WEBVTT

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Previously a life… It is very… very clear

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that development will not take place at the pace that we wouldn\'t
like, unless we address the question of liberalization of trade.

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The moment we stopped
destroying local markets,

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and farmers can get a fair price then
they can send their children to school.

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A lot of people are dyeing
because of trade issues.

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Jamaica sun, sand, rum and reggae,

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a holiday destination
for tens of thousands,

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tourism underpins the entire economy of this
tropical island where over half the population works

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in the service industry it\'s Jamaica\'s
largest foreign exchange on,

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Away from the beaches and resorts
though, doesn\'t another rural Jamaica,

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struggling to make ends meet and
that struggle is symbolized

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by the Jamaica hope a unique and
successful breed, of dairy cow.

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But in a country where
demand for milk outstrips

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what farmers can supply the Jamaica hope and
the dairy industry it should have underpinned

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a facing a crisis. This Life program
investigates why the Jamaica

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hope is under threat from
subsidized European dairy farmers

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and how the European Union\'s agricultural policies
square with the open and transparent trading system

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it\'s signed up to in the
Millennium development goals.

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[sil.]

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Jamaica likes its milk, its part of the staple diet
of many of the 2.6 million people living here,

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but diary productions difficult
in tropical climates

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so most of the island\'s milk was always
imported in the early part of the 20th century

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breeders developed a dairy cow that could withstand
the island\'s heat and tropical diseases.

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They called it the Jamaica hope.

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In a country where one in five Islanders works
in agriculture, it was a major step toward

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sustainable rural development.

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It was such a success that other developing
countries wanted to acquire the Jamaica hope.

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A people of Jamaica

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are extremely proud of Jamaica
hope umm… Jamaica hope is

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uh… Jamaica creation a Jamaican
creation for Jamaican conditions,

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it is able too… to… to… to
survive under the existing

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umm… forage regime that exists in Jamaica.
It is able to also survive

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under the hot, humid tropical environment

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that exists in Jamaica and

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umm… even then produces
fair quantity of milk.

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The Jamaica hope should have helped turn to
Jamaica\'s dairy farmers into a growth industry

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but it hasn\'t, thanks to trade and tariff
barriers subsidies and protected markets,

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Jamaica\'s dairy farmers are suffering.

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It was good in the beginning. I started off
with one cow. I used milk with my hand.

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I got to milk seventeen with my hands.

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Twice a day, I alone…
alone, it was so nice.

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And while I was praying that I could
sell a hundred liters of milk per night,

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If I could sell a hundred liters per night,

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I would make some money. Now I am
selling 2000 liters per night,

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sometimes more, sometimes a little less.
And I still don\'t make money.

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Well, I just like, I just like
doing this work, you know.

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I like this work, you know. Yeah, man, this
work is very nice, you know, nice to me.

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Only one thing, you know,
sometimes things being rough

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that boss can\'t find no money to pay me
sometime, you know. Yeah, things kind of rough

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but I like this work, you know.
Yeah, man… I am really

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create an economy because you know your mate you know
when you come here whenever I work very… very hard

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you don\'t make any money but you still want something
every day I come here a committee it\'s bills,

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your electricity bill is high,
your telephone bill is high, your…

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your… umm… fueled big cost is high

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and milk price is low (inaudible) we
can make it In the 1980\'s the outlook

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for Jamaica\'s dairy farmers had been good.
Production more than doubled,

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up from 17 and a half million liters
and 1981 to 38 million liters by 1992.

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But in 1991 and 1992, Jamaica\'s
economy went into a tailspin.

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The Jamaican government had to sign up to a
series of new loan agreements with the World Bank

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and I.M.F, in return Jamaica had to agree

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to liberalize its economy, Jamaica
had to open up its markets

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to other countries produce. Duties on
imported milk products were slashed

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from 100% to just five percent, This led
to a steady increase in dairy imports,

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in particular of powdered
milk from the European Union

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and Jamaica\'s farmers just couldn\'t compete with
European dairy farmers on production costs.

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[sil.]

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(inaudible). In the beginning we milked by
hand after four years we bought a machine

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and nowadays we mostly cows at
the same time and rounds of 12.

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(inaudible).

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Soon we will expand because we worked
under our capacity. (inaudible).

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Compared to the time when my
wife and I started this farm

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a lot of things have changed. We started on
the eight acres of land with eleven towers.

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(inaudible).

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Now we have 57 acres, (inaudible) 20 cows

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and produce million
liters of milk per year.

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(inaudible).

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Europe\'s rapid postwar population growth
required a massive increase in food production,

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in the 1960\'s Europe introduced
the Common Agricultural Policy

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a system of subsidies that encouraged
formers to boost productivity,

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E.U subsidies helped develop
European agriculture,

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and allowed Europe\'s dairy farmers to
invest in new machinery and new technology

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the result of huge increase in milk production
which began to exceed domestic demand.

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The surplus was sold on the world
market to countries like Jamaica,

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export subsidies kept the
price artificially low,

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But subsidized European milk imports have had a profound
impact on the growth of Jamaica\'s dairy industry.

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In the 1960\'s, there were
4,000 small dairy farmers.

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By 1996, following the arrival of
cheap subsidized milk products,

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this had shrunk to 470. And by
2002, there were just 90 left.

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And it wasn\'t just the small
farmers who suffered.

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My father had been in dairy from in 1940.
He had quite a successful dairy,

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by Jamaican standards, large dairy.
I took over a dairy milk

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in about 400 head of cattle, in 1970,

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full of all the information from college in England,
I had attended a lot of agriculture, so much there,

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brought back a lot of new equipment, new
tractors far as harvest and equipment,

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we brought (inaudible) forest through
(inaudible) Western Hemisphere,

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this continent on not very successfully

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because at the time massive
introductions of milk powder,

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was been brought into the island reconstituted
and sold as fresh milk in competition an a day,

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fresh milk supplied by the farmers. Which
was always a bit of a puzzle to me

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because in a (inaudible) I\'d studied if
milk was being sold in those countries

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their consumers for approximately the same
price as it has been sold in Jamaica yet,

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somehow we were able to bring in,
dried milk from this countries,

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which most of had a large cost (inaudible) to then
involved in reducing it from fresh milk to dried milk,

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I guess it was able to be brought to reconstituted
and saw sold at a lower price than our product

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was being sold for, We actually
got a very good production levels

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but after many years of stressful efforts to
increase our production and doing so successfully

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we were still not able to compete
with costs with the milk powder,

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so eventually I was forced out of the dairy
business and into the fish business.

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The Jamaican Dairy Farmers Federation
claims E.U subsidies mean Europe\'s farmer

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can produce milk at half what
it costs Jamaican farmers.

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They say this is unfair, has made Jamaican
milk uneconomic, and they accuse the E.U

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of dumping its excess milk products,
but European farmers says

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that\'s just market forces.

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It has been determined, that the
dairy industrial been subjected to

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a large degree dumping from
Europe and all the sources,

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we can (inaudible).

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Dead along the heavily (inaudible).

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Farmers in the south world especially
suffer from the backward persuasion.

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(inaudible). When you see that they produce milk
in a country where milk cannot be produced.

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(inaudible). That is like us trying
to grow rice over here. (inaudible).

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They shouldn\'t try but they still do, with cows are
don\'t even produce 700 liters in a year. (inaudible).

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So how can you say that we are
spoiling their milk? (inaudible)

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We have to ask ourselves

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whether it wouldn\'t be better to produce in those
places where it can be done most efficiently

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in quantity and quality.

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(inaudible).

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They must be thankful that we
produce to supply the demand.

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And of it after all do (inaudible).
Resell milk. By (inaudible).

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We don\'t dump.

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[sil.] Transcription missing 11:46-12:15

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We have in the world of six billion people,

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three billion people that live under two dollars a day. uh…
European cows get subsidized to the extent of two dollars

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and 50 cents a day, so there\'s something
disproportionate in terms of the way our

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subsidies are working on the way we\'re
attending to the question of poverty.

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The European Union spends an estimated
16 billion U.S dollars a year

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subsidizing its dairy industry selling its
surplus on to countries like Jamaica.

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In a free market the milk products
imported by Jamaica, are cheap

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and Jamaica still benefits from the five percent import duty
which brings in around three million U.S dollars a year,

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but the result is the Jamaica\'s own dairy
industry is now fighting for survival.

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[non-English narration]

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But they still could go (inaudible). Yeah.
(inaudible). Which is the best one?

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[sil.]

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In the 1980\'s the Jamaican
government tried to help its farmers

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and dairy industry by imposing import
duties, in an attempt to protect

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its domestic market revenues from this were
used to invest in the further development

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of the dairy industry but that all changed when the
government in an attempt to boost Jamaica\'s economy

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applied for loans from the I.M.F,

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Professor Michael Witter represented the
Jamaican government in the negotiations.

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For Continental maker to get a loan it has to be an agreement
with the I.M.F, to get that loan you have to sign away

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you have to sign certain conditionality\'s
and those conditionality\'s

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invariably involved liberalization of the
economy to one degree or another, and as part

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of that liberalization comes removal of
taxes and removal of special concessions

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to local producers. The philosophy
behind that was neoliberal notion

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that markets know best, and
if we remove the protection,

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then our producers would be made
more competitive as a result

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of competition with external,
more efficient producers.

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(inaudible) competitive towards
subsidized markets. Well, well… uh…

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that is what we protested umm… those of
us who disagreed with the liberalization

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and I think it has remained an issue to
present the, the issue of this subsidies

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of in Europe, and the subsidies
in the United States,

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so that in reality we had to buy into what is called a level
playing field policy when there was no level playing field.

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We in the World Bank for a number of years
were encouraging developing countries

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to open their markets, on the basis that there was a
deal done there that we would all open our markets

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what\'s happened in recent years
is that we are getting blamed

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and I think in some cases correctly, so for encouraging
developing countries to open their markets

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and then when they produce they find it\'s difficult
to sell in the developed country markets

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because they\'re blocked, so either we build
barriers on both sides in which case

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the developing countries should build their
own barriers or you should liberalize

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and have a free trade environment, I think
everyone believes that a free market

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is probably in everyone\'s best interests. But what
you cannot have is subsidies and tariffs on one side

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and freedom on the other because it just
doesn\'t work. The conditions attached

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to the loans did bring down inflation but
for Jamaica\'s fledgling dairy industry

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the lack of protection against cheap
European milk Imports a spell disaster

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and interest payments on the loans
have created a vicious circle.

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We can\'t, they didn\'t, no need to borrow unless
we have an agreement with the I. M. F, agreement

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with the I. M. F given our history given the realities, will
not straying from the productive capacity of the economy

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what we need to competition that
it can\'t withstand and therefore

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that, If… if we don\'t produce and we don\'t earn U.S
dollars and other had currencies to (inaudible)

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did then we have to borrow more money so we
go back to the scene people don\'t borrow…

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And that new condition. … new conditions, until
it reached a point in the late in the mid 1990\'s,

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when we were borrowing to pay back previous loans
and indeed there was a net out flow from Jamaica,

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to the International monetary is
fund and world bank for many years.

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The crisis in the dairy industry
has only added to the cycle of

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(inaudible) 40% of Jamaica\'s
population live in the countryside

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three quarters of them on less than a dollar a
day, the decline in the number of dairy farms

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has hit them hard critics blame the negative impacts
of trade liberalization policies particularly

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the cheap subsidized
imports of milk products

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but are they right with the World Bank reporting
a crucial need for poverty reduction programs

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in Jamaica, the European Union is now
adapting its internal subsidies policy.

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The European Union has decided for
itself was a front on the reason

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that the old subsidies is then boosting over
production dumping products on road markets

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harming developing countries was not
necessarily, the policy for the 21st century,

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this is the reason why (inaudible) European
commission, commission official initiated a reform,

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which was decided last year this reform will
completely change the way subsidies are paid

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and also the quantities of money.

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[sil.]

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How much milk can this lorry carry?
33,000 liters.

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How many loads to you transport? Three
per day. That\'s a lot isn\'t it?

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We used to it.

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For Europe\'s farmers
subsidies dairy farming

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had become a way of life, but the subsidies
no longer support increased production

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there now for improving animal welfare
and maintaining Europe\'s environment.

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Subsidies… Subsidies remain necessary,

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not to stimulate production but to
safeguard a landscape (inaudible)…

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Our countryside is very valuable,

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you notice that all around. (inaudible).

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This maintenance of the environment
is something we farmers do as well,

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so is the maintenance of European
markets the E.U acknowledges that

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to stop exporting its dairy products to
Jamaica and other developing countries

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would damage its balance of
payments and its market share.

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Independently from the European policy interests considered Europe
we would completely withdraw from the Jamaican market then.

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Does one really seriously believe
that the Jamaican former

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could compete with the big boys in milk
production who are very competitive

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like New Zealand for example like Australia? So
which means that whatever happens, of course,

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if you take the current situation uh… milk
or milk powder coming from Australia,

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coming from New Zealand, we know has been cheaper
because it\'s easier to produce than then

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umm… milk coming from Jamaica, and I think,
this is a reality uh… people should also face.

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The reality for Jamaica\'s dairy industry is
the trade liberalization has been a disaster

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the hope that the Jamaica hope would prove
a model for sustainable development

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in the rural areas was dashed by the
lack of protection for the farmers

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import duties on imported milk products may have
brought in some income but at the cost of decimating

00:21:20.000 --> 00:21:24.999
Jamaica\'s domestic dairy industry.
Jamaican farmers produce milk

00:21:25.000 --> 00:21:29.999
world market prices what they can\'t do just
compete against the European subsidies

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of 1.5 billion on the exports from
Europe into the world to make sure

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Europe actually produces and dumps
milk below the cost of production.

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They can have compete with New Zealand\'s, and
Australia, either which are not subsidized markets.

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They can compete with a reasonable market price
at the moment clearly there are other countries

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that may be able to produce milk at a lower price but what you must do is
be able to make sure that you\'ve got a dairy industry to produce the milk.

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In 2003

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the World Trade Organization met
in Cancun on Mexico, on the agenda

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the trade barriers between the rich and poor countries.
The USA and the E.U. were reluctant to remove subsidies

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without getting anything in return
and the (inaudible) failed,

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but there are now concessions on the table for the
next round and protection of domestic markets

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is back on the agenda. What
we\'re proposing for example

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WTO is that developing countries, poorer countries
should obviously have the right to protect their markets

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much more than for example Europe. I
think this is clear and should be clear.

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That only two things that can happen either there is a substantial
reform (inaudible) of the a very rigid rules and double standards

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which have been established over
many years by the European Union,

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United States and Japan, all the
trade talks will fail, there is no…

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Two ways about it, the developing countries and all
believe that there is no way that they will sustain,

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they (inaudible) to continue in trade
talks unless that that is an attempt

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to remove the worst iniquities of
the of the instruction trade wills.

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[sil.]

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(inaudible) Import and because they stimulate like
(inaudible). What stimulate of the milk produce.

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The cow produces more milk in the beginning
and the longer it\'s been since in cow,

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less milk produces. What
they need to (inaudible).

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Apart from that\'s they replace
the old a cow\'s in time

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and make it possible to expand the farm.
(inaudible).

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Does important for the production? Yes.

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What she is going to be called? She will be called
(inaudible), a cow is always named after its mother,

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but I don\'t know the number yet.

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(inaudible).

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She is pregnant. But as things are…

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cow… umm… was calf in I wanna
call of it (inaudible).

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Because…

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(inaudible).

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But they calf brings a money. No,
I kill the calf (inaudible).

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(inaudible). (inaudible) I cannot feed it.

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Why not, nobody wants to have to calf.
No, nothing for free

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(inaudible) and I can\'t feed
him, so I get rid of them.

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I think is really hard for us.

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By the amount of work that I put in my farm, if I
would live somewhere else I would be a rich man.