Achievements

Achievements of the Banana Board 2010-2011

Fiscal Management

For the fiscal year April 2010 to March 2011, the Banana Board budget (after supplementary estimates) was J$74,984,000, with J$48,557,000 in net financing from GOJ Budget and projected J$26,427,000 from appropriations in aid (AIA). The AIA was earned from Technical Service and Grant Contracts with the European Union. Actual income for the period was J$70,825,926. Total Expenditure for the year was J$70,211,258.21 or 99% of actual income or 94% of the original budget.

Audited Financial Statements and Annual Reports

The 2009 audited report by KPMG was approved by the board of directors. The narrative and financial reports were reviewed by the Marketing Director in the MOAF for feedback. The report was being printed in 12 booklets and 85 electronic forms for submission to Parliament. The auditors were engaged but had not yet submitted the draft of the 2010 report by June 30, 2011.

Banana Industry Catastrophe Fund

The  Banana Industry Catastrophe Fund  which had been established  with a grant of JA$30 million from the European Union Banana Support Programme (EUBSP) and a further  JA$9 million contribution from farmers under the hurricane Dean material programme  had been growing steadily with contribution  by way of registration fees from banana and plantain growers.  For the current year, Catastrophe Fund registration was concluded on May 31, during which 259 farmers paid registration fees (J$2000 per acre and J$1500 for re-registration) which amounted to $1,940,615. The Fund now stands at approximately J$50M.

Resuscitation from Tropical Strom (TS) Nicole Damage

Farmers who suffered at catastrophic levels received payout of approximately J$10M in October 2010 after the onslaught by Tropical Storm Nicole in September 2010. The Resuscitation was on-going in June 2011. The negative effect of the storm was more evident in 2011 than 2010.

Currently, recovery efforts by the non-estate sector were far advanced and that of the estate had been improved. Full recovery will be seen by August 2011. There were ample supplies of bananas and plantains for the retail trade and there appeared to be no shortage of green and ripe fruits for household purchase. There were adequate supplies of pesticides, oil and other raw materials from suppliers generally but the AIBGA had reported difficulty in clearing a supply of oil from the wharf.

Production and Exportation of Bananas

Performance in the banana and plantain sub-sectors is given in Table 1. Total production increased in 2010 by 18% in spite of Tropical Storm Nicole damage in the latter half of 2010. However, the negative effect on production by TS Nicole became evident in the first quarter of 2011 when production was decreased by 14% over the first quarter of 2010. The largest estate had a 40% reduction over this period due to serious delays and deviations from recommended fertilization, disease control and sucker pruning procedures. The Research team carried out a detailed audit in May and submitted the report with recommendations to the principals of the estate.

Table 1. Banana and Plantain Production

Products

Annual Production (tonnes)

Percentage Increase in 2010

2009

2010

Banana

45,334

53,649

18

Plantain

24,621

28,826

17

TOTAL

69,955

82,475

17.5

In 2010, overall exportation and that of banana and plantain chips both increased by 24%, in addition to a small shipment of naturally dried products being pioneered in 2010 (Table 2). The increase in export of value-added products heralded the MOAF strategy to increase the value chain of bananas and plantains.

Table 2. Comparative Data of Exports and Imports for 2009 and 2010

Products

2009 Production

2010 Production

2010

Values

Exports

Kg

Kg

J$FOB

US$FOB

Banana

2,566

1,117

90,485

1,029

Plantain

5,843

505

57,067

657

Bananas and plantains naturally dried

0

239

17,585

205

Chips

133,885

165,472

93,612,257

1,071,347

TOTAL

142,294

167,333

93,777,393

1,073,238

Imports

Kg

Kg

J$CIF

US$CIF

Banana flour

NDA

1,750

313,709

3,656

Plantain flour

NDA

6,000

1,792,621

20,889

Banana and plantain chips.

NDA

694,991

315,712,258

3,608,203

TOTAL

702,741

317,818,587

3,632,748

Trade Deficit

535,408

224,041,194

2,559,509

NDA: No data available

Implementation of GOJ strategies for the new Banana Policy over the next three years will further enhance the Minister’s ”eat what we grow” campaign and is also aimed at decreasing the current trade deficit of US$2,559,509 for banana and plantain by-products seen in Table 2..

Export shipment to the Cayman Islands began in week-ending June 25, 2011. After submission of risk analyses and lengthy negotiations with ministry officials in Cayman, the Banana Board issued permits to JP Tropical Foods for weekly shipments of 200 boxes of green bananas to Cayman until July 31, 2011. As was the custom, permit fee of $8,140 was waived for the first shipment only. Larger shipments are projected beginning in August 2011. The Certification Unit of the Research Department is carrying out on-site inspection of harvest and packing in order to supply an export certificate for each cargo, as required by the interim agreement for trade between Jamaica and Cayman.

In early May 2011, another trader from Trinidad visited Jamaica to verify the Report on Risk Analyses of Exporting Bananas from Jamaica to Trinidad that was prepared by the Banana Board Research Department and submitted to the Ministry of Agriculture in Trinidad. His itinerary included visits to a representative of small, medium and large farms. Discussions and outlook for future trade were very positive. The trader is yet to offer a price but had requested a breakdown of the cost of production to include technical innovations that will prolong fruit shelf life. Negotiations were on-going for exportation to start in August 2011.

In 2010 three banana export permits were issued for a total 5,548 boxes or 99, 864 Kg. Actual exports in 2010 were 1,117 kg as indicated in Table1 in data from STATIN and the MOAF. Breakdown of exportation and total banana and plantain production for 2010 and 2009 is illustrated. Both overall production and exports grew by 18% in 2010 over 2009. Banana and plantain production for January to April 2011 is given in Table 2.

Technical Services

For the period April 2010 to March 2011, the Banana Board had achieved 95% of targeted activities. The 5% shortfall occurred as a result of TS Nicole’s impact. The activities are integral to achieving the 2030 vision objectives and goals of the Minister of Agriculture and Fisheries for the banana and plantain subsectors. Other major successful innovations and achievements in the period, which enhanced domestic market development, post-harvest management and high customer service support to farmers and agri-businesses, included the following:

1. Two contracts were awarded by the Banana Board to operate two banana ripening and postharvest businesses on behalf of farmers in two parishes. The facilities were handed over to the awardee (AIBGA) to be operated in St. James and St. Mary. With the increased entrepreneurship and proliferation of small private ripening rooms in St. Mary, one would be more useful in Portland rather than St. Mary.

2. A new grant contract of Euro 650,000 was negotiated with the European Union to be implemented from December 2010 to June 2012. The contract will:

a. Provide infrastructure to multiply and distribute new disease resistant banana and plantain varieties with 30% greater productivity and yield. (This catalyses the value-added industry. This project will be carried out over three years);

b. Upgrade the database of banana producers and agri-businesses to improve marketing and MOAF planning; and

c. Provide the scientific research and extension support being demanded by the farming and business clientele.

3. Innovative and appropriate technologies in pest and disease management were being transferred to farmers with 95% of scheduled activities accomplished. Lixiviate (bunch stalk extract) was successfully controlling black Sigatoka disease; pheromone traps were mitigating the infestation of borer weevils and Moko disease was being curtailed in St. James with incidence in the parish being acceptably less than 0.7% of mats in the parish. These and other technological innovations, as well as the fostering of farmer group/team approach to development are aimed at reducing cost efficiencies by 25% over the next three years. Details of the achievements in the more than 70 specific activities are available.

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Banana Board
10 South Ave
Kingston Gardens
Kingston 4, Jamaica
Tel: (876) 922-5490
(876) 922-4327
Email: bananaboard@cwjamaica.com

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