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Citrus growers snubbed for US$1.5m of imports
by Patrick Foster
Wednesday, October 07, 2009
<span style="font-weight: bold">Juice manufacturers are importing </span>more than 150,000 gallons of frozen orange juice concentrate annually, costing more than US$1.5 million ($134 million), <span style="font-weight: bold">while the local citrus industry struggles to sell its produce.</span>
Fears in the agriculture ministry are that a continuation of imports could leave local citrus farmers without a market in the coming season, even killing the industry, as the inventory of concentrate mounts.
McConnell... refuted suggestions claiming that the Tru-Juice brand was always the highest priced juice on the market
"If that (150,000 gallons) was purchased locally we would not have any problems with farmers," Peter McConnell of local concentrate supplier Trade Winds Citrus remarked yesterday.
According to data from the Citrus Growers' Association (CGA), it has approximately 156,000 gallons of orange concentrate now in storage after a bumper 2009 crop, but the local producer says it has few takers.
Concentrated orange juice is processed locally by two companies - Trade Winds and the CGA - which purchase fruit from local citrus farmers.
Trade Winds uses its concentrate for the Tru-Juice brand while the CGA converts its concentrate into the Juiciful brand, with the surplus sold to some seven local juice manufacturing companies.
"We have more than enough concentrate to supply the demand for our brand," Dr Percy Miller of the CGA told the Business Observer yesterday.
Trade Winds, the larger of the two suppliers, says it also holds enough concentrate to satisfy its market segment well into next year.
"We have excess concentrate of about 60,000 gallons," McConnell said, adding that the price and quality of his product was competitive with imports coming primarily out of Belize.
But the juice manufacturers are reluctant to buy concentrate from the two companies, contending that the processors have competing products and can undersell them on the market shelf.
McConnell, however, refuted that suggestion claiming that the Tru-Juice brand was always the highest priced juice on the market.
At a special meeting last week, a concerned agriculture minister Christopher Tufton, in a bid to reverse the import trend, implored the manufacturers to instead purchase local concentrate for the survival of the citrus industry.
"I told them to support the local farmers," Tufton told the Business Observer. "If this continues it will mean the death of the industry."
Yesterday, admitting that the price for imported concentrate was the same as the local suppliers, Brett Wong of Coldfield Manufacturing, pointed to what he said were uncertainties in supplies from local sources.
"We have had supply issues in the past," Wong, whose company markets the Big Jo brand, commented. "We are not averse to purchasing locally but we had to secure our own supply to ensure our company's viability," he told the Business Observer.
In the meantime, as inventory of local concentrate builds up in the processors' holding tanks, the CGA, being a co-operative, faces the dilemma of having to purchase fruit from farmers annually despite depressed market conditions.
"If the association is not in a position to purchase the farmers' crops there could be tremendous uproar next year," Miller remarked. He said that all of this year's citrus crop was purchased by the CGA, far exceeding what is required for its own production.
Export of concentrate was also a problem facing the CGA, Miller disclosed, saying that world prices now at 68 cents per pound solid is way below production costs in Jamaica.
"Last time we exported was 2006/2007 when the price per pound solid was US$1.86," he said. "When it is down to 68 cents there is no way we can export at that price."
The CGA, which is majority owned by the citrus farmers, was formed some 64 years ago with the mandate to purchase and market fruit produced locally
by Patrick Foster
Wednesday, October 07, 2009
<span style="font-weight: bold">Juice manufacturers are importing </span>more than 150,000 gallons of frozen orange juice concentrate annually, costing more than US$1.5 million ($134 million), <span style="font-weight: bold">while the local citrus industry struggles to sell its produce.</span>
Fears in the agriculture ministry are that a continuation of imports could leave local citrus farmers without a market in the coming season, even killing the industry, as the inventory of concentrate mounts.
McConnell... refuted suggestions claiming that the Tru-Juice brand was always the highest priced juice on the market
"If that (150,000 gallons) was purchased locally we would not have any problems with farmers," Peter McConnell of local concentrate supplier Trade Winds Citrus remarked yesterday.
According to data from the Citrus Growers' Association (CGA), it has approximately 156,000 gallons of orange concentrate now in storage after a bumper 2009 crop, but the local producer says it has few takers.
Concentrated orange juice is processed locally by two companies - Trade Winds and the CGA - which purchase fruit from local citrus farmers.
Trade Winds uses its concentrate for the Tru-Juice brand while the CGA converts its concentrate into the Juiciful brand, with the surplus sold to some seven local juice manufacturing companies.
"We have more than enough concentrate to supply the demand for our brand," Dr Percy Miller of the CGA told the Business Observer yesterday.
Trade Winds, the larger of the two suppliers, says it also holds enough concentrate to satisfy its market segment well into next year.
"We have excess concentrate of about 60,000 gallons," McConnell said, adding that the price and quality of his product was competitive with imports coming primarily out of Belize.
But the juice manufacturers are reluctant to buy concentrate from the two companies, contending that the processors have competing products and can undersell them on the market shelf.
McConnell, however, refuted that suggestion claiming that the Tru-Juice brand was always the highest priced juice on the market.
At a special meeting last week, a concerned agriculture minister Christopher Tufton, in a bid to reverse the import trend, implored the manufacturers to instead purchase local concentrate for the survival of the citrus industry.
"I told them to support the local farmers," Tufton told the Business Observer. "If this continues it will mean the death of the industry."
Yesterday, admitting that the price for imported concentrate was the same as the local suppliers, Brett Wong of Coldfield Manufacturing, pointed to what he said were uncertainties in supplies from local sources.
"We have had supply issues in the past," Wong, whose company markets the Big Jo brand, commented. "We are not averse to purchasing locally but we had to secure our own supply to ensure our company's viability," he told the Business Observer.
In the meantime, as inventory of local concentrate builds up in the processors' holding tanks, the CGA, being a co-operative, faces the dilemma of having to purchase fruit from farmers annually despite depressed market conditions.
"If the association is not in a position to purchase the farmers' crops there could be tremendous uproar next year," Miller remarked. He said that all of this year's citrus crop was purchased by the CGA, far exceeding what is required for its own production.
Export of concentrate was also a problem facing the CGA, Miller disclosed, saying that world prices now at 68 cents per pound solid is way below production costs in Jamaica.
"Last time we exported was 2006/2007 when the price per pound solid was US$1.86," he said. "When it is down to 68 cents there is no way we can export at that price."
The CGA, which is majority owned by the citrus farmers, was formed some 64 years ago with the mandate to purchase and market fruit produced locally
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