20. Amiel


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20. Amiel

  1. 1. *Keith Amiel – Caribbean Agribusiness Association- Jamaica
  2. 2. * 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. 3. Many Island states produce the samevariety of fruits, root crops andvegetables for local distributionThey are not branded and carry nodistinguishing featuresThe capacity to get premium andreferred prices is therefore limited,usually to just above break even. 3
  4. 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 somehydroponics, has helped to ensure the repeatability of quality and quantityHowever the vast distances that have to be traversed to markets and theperishable nature of the products, when added to transportation costs and inprecise delivery dates, tend to make sourcing and supply marketingarrangements problematic 4
  5. 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. * 5
  6. 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* 6
  7. 7. Here our Meat processing plant at Copperwood, Jamaica, has responded to thereality that the three million plus tourists who come to our shores per yearcome from countries where sausages and bacon form part of every breakfastoffering in upscale hotels. Accordingly they are treated to our ‘CaribbeanPassion’ brand of spiced products, all produced in Jamaica, to make theirCaribbean gastronomic experience memorableAn interesting feature of the tourist experience is that they wish to take homesome of the spices with them and look for the same in their Supermarkets athome base. In so doing they create an international market for our products 7
  8. 8. Our production hasmoved to match firstworld standards. It ismarket driven andthe end user willtherefore determinewhat is to beproduced.Here we haveproduced Omega-3commercial eggs forthe supermarkets tosatisfy the healthconscious and toinitiate a diversifiedmarketing strategyfor the simplest ofproducts Rural small farmers produce a million dozen eggs per month 8
  9. 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. * 9
  10. 10. * 10
  11. 11. 11
  12. 12. Having identified those commoditiesin which the country could have astrategic advantage the potential 12players must become goal aligned
  13. 13. Paradigm shift to Commodity Clusters  Animal feed Manufacturers  Small Ruminants  Nutriceuticals /  Coffee Pharmaceuticals/Cosmetic group  Cocoa  Bananas  Traditional Fruit & Vegetables  Pork Producers  Sugar Cane & its Derivatives  Bakers Confectionary and other Pastries  Coconuts and other Edible oils  Poultry Producers and other  Beef and Dairy Meat Processors  Root Crops  Citrus and other juices Sugar Cane  Other exotic fruits and vegetables 13
  14. 14. * Paradigm shift to Commodity Clusters Honey  Herbs & Spices Horticulture, Tree Crops &  Grains & Cereals Forestry  Wines & Spirits, Other brews and Fertilizer Manufacturers alcoholic Beverages Exotic Beverages, Jams, Purees  Wearable cotton & other Fibers etc. from non Traditional Fruit & Vegetables  Fish Farmers including Ornamentals Wood Paper and Furniture Manufacturing  Other Processor Groups 14
  15. 15. Nutraceuticals, Cosmeceuticals and Pharmaceuticalsare derivatives from 185 trees and shrubs that grow in the forests and agriculturalareas. Over 100 of them have been identified in the Caribbean. The propertiesinclude anti-oxidants, ant-iflammatorys, carmenatives, antizymotics , purgativesand diuretics. They also have various vitamins and electrolytes as well as digestiveand 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 15
  16. 16. Blue Mountain Coffee is listed as the finest, most expensive coffee inthe world. Increasingly, instead of exporting the green beans, the produce isbeing differentiated locally to achieve more value added before export. Thebrand is registered internationally and cannot be copied. 16
  17. 17. * 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
  19. 19. A Unified & Organized Agribusiness Sector: The CABA Value ChainConsumersRetailersExportersPromoters/advertisersProcessorsProducersInput Supplies & ServicesResearch & DevelopmentPlanners (Government & Private sector) Small Poultry Banana Aquaculture Pharmaceutical Ruminants Industry Industry Industry & Nutriceuticals Cluster Cluster Cluster 19 Cluster Cluster
  20. 20. Stakeholders in a Value ChainConsumers household, restaurant, foreign & local hotels, supermarkets etc. supermarkets,Retailers overseas importers etc. estates, statutory bodies,Exporters shipping lines etc. tradePromoters/Advertisers promotion producers of: banana agencies, etc.Processors chips, banana based baked products, etcProducers small, medium and large banana financiers, extension, agric.Supplies & Services supply stores, soil/tissue farmers, nurseries etc. analysiss labs, consultants,R&D etc.Planners geneticists, biotechnologists, pathologists, agronomists, food technologists, post harvest, soils, market researchers production economists, Banana Industry Ministry of Agriculture, CARICOM, Cluster international trade & policy advisers, economists, global market strategists, 20
  21. 21. Pork Industry is one of the fastest growing value chainsIt incorporatesinternationaltechnology fromCanada, USA andNetherlands withthe Jamaicanprivate sector andMinistry ofAgricultureagencies. Animportant part ofthe chain is theJamaica PigFarmersAssociation clusterat one end and theJamaica meat All ham, bacon, and fresh pork requirements are satisfiedprocessors at the 21other
  22. 22. The most successfulCluster and Value Chainproduces 10 millionkilograms of fresh poultryper month. Note the ticked tag that makes the CB product first world. It is officially designated GMP, HACCP and ISO 9000 certified 22
  23. 23. More than 14 Food Festivals in the A hundred cooks turn up villages across Jamaica are held per with their followers fromyear. Each highlights a different product their village for a barbecue chicken cook-off in the commodity chain.The village and Hotel Chefs compete againsteach other to determine who the reigningKings and Queens for the year will be. Touristsmingle with the locals to experience the blendof food, music and dance. Winners and spectators cheering on a beach in Montego Bay, Jamaica 23
  24. 24. The Colonial experience was based on preferential treatment for ourbananas and sugar in the UK and Europe. Having been attacked by WTOrulings against continued trade on that basis, we have turned to EPAagreements in which product development and differentiation now makesfar 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. 24
  25. 25. Baked breads, bunsand biscuits are nowdistributed acrossthe world withjams, cheeses andother preserves tocomplement them.Wherever thediaspora is, theethnic shops arenever out of theseproducts. Aninteresting result isthat the NationalSupermarket FoodChains, rather thanloose business, arenow incorporatingthe products intheir regular A display from one of fifty bakeries in the businessinventories. 25
  26. 26. Whereas there have been challenges with citrus exports, many seasonal fruits arenow processed into juices to supply an all year round market. Tropical fruit arethereby more available to the general population and the school feedingprogramme. While tourists have access to exotic tastes continuously. 26
  27. 27. Jamaica’s most successful International Value Chain is in the wine and spirit category. The alcoholic drinks are in literally everycountry 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 27
  28. 28. The Sugar Cane Industry , in addition to exporting sugar and molasses, hasseen the emergence of a wide variety of ethanol based Jamaican rums andmixed spirits that are successfully marketed around the worldEthanol is being incorporated into petrol to agreater extent. Exports to the US for thispurpose are to increase dramatically. 28
  29. 29. Jamaica has developed a wide range of Rum Creams tosuccessfully challenge the traditional international brands ofcream spirits 29
  30. 30. A wide range of spices,marinades and chutneys, basedon the extensive variety ofherbs and spices, havepenetrated the internationalmarket.Led by Jamaican Pimento (allspice), the highest ratedJamaican ginger and ScotchBonnet peppers,- they standout. 30
  31. 31. CONSUMERS: HOUSEHOLDS, RESTAURANTS,More multiplier effects and Income HOTELS, SUPERMARKETSgeneration at the top of the ValueChain. Therefore all elements must be RETAILERS: DISTRIBUTORS, TRUCKERSlinked to share in the returns. Theagricultural producers must now be an EXPORTERS: EXPORT COMPANIES,integral part of the new vertically SHIPPERS, ETCintegrated associations. In this way PROMOTERS &they will have a greater share of the ADVERTISERS: TRADE PROMOTION AGENCIES, ETC‘fruits of their labor’ and realize the PROCESSORS: MEATpossibility of overcoming poverty. /MILK PROCESSORS, SLAUGHTERHOUSES, CANNERS, TANNERS PRODUCERS (DEFINED BY CLUSTER) EXTENSION Market & MULTIPLIERS Processors Traders INPUT Producer SUPPLIER s/ S Growers Input Suppliers R&D 31
  32. 32. *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
  33. 33. *Food Self sufficiency is considered the main priority. Wemust feed our population the cheapest way possible. Other peoplessurpluses and handouts can make Politicians popular in the short termbut this position is not sustainable.Sustaining local Agribusiness - lead by theTourist Industry. We legitimately consider Agro- tourism becausewe can sustain business on the demographic features of the Caribbean.Sustaining traditional markets regardless of life cycleconsiderations.Creating New Niche Markets based on those things inwhich the Caribbean has a strategic Advantage. 33
  34. 34. *This will give us a capacity to earn hard currency to buythe essential things that the country needsThe strategy will give us some measure of security inthe International Marketplace based on Rules of OriginWe will be shielded to a great extent from head onpricing competition as any product originating fromanother region, other than the Caribbean, will be an‘imitation’Between visitors requiring mementos of their visits andthe large diasporas yearning for a taste from home, anassured core market will exist.Employment of the local population will be sustainable. 34
  35. 35. We have got to ‘Emancipate ourselves from mentalslavery- none but ourselves can free our minds’- aJamaican reggae song by Bob MarleyBy constantly thinking in terms of subsistencefarming we are institutionalizing poverty andbackwardness. Although small, we must think big.To this end we may need to act collectively. Let usresolve to leave this world better than how wefound it * 35