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Jamaica Producers quits banana exports
published: Tuesday | September 23, 2008


Downed banana trees on the St Mary Banana Estate owned by Jamaica Producers Group following the passage of Hurricane Dean in August 2007. - File

The Jamaica Producers Group (JPG) has announced its decision to end banana production in Jamaica for export to the United Kingdom, citing massive losses as a result of several hurricanes in the last four years.

Company chairman Charles Johnston said JPG will now concentrate on growing less-vulnerable crops, such as cassava and breadfruit, for the snack segment of its operations.

This decision by the island's largest commercial producer of the fruit, which is Jamaica's third-largest export crop, will send close to 400 persons into unemployment and will force the Ministry of Agriculture to examine the feasibility of banana as a viable export crop.

"The board of Jamaica Producers took the decision to suspend export production after careful con-sideration of all options available to it and after a review of the impact on all stakeholders," Johnston said in his announcement of the company's decision on the weekend.

Johnston said the damage sustained to JPG's banana operations from four hurricanes in as many years was just too much, hence, it could not continue in the trade. "The frequency of hurricanes that Jamaica has been experiencing has been the major factor behind the decision of JP not to again re-invest in export production," the press release from JPG stated. But it will still grow bananas for the local market, which consumes about 100,000 tonnes annually.

Before Hurricane Dean last August, bananas accounted for 85 per cent of JPG's exports from Jamaica, with the remaining 15 per cent coming from snacks. Overall, however, banana production was responsible for just five per cent of the group's operations - 80 per cent being food processing and the remaining 11 per cent comprising freight and shipping.

Plans in motion

Johnston said plans were already in motion to ramp up production of other tropical foods to boost its snack business, mainly cassava and breadfruit, which it will grow on lands where its factory is located in St Mary. Small farmers are expected to also contribute to supplying these items to the factory.

"JP is confident that it will be able to continue to show leadership in agri-business in Jamaica through its focus on the production of produce for the local market and its continued development of the tropical snacks business," said Johnston.

He said the agriculture ministry has committed to assisting JPG in exploring other commercially viable business options in the communities that will be affected by the cut in banana exports.

business@gleanerjm.com

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