Robert’s Grove
A Cottage Industry is defined as a service performed or product made in one’s own home for
remuneration. It probably began hundreds of years ago when housewives, living in small
cottages owned by the local squire, tatted, crocheted, or knitted garments to be bartered for the
necessities of life. Today in some parts of the world cottage industries are still flourishing.
Examples of COTTAGE INDUSTRY
1. weaving, pottery, and other cottage industries
First Known Use of COTTAGE INDUSTRY
1921
3.4.1 Summary
The cottage industry in Belize is comprised of micro branches scattered all over the
country; these are small business managed by grassroots farmers and market
vendors. Belize being an agriculture country, is blessed with an abundance of raw
materials (fruits, vegetables, roots and tubers). Main exports include sugar, citrus
and bananas. The cottage industry is further supported and strengthened by input
from local government through the village councils and Town Board, and from the
central Government through the Marketing Board and finance corporations. The
Government Agriculture Department provides technical assistance to the farmers,
while the National Development Foundation and other agricultural federations
conduct training for them in entrepreneurship development.
The majority of the cottage industries are managed by women trained by the
Government department of Women's Affairs, and most of the raw materials are
produced by these same women in the fields. The Government and NGO's
(nongovernment organizations), through funding agencies, such as the U.S.
Agency for International Development and the Inter-American Foundation,
provide for training overseas and the entrepreneurs enjoy this opportunity. The
cottage industry continues to grow and expand and it is hoped that soon there will
be one unified private sector or small business association, complemented and
supported by the government and people of Belize.
3.4.2 Country report
Belize is one of the less developed countries of the Caribbean Community, with a
multiracial population of about 200,000, in an area of about 9,000 square miles
(23,326 square kilometers); it has a population density of about 20.2 per sq. mile. It
is situated on the Central American mainland with big neighbors like Mexico, in
the North, and Guatemala, in the West. Yet, this tiny nation, which on 21
September, 1991, marked its tenth year of independence from the British after
about two centuries of colonial rule, has a crucial role to play, as an English and
Spanish speaking country, with a stable Government which operates on the
principles of British (Westminster system) parliamentary democracy in bridging
the two sub-regions of the Caribbean and Central America.
This small country has a small productive sector, which is very limited in the
development of its resources and with an economy heavily dependent on
agriculture, mainly sugar; this crop is the country's most important source of
foreign currency and when the price of sugar dropped, the farmers diversified,
especially with citrus fruit, bananas, vegetables, roots, tubers and products from the
sea. Belize is now boosting its tourism potential with a new thrust towards the
promotion of ecotourism and El Mundo Maya. El Mundo Maya is an integrated
private sector achievement in the facilitation of regional cooperation with the
objective of developing and promoting the archaeological, environmental and
cultural attraction of the region.
The Government recognizes the important role which the private sector, led by the
Belize Chamber of Commerce and Industry, has to play in the process of
development and has declared that it is committed to the maintenance of an
economic environment conducive to private investment. The Belize Chamber of
Commerce and Industry, as a major proponent of the entrepreneurial spirit, fully
endorses a new world order based on economic rather than political ties, especially
for small peripheral economies such as Belize's which are forced to develop their
industries and other potential with little resources.
It is a signal that despite the maxim that small is beautiful, there is less and less
advantage to being small and more advantage to being big -or both- in that we
must do everything within realism and common sense to strengthen the Caribbean
Community, the Latin American/Central American Economic/Caribbean
partnership and not fall prey to the dazzlement of foreign products.
The key to survival means that the country must become more competitive. The
following are some important ingredients which should contribute to the survival
of businesses in small, fragile economies like Belize if we are to face international
competition. There is need for development of product ranges in which the country
has comparative advantage and a competitive edge. We must also keep abreast of
technology to conditions prevailing in the country. A serious approach should also
be taken towards the development of appropriate technology. It is necessary to put
into higher gear the training required to boost a skilled and productive workforce,
which will be appropriate to our development needs. Roads, tale-communications,
drainage, irrigation, storage facilities, adequate quarantine monitoring, and support
facilities and port facilities, must be put in place.
Whilst market opportunities exist, if the country cannot respond to take advantage
of these markets because of lack of flexibility in production due to poor physical
and institutional infrastructure, then market opportunity will pass us by. We
recognize that while these developments have been taking place on a sustained
basis, there is clearly a need for massive investment with assistance from
international development agencies. At the same time the institutional
infrastructure such as an extensive, financial system for provision of credit,
government support facilities and a capital market must also be put in place.
The Agriculture Department in Belize has the mammoth task of co-ordinating and
overseeing all agricultural-related activities in the country. This task goes beyond
just providing technical advice, seeds, seedlings, pesticides, fertilizers and other
farming inputs. The Agriculture Department also aids by providing land clearing
land preparation and harvesting equipment as well as threshers. The Ministry of
this department has acquired its own road unit, which has been very busy opening
new farm roads and maintaining existing ones, in collaboration with the Ministry
of Works.
Until 1984, Belizean business-persons engaged in small business ventures found it
virtually impossible to get credit to establish or expand their business. For one
thing, the traditional credit institutions were not usually prepared to lend money
without adequate an collateral and needed a high degree of certainty that the loan
would be repaid. In other words, traditional credit institutions took little risks since
they were in business primarily for profit. There was a need, therefore, for a non-
conventional funding source for small business people who did not qualify for
loans from traditional credit agencies. That longfelt need was fulfilled with the
formation on 5 January, 1983, of the National Development Foundation of Belize
(NDFB). The Government of Belize and the United States Agency for
International Development (USAID) contributed 1.0 M for a three year project
which led to NDF/B's establishment. The private sector business community
provided seed funds amounting to $150,000.
NDF/B is administered by business and civic leaders to provide loans, business
guidance and technical assistance to struggling small businesses and projects that
normally would not qualify for commercial borrowing. NDF/B haps the small
person improve herself/himself and the family's well-being economically and
socially, by improving production, productivity and management with loan funds
and technical assistance.
For non-storable commodities, such as fruits and vegetables, national policy
focuses on food processing to utilize produce that is surplus for fresh market use.
Government policy encourages the increase in food processing where feasibility
studies demonstrate potential success. The objectives are to increase income,
become more selfsufficient in food supply and reduce foreign exchange
expenditure on these items. Our food items include, for example, fruits such as
mangoes, pineapple, etc. Mango production in Belize has been quite variable from
year to year, mainly due to weather conditions during blossom time. The vast bulk
of production in recent years has been from the 1,000 acre mango farm of the
Tropical Produce Company. This firm has exported most of its production.
Potential production from the Tropical Produce farm is estimated at up to 5 million
pounds from presently bearing trees.
Belize was the third largest supplier of mangoes to the U.S. market, behind Mexico
and Haiti. Mangoes entering the U.S. market must be treated for fruit fly and they
fit the profile of good fresh fruit export crop for Belize, that is a relative high
priced highly perishable item which must be air freighted to many parts of the U.S.
market by all competitive suppliers. Vegetable production for local markets has
been characterized by numerous small scale producers providing items of quite
varied quality, with periods of gluts and scarcity of supply. Farmers are cultivating
over 6000 ares of vegetables for export, with a value of $12-15 million. Local
markets prices for fresh vegetables have shown wide fluctuation for locally
produced seasonal crops, such as tomatoes and sweet peppers, with much less
variation for that mainly imported items, such as potatoes and onions.
Because of the small size of the domestic market, any large increase in vegetable
production (with the exception of onions, potatoes and cabbages) would have to be
exported. Attempts to export fresh winter vegetables to the U.S. have not been
profitable on a sustained basis. Factors which have negatively affected the industry
are transportation problems, high cost of inputs, unexpected plant disease and
insect infestation, and lack of post harvest technology.
Because Belize is at a competitive disadvantage in supplying vegetables which can
be trucked from Mexico or shipped from deepwater ports in Honduras, Guatemala
and the Caribbean, it would seem advantageous to concentrate on high value,
quickly perishable vegetables which must be airfreighted by competitors as well.
Roots and tubers such as cassavas, cocoa, sweet potatoes and yams are grown
through the country and are sold to the small trade persons, cottage industries and
other market vendors. There is greater demand for cassava in the southern-most
parts of the country, where it is processed and converted into bread for consumers
on a daily diet. Because of the perishability of these crops and the lack of
appropriate technology, they are grown mainly for local consumption, with very
little being exported to neighbouring border towns.
Agriculture development is an essential and high priority national goal. Success
means food security for the citizens, economic expansion for farm families,
improved management of our human and natural resources, and a more positive
investment climate. We believe Belizean agriculture is entering a dynamic period
of growth and change. It is incumbent upon Government that we seize the initiative
and design national policies that maximize the opportunities before us.
3.5.3 Government policies
The Government encourages agro-processing as a means of diversifying the
economy away from bananas. The main thrust of the Ministry of Agriculture's
policy is agricultural diversification, the objectives of which are to:
increase foreign exchange earnings
increase productivity and profitability in agriculture
promote processing, preservation and storage of agricultural produce
improve food security and the nutrition status of the population.
The Government provides budgetary allowance to the Produce Chemist Laboratory
for research and development purposes in the field of food processing. Projects to
further develop agro-processing are also well supported and presented to funding
agencies for financial support. Through the laboratory, small processors benefit
from advice, use of pilot plant equipment and lease of small equipment and
instruments. The laboratory also carries out research and development activities in
its pilot plant on behalf of processors.
Fiscal incentives are given to qualifying industries. The incentives includes duty
free concessions on vehicles, equipments and supplies; product quality control
checks is also provided for all small processors by the Produce Chemist
Laboratory. The Government has also recognized the importance of allocating
adequate man-power to work in the area of agro-processing. Budgetary constraints
have limited the staff employed to service the processing sector. Presently, one
member of the staff of the Division of Agriculture is pursuing studies in Food
Technology in the United States.
