Keith Amiel – Caribbean Agribusiness Association- Jamaica
* 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’ 2
3 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
5 * 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.
6 * 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
7 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
9 * 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.
Promoters Fragmented & Disorganized, Colonial, (Divide and Rule) Chambers and Associations Researchers Input Suppliers Consumers Exporters Processors Producers Retailers Planners 12 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 14
15 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
16 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
INPUT SUPPLIES PRODUCERS TRADERS PROCESSORS MARKET G R O W T H A L O N G W H O L E V A L U E C H A I N REQUIRED SERVICES TECHNOLOGY PROVIDERSTECHNOLOGY PROVIDERS
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 19
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 20
21 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
22 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
23 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
24 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.
25 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
26 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.
27 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 BeerThe Light beer in three flavors
28 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.
29 Jamaica has developed a wide range of Rum Creams to successfully challenge the traditional international brands of cream spirits
30 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.
C ONSUMERS : HOUSEHOLDS, RESTAURANTS, HOTELS, SUPERMARKETS R ETAILERS : DISTRIBUTORS, TRUCKERS E XPORTERS : EXPORT COMPANIES, SHIPPERS, ETC P ROMOTERS & A DVERTISERS : TRADE PROMOTION AGENCIES, ETC P ROCESSORS : MEAT / MILK PROCESSORS, SLAUGHTERHOUSES, CANNERS, TANNERS P RODUCERS ( DEFINED BY CLUSTER ) E XTENSION & M ULTIPLIERS I NPUT S UPPLIER S R&D Input Suppliers Producer s / 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. 31
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. 32
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. 33
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
35 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
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