Jamaican Agriculture Sub-Sector Strategy Fruits & Vegetables, Herbs & Spices Roots & Tubers
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European Union All ACP Commodities Programme
Caribbean Region
Jamaican Agriculture Sub-Sector Strategy
Fruits & Vegetables, Herbs & Spices
Roots & Tubers
Lead technical Agency
Under the Championship of the Ministry of Agriculture and Fisheries
Kingston, Jamaica
Officially Launched by the Government of Jamaica on July 2010
Updated and submitted to the Ministry of Agriculture and Fisheries on February 2011Note to the readers
The purpose of this document is to guide and support the development of the R&T, F&V and
H&S industries by providing a plan and a management framework that articulates value chain
actors, private sector, existing resources, development activities and donor support.
As part of the European Union (EU) funded All ACP Agriculture Commodities Programme
(AAACP), the Ministry of Agriculture and Fisheries (Jamaica) and more than 120 sector
stakeholders undertook the development of a Comprehensive Sector Strategy for Agriculture
with specific reference to the Fruits and Vegetables, Roots and Tubers and Herbs and Spices
sub-sectors. This was done in collaboration with the International Trade Centre (ITC) in
Geneva, Switzerland.
The emphasis on these sub-sectors came out of the EU/AAACP Caribbean Kick-Off
Workshop held in Montego Bay in April 2008, where the European Union sought to determine
the type of external assistance necessary to help build the capacity of Caribbean agricultural
stakeholders all along the value chain and to implement value chain based commodity
strategies.
The Sector Strategy for Roots & Tuber, Fruits & Vegetables and Herbs & Spices became an
Agricultural Sub-Sector strategy and was developed by a private sector led Coordinating
Committee using ITC‟s market-led participatory approach.
The strategy focuses on food import Substitution and Export Development and is aligned to
the Vision 2030 Jamaica and to other plans such as the National Export Strategy of Jamaica.
It also contributes to the nation‟s achievement of the Millennium Development Goals and to
the Jamaica outcomes under the Vision 2030.
The emphasis for the design and implementation is on the revitalisation of the Fruits and
Vegetables (F&V), Roots and Tubers (R&T) and Herbs and Spices (H&S) industries through
the value-chain approach. The parties concerned in the design and in the implementation are
farmers, private sector enterprises, processors, buyers, policy makers and support
institutions.
Under the ACP programme, World Bank, FAO and UNCTAD provided support to ITC and the
sector stakeholders for the development of this strategy.
Thanks also go to the ITC team Mrs. Janet Bedasse, Mr. Glen Roelofsz and Mr. Hernan A.
Manson who supported the Coordinating Committee all throughout.
A special vote of thanks goes to Coordinating Committee members Mrs. Audia Barnett, Mr.
Don McGlashan, Mr. Alvin Murray and Mrs Tracey Anne Wright who represented Jamaican
stakeholders and initiated the process in 2008 providing leadership through the development
and implementation.
iDVD video of:
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iiiThe present strategy has been put together by the stakeholders of the fruits and
vegetables, herbs and spices, roots and tubers sub-sectors and the Jamaican
agriculture institutions.
With support from:
All ACP Commodities Programme
(AAACP)
Financed by:
European Commission
(EC)
Government of Jamaica
In collaboration with:
The International Trade Centre
(ITC)
The United Nations Conference on Trade and Development
(UNCTAD)
The World Bank
The Food and Agriculture Organization
(FAO)
For information on the methodology used for the development of this strategy, please contact:
International Trade Centre
Division of Country Programmes
Export Strategy
Tel.: +41 22 730 0111
Fax: +41 22 730 0575
Web: http://www.intracen.org
E-mail: exportstrategy@intracen.org
The designations used and the presentation in this report do not imply an expression of an opinion on the behalf of
ITC about the legal status of the countries, territories, cities or areas, about their legal authority, or about the
delimitation of their borders or territorial limits. This report was not officially edited by ITC.
ivAcknowledgements
A full list of participants in the development of this strategy may be found in Annex 2.
In addition, special thanks go to the following individuals and institutions:
Coordinating Committee members:
Mr. Don McGlashan Ministry of Agriculture and Fisheries
Ministry of Industry and Commerce
Dr. Audia Barnett
Scientific Research Council
Private Sector
Ms. Denyse Perkins
Jamaica Agro-Processors Association
Private Sector
Mr. Alvin Murray
Christiana Potato Growers Association
Advisory team:
Dr. Derrick Deslandes Ministry of Agriculture and Fisheries
Dr. Marc Panton Ministry of Agriculture and Fisheries
Ministry of Industry and Commerce
Ms. Lisa Bell
Jamaica Trade and Invest
Ms. Tracey Ann Wright Ministry of Agriculture and Fisheries
Mrs. Zuliekha Budhan Ministry of Agriculture and Fisheries
Resource persons:
Mr. Mark Frederick Jamaica Trade and Invest
Mr. Michael Pryce Director, Data Bank and Evaluation (MOAF)
Mrs. Carol Johnston-Miller Former Director, Economic Planning Division (MOAF)
Mrs. Debbie Ann Kennedy Scientific Research Council
Mr. Vaughn Barnaby RADA Marketing (MOAF)
Mrs. Dionne Clarke Harris CARDI
Mr. Sandor Pyke Marketing Division (MOAF)
Mr. Shaun Baugh RADA (MOAF)
International Trade Centre
Mr. Hernan Manson (Team Leader, Associate Adviser for Value chain and Strategy
technical manager) Development
Mr. Antony Sandana Senior Commodities Officer
Mr. Glen Roelofsz International Consultant Fruits and Vegetables
Senior Adviser for Operations Management and
Mr. Henri Gresiak
Processing
Mrs. Janet Bedasse National Consultant
vCollaborating Institutions
The Coordinating Committee would also like to share their appreciation for the inputs and resources
provided by the following institutions and individuals:
RADA Mr. Al Powell
Jamaica Trade and Invest Ms. Delaine Morgan and Berletta Forrester
Jamaica Exporters Association Ms. Jean Smith
CARDI Dr. Leslie Simpson
CAFAN Mr. Jethro Greene
Jamaica Agricultural Development Foundation Mr. Vitus Evans
Spur Tree Spices Mr. Mohan Jagnarine/Dennis Hawkins
Jamaica Agro-Processors Association Mr. Michael Ming
Green House Growers Association Mr. Downie Walker
Martha’s Best Mr. Ian Fulton
Belle Tropicals Ms. Idelle Brown
Ministry of Finance Dr. Wayne Henry
JSIF Mrs. Stephanie Hutchinson French
Mr. Jean Claude Balcet,
World Bank
Mr. Mark Sadler
CGM Gallagher Insurance Brokers Ms. Sophia Phillipps
CARICOM Secretariat Ms. Jeanette Sutherland
UNCTAD Ms. Leonela Santana Boado
Dr. Dunstan Campbell
FAO Dr. Federica Angelucci
Mr. Piero Confoti
OXFAM Mr. Tim Chambers
viMessage from Ministry of Agriculture
Jamaica is a country of small farmers, with 76 % of our 220,000 farmers cultivating on 1 hectare of
land or less. These farmers together with the agro-processors and Jamaican consumers are the main
beneficiaries of our efforts.
One of the most significant challenges that I have had as Minister, is to get consensus on the
importance of building a sustainable agricultural sector. Not everybody is on board, and when
stakeholder interests contend, unfortunately, agriculture is normally the weakest contender.
As leaders within the sector, we have to make our case with a seriousness of purpose and
soundness of analysis.
The vision of this Government is for a food production strategy, that is holistic – one that considers
the value chain, from primary production to end-user consumption. It must be demand driven, with
adequate focus on end-users; and value-added focus, through the creation of brands and
processing, using our own inputs as much as possible, through linkages with primary producers.
I would like to congratulate the more than 120 Jamaican stakeholders and the coordinating
committee for bringing us a step closer to realizing the Government‟s vision.
This Fruits and Vegetables, Herbs and Spices, Roots and Tubers sub-sector strategy has set a
standard for private-public partnerships for decision making, and policy response. The strategy
clearly articulates the market priorities, performance gaps and activities needed. It also is a tool for
policymakers to understand what support is needed by the private sector and how to coordinate
government and donor partner efforts.
A key part of the challenge towards sustainability is attracting investments in Agriculture that will
transform the sector and make it sustainable. We need the creativity, innovation and capital from the
private sector to move the process forward.
We must take our products and brands to the world, as I am convinced that the world is already
convinced. It is for us to make it happen.
Dr. the Hon Christopher Tufton
Minister of Agriculture and Fisheries
viiMessage from the Ministry of Finance
viiiMessage from the Coordinating Committee
This strategy is the result of the effort and decisions of sector stakeholders along the various value
chains.
The Coordinating Committee encourages implementing partners to take the contents and direction of
this strategy seriously since it reflects the beneficiary‟s priorities and needs. Long hours were devoted
to the consultative and participatory process. This was supported by robust analysis and support to
the process by Government and implementing partners.
The Government of Jamaica is indebted to the International Trade Centre for its facilitative role and
for bringing to the Ministry‟s attention to a participatory strategy development approach that can be
replicated in other sub-sectors. This approach has also been proven successful in fostering private
sector leadership and the involvement of design and implementation.
The Coordinating Committee is ready to take the strategy forward and to insure the goals are
achieved through a participatory value chain based implementation. It is our role to assure value
chain representation and to empower beneficiaries so the decisions taken may result in fruitful
implementation activities.
Mr. Don McGlashan.
Coordinating Committee Chair (July 2008-September 2010)
Mr. Vitus Evans,
Coordinating Committee Chair (September 2010-present)
ixVision for the agricultural sub-sectors
To double the output and value of Jamaican food products from locally grown fruits,
vegetables, herbs, spices, roots and tubers by 2020 and to contribute in a sustainable
manner to the achievement of Jamaica’s Vision 2030 National Development Plan.
Mission
To attain sustainable economic growth by becoming a leading producer and agro-
processor and by providing services such as:
Agricultural and agro-processing competitiveness and farm to market linkages
Market driven production, post-harvest practices and value addition
Finance and small and medium agri-business promotion
Research and product development
Import substitution linkages and export promotion
Food safety and quality programs.
xiTable of contents
1. Executive summary 1
1.1. Importance of the sub-sectors 1
1.2. Anticipated impact 2
1.3. Strategic options and target markets: 2
1.4. The Strategy response: 2
1.5. Objectives: 3
1.5.1. The six main strategy objectives: 3
1.6. Priorities and implementation progress 3
1.7. Anticipated outcomes and resources needed 4
1.8. Strategy Implementation managing and monitoring framework 4
2. Introduction 6
2.1. Purpose of the strategy 6
3. Specific goals, anticipated impact and beneficiaries 8
3.1. Contribution of strategy objectives to achieving vision 2030 8
4. Existing projects and programmes: 10
4.1. EU funded All ACP Agricultural Commodities Programme (AAACP) 10
4.1.1. Common Fund for Commodities (CFC) 10
4.1.2. Food and Agriculture Organization (FAO) 10
4.1.3. World Bank 10
4.2. Ministry of Agriculture and Fisheries (MOAF): 10
5. The current sector situation 13
5.1. Main issues affecting the value chain 14
5.2. Market and commercialisation issues 14
5.3. Processing sector issues 15
5.4. Farmer and supply side issues 15
5.5. Overall value chain cross-cutting national issues 16
5.6. Issues concerning support institutions 16
6. Brief analysis on the domestic crop production 17
7. The Future for the sub-sectors 18
7.1. Market opportunities and targets 18
xiii7.2. Domestic market and food import substitution 18
7.3. Imported produce 20
7.4. Export markets 21
8. Key Elements of the Strategy Objectives and Related Interventions 23
8.1. Implementation plan 23
8.2. Objective 1: Establish a private public coordination mechanism for the management of
the strategy implementation 24
8.3. Objective 2: Increase availability of supply and demand related information to allow
informed decision making by private sector and policy makers 26
8.4. Objective 3: Increase raw material supply from small-scale farmers by 100% by 2020
by organising and training farmers through agronomic services 29
8.5. Objective 4: Provide access to low-cost funding and risk management mechanisms to
70% of the targeted farming population and processors by 2015 32
8.6. Objective 5: Increase the production of processed food products by 150% by 2020
and improve overall value adding operations to achieve industry competitive
advantage 35
8.7. Objective 6: Provide access to low-cost, high-value planting material (seeds,
seedlings) for fruits, vegetables, herbs & spices and roots & tubers to most farmers by
2015 and enhance agronomic support 40
9. Timeframe and the needed resources 43
10. Implementation framework 44
10.1. Progress monitoring and reporting schedule 45
Annex I: Implementation plans 46
Annex II: Stakeholder/participant listing 53
Annex III: Existing rojects & resources available 65
Annex IV: Priority sub-objectives 73
Annex V: Top 20 non-traditional fresh produce export value 74
Annex VI: Supply chain for Jamaican fresh produce 75
Annex VII : 2008 Trade data – Agri-imports from hotels 76
xivAbbreviations
AAACP All ACP Agriculture Commodities Programme
ABIS Agri-Business Information System
AFIs Approved Financial Institutions
AMC Agricultural Marketing Corporation
CARDI The Caribbean Agriculture Research and Development Institute
CFC Common Fund for Commodities
CIDA Canadian International Development Agency
EU The European Union
FAO Food Agriculture Organization
FARM Financial Access for Responsible Members programme
GAP Good Agricultural Practices
IJAP Improving Jamaica‟s Agricultural Productivity project
ITC International Trade Centre
JAMIS Jamaica Agricultural Marketing Information Service
JAMPRO Jamaica Promotions Corporation
JSIF Jamaica Social Investment Fund
MAJIC Marketing Agriculture Jamaica Improved Competitiveness
MOAF Ministry of Agriculture and Fisheries
NES National Export Strategy
RADA Rural Agricultural Development Authority
REDI Rural Economic Development Initiative
SDCC Strategy Development Coordinating Committee
UNCTAD The United Nations Conference on Trade and Development
USAID The United States Agency for International Development
WB The World Bank
xv1. Executive summary
More than 120 sector stakeholders representing private sector (farmers, processors, financial
lending institutions), Government support Institutions and Ministries have developed this
strategy in a participatory way using the value chain approach. The fundamental principle
behind the strategy development and content is that it has been led by private sector and has
enabled a sector specific platform for public-private partnership for decision making.
This was done in partnership as part of the EU funded All ACP Agriculture Commodities
Programme (AAACP) with the leadership from the Ministry of Agriculture and Fisheries and
the International Trade Centre.
The target clients of the strategy are expected to be private sector including farmer
associations, Government Institutions; business and trade support organizations;
development agencies and funding partners.
Jamaican horticulture and agro-processing sector has immense potential and opportunity
waiting to be unlocked. However, the biggest hurdle to be overtaken is related to industry
mistrust, scepticism and lack of long-term partnership amongst all the value chain players
(farmers, marketers, extension services, agro-processors, banks and the ministries).
There is also a strong perception of lack of supply competency and capability from the
customer and buyers. The best example of this is the fact that the tourism industry imports
52% of all its fresh produce requirements and sources limited quantities locally or that agro-
processors can hardly get year round supply.
On the other hand, farmers perceive there is no transparent market for their produce and their
main buyers are an uncoordinated and independent network of thousands of higglers and
middle men who do not provide volume, crop type/quality, timing planning or price
information.
The Jamaican agriculture related business success stories appear to be either corporate, well
established family businesses and/or progressive individuals who have pursued horticultural
production, packing, processing and marketing with a commercial bias motivated by profit.
This strategy is looking into capitalizing on the undoubted opportunity and potential for the
sector by including the beneficiaries and stakeholders‟; starting with the design phase to drive
the industry and create market linkages between domestic and international buyers and the
sector.
It is anticipated that the implementation of the Agricultural sub-sector strategy will benefit
consumers as a whole together with the agro-processing sector and more than 200 000
smallholder farmers involved in horticulture.
1.1. Importance of the sub-sectors
In 2009, Jamaica‟s unemployment rate was on average approximately 11.4% and 19% of
Jamaican people were living below the Statistical Institute of Jamaica‟s estimate of poverty.
There is a direct link between agriculture and the improvement of the economy and the
sustainability of rural livelihoods; hence focus must be given to enhance the industry
Jamaica‟s agricultural sector is an important contributor to the national economy and
accounted for 5.4% of GDP contribution in 2009, representing around J$ 28 billion dollars.
The sector employs approximately 20% of the labour force and is a source of income for a
large segment of the population, particularly the rural poor.
Jamaica is no exception among the Caribbean countries in relation to the main challenges
facing the agricultural sector development. These challenges include land tenure, irrigation,
availability of quality planting material, fragmented production and supply base, inefficient
1marketing and market linkages, lack of consistency in production and post harvest handling,
insufficient research and development and overall lack of competitiveness in the domestic
and international markets (often against subsidized products and cheap imports).
In Jamaica, agriculture and agro-processing also represent a major contributor to rural
development affecting a significant percentage of the population in a direct or indirect manner.
The implementation of this Agriculture Sub-Sector strategy represents a paramount
opportunity to contribute to decreasing the expenditure in fresh and processed food imports,
increasing overall revenue inflows and reducing dependency on the remittances and on the
traditional sectors such as tourism, sugar and the Alumina/Bauxite.
1.2. Anticipated impact
Agriculture remains vital to national food and nutrition security and is the foundation of
traditional rural life. The last agricultural census in 2007 showed approximately 200,000 small-
scale farmers occupying some 77% of agricultural land holdings. As such, farmers are the
direct beneficiaries of this strategy and will be the key actors for implementation.
The implementation of this strategy aims to impact significantly on economic and social
development through the provision of sustainable employment and incomes in the rural areas,
by reducing population and unemployment pressure in urban areas and increased
competitiveness of the small and medium agro-processing industry.
1.3. Strategic options and target markets:
The Strategy identifies two main market priorities
1. Import substitution and development of domestic market for fresh and processed
foods. (In 2008 the food import Bill was approximately 886 million$ US and
802 million$ US in 2009)
2. Export development for current and niche products.
Stakeholders and buyers examined linkages with the tourism and hospitality industry, the
opportunity for increasing the variety and quality of locally processed food products and the
competitiveness of current and potential exports.
After prioritising target products and segments according to market demand, supply side
capacity and potential for value addition, a list of priority products was defined. Consequently,
stakeholders agreed to concentrate the strategy efforts towards:
Fresh fruit and vegetables for domestic consumption
Pepper mash and sauces
Concentrates, pastes and pulps including beverages and industrial ingredients
Convenience Foods (food preparations, snacks, roots and tubers)
Ackee based products (food and medicinal)
1.4. The Strategy response:
As a by-product of globalization, food supply systems are increasingly being driven by
consumer preferences. Much of the modernization that remains to be achieved in Jamaican
agro-business sector involves the re-orientation from the long legacy of “supply push” to
systems that are fulfilling consumer expressed and implied needs and preferences, so called
“demand pull” systems.
This strategy is a comprehensive response to addressing the critical factors that impact on
the development of the Jamaican roots & tubers, fruits & vegetables and herbs & spices sub-
sectors. It seeks to reduce the gap in performance of support institutions, Private Sector and
Government, based on the above stated market opportunities.
2It is important to adopt a “system” perspective when considering the identified opportunities
and constraints for agro-enterprise development. A system approach is required because the
diverse productive activities are broadly distributed over an extended geography and to
maximise the timely interaction of separate value-adding steps throughout the value chain.
(Develop and deliver material input to the farming sector; produce primary commodities;
collect, handle, preserve fresh fruits and vegetables; process, semi-finished or finished agro-
based products; transport, market, and distribute agro-based products to consumers).
The strategy is proposing a holistic approach that will lead to a successful system and
articulate the entire chain from a critical viewpoint. These changes will not come overnight but
fundamental steps can be undertaken initially.
1.5. Objectives:
The Implementation plan constitutes six strategic objectives.
1.5.1. The six main strategy objectives:
1. Establish a private-public coordination mechanism for the management of the
strategy implementation,
2. Increase availability of supply and demand related information to allow informed
decision making by private sector and policy makers,
3. Increase raw material supply from small-scale farmers by 100% by 2020 by
organising and training farmers through agronomic services,
4. Provide access to low-cost funding and risk management mechanisms to 70% of the
targeted farming population and processors by 2015,
5. Increase the production of processed food products by 150% by 2020 and improve
overall value adding operations to achieve industry competitive advantage,
6. Provide access to low-cost, high-quality planting material (seeds, seedlings) for fruits,
vegetables, herbs & spices and roots & tubers to most farmer farmers by 2015 and
enhance agronomic support
It also identifies four key areas for the private sector actors (farmers, processors and buyers)
relating to:
1. Access to market Information,
2. Access to finance,
3. Supply (Production – pre & post-harvest) and
4. Processing and Value Addition.
It also identifies two cross-cutting support areas for institutions and Government
1. Sector Governance and Policy making
2. Technical Support and Research and Development.
1.6. Priorities and implementation progress
The Coordinating Committee analysed the six objectives and determined that objectives I, II
and V were extremely critical to the process.
The Coordinating Committee has started to implement key activities under objective V with an
identified core group of beneficiaries including buyers, processors and farmers. Successful
experiences and results will be replicated with other groups of beneficiaries as
implementation rolls out.
Additionally, organisations such as the FAO and the World Bank have committed to assist
with the implementation of Objective IV related to management of risk and finance. USAID
3has also developed a program that responds to Objective 2 and Christiana Potato Growers
Association is developing a response to Objective III. The EU, CIDA and IDB are also
currently developing programmes that are aligned with the Agricultural Sub-sector strategy.
1.7. Anticipated outcomes and resources needed
Preliminary costing of activities in the implementation plan was done and estimated at
15,714,755.55$ U.S. over a 5 year period. Detailed costing per strategy objective and
activities and corresponding resources are outlined in the annex 1.
As highlighted in this strategy the Vision Statement anticipates that overall throughput from
the farms will increase by 100%. It is also expected that the total agriculture and agro-
processing sector contribution to GDP will increase to 20% over the next 10 years.
However, because the impact will be at the rural and subsistence levels, it is expected to
contribute towards achieving goal (1) of the MDG. (See MDG impact table section)
1.8. Strategy Implementation managing and monitoring framework
During the strategy development workshops held, the stakeholders (including support
institutions, Government, farmers and processors) decided that for successful implementation
the framework should be similar to the value chain participatory based principles used in the
design phase. Also, it is expected that the implementation of the strategy objectives and
activities will require close collaboration among different Ministries, agencies, implementing
partners and sector stakeholders.
During consultations with the Strategy Development Coordinating Committee (SDCC) and
key Ministries, it was proposed that there is a need to align all the various ongoing initiatives
and to have a legitimized body with authority. Also, synergies will be created with relevant
cross-cutting initiatives currently being undertaken by the National Export Strategy.
The diagram below shows the recommended implementation framework structure. The
underlying principle is a centralised Secretariat providing coordination and logistical support to
a series of sub-sector cross-industry units or task force with the mandate of managing the
implementation and development of the different productive, service and cross-cutting sectors
in the country.
Office of the Prime Minister
Economic Development Committee
NCC
Ministry of
Agriculture
Competitiveness
Council
Cross
Cutting Value Chain Based
sector 1 NES Secretariat F&V, H&S, R&T
Task force
Cross
Cutting STRATEGY
sector 2 Productive
Implementation
Sector 2
Sector Specific
Service Productive
Implementing
Sector X Sector 3 Partners
Industry&
Sector Stakeholders
4In the case of the Agricultural sub-sectors covered in this strategy Fruits and Vegetables,
Herbs and Spices, Roots and Tubers (both fresh and processed), the sector stakeholders and
coordinating committee have recommended that implementation be directly managed by a
task force composed of the following institutions:
Ministry of Agriculture and Fisheries
Christiana Potato Growers Cooperative Association
Private Sector Representation (Farmer)
JAMPRO
Ministry of Finance and the Public Service
Scientific Research Council
Jamaica Exporters Association
Jamaica Agro-Processors Association
The value chain based task force represented by the above diagram will be mandated to
interact with implementing partners, Government, sector stakeholders, financial institutions,
buyers and with the cross-cutting sector task forces to achieve the implementation of the
proposed strategy. It is envisaged that periodical reporting is done to the Office of the Prime
Minister through the NES Secretariat and the Ministry of Agriculture and Fisheries.
52. Introduction
Jamaica faces challenges such as rising unemployment, brain drain and crime. The main
strengths of Jamaica‟s economy are its political stability, endowment of natural resources,
and its proximity to its largest trading partners.
However, annual economic growth averaged 1.6 percent during 2002-2007 and much of this
weak growth performance is attributed to a combination of oil price shocks, declining export
prices, natural disasters and the financial crisis.
Growth prospects have weakened over the last two years due to internal and external shocks.
During FY07/08, GDP growth decelerated to 0.9 percent from 2.5 percent over the prior year
due to the adverse impact of Hurricane Dean in the agricultural sector.
The Government in dialogue with the Private Sector has formulated a medium-term strategy
aimed at putting the island on a path of robust growth while reducing poverty and
unemployment.
The Government‟s main objectives are to achieve:
Reduced public debt/GDP ratio by fiscal consolidation and elimination of budget deficit by
2011/12. (debt absorbs of approxiamately13% of GDP),
Private sector led growth through the expansion of capacity in the manufacturing and
export industries and ultimately boosting job creation,
Prudent monetary policy to reduce inflation expectations and maintenance of adequate
foreign exchange reserves to underpin confidence in national currency,
Social sector priorities including the Millennium Development Goals (MDGs) and targets
on human development/opportunity, as well as law and crime,
Enhanced business climate and a reformed system to increase efficiency and
effectiveness, thus higher revenue collection,
Further improvement in the quality of governance through better public sector
management and reduced bureaucracy.
From a social perspective, Jamaica has made substantial progress in poverty reduction since
it began monitoring living conditions in 1988. The poverty rate has fallen from 30.4 percent in
1989 to 16.9 percent in 2004 and further declined from 14.3 percent in 2006 to 9.9 percent in
2007. However, according to the Jamaica Survey of Living Conditions, as at 2008 Jamaica‟s
poverty rate stood at 12.3% representing a slight increase of 2.4% from the previous year.
Even though, poverty in the rural areas declined from 22 percent in 2004 to 19.8 percent in
1
2006, food expenditures represent a large portion of the budgets of the poor and rural
poverty remains a major challenge for Jamaica, with the rate twice the level of poverty in
Kingston.
Though the agricultural sector produces only 5.4% percent of GDP (2009), it employs
approximately 20% of the labour force. This not only reflects the importance of the agricultural
sector as a source of income for a large segment of the population, particularly the rural poor,
but also the relatively low level of productivity compared to other sectors.
2.1. Purpose of the strategy
The purpose of this document is to guide and support the development of the Roots & Tubers
(R&T), Fruits & Vegetables (F&V) and Herbs & Spices (H&S) sub-sectors by providing a plan
that articulates existing resources, development activities and donor support.
This Strategy constitutes a contribution to the Vision 2030 Agriculture Sector Plan which seek
to put Jamaica ain developed country status by the year 2030.“. It will also contribute to the
achievement of Jamaica‟s Millennium Development Goals and is aligned to ongoing initiatives
such as the Jamaican National Export Strategy.
1
World Bank (2009)
6The time frame for implementation of this strategy is 5 years ending in 2015 and regular
progress report will be presented to sector stakeholders.
The strategy document is also a response to:
The impact of the global crisis on Jamaica: recession, decline in tourism and in
diaspora remittances;
The overall downward trend in the bauxite and mining industry;
Declining contribution to GDP of traditional export crops such as banana and sugar;
Rural development and overall industry competitiveness;
The need to adopt policy measures that will align to regional initiatives
Users of the strategy are expected to be:
Government
Farmer Associations, Processors, Banks and other private sector actors
National Business and trade support organizations
Development agencies and Donor Partners
The strategy addresses three Agricultural sub-sectors (R&T, F&V and H&S) that contribute
significantly to the Agricultural GDP and which also represent non-traditional exports which
have great potential for expansion into foreign markets inclusive of the Jamaican diaspora.
Roots and Tubers are especially important as a source of employment and income as well as
a source of food for the rural and urban poor and as such can play a vital part in contributing
to the improvement of food security and eradication of poverty
Fruits and vegetables are very essential for food nutrition security. Accordingly, the
Governments of the region have identified them as part of the „Regional Food Basket‟ and for
which efforts are dedicated towards achieving „food sovereignty‟. Jamaica therefore, attaches
similar importance to the development of the fruits and vegetables agricultural sub-sector.
Herbs and Spices is an untapped area which has significant expansion potential as it relates
to food processing and export industries. Additionally, many herbs and spices have
medicinal value. The agro-industry thrust has seen Jamaica emerging as a major producer of
value added spices and condiments based products, exploiting niche markets at home, in the
region and internationally.
73. Specific goals, anticipated impact and beneficiaries
The overall development goal of the strategy is to improve the livelihood, health and
economic situation of the Jamaican farmers. The 2007 agricultural census indicated that
approximately 220,000 small scale farmers occupy some 77% of agricultural land holdings.
The main beneficiaries are, therefore, small farmers who supply the informal markets,
supermarkets, processing enterprises and exporters. The farmers will also be the key actors
for implementation.
Direct beneficiaries are also agro-processors and buyers (supermarkets, hotels, restaurants,
inclusive of fast food chains, and exporters).
3.1. Contribution of strategy objectives to achieving vision 2030
The table below indicates the linkages between the anticipated output of each strategic
objective and the national outcomes under Vision 2030.
Vision 2030 outcomes and linkage with strategy objectives
Vision 2030 Outcomes Strategy Strategy Strategy Strategy Strategy Strategy
that are aligned to the Objective Objective Objective Objective Objective Objective
Strategy Objectives (i) (ii) (iii) (iv) (v) (vi)
National Outcome 1: A
healthy and sustainable X X X X
population.
National Outcome 2:
World class education X X X X
and training.
National Outcome 7: A
stable macro economy. X X X
National Outcome 8: An
enabling business X X X
environment.
National Outcome 12
Internationally
X X X X
competitive industry
structures (Agriculture).
National Outcome 13:
Sustainable management
X X X X
and use of environmental
and natural resources.
National Outcome 14:
Hazard risk reduction
X X X X
and adaptation to climate
change.
National Outcome 15:
Sustainable urban and X X X X
Rural development.
Detailed objectives are found in the implementation plan in the appendix 1.
8The strategy will target market potential for both domestic and international levels.
The strategy aims to:
1. Substitute 25% of all the imported fresh and processed products
2. Increase exports by 20% by 2015.
In cooperation with the Coordinating Committee and with the Scientific Research Council, as
the lead counterpart, ITC has started the implementation of Strategy Objective V and selected
agro processing enterprises have benefited.
ITC‟s main contribution has been to provide direct support to agro-processing enterprises for
improving their competitiveness. It should be noted that between 2004 and 2008, according to
the ITC‟s General Index Ranking of Export Performance, in terms of competitiveness in the
nd th
agro-exporting sector Jamaica‟s ranking fell from being the 122 to the 129 in fresh foods
rd th
and from the 93 to 96 in processed foods among 180 countries. The enterprises were
selected according to the strategy‟s target markets and segments, in addition to their ability to
articulate with and to develop their network of local suppliers, notably farmers. Consequently,
the following enterprises were identified in the pilot phase and selected for the first phase.
List of selected enterprises and their products
Agro-processor enterprise Products
Fruit juice and pulp, pepper mash, ackee,
Southern Fruits & Food Processors sauces and other condiments & drinks
Ackee and callaloo in brine, breadfruit in
Central Food Packers Ltd. cans, bammy sticks made of cassava and
yams.
Vacuum packed yams and convenience
Tourejon Food Processors Ltd foods
Spur-Tree Spices Jamaica Ltd Sauces, seasoning and convenience foods
Canco Ltd. Ackee and callaloo in brine, canned soups
and jams and jellies
Bread fruit and sweet potato baked and
Livy‟s Food Ltd frozen in vacuum plastic bags,
Tamarind rolls mixed with sugar in sealed
plastic bags
The selected six enterprises were considered to be of particular relevance to the local agro-
sector due to their size and nature of operation.
The main areas covered by ITC‟s implementation are:
To train and transfer operational knowledge and skills to the lead counterparts
Scientific Research Council, Jamaica Exporters Association for the replication of the
direct support to enterprises;
To improve the competitiveness of recipient enterprises and articulate their supply
chains for local purchasing;
To contribute to the development of the strategy selected agro processing sub-sectors
pepper mash and sauces, pulps and concentrates, convenience foods impacting
positively on the overall business environment by encouraging import substitution
and/or wealth creation.
Companies which produce processed products, such as ackee, pepper mash for jerk
seasoning, tomato paste for ketchup, concentrated mango puree for juices, are of particular
importance because these products have good market potential and allow smaller producers
to add value and engage in export, without the need to import the main ingredients.
Improvement activities in these companies are likely to generate impact, in terms of export or
import substitution and poverty reduction.
94. Existing projects and programmes:
It should be noted that in order to implement this strategy, there are ongoing initiatives that
are aligned to it. Outlined below are the projects related to the ongoing implementation of the
F&V, H&S and R&T Strategy:
4.1. EU funded All ACP Agricultural Commodities Programme
(AAACP)
4.1.1. Common Fund for Commodities (CFC)
The Caribbean Agricultural Research and Development Institute (CARDI) is the executing
agency for two Caribbean Regional projects aimed at developing the roots and tubers, herbs
and spices and vegetable subsectors. The projects are entitled “Increased Production of
Roots & Tuber Crop in the Caribbean through the introduction of Improved Marketing and
Production Technologies” and “Increased Production of Vegetables and Herbs through the
use of Protected Agriculture in the Caribbean”.
The projects will be implemented in Jamaica over a three year period, commencing February
2010, with approximately 2.8 million$ US funding for the Roots and Tubers component and
approximately 3.4 million$ US funding for the protected agriculture component.
4.1.2. Food and Agriculture Organization (FAO)
FAO is currently focusing on building capacity in farmer organisations; the Caribbean Farmers
Network is concentrating on roots and tubers for the whole Caribbean region. Additionally,
FAO has conducted a survey analysing the existing supply constraints regarding financial
institutions and access to finance for small holder farmers.
4.1.3. World Bank
The World Bank is currently working on building capacity in institutions promoting agricultural
innovations, competitiveness and diversification, particularly along value chains with potential
for domestic and external markets.
In line with the strategy, the World Bank is looking at backward linkages of agriculture to the
tourism industry. The focus is on substitution of imports by developing local commercial
agriculture produced in small holder-based farms.
Additionally, the World Bank has contributed to the strategy by undertaking a pre-feasibility
study for the establishment of a parametric insurance system for weather related risks and is
now looking into the possibility of either extending the coverage of CRIF to cover agricultural
production or designing a new scheme that would provide such coverage.
4.2. Ministry of Agriculture and Fisheries (MOAF):
Projects, Plans and Programmes being implemented by MOAF that are aligned to the
strategy
Production and Productivity Programme
The Ministry has embarked on a Production and Productivity programme to boost production
and productivity and enhance food security. This will be achieved through the application of
good agricultural practices, technology transfer and pest management for the selected
vegetables and food crops. In addition, the productivity improvement is being supported by
soil testing to determine the best fertilizer regime and training of farmers in best practices.
The main crops targeted are carrot, onion, Irish potato, ginger, hot pepper, sweet potato,
dasheen, yellow yam, Negro yam, sweet yam, escallion and cassava.
10 Financial Access for Responsible Members programme (FARM)
The Ministry of Agriculture and Fisheries embarked upon a programme titled Financial Access
for Responsible Members (FARM.) in October 2009. In line with Objective 4 of the strategy,
this programme seeks to assist farmers in accessing financial resources from participating
Approved Financial Institutions (AFIs). These include Jamaica National Small Business Loans
Limited, Nation Growth Microfinance Limited, National People's Cooperative Bank of Jamaica
and, most recently, Jamaica National Commercial Bank.
Caribbean Development Bank loan Programme
In line with Objective 4, the project aims at providing small farmers with the requisite credit to
fund productive capacity enhancement, in order to increase agricultural production and
competitiveness. It is anticipated that this intervention will result in increased employment and
farm incomes and assist in reduction of poverty in the rural areas.
Input Supplies Project
In line with Objective 3, the Input Supplies Project is a grant funded initiative through the
Venezuelan Petro Food Fund. This project is in keeping with the Government‟s effort to
mechanize the sector through the utilization of appropriate technologies, in addition to
assisting farmers to access the basic agricultural inputs (fertilizer, tools and machinery).
Post-Harvest Initiative:
In line with objectives 3 and 5 in the strategy, the Ministry of Agriculture and Fisheries, in
collaboration with private sector partnership, facilitated the upgrading of the Yam Facility in
Trelawny and the establishment of a Packaging Centre in Hounslow, St. Elizabeth. In
addition, there is the drive to establish pepper mash facilities to encourage the utilization of
local fresh peppers for mashes and sauces.
Gustav Rehabilitation Project
Against the background of tropical storm Gustav‟s negative impact on the agricultural sector,
the United States Agency for International Development (USAID) has approved a grant of
3.2 million$ US to assist the government of Jamaica and the Ministry of Agriculture and
Fisheries with the tropical storm Gustav sector recovery. The project aims to assist in the
rehabilitation of the Jamaican agricultural sector through improvement in rural road
infrastructure and in the production and productivity of targeted crops.
Canadian International Development Agency (CIDA) funded Improving Jamaica’s
Agricultural Productivity Project (IJAP)
The Improving Jamaica‟s Agricultural Productivity Project (IJAP) will focus on two areas,
namely: the greenhouse industry, and the Capture Marine Fisheries sub-sector. The
greenhouse component seeks to increase the productive capacity of Jamaican agriculture
through the use of greenhouses in vegetable production. In line with objectives 3 and 5, the
project will establish agricultural clusters involving a number of small farmers around a
packaging facility. The packaging facility will be private sector-driven, and responsible for the
sorting, grading, packaging and logistics management, as well as marketing to end-users.
United States of America International Development agency (USAID) funded
MAJIC project
In line with objectives 2, 3 and 5 in the strategy the project aims to increase the volume and
value of Jamaican agricultural commodities, marketed profitably and competitively, leading to
improved farm income, strengthened food security and expanded small-scale rural
enterprises. Pepper and pepper mash have been selected as a priority area as determined by
the strategy.
11 EU funded Food Facility program
The EC Food Facility was set up by the European Commission in response to the Global
Food Security Crisis of late 2007 and 2008. In Jamaica, the Food Facility is focused on
boosting production to improve the food security status. The project will focus on three areas:
increased availability and use of local food crops through enhanced agricultural
production and productivity;
market driven small stock production;
strengthening data collection systems to monitor food prices and agricultural
production.
The project is being implemented over a two year period and is financed by a grant of
5.8 million €.
Rural Economic Development Initiative Project (REDI) and (JSIF).
The REDI project is funded by the World Bank and aims to improve market access for micro
and small-scale rural agricultural producers and tourism product and service providers by:
Facilitating the strengthening of the supply chain linkages between the agricultural
sector and end users in processing, the tourism sector, fast food chains, restaurants
and supermarkets;
Supporting the development of community based tourism as a viable option and
opportunity for economic investment;
Strengthening the capacity of rural groups to be able to plan and implement income-
generating projects;
Ensuring greater sustainability of rural development through inter agency
collaboration.
125. The current sector situation
Agriculture‟s contribution to the overall economy has steadily declined over time (30%
between 1996 and 2007), but the sector remains an important contributor to the Gross
Domestic Product (GDP), foreign exchange, employment, and rural life in Jamaica.
Agriculture output represents about 5% of GDP and contributes 5.6% of total export earnings
in 2008. Traditionally, the sector has been dominated by export crops, mainly sugar cane,
banana, coffee and citrus; however, over the past five years, non-traditional crops such as
pumpkin, hot pepper and sweet pepper have increasingly gained market share. The main
domestic crops include vegetables, jam, legumes, fruits, plantain, roots and tubers, cereals
and condiments. The sector accounts for 19.7% of the total employed labour force are of
mainly small and medium size farmers with five hectares or less, representing 85% of
agricultural holdings. The agricultural sector is still associated with rural poverty in Jamaica,
as more than two-thirds of the country‟s poverty map is concentrated in rural areas.
The evolution in agricultural growth can be explained in part by the behaviour of agricultural
exports. During the early 2000s the sector experienced the phasing out of some preferential
trade arrangements, which together with a sharp appreciation of the real exchange rate
resulted in a contraction of the sector. As a result, traditional agricultural exports such as
sugar, banana, coffee and citrus have had a disappointing performance over the last few
years. These exports reached a peak of 335 million$ US in 2007 (a 15% increase compared
to 2003), but then plummeted in subsequent years. The sector‟s growth was further
weakened in 2007 and 2008 by natural disasters and external shocks. During 2008,
agricultural GDP rate of growth was -5.1% due to the adverse impact of Hurricane Dean.
Recently, however, exports for non-traditional agricultural products have emerged with good
competitive prospects. These exports are led by yam, followed by papaya. The latter is a
relatively new development and involves both large-scale production and contractual linkages
with small farmers, which may serve as a useful model for improving farm-to-market linkages
for other products.
However, Jamaica continues to be heavily dependent on imports. In 2007, Jamaica‟s total
food and drink import bill was 730 million$ US and it rose to 886 million$ US in 2008 but
declined to 802 million$ US in 2009. These imports include animals, cereals, fruits and
vegetables, spices and also processed foods, in addition to other foods. Imports of fresh fruit,
vegetables, and herbs and spices amounted to approximately 36 million$ US in 2008
(26,000 tons). If the value of agro-processed food import is added, the total bill amounts to
400 million$ US (2008).
Agro-processing of fruit and vegetables in Jamaica represents a significant part of the sector
in value, although over the past decade, imported rather than locally produced raw materials
have become the dominant norm. Grace Kennedy Limited, Appleton and Red Stripe Beer are
two of the biggest players in the Caribbean Region. However, there is a big disparity between
their operations and the rest of the processing enterprises, which are considered to be small
and medium.
While there is significant potential for the sector, investment, skills training and transfer
remain limited, effectively constraining the development of agricultural production and the
value-added downstream operations for both fresh and processed products.
As identified in the strategy, raw material scarcity is the single largest problem for both agro-
processing companies and local enterprises, such as restaurants, hotels and supermarkets.
This is mainly due to four reasons:
shortage of farmers, lack of a sustainable link to markets;
inefficiencies in harvest and significant post harvest loss;
farmer business mentality;
lack of efficient planning, inefficient agronomic support services and lack of adequate
irrigation.
13From the farmers‟ perspective, the biggest problem is the lack of sustainable and of mutually
beneficial business partnerships with buyers and the perception of no market.
Lack of trust is another key element that needs to be unlocked to secure profitable farmer
organisation partnerships or vertical partnerships along the value chain. Lack of information
and of quality planting material, irrigation, agronomic practice training and access to finance
are also other key areas of constraints.
5.1. Main issues affecting the value chain
The local agricultural sector is considered to be dualistic in nature, consisting of the export
and domestic sectors. The export sector is normally more organized and efficient than the
domestic sector, consisting of large plantations that produce few crops that are sold in the
markets of developed countries under preferential arrangements.
The domestic sector consists of farmers producing vegetables, legumes, fruits, roots &
tubers, cereals and condiments. Most of these commodities are produced for local
consumption, while a proportionately small amount is exported. Exports of non-traditional
commodities such as papaya, ackees, fish, conch, pumpkin, sweet potatoes, dasheen,
mangoes and yam have been contributing to a significant portion of Jamaica‟s export
revenue.
Due to the country‟s history, the supply and value chains for the export sector are more
developed than for the domestic crop sub-sector. Traditional commodities have specialized
institutional support in the form of commodity boards/organizations which assist in
coordinating production, extension, collection, minor processing and marketing of those
commodities. However, the domestic crop sub-sector does not benefit from this type of
institutional support or organization and is constrained by the lack of organization of it
farmers, most of whom farm on holdings of less than 2 acres. Support to this sub-sector tends
to be of a general nature and due to the limited resources of the state and farmers‟
organizations, the critical linkages and coordination that needs to be forged in the sector, in
general do not take place.
Jamaican horticulture suggests immense potential and opportunity waiting to be unlocked.
However, as highlighted above, the biggest hurdle to be overtaken is related to industry
mistrust, scepticism and criticism amongst all the value chain players (farmers, marketers,
extension services, agro-processors, and the ministries).
Finally, there is also a strong perception in lack of supply competency and capability from the
customers and buyers, the best example is that the tourist industry imports almost exclusively
all its fresh produce requirements and sources very little in terms of local purchasing.
In addition to the issues specified above, the Value Chain analysis performed by stakeholders
in the participatory workshops held in 2009 identified and validated the following challenges
with regards target market requirements:
5.2. Market and commercialisation issues
Lack of good up- to- date market information ( upstream/downstream)
Lack of stable production markets throughout the year (peaks and gluts) and limited
pricing information throughout the whole Value Chain
Inadequate demand estimation or aggregated planning of quantities, quality and
volumes needed
Low level of market development skills
Inadequate branding of Jamaican products or appropriate marketing support
Lack of sub sector vision and difficulty to coordinate players
Inadequate information on market access barriers and opportunities
145.3. Processing sector issues
Inconsistent supply of good quality agricultural raw materials, as well a inefficiencies in
supplying goods in a timely manner
Difficulty in complying with market requirements particularly for export
Heavy dependence on imported inputs due to low or no availability locally
High Cost of finance and availability of agriculture targeted finance schemes
Limited product development skills
Limited information on appropriate post-harvest and processing technologies
Lack of HAACP/quality/standards information
Lack of packaging technologies and equipment
High cost of electricity and set up of alternative energy systems
Inadequate information on new technologies
Scepticism regarding government or development agency projects and interventions
5.4. Farmer and supply side issues
Inadequate aggregated production planning and management
Inadequate technical assistance to impact farmers‟ productivity and produce quality;
Lack of Farmers‟ capability for marketing and vertical integration approaches;
Lack of development and operational capacity within existing farmers‟ organisations
and inadequate farmers‟ organisations;
Inadequate access to and implementation of Good Agricultural Practices (GAP)
Lack of strong business and farmer support institutions that can create a conducive
enabling environment
Limited plant varieties/planting material
Threat of inappropriate seed varieties being introduced and lack of high quality planting
materials
Inadequate appropriate finance schemes targeting farmers
High cost differential on inputs for small farmers
Difficulties in accessing land/land tenure
Limited mechanization/technology
High cost of casual labour
Improper post harvest handling
Aging population of farmers (mostly elderly)
Little or no education on quality and standards issues
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