INVESTMENT OPPORTUNITIES IN JAMAICAN · PDF fileInvestment Opportunities in Jamaican...

LONDON

MARCH 2011

INVESTMENT OPPORTUNITIES

IN

JAMAICAN AGRICULTURE

Government of Jamaica

Ministry of Agriculture and Fisheries

Presentation

• WHY AGRICULTURE AS AN INVESTMENT OPPORTUNITY ?

• WHY INVEST IN AGRICULTURE IN JAMAICA ?

• WHAT ARE THE OPPORTUNTIES FOR INVESTMENT?

• WHAT ARE THE POLICY AND INFRASTRCUTURE ENABLERS FOR

INVESTMENT?

• WHERE TO BEGIN THE DUE DILLIGENCE AND BUSINESS CASE

DEVEOPMENT?

Global Trends Impacting Agriculture

• The projected increase in global population

growth – 2.5 billion or 37.3% (UN) by 2050 thus

doubling of current food demand by 2050

• The challenge to double food production

exacerbated by climate change

• The competing use of agricultural output

– Food, Fuel, Feed

• The projected long term increases in commodity

prices

Presentation





INVESTMENT?


DEVEOPMENT?

Strategic Vision for Agriculture in Jamaica

(Vision 2030)

An Agriculture Sector that :

i) is driven by private sector investment within a policy and regulatory

framework that fosters competition and transparency;

ii) is competitive in Jamaica and in regional and international markets;

iii) contributes to the long-term socio-economic development of Jamaica;

iv) is environmentally sustainable with increased use of renewable energy

sources and minimal harmful environmental impacts; and

v) is knowledge-driven based on widespread use of appropriate

technology and supported by relevant research and development.

The implementation of our strategy is assisted by

technical and funding support from our Regional

and International Partners

Our main International Partners for the agricultural

sector include:

• The European Union (EU)

• Food and Agriculture Organization (FAO)

• Inter-American Institute for Co-operation in Agriculture (IICA)

• Common Fund for Commodities (CFC)

• The International Fund for Agricultural Development (IFAD)

• Inter-American Development Bank (IDB)

• Caribbean Development Bank (CDB)

• US Agency for International Development (USAID)

• Technical Centre for Agricultural and Rural Cooperation (CTA)

• Canadian International Development Agency (CIDA)

• Spanish Agency for International Co-operation (AECI)

Jamaica has a value proposition as a source

for agricultural commodities and products

• Jamaica fits into the global business model to support and meet

demand for global Agricultural output (a portfolio management

approach of strategic sources of combined inputs-land, water,

climate etc).

• Jamaica is a strategic option for source of high value commodities

and niche value added products based on its geography and unique

flavor profiles - Spices (ginger, pimento, tumeric, hot pepper)

• ‘Jamaica’ as a brand can be leveraged both to the Diaspora, other

ethnic and specialty niche markets.

• Jamaica has an ideal geographic location linking North America and

Europe to the Caribbean and Latin America for efficient

transportation of goods

Investment Opportunities in Jamaican Agriculture

• The profile of investment opportunities range in size and scope

along the value chain

• There are three (3) categories of investments that are possible with

government policy support :

– Primary Production – Import substitution of primary commodities to meet

local demand (residents and visitors)

– Processing /Value-added - Divestment of state owned processing facilities –

Local and Export Potential

– Industry development of new competitive sub-sectors – Local and Export

Potential

Import Substitution -Onion

Onions are required in the fresh market as

well as the agro processing industry.

Import – 8,625,733 kg (2008), this

represents 93% of total local demand.

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Onion Production (tonne) 2001-2010


Total importation

in 2008 8,626,733

kgs

70% Import substitution6,038,713

kgs

Onion Industry- Targeted Import Substitution(70%) of

Current Demand

Imports

Import Substitution- Irish Potato

Demand – 14,197,170 kg

Imported – 9,268,176 kg

Value of Demand – US 4,979,980

Current Production- 4,928,994 kg

Objective - Replace 60% of Irish potato imports by 2011.

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Irish Potato Production (tonne) 2001-2010


Total Irish Potato Imports

9,268,176 kgs

Import substitution

of 60% of demand

Irish Potato Industry-Targeted Import Substitution

(60%) of current demand

Jamaica’s position in global cocoa market

Jamaican Cocoa• Jamaica’s cocoa is renowned internationally

as a premium product based on its distinct flavour and quality.

• Jamaica is recognized as one of the 8 exclusive producers of fine flavoured cocoa internationally.

• Fine flavoured cocoa comprises 5% of the world cocoa market.

• Jamaica’s fine flavoured cocoa commands premium prices on the international market.

• Premiums prices ranged anywhere from 15% to 100% over that of the London and New York futures market prices.

• Cocoa currently accounts for 2% of Jamaica’s traditional agricultural exports.

• At present Jamaica exports 90% of its beans to five countries; the two largest importers of Jamaica’s cocoa beans are Japan 55% and France 27%.

Notable Recent Award

12

Presentation




• WHAT ARE THE POLICY AND INFRASTRUCTURE ENABLERS FOR

INVESTMENT?


DEVEOPMENT?

Creation of Agro Parks

Agro Parks Created

• Hounslow, St Elizabeth – 1,000 acres irrigated

• Amity Hall, St Catherine– 2,700 acres

• Spring Plains, Clarendon– 700 acres irrigated

Targeted Production

• Spices, Vegetables, Fruits

• Sugar, Rice

• Vegetables, Spices

AGRICULTURAL EXPORT

COMPLEX• Provides an Integral part of the

phytosanitary capability of Jamaica.

• Facilitates proper traceability of exports.

• Provides a sterile and sanitary environment

for the inspection of agricultural exports.

• Enhances the implementation of relevant

aspects of world trade organization and

sanitary and phytosanitary agreements on

agriculture.

• Reduces travelling costs to packinghouses

for inspections of exports.

• Improves quality of produce when it gets

abroad due to reduced handling.

• Improved quality of inspection for export.

LOGISTICS SUPPORTAir Freight• Domestic and International Air

Transport– Two International Airports- Kingston

and Montego Bay

– Daily connections to major cities in the US, Europe and Canada.

Sea Freight• Developed maritime infrastructure• Existence of 45 Jamaican flagged

vessels totaling 200,000 gross tonstrading worldwide.

• The Port of Kingston, the largest seaportin the island comprised of, among others:

– Kingston Container Terminal (KCT),a large and modern transshipmenthub port rated 57th in the world in2006

– Kingston Wharves, rated the bestmulti-purpose port in the Caribbean

• Time frame• 3-5weeks – UK

Presentation





INVESTMENT?


DEVEOPMENT?

Key Messages


– Can be profitable and is part of a global supply chain and business model


– Strong policy framework, many competitive advantages, sound business case,

availability of export and processing facilities , dedicated teams to facilitate

investments


– Niche Products with Brand Jamaica, wide scope and investment values along the

value chain


INVESTMENT?

– Vision 2030, National Export Policy, Trade Policies, Purpose built infrastructure , land

bank with irrigation

WHERE TO BEGIN THE DUE DILLIGENCE AND

BUSINESS CASE DEVEOPMENT?

–Right Here Right Now!!!

• JAMPRO –Investment Facilitation

• Agro Investment Corporation- Details for Sector Analysis and Business Case Development

• Export Division of the Ministry of Agriculture and Fisheries –Details of Export Facilitation and Opportunities

Our partners are committing funding and technical

support to critical areas

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Support Projects

Support Agencies and Current projects

Capacity Building for Sustainable land Management in Ja. Forestry - Funded by UNDPAgricultural Competitiveness Programme (ACP)- Funded by IDBDiversification of the Caribbean's Livestock sector (Small Ruminant) - Funded by CFCCompetitive Coffee Enterprise Programme - Funded by CFCMarketing & Agriculture for Jamaica Improved Competitiveness (MAJIC)- Funded by USAIDFAO/EC Food Facility Project - Funded by EU & FAOCentre of Excellence (CEATA) - Funded by Spain/Caricom Joint FundJamaica Small Famers Input Supply Project ALBA - Funded by Venezuelan Gov'tGustav Rehabilitaion Project - Funded by USAIDNational Irrigation Development Project (NIDP)- Funded by IDBNational Irrigation Development Project (NIDP) - Funded by CDBSugar Transformation Project (STU)- Funded by EUModern Agriculture Tech. & Capacity Marine/Environmental (IJAP)- Funded by CIDAModern Agriculture Tech. & Capacity Greenhouse (IJAP)- Funded by CIDA

US$ Project Value (millions)

Jamaica Is A Great Place To Do Business

• State-of-the-art telecommunications infrastructure

• Domestic and international air transport

– Two international airports- Kingston and Montego Bay

– Daily connections to major cities in the US

• Dense road network- 15,394 kilometres.

WHAT ARE THE OPPORTUNTIES FOR INVESTMENT ?

• Divestment

• Import Substitution

• Industry Development

Divestment- Govt Sugar Estates

Opportunities:• Sugar cane production: A minimum

of 2 million tonnes sugar cane needed to meet existing demand.

• Untapped potential in the Domestic and CARICOM markets for raw and refined sugar:

Recent Divestment 2010/2011

• Three remaining Govt. controlled estates divested to Chinese Company COMPLANT

• US$126m investment over 3 years with a potential additional investment of US$100m subject to a positive feasibility study on the production of Ethanol .

Domestic Market , 140,000

CARICOM Market, 200,000

US Market , 12,000

EU Market, 126,000

Total Sugar Market Breakdown (mt)

Divestment- Cocoa Opportunities

• GOJ promoting integrated production along the value chain.

• Availability of 2 active fermentaries for processing.

• Potential for joint venture with existing producers.

• Availability of Government lands for expansion of production.

Cocoa Export Production

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Cocoa Export (tonne) 1993/94- 2006/2007

Cocoa

Opportunities

• There are two active fermentaries strategically located in Clarendon and St. Mary with the combined capacities of 2,500 tonnes annually.

• As such there exists a need to invest in the upgrading and modernization of the processing facilities.

• There exist about 1,000 acres of mature cocoa owned by 10 large farmers which are commercially viable.

• The potential is great for investment in cocoa on lands on which banana was once grown. About 250 acres have already been identified in this area for development.

THE COFFEE INDUSTRY IN A JAMAICAN CONTEXT

• The islands SECOND highest foreign exchange earner in the agri-sector; averaging US$30 million per annum

• 7,500 JBM coffee farmers• JBM averages about 350,000

boxes per annum• This translates to

approximately 2.5 million pounds of green coffee for export and 850,000 lbs for the local market.

• This equates to approximately 15-20,000 Barrels and bags for export.

Jamaica High Mountain Coffee

• We produce 50,000 to 70,000 boxes per year• The market demand for this type of coffee is anemic• Currently positioned as a premium exotic coffee at

US$15-17 per kg compared to US$7-10 per kg for competitors of a similar quality

• Needs a focused marketing program• Jamaica has the potential to produce 400,000 to

700,000 boxes of cherry coffee• We already have the capacity to process this coffee at

Tarentum. • Excellent coffee for local production and consumption

Coffee

Export Status• Export sales have declined

significantly due to the effects of the Financial market collapse in 2008 and the subsequent world recession.

• Japan has been one of the G-7 economies that has shown the greatest levels of impact, especially with a decline in exports and a strengthening Yen.

• Export volumes to Japan has declined by 50% from 13,000 units to 7,000 units due to the high levels of inventory and the downturn in demand for luxury products.

Coffee

Speciality markets• The demand for specialty coffee

has exploded in the USA mainly due to the huge success of Starbucks with over 10,000 coffee shops in-land and 5,000 stores in external markets.

• This has been followed by many other coffee shop chains (Caribou Coffee, Peets, Coffee Bean & Tea Leaf, Barnies, Gloria Jeans etc.), as well many large Quick Service Restaurants now offering Gourmet Coffee. These include McDonalds, Dunkin Donuts and Burger King.

• Gourmet Coffee has become main stream and can now be found in almost every segment of the retail market including traditional value chains like TARGET which has launched its own Gourmet Coffee line – “Archer Farms

New Export Strategy• Russia – New Trademark users-

have made a major investment in marketing JBM in Russia,

• EU Germany, France, Italy -We have a team from Germany visiting Jamaica shortly, Recent Trademark users –Tchibos have had successful sales program,

• Saudi Arabia , Kuwait, UAE-Min. Of Foreign affairs is assisting us in identifying prospects

Divestment Opportunity – Coffee

Wallenford Coffee Company

• 8 month Consultancy engaged in November 2010 to guide the divestment of WCC

• Information memorandum and business evaluation activities are in progress

Mavis Bank

• Divestment

• Import Substitution

• Industry Development

• Value chain

Industry Development Rice- Commercial Phase

Import – Approximately 100,000 tonnes of table rice is imported each year.

Objective - The objective of this programme is to redevelop the rice industry to produce 25% (25,000 tonnes) of rice consumed in Jamaica. The target for 2013 is the establishment of 4,000 hectares

Varieties

•Prosequisa 4

•Juaragua

•Juma 4

Parishes

•Westmoreland

•St. Elizabeth

•Clarendon

•St. Catherine

Jamaica Imports100,000 tonnes

table rice per year

Import substitution of

25% of demand or production of 4,000 hectares

Imports

Imports substitution

Rice Industry

Industry Development-Pimento(Primary and Valued added opportunity)

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Pimento Export (tonne)1993/94-2006/2007

Pimento

Industry Development-Pineapple(Primary and Valued added opportunity)

Production in Jamaica has been sold mainly on the local fresh fruit market.

In 2006 production was only 20,533 tonnes valued at J$1.117 billion after peaking in 2003 at 22,799 tonnesvalued at J$805.5 million. In 2005, importation of pineapple products was valued at over J$222 million while production in that same year was valued at just over J$782 million (14,551 tonnes) which indicates that there are good market opportunities locally for both the fresh and processed product.

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2005 2006 2007 2008 2009 Total

Market Demand Pineapple Production Quanitity (kg) by Quarter - 2005 to 2009 Jan - Mar

Market Demand Pineapple Production Quanitity (kg) by Quarter - 2005 to 2009 April- June

Market Demand Pineapple Production Quanitity (kg) by Quarter - 2005 to 2009 July -Sept

Market Demand Pineapple (kg) 2005-2009

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Pineapple Importation Quantity (kg) for the Period 2005 to 2009 Quantity (kg)




Pineapple Importation Quantity (kg) 2005-2009

Industry Development-Ginger

(Primary and Valued added opportunity)

Demand – Global demand for Ginger US$290M with USA and England accounting for US$37M and US$18M respectively

Target/Output

•Open field cultivation of 64 ha (158 acres)

•Increase yield by 40% up from 30% (2010) to 7.0 Mt/ha (Bangladesh /Philippines)

•Process 30mt (dry wt)

250295

402361

702

259 241298

459 486

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Ginger Production (tonne) 2001-2010

Ginger Production (tonne) 2001-2010

Industry Development –Hot Pepper

(Primary and Valued added opportunity)

Demand/Market

• In 2008, 5,338 tonnes of hot pepper was produced at a value of US$14.34M (J$1.22B)

• 64,252.72 kg of hot peppers imported from January 2009 –August 2009.

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Hot Pepper Production (tonne) 2001-2010

Hot Pepper Production (tonne) 2001-2010

2006, 224,810

2007, 250,694

2008, 44,798.42

2009, 45,432.14

0 50,000 100,000 150,000 200,000 250,000 300,000

Pepper Mash

Kg

Jamaica's Importation of pepper mash (kg) 2006-2009

Industry Development –Hot Pepper (Primary and Valued added opportunity)

0 10,000,000 20,000,000 30,000,000 40,000,000

Pepper mash

2006, 24,915,277

2007, 32,208,685

2008, 8,867,549.46

2009, 6,012,598.85

JA$

Jamaica's Importation of pepper mash (JA$) 2006-2009

Industry development -Sweet Potato

(Primary and value added opportunity)

•There is a high demand for the product overseas with major export markets in Canada and the United Kingdom.

•It is estimated that Jamaican sweet potato has a 20% share of the UK market, with smaller markets in the Cayman Islands and Martinique

•In 2008, 1,188,086 kg of sweet potato was exported mainly to the United Kingdom and Canada.

•*****EXPORT data for Sweet potato****

•Between the period of 2007-2009, sweet potato production was 26,055 tonnes, 25,797 and 34,229 tonnes respectively.

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Sweet Potato Production (tonne) 2001-2010

Sweet Potato Production (tonne) 2001-2010

Insert chart Export data

Industry development -Yellow Yam

(Primary and value added opportunity)

• Most yam exports go to West Indian communities in the United States, Canada and Great Britain.

•Over the period 2006-2008 the value of yam exports was US$14.7M, US$15.5M and US$20M respectively.

• Value added products :semi-processed vacuum packed yam slices, wines, yam chips and yam flour

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Yellow Yam production (tonne) 2001- 2010

Yellow Yam production (tonne) 2001- 2010

*Export data for Yellow yam*

Industry Development-Tomato

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Tomato Production (tonne) 2001-2010

Tomato Production (tonne) 2001-2010

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Tomato Farmgate prices (JAD$/kg) 2000-2009

Tomato Farmgate prices (JAD$/kg) 2000-2009

Vegetable

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Jamaica's Vegetable Production (tonne) 2001-2010

Vegetables

Fruit

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Jamaica's Fruit Production (tonne) 2001-2010

Fruits

Opportunities to Differentiate based on Brand Jamaica

• “Jamaica” is a strong brand name in the international marketplace, supported by Reggae, Sports, etc.

• Products- coffee, ginger, cocoa, scotch bonnet peppers, command higher prices due to branding– Blue Mountain Coffee price 5 times higher than next brand

• Market Access under trade agreements to Europe (EPA), US, Canada and CARICOM.

• MOAF IS working towards accessing more markets in other non-traditional countries, e.g. China

3/24/2011 46

WHAT ARE THE POLICY AND INFRASTRCUTURE ENABLERS FOR INVESTMENT

Trade agreements

• Jamaica has many Established trade agreements with trading partners in the Caribbean, North and South America ,Europe, including the UK

• EPA• CSME• Caricom/Venezuela • Caricom/Colombia• Caricom• CBI• CARICAN

http://upload.wikimedia.org/wikipedia/commons/e/e4/LocationJamaica.svg

Critical Policy Initiatives in Progress

Initiatives

• Production and Productivity

• ALIGN

• Geoinformatics

Target • Improve the production and productivity of targeted farmers and crops through access to affordable

financing, the provision of relevant inputs and technical guidance with the ultimate goal of import

substitution. The launch of the website [www.ja-mis.com] enables householders to compare prices before venturing out to shop by utilizing the comparative shopping basket hosted on the website

– Equipping buyers and sellers with affordable access to real time market intelligence.

– Providing linkage opportunities for buyers and sellers.– Providing information to facilitate informed bargaining between the

farmer and the middleman, and the middlemen and retailers. – Providing end users with timely, accurate and reliable information to make

informed purchasing decisions and ultimately impact the pricing system.

• The objective of the ALIGN Initiative is to return un-utilized and under-utilized land to production by re-engaging customers.

•

• The initiative aims to fully utilize the available resources which were lying idle and the focus would be on areas where the irrigation infrastructure already exist. The Ministry of Agriculture and Fisheries has developed several programmes to assist farmers, which include the Financial Assistance for Responsible Members (FARM) programme, extension services and a Production and Productivity Programme island-wide.

•

• The Minister of Agriculture and Fisheries held four meetings in four irrigation districts and met with 489 farmers re the ALIGN programme. To date, 5,153 acres of land previously idle have been put into production.

•

• There are approximately 32776.5 acres of un-utilized and under-utilized irrigation lands within the irrigation systems island-wide.

3/24/2011 49

• Food Import bill in 2008- over US$800 million

• Targetted Crops that can be grown locally:

– Onions- US$4 million (8.6 million kgs imported vs. local production of 455,000 kgs )

– Irish Potato- US$12 million (16 million kgsimported vs. local production of 4.9 million kgs)

• Supporting the framework through:

– Trade Policy

– Agricultural Land Utilization Policy

– National Organic Policy

– Food and Nutrition Security Policy

– Agricultural Export Strategy

• Lands- AIC has bank of 12,395 acres,

Agro- Invest CorporationAMC Building188 Spanish Town RoadKingston 11764-8365 or 923-9268

Marketing Division Ministry of Agriculture & FisheriesHope Gardens Kingston 6927-1731-50 (Ext. 2200)

Recent Investment in Post harvest Infrastructure **insert link map of

JA**Recent

• Packing House in Hounslow

• Yam packing house Trewlawny

• Norman Manley export facility

• AMC

• JP Foods- Cassava Chips

Planned

• Honey Bottling facility

• Flavoured essence

• Meat Processing facility

• Potato Pack house facility

• Construction of pepper mash facility

AGRICULTURAL EXPORT COMPLEX

Locations

Agricultural Export ComplexNorman Manley Int’l Airport,Kingston,Jamaica

Agricultural Export ComplexSangster’s Int’l Airport,Montego Bay,St. James.Jamaica.

ALL AGENCIES INVOLVED IN THE EXPORT OF AGRICULTURAL PRODUCE ARE LOCATED AT THE COMPLEX

• Airlines

• Customs

• USDA – APHIS

• MOA Staffa. Fumigation Staff

b. Inspectorate

c. Accounting/Administrative Staff

Appendix - Incentives

• 20% duty concession on vehicles to farmers/farming enterprises;

• Remission of some duties on agricultural equipment, machinery and products (GCT and Import duties);

• Income tax relief for approved farmers;

• Raw material duty concessions;

• Export Industry Encouragement Act

• Factory Construction Law

• Accelerated Depreciation/Special Capital Allowance

3/24/2011 56

WHAT ARE THE KEY MESSAGES FOR INVESTING IN JAMAICAN AGRICULTURE?

END OF PRESENTATION THANK YOU

• Dominant sector in the Economy is Agriculture

• Employs about % of the labour force

• Contributes about % to GDP

• Accounts for over % foreign exchange earnings

- Major Agro Exports are:

Exchange rates

• JA/USD – USD$86 : JAD$1

• JA/GBP – GBP$137.75 : JAD$1

• JA/EURO – EURO$118.15 : JAD$1

As at Feb. 10, 2011 (NCB)

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The Yam Value Chain

Mini-set Production

Processing Facilities

Semi- processed Vacuum Packed

Yam Slices

Yam Chips, Yam Flower etc.Packaged Mini-

set

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The Honey-Value Chain

Bottling Plant Already equipped – Joint

venture for capacity utilization

Wholesale (for further processing)

Cosmetics Pharmaceuticals Confectioneries Sweeteners, spreads

Primary Production

WaxPollen

Sweet Potato Value Chain

63

BACKUP SLIDES

Needs in the Agricultural Sector

• Commercial farms

• Credit facilities/Financing

• Storage facilities

• Transportation

• Value addition to raw farm products

• Access to International Market

Characteristics of The Agric Sector

• Production is predominantly rain-fed• Sector dominated by smallholders• Smallholder farmers produce about 80% of the total

agricultural production in the country• Low Level of Technology• Low Value Addition• Insufficient flow of institutional credit• Inadequate supply and distribution of inputs• Inadequate storage and marketing facilities• Low synergy among sub-sectors of agriculture hence

no opportunities for new industries

• The Jamaican economy is basically agricultural, and is traditionally dependent on the export of primary commodities.

• Jamaica endowed with natural resources.• Jamaica has xxx of acres of arable land suitable for crop

and livestock production.• With xxx kilometres of coastline, there is an abundance

of marine life (particularly tuna) and related fish farms suitable for seafood processing.

• Jamaica also has natural competitive advantages in horticultural production, and in floriculture.

•

Advantages of Locating in Jamaica

• Stable political environment• Well trained, abundant and adaptable labour force• Competitive daily minimum wage• No restriction on issuing of work/residence permit• Duty/Quota free access of manufactured exports to USA (AGOA) and EU• Excellent sea and air connection to the world• Strategic and central location within West Africa sub-region with access to a

market of 250 million people• Comparatively well developed infrastructure• Member of Multilateral Investment Guarantee Agency (MIGA) Convention • A dynamic private sector willing to collaborate with foreign partners• A high sense of personal safety • A truly hospitable people•

Divestment - CocoaJamaica is recognized as one of the 8 exclusive producers of fine flavoured cocoa internationally.

GOJ promoting integrated production along the value chain.

Availability of 2 active fermentaries for processing.

Potential for joint venture with existing producers.

Availability of Government lands for expansion of production.

Annual demand is estimated at 1,500 tonnes for existing markets with production averaging 750 tonnes.

-Won the top spicy profile chocolate in the Chocolate of Excellence awards held in Paris in Sept 2010. there were 50 entrants from the Central American and Caribbean region

Our flavour profile was spicy- vanilla, cinnamon, almonds, licorice and a mild brown fruit- raisins, dates and prunes.

PRODUCTION

Production this year has been down by over 70% as a result of the severe drought last year. We expect a production of 500MT for 2010/2011 and 1250Mt in 2012/2013. These are healthy increases but we have 2 projects now in projects in which we hope to rehabilitate 3000 acres of fields that were nor properly cared.

If we can get an increase of 15 to 20 boxes per acre from the rehabilitated fields we will have an additional 450MT to 600MT doubling production

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COCOA PRODUCTION (METRIC TONNES)

Ginger

The global market for ginger stands at some US$290 million, with the USAand England accounting for US$37 and US$18 million, respectively.Current demand outstrips supply exactly tenfold. The Ministry’sProduction and Productivity Improvement Programme is facilitatingcommercial production of disease–free ginger from tissue cultureplantlets and introducing technologically–sound production, harvesting

and processing techniques.• Demand –

• Imported –

• Value of Demand – US$

• Current Production -

• Objective

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Rice

• Import – Approximately 100,000 tonnes of table rice is imported each year.

• Objective

– The objective of this programme is to redevelop the rice industry to produce 25% (25,000 tonnes) of rice consumed in Jamaica. The target for 2013 is the establishment of 4,000 hectares.

Bee/Honey Production• Currently only 60% of local honey demand per annum is being met.

• Jamaica’s annual honey production is estimated at 117,000 gallons (5.443 kg of honey = 1 gallon of honey).

• Primary production is projected to be 1,282,500 kg by 2011.

• Honey bottling facility located in Linstead, St Catherine where processing and packaging are expected to commence by March 2010.

• Demand –

• Imported –



• Objective

– Replace 60% of Irish potato imports by 2011.

•

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Yam Production• Mini-set yam will be the primary focus.

• The 2008 yield is about 50% of that in 1999.

• In 2009, yam production was a total of 124,516 tonnes.

• Production is to be increased annually by 20%.

• The local market consumes about 90% of the total production.

• The average annual growth rate for the US market is 3.1% valued at $31.2M in 2006.

• The opportunities exist for investment in value added products such as minimally processed vacuum packed yam etc.

• Demand –

• Imported –



• Objective

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Sweet Potato Production• Sweet potato production and trade contributes approximately J$1.3 billion to GDP.

• Value added earnings are negligible; therefore, opportunities exist to cash in on value added processing.

• The bulk of sweet potato produced in Jamaica is consumed locally with chief outlets being supermarkets, parochial markets, shops, hotels, and restaurants.

• The demand for sweet potato is usually high especially since they are of good nutritional value and the demand is expected to increase as people become more health conscious.

• In 2008, 1,188,086 kg of sweet potato was exported mainly to the United Kingdom and Canada.

• Between the period of 2007-2009, sweet potato production was 26,055 tonnes, 25,797 and 34,229 tonnes respectively.

• Demand –

• Imported –



• Objective

Fever Grass• Currently, the world production of lemon grass oil is about 600 tonnes per

annum.

The SRC notes that the value of essential oil entering the US in 2006 was about US$7 billion, and the importation of essential oil mixtures for food and drink was 44,565 tonnes, valued at US$2 billion, with an average unit price of US$46,543 per tonne. The United Kingdom imported 27,102 tonnes, valued at US$632 million, with an average unit price of US$23,326 per tonne.

In addition to export, the opportunities inside Jamaica include import substitution to replace the J$100 million of essential oils and associated products brought in from overseas annually.

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• Main Airports

– Gatwick Airport

• 3 miles north of Crawley, West Sussex and 28 miles south of London, providing easy and convenient travel into London

– London Heathrow International AirportAir Jamaica – Overnight (next day) cargo service to be rolled out July 2011.

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80

Infrastructure Available– Processing facilities:

• Yam and other packaging facilities

• Pepper mash processing facilities

– Export Complexes:• Improved agricultural marketing facilities (AMC)

• Improved Airport Export Points

– Export Division

– Cold Storage

– Irrigation

– Roads

Import Substitution- Irish Potato

Demand – 14,197,170 kg

Imported – 9,268,176 kg

Value of Demand – US 4,979,980

Current Production- 4,928,994 kg

Objective - Replace 60% of Irish potato imports by 2011. 0

2000

4000

6000

8000

10000

12000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010



0

20

40

60

80

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Irish Potato Farmgate prices (JAD$/kg) 2000-2009

Irish Potato Farmgate prices (kg) 2000-2009

Total Irish Potato Imports

9,268,176 kgs

Import substitution

of 60% of demand

Irish Potato Industry- Import Substitution

Import Substitution -Onion

Onion are required in the fresh market as well as the agro processing

industry.

Import – 8,625,733 kg (2008), this

represents 93% of total demand.0

200

400

600

800

1000

1200

2001 2002 2003 2004 2004 2006 2007 2008 2009 2010



0

20

40

60

80

100

120

Onion Farmgate (JAD$/kg) 2000-2009

Onion Farmgate (kg) 2000-2009

Total importation

in 2008 8,626,733

kgs

70% Import substitution6,038,713

kgs

Onion Industry- Targeted Import Substitution(70%) of

Current Demand

Imports

WHY AGRICULTURE AS A INVESTMENT OPPORTUNITY

SECTION 1

WHY INVESTMENT IN AGRICULTURE IN JAMAICA

SECTION 2

Presentation





INVESTMENT?


DEVEOPMENT?

There is a Strategic Vision for Agriculture in

Jamaica (Vision 2030)

5 Critical Components

1. is driven by private sector investment

within a policy and regulatory framework

that fosters competition and

transparency;

2. is competitive in Jamaica and in regional

and international markets;

3. contributes to the long-term socio-

economic development of Jamaica;

4. is environmentally sustainable with

increased use of renewable energy

sources and minimal harmful

environmental impacts; and

5. is knowledge-driven based on

widespread use of appropriate

technology and supported by relevant

research and development.

Goals

1. Efficient Competitive Diversified Value-

Added Agricultural Production

2. Strong Marketing Systems for Domestic

and Export Markets

3. Competent and Adequate Human

Resources

4. Enabling and Facilitating Framework,

Infrastructure and Support Services

5. Contributor to Long- Term Rural

Development

6. An Environmentally Sustainable Sector

7. National Food Security

The goals of the Agriculture Sector as expressed

in the Vision 2030 Jamaica Agriculture Sector Plan

• Increased Productivity and Cost Efficiency of Agricultural Enterprises

• Diversified Range of Agricultural Production including Higher Value-Added Production

• Strengthened Application of Technology, Innovation,

• Development of Key Agricultural Sub-Sectors

Strong Marketing

Systems for Domestic

and Export Markets

Competent and

Adequate Human

Resources

Enabling and

Facilitating Framework,

Infrastructure and

Support Services

Contributor to Long-

Term Rural

Development

An Environmentally

Sustainable Sector

National Food Security

• Strong and Effective Marketing Information System

• Supportive Marketing and Distribution Infrastructure and Network

• Development of Expanded and New Markets for Jamaican Agricultural Products

1

2

3

4

5

6

7

• Provision of Work Force with Skills, Training and Education to Meet the Dynamic Needs of Sector

• Adequate Long-Term Supply of Labour Force for Sector Development

• Appropriate Policy, Legislation and Regulations for Long-Term Development of Sector

• Improved Access to Financing

• Strengthened Facilitating Institutions

• Strengthened Extension Services

• Modernized and Upgraded Infrastructure

• Provision of Sustainable Livelihoods for Agricultural Community Residents

• Comprehensive Land Use Planning and Utilization for Agricultural Development

• Establishment of a Culture of Holistic Community Development

• High Application of Environmental Standards and Good Agricultural Practices (GAPS)

• Organic Farming as Major Mode of Production 6. An Environmentally

• Sustainable Sector

• Strengthened Risk and Hazard Mitigation for Sector

• Increased Access to Adequate and Safe Food

• Supplies for Population

• Increased Domestic Food Production

• National Food Security

• Improved Nutritional Status of the Population through Consumption of Healthy Foods

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