctly it would provide a lucrative market for farmers and an avenue for wealth creation.

If properly applied, it could be a useful financing tool that would enable the integration of small scale farmers to supply the tourist industry and supermarkets.

Benn said getting finance for the agricultural sector was very important for the sector's development.

"Smallholder producers are often unable to access adequate finance, primarily because of high risks associated with agricultural products and lack of suitable collateral," Benn noted.

Co-ordinator of finance and risk management at the United Nations Conference On Trade And Development, Frida Youssef, said the focus of the November 4 and 5 workshop was to seek out ways in which to better provide timely financing to small farmers.

"We are looking at the tourism industry and supermarket chains.

"The idea is to see how we can link farmers and tourism and provide them with the financing mechanism.

"We are looking at small scale farmers but we also need farmers' associations," Youssef said.

The workshop held at the Savannah Hotel included farmers, bank officials and hotel workers from more than ten countries in the region.

It was jointly organised by the United Nation Conference On Trade And Development and the Caribbean Development Bank. (MM)