PART I: PRODUCTIVE SECTORS
4.1 Agriculture and Livestock
A. Overall Contribution to Economy:
Production of agricultural goods is the backbone of the economy. The sector employs about 80% of the population's
workforce and accounts for over 50% of the Gross Domestic Product (GDP), is the main source of food supply and raw
materials for the industrial sector, as well as a major market for industrial goods. The sector also accounts for
75% of foreign exchange earnings, with main export crops of coffee, cotton, and pyrethrum. Twenty-five percent of
the sector input comes from livestock production. Of that portion, beef production represents 40%, with milk
comprising 30% and poultry and small stock about 30%.1 Both of these sectors are growing significantly in their
outputs and contribution to the national economy.
Agricultural production mostly is accomplished by small-scale producers. However, large agri-business also
contributes to the gross domestic product. In both cases, different aspects of the agricultural production processes
contribute to degradation of the environment. This section discusses environmental issues and relevant legislation
related to agricultural production; agricultural processing is discussed in the section on Industry, section 4.5.
The following areas are significant in the sector and are targeted for increased investment by the Investment
Promotion Centre.2
Food crops and cash crops:
| Tea | Palm Oil |
| Sisal and Sisal Products | Sugar |
| Coconuts | Castor Oil |
| Wheat | Barley |
| Cashewnuts | Fruit, Vegetables, Flowers for Export |
Livestock Development:
| Heifer breeding/Dairy Farming | |
| Piggery | Beef Ranching |
| Sheep/Goats Keeping | Poultry |
For the most part, agriculture is practiced by families and individuals, with a few large farms covering about one
percent of the total land area.3 Therefore, it must be recognized that the rules and regulations covering agriculture
apply to both small and large-scale farming activities, regardless of their size. Furthermore, where large-scale
farms are now being privatised, the timely opportunity exists to review their environmental management issues and
proper law compliance.
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