Keith Amiel – Caribbean Agribusiness Association- Jamaica

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* In the global economy small island states can never

compete on volume or price.

*They must seek to identify products distinctive to

their particular demographics to enable them to

invoke ‘rules of origin’ and ‘intellectual property

rights’ for the distinctive differentiated products.

* In this way consumers across the world must

continuously revert to the source for the ‘genuine’

food supplies. Substitutes produced in other

countries will essentially remain ‘counterfeit’

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Many Island states produce the same

variety of fruits, root crops and

vegetables for local distribution

They are not branded and carry no

distinguishing features

The capacity to get premium and

referred prices is therefore limited,

usually to just above break even.

4

The upscale markets in developed countries rely on ‘just in time management’

to match their traditional market days.

The introduction of greenhouse technology and drip irrigation, with some

hydroponics, has helped to ensure the repeatability of quality and quantity

However the vast distances that have to be traversed to markets and the

perishable nature of the products, when added to transportation costs and in

precise delivery dates, tend to make sourcing and supply marketing

arrangements problematic

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*

*Small entities must come together in clusters to augment the raw

material base and to goal align efforts to provide larger volumes of

produce and more consistent inputs and outputs.

*Primary produce have many constraints with respect to disease control,

longevity and perishability in the realm of international trade.

Traceability and surveillance data from ‘farm to fork’ is being

increasingly demanded. Simultaneously GAP, HACCP and ISO Certification

will increasingly become requirements to trade in first world countries.

*Emphasis must be on product differentiation through value chains to

facilitate predictable outputs to meet international market

requirements. This will be supported by enlightened inventory control,

shipping and marketing strategies.

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* Significant socio-economic changes have been taking place as the result of liberating women from subsidiary rolls and them emerging as a highly educated middle class on the same footing as men.

*Women have been shifting jobs and rolls. There is a shift away from struggling with the preparation of primary agricultural produce in the homes to convenient, ready to cook, ready to eat foods. Both their children and themselves have new value systems that demand more ‘eating on the go’.

*As these families are also becoming those with the highest disposable incomes, they are increasingly influencing the diet forms in the market place.

* If the small island ACP states don’t adjust to the new and changing demands of the now Global Market Place, they will be increasingly marginalized

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Here our Meat processing plant at Copperwood, Jamaica, has responded to the

reality that the three million plus tourists who come to our shores per year

come from countries where sausages and bacon form part of every breakfast

offering in upscale hotels. Accordingly they are treated to our ‘Caribbean

Passion’ brand of spiced products, all produced in Jamaica, to make their

Caribbean gastronomic experience memorable

An interesting feature of the tourist experience is that they wish to take home

some of the spices with them and look for the same in their Supermarkets at

home base. In so doing they create an international market for our products

8

Our production has

moved to match first

world standards. It is

market driven and

the end user will

therefore determine

what is to be

produced.

Here we have

produced Omega-3

commercial eggs for

the supermarkets to

satisfy the health

conscious and to

initiate a diversified

marketing strategy

for the simplest of

products

Rural small farmers produce a

million dozen eggs per month

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*Securing the International Market through Branding has

proved relatively easy for Jamaica in that it’s music forms

lead by Bob Marley and Reggae have been recognised around

the world

*The performances of the Jamaican athletes, lead by Usain

Bolt, in international sport are legendary.

*Jamaica, as a tourist destination, his highly ranked for

holidays

*The Jamaican Trade Mark, to be associated with the upcoming

World Olympics and Trade and Music Festival in London next

July, has been copyrighted to safeguard its genuine Jamaican

products in the proposed Caribbean Cuisine Showcase.

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Having identified those commodities

in which the country could have a

strategic advantage the potential

players must become goal aligned

Paradigm shift to Commodity Clusters

Animal feed Manufacturers

Nutriceuticals /

Pharmaceuticals/Cosmetic group

Bananas

Pork Producers

Bakers Confectionary and other

Pastries

Poultry Producers and other

Meat Processors

Citrus and other juices Sugar

Cane

Small Ruminants

Coffee

Cocoa

Traditional Fruit & Vegetables

Sugar Cane & its Derivatives

Coconuts and other Edible oils

Beef and Dairy

Root Crops

Other exotic fruits and

vegetables 13

*Paradigm shift to Commodity Clusters

Herbs & Spices

Grains & Cereals

Wines & Spirits, Other brews and

alcoholic Beverages

Wearable cotton & other Fibers

Fish Farmers including

Ornamentals

Other Processor Groups

Honey

Horticulture, Tree Crops &

Forestry

Fertilizer Manufacturers

Exotic Beverages, Jams, Purees

etc. from non Traditional Fruit &

Vegetables

Wood Paper and Furniture

Manufacturing

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Nutraceuticals, Cosmeceuticals and Pharmaceuticals are derivatives from 185 trees and shrubs that grow in the forests and agricultural

areas. Over 100 of them have been identified in the Caribbean. The properties

include anti-oxidants, ant-iflammatorys, carmenatives, antizymotics , purgatives

and diuretics. They also have various vitamins and electrolytes as well as digestive

and stimulant properties that make some valuable as dietary supplements.

Teas on the market include peppermint, bisy, cinnamon, ginger, mint, sorrel,

cerasee, lemon grass, pimento, sarsaperilla, guinea hen weed, moringa leaf,

turmeric tea, neem leaf, comfrey and aloe vera

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Blue Mountain Coffee is listed as the finest, most expensive coffee in

the world. Increasingly, instead of exporting the green beans, the produce is

being differentiated locally to achieve more value added before export. The

brand is registered internationally and cannot be copied.

*

Financial Institutions & Facilitators

Research and Development entities involved in adaptive technology

Growers and Ancillary Producers

Processors involved in product differentiation into distinctive value added products

Brand and intellectual property rights services

Marketing Development

Sales and Distribution 17

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INPUT SUPPLIES

PRODUCERS

TRADERS

PROCESSORS

MARKET

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REQUIRED SERVICES

REQUIRED SERVICES

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REQUIRED SERVICES

REQUIRED SERVICES

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Input Supplies & Services

Processors

Producers

Exporters

Research & Development

Retailers

Promoters/advertisers

Consumers

Planners (Government & Private sector)

Small

Ruminants

Cluster

Poultry

Industry

Cluster

Banana

Industry

Cluster

Aquaculture

Industry

Cluster

Pharmaceutical

&

Nutriceuticals

Cluster

A Unified & Organized Agribusiness

Sector: The CABA Value Chain

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Stakeholders in a Value Chain

geneticists, biotechnologists, pathologists,

agronomists, food technologists, post harvest,

soils, market researchers production economists,

financiers, extension, agric.

supply stores, soil/tissue

analysis's labs, consultants,

etc.

Ministry of Agriculture, CARICOM,

international trade & policy advisers,

economists, global market strategists,

household, restaurant,

hotels, supermarkets etc.

foreign & local

supermarkets,

overseas importers

etc. estates, statutory bodies,

shipping lines etc. trade

promotion

agencies, etc. producers of: banana

chips, banana based

baked products, etc

small, medium and

large banana

farmers, nurseries

etc. Supplies & Services

Processors

Producers

Exporters

R & D

Retailers

Promoters/Advertisers

Consumers

Planners

Banana

Industry

Cluster

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Pork Industry is one of the fastest growing value chains

It incorporates

international

technology from

Canada, USA and

Netherlands with

the Jamaican

private sector and

Ministry of

Agriculture

agencies. An

important part of

the chain is the

Jamaica Pig

Farmers

Association cluster

at one end and the

Jamaica meat

processors at the

other

All ham, bacon, and fresh pork requirements are satisfied

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The most successful

Cluster and Value Chain

produces 10 million

kilograms of fresh poultry

per month.

Note the ticked tag

that makes the CB

product first world.

It is officially

designated GMP,

HACCP and ISO

9000 certified

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More than 14 Food Festivals in the

villages across Jamaica are held per

year. Each highlights a different product

in the commodity chain.

The village and Hotel Chefs compete against

each other to determine who the reigning

Kings and Queens for the year will be. Tourists

mingle with the locals to experience the blend

of food, music and dance.

A hundred cooks turn up

with their followers from

their village for a

barbecue chicken cook-off

Winners and spectators cheering on a beach in Montego Bay, Jamaica

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The Colonial experience was based on preferential treatment for our

bananas and sugar in the UK and Europe. Having been attacked by WTO

rulings against continued trade on that basis, we have turned to EPA

agreements in which product development and differentiation now makes

far more money from exports than under the original arrangement

Originally starting with bananas and plantains, they now incorporate root crops

such as Sweet Potato and Cassava chips in plain or hot and spicy flavours.

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Baked breads, buns

and biscuits are now

distributed across

the world with

jams, cheeses and

other preserves to

complement them.

Wherever the

diaspora is, the

ethnic shops are

never out of these

products. An

interesting result is

that the National

Supermarket Food

Chains, rather than

loose business, are

now incorporating

the products in

their regular

inventories.

A display from one of fifty bakeries in the business

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Whereas there have been challenges with citrus exports, many seasonal fruits are

now processed into juices to supply an all year round market. Tropical fruit are

thereby more available to the general population and the school feeding

programme. While tourists have access to exotic tastes continuously.

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Jamaica’s most successful International Value Chain is in the wine

and spirit category. The alcoholic drinks are in literally every

country in the world. The demand for some such as Red Stripe Beer

and Tia Maria Coffee Liqueur have set the stage for additional

manufacture in extra regional breweries

Classic Red Stripe Jamaican Beer The Light beer in three flavors

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The Sugar Cane Industry , in addition to exporting sugar and molasses, has

seen the emergence of a wide variety of ethanol based Jamaican rums and

mixed spirits that are successfully marketed around the world

Ethanol is being incorporated into petrol to a

greater extent. Exports to the US for this

purpose are to increase dramatically.

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Jamaica has developed a wide range of Rum Creams to

successfully challenge the traditional international brands of

cream spirits

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A wide range of spices,

marinades and chutneys, based

on the extensive variety of

herbs and spices, have

penetrated the international

market.

Led by Jamaican Pimento (all

spice), the highest rated

Jamaican ginger and Scotch

Bonnet peppers,- they stand

out.

CONSUMERS: HOUSEHOLDS, RESTAURANTS, HOTELS, SUPERMARKETS

RETAILERS: DISTRIBUTORS, TRUCKERS

EXPORTERS: EXPORT COMPANIES, SHIPPERS, ETC

PROMOTERS & ADVERTISERS: TRADE

PROMOTION AGENCIES, ETC

PROCESSORS: MEAT /MILK PROCESSORS, SLAUGHTERHOUSES, CANNERS, TANNERS

PRODUCERS (DEFINED BY

CLUSTER)

EXTENSION

&

MULTIPLIERS

INPUT

SUPPLIER

S

R&D Input Suppliers

Producers / Growers

Traders

Processors

Market

More multiplier effects and Income

generation at the top of the Value

Chain. Therefore all elements must be

linked to share in the returns. The

agricultural producers must now be an

integral part of the new vertically

integrated associations. In this way

they will have a greater share of the

‘fruits of their labor’ and realize the

possibility of overcoming poverty.

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*

Some Facilities such as evaluating and Certifying

Laboratories can only be justified on a regional basis.

Governments must deal with implications of sovereignty.

, R&D Institutions, Diagnostic Services, Processing,

Branding and Marketing may need to be regionalized,

depending on where the strengths and weakness are.

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*

Food Self sufficiency is considered the main priority. We

must feed our population the cheapest way possible. Other peoples

surpluses and handouts can make Politicians popular in the short term

but this position is not sustainable.

Sustaining local Agribusiness - lead by the

Tourist Industry. We legitimately consider Agro- tourism because

we can sustain business on the demographic features of the Caribbean.

Sustaining traditional markets regardless of life cycle

considerations.

Creating New Niche Markets based on those things in

which the Caribbean has a strategic Advantage.

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*

This will give us a capacity to earn hard currency to buy

the essential things that the country needs

The strategy will give us some measure of security in

the International Marketplace based on Rules of Origin

We will be shielded to a great extent from head on

pricing competition as any product originating from

another region, other than the Caribbean, will be an

‘imitation’

Between visitors requiring mementos of their visits and

the large diasporas yearning for a taste from home, an

assured core market will exist.

Employment of the local population will be sustainable. 34

*

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We have got to ‘Emancipate ourselves from mental

slavery- none but ourselves can free our minds’- a

Jamaican reggae song by Bob Marley

By constantly thinking in terms of subsistence

farming we are institutionalizing poverty and

backwardness. Although small, we must think big.

To this end we may need to act collectively. Let us

resolve to leave this world better than how we

found it