A global vision to spice up Jamaica’s agricultural exports
WHEN citing former Prime Minister Michael Manley’s vision for Jamaica’s agriculture, most Jamaicans and technocrats only reference his pronouncement to “eat what you grow and grow what you eat”, suggesting he had a singular penchant for local production. They continuously overlook his global vision, which led to the creation of Jamaica Export Trading Company (JETCO) in 1977 to drive agricultural exports.
The Ministry of Trade began exporting to 32 countries under the chairmanship of Peter King and Managing Director Ainsley Henriques. As a result, Jamaican ginger became the base for ginger ale. Our pimento exports accounted for 90 per cent of the world’s pimento market, and our export of ortaniques under JETCO commanded the highest prices for citrus in Europe.
As a result, Jamaica was asked by the president of Mexico to sell its pimento, and CUBAFRUTAS requested that we sell its citrus. This success allowed JETCO to negotiate our freight rates for shipping and shipping company HapagLloyd offered to put refer stations on Kingston’s wharves for our exclusive use.
The world has changed radically since the 1970s, and we need innovative and agile policies to manoeuvre established trading blocs to carve out niche and value-added agro-processing markets for ourselves.
No country has ever created true wealth for its people without access to export markets in goods and services. Jamaica will never create true wealth for our three million people by producing for our three million people. Our Jamaican market is too small, and it’s time to take the risk and produce for 15, 20, 25, or 30 million people.
Dubai’s population at the time of Jamaica’s Independence was 45,000. Today, it’s 2.7 million with a gross domestic product (GDP) of over US$120 billion, of which only six per cent comes from oil. The majority comes from tourism, trade, and commerce. Meanwhile, Jamaica, in 2020, exported $1.4 billion worth of goods. Excluding bauxite and alumina, our national exports for 2020 were valued approximately US$246 million or $37.4 billion. Our export of primary agricultural products accounts for roughly 25 per cent. In contrast, Dubai’s non-oil exports exceeded US$140 billion.
Farm 0perations manager for Red Stripe Norado Richards says that they have moved their cassava yield from 6,500 pounds per acre to 26,700 pounds per acre, a significant movement of 410 per cent over the past three years. Furthermore, he has been able to do the same with onions in just two years, moving the production from 8,000 pounds per acre to 17,000.
He supports the view that Jamaica must transform its agricultural goals, focusing on crops that can give economies of scale, guarantee local self-sufficiency, and create value-added products for export. Crops, such as onions, sweet potato, cassava, and hot pepper have immediate, ongoing demand. But to get our national production yield exponentially higher, we must concentrate on reorienting our farmers’ mindset by providing them with modern technology and ongoing support.
The global hot sauce market will be valued at US$6.4 billion by the end of 2027.
Hot sauce in the US achieved annual revenues of US$1 billion. In addition, Tabasco sells over US$200 million worth of its product in 166 countries worldwide, and one set containing three bottles of its signature hot sauces retails at roughly US$30.
THE WALKERSWOOD MODEL
Associated Manufacturers Ltd purchased the Walkerswood business in 2009. Located in Moneague, St Ann, the company produces authentic Jamaican jerk seasoning and other spices, and currently exports to 10 markets globally.
I recently spoke with the company’s Group Marketing Director Sean Garbutt, who said that the brand has grown over the past decade and is sold by international retail giants such as Amazon, Walmart, Publix, Kroger, Costco, and Tesco.
In 2009, they were exporting under 50 containers per year. Then the company realigned its priorities, which subsequently led to the export of 146 containers annually, consuming 1.62 million pounds of fresh Jamaican produce with the core being scallion, red and yellow scotch bonnet peppers, and pimento berries. The brand continued to grow, exporting 240 containers annually, consuming 2.7 million pounds of produce from 2013 to 2016.
Over the past five years, Walkerswood has been consistently exporting 450 containers annually, consuming 5 million pounds of locally grown produce. The company’s goal is to ship 1,000 containers by 2026, moving their consumption of local produce to 10 million pounds annually, valued at $1 billion, which would go directly to our farmers.
However, there are challenges, mainly access to the core ingredients needed to reach this goal and the need for Jamaica to modernise its accountability and traceability mechanisms in keeping with global food safety standards.
Currently, Walkerswood has to do the self-evaluation and cross-checking for the farmers if they are to conform to international record-keeping standards. The Walkerswood Cooperative Farmers Association has helped to lessen this burden of responsibility on the company by bringing together several farmers, all growing across several lots in which they plant, treat, and reap the crops to make one delivery to the factory.
Garbutt yearns for harmonisation across agricultural agencies towards a legacy and long-term vision that identifies vital crops with competitive advantage in creating value-added products so we are not just exporting primary produce.
HARMONISING OUR AGRICULTURAL POLICY FRAMEWORK
Spur Tree Spices is another local company that manufactures value-added products, such as sauces and seasonings, from agricultural produce.
For the first quarter of 2022, Spur Tree Spices had a 41 per cent increase in sales and a 194 per cent increase in profits. Its “strong performance in revenue growth demonstrates the company’s push to expand its reach in the export markets...” (Spur Tree Spices quarterly report for period ended March 31, 2022)
Today, their products are distributed and sold in the USA, Canada, the United Kingdom, Australia, Costa Rica, and other parts of the region.
These agro-processing companies are already getting it right, but they need a consistent supply of inputs to create products to supply their international demand. As such, our agricultural policy should be using them as models, focusing on helping them expand their operations, incentivising the creation of more agro-processing facilities, and aligning our farmers’ efforts to grow crops that provide supply.
Despite Jamaica’s leadership in having the first refrigerated banana ship sailing from our shores to the UK in 1901 and the refrigerated container invented in 1930, our agricultural exports have remained relatively the same over the last 100 years.
Jamaica needs a radical mindset shift. We have to do things differently. Our current path has resulted in lower production in almost every crop, in comparison to 30 years ago, and the highest food prices in the Caribbean.
The template for success is clear and has been proven by other countries. It’s export, export, export!
China’s population as at 2020 was 1.4o2 billion — more than four times that of the US. Our market of three million does nothing to advance the Chinese economy in any meaningful way. But consider this: If Jamaica could supply five per cent of the Chinese population with our sauces, it would gain 65 million purchasers. At US$20 per product that would result in US$130 billion in annual sales.
Therefore, let us move to become a value-added, agriculture, export-driven country, focusing on products for which we have a worldwide competitive advantage. To succeed in any one of them at even a one per cent market share would transform Jamaica into the country for which we yearn.