Jamaica Producers still growing in shipping

Published: Tuesday October 14, 2008

Jamaica Producers (JP) was founded in 1929, and since then has been an industry leader in organising regular shipments of bananas from Jamaica to the United Kingdom. Over the years, it has developed a wide range of other logistics services that were linked with its banana export business.

Banana exports after Tropical Storm Gustav

Arising out of the destruction of its banana farms by Tropical Storm Gustav, JP recently decided to cease production of bananas for export to the United Kingdom. JP had been called upon to make significant investments in recent years in rebuilding its banana farms following their destruction by Hurricane Ivan in 2004, Hurricanes Dennis and Emily in 2005 and Hurricane Dean in 2007. The frequency of hurricanes that Jamaica has been experiencing was the major factor behind the decision of JP not to re-invest in export production.

After Hurricane Dean, Jamaica Producers participated in a loan facility provided by the Banana Export Company that was made available to all qualified export banana producers in Jamaica. Together with additional funds from its own account, the company invested in the re-development of 1,500 acres of export banana production in the parishes of St Thomas and St Mary, re-employed approximately 900 persons in the process and resumed banana exports in August. Following Tropical Storm Gustav, estimates from the Ministry of Agriculture indicated 95 per cent damage to Eastern Banana Estates, JP's farm in St Thomas, and 70 per cent damage to St Mary Banana Estates, JP's farm in St Mary.

According to Charles Johnston, chairman of Jamaica Producers Group, "The board of Jamaica Producers took the decision to suspend export production after careful consideration of all options available to it, and after a review of the impact on all stakeholders. JP has expended considerable resources over many years to secure the viability of Jamaica's export banana industry. It is with deep regret that this decision has had to be made."

Despite these events, Jamaica Producers remains committed to the production of bananas for the local market and banana-based snacks for the local and international markets. In fact, it is already implementing plans to expand its production of tropical snacks - to include cassava and breadfruit lines - at its factory in St Mary. This factory will rely on banana, cassava and breadfruit produced on its own farms in St Mary, but will also continue to expand its procurement from small farmers in the eastern parishes.

Jamaica Producers will 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.

JP Strengthens Logistics Activities

Jamaica Producers Shipping Services (JPSS) has grown into a full-service business that does not rely on its banana exports. In 2006 the company acquired RAM Shipping in the United Kingdom, followed in 2007 by the acquisition of the freight forwarding, shipping agency and customs clearance business of JP Fresh Limited. These positioned JPSS as a leading logistics company servicing the UK and the Caribbean, with two depots in London and a range of logistics skills that complement this activity.

JPSS today provides freight forwarding and logistics services to Europe, Costa Rica and every island in the Caribbean. Despite the discontinuation of the banana export business, Jamaica Producers Shipping Services will continue to provide the shipping and logistics services to its valued customers, with the same level of excellent service to which they are accustomed.


Source: Jamaica Gleaner
http://www.jamaica-gleaner.com/gleaner/20081014/business/business2.html