Gov’t import policy costing us millions, says JEA
THE Jamaica Exporters’ Association (JEA) yesterday charged that the agriculture ministry’s policy to restrict the importation of farm products that are grown in Jamaica has cost them millions of dollars in export earnings to the agri-processing sector.
According to the exporters, inconsistent supplies of local raw material for food processing businesses has resulted in a string of cancelled orders from overseas markets they are now unable satisfy.
Arguing that the Government policy is short-sighted because it does not allow for times when local production is low, the exporters said they have repeatedly lobbied Government for change, without success.
“The last time we met was in October last year, but the policy remains that same,” JEA Vice-President Michael Ming said.
The agriculture ministry, in its quest to protect local farmers has, since 2008, maintained that it will not allow the importation of raw material for agri-processing if the product is grown locally.
But according Ming, the ministry’s position is counterproductive as importation of critical raw material is denied even when the farm produce is unavailable in the island due to drought or other reasons.
“The ministry has given us names of farmers who are supposed to have the produce we need, but when it is checked it is actually not so,” said Ming, who is also president of the Jamaica Agri-processors Association.
He argued that while the policy was good in protecting farmers, allowance had to be made when farm produce was in short supply locally.
The JEA members insisted that they would prefer to purchase locally, but contended that they “had contracts to fill”.
As a result of the Government policy, the exporters said that overseas markets were being lost to other countries which were able to procure raw material from any source.
“We have lost business to Trinidad, which does not have pepper supplies nor even eat bammy,” said JEA Vice- President Dr Andre Gordon. “They have been able to supply our markets — markets we have been unable to supply.”
Added JEA past president Marjorie Kennedy, “They are only looking at the farmer. They are not looking at the entire industry. They are not looking further down the value chain.”
The exporters were voicing their position at a press conference held at the JEA’s Winchester Road headquarters in Kingston to announce last year’s export performance.
From January to November last year, non-traditional exports decreased 43.7 per
cent to US$590 million over the US$1 billion of the preced-
ing year.
Ethanol and mineral fuels experienced the greatest sector drops at 56.3 per cent and 53.7 per cent respectively, the
JEA said.
Manufactured goods, however, saw a 241 per cent increase in exports over the period, according to JEA data.
The JEA also announced that a trade deficit with Caricom had been significantly reduced.
Imports from Caricom dropped by US$865 million to US$678.8 million in 2009, attributed largely to the reduction in the fuel import bill, while exports to the region grew modestly from US$61.1 million in 2008 to US$62.8 million.