Ja Producers holds on to banana operations

JAMAICA PRODUCERS Group chairman, Charles Johnston and Group managing director, Dr. Marshall Hall announced their commitment to maintaining the group's banana business for as long as it was feasible.

Addressing shareholders at the company's AGM held at Producers House, Oxford Road, Kingston, Dr. Hall said that despite the losses currently being experienced in the international banana trade, he believed that there was still the opportunity for the group's banana business to be a vibrant and viable one. Until proven otherwise, the management and staff would make every effort to return Jamaica Producers' banana operations to profitability.

Dr. Hall emphasised the fact that BECO's quota under the new regime allowed the island to export all the banana it produced. Additionally, any unused portions of the quota may be used to source other ACP fruit. He emphasised also that the UK fresh produce retail sector was extremely happy with the significant improvement in the quality of Jamaica's fruit over the past year. David Read, chief executive officer of the UK Banana reported however, that the first half results of 2001 showed marked improvements in profitability in the banana division.

The chairman reported that in 2000 the group had recorded profits of $80.1 million on revenues of $11.091 billion compared with profits of $155.8 million on revenues of $11.177 billion in 1999. He pointed out that this disappointing performance was largely due to the uncertainty of the international banana regime.

"All the large multinationals with bananas as their core business have announced either reduced profits or outright losses in 2000," he said.

Mr. Johnston underscored the fact that the benefits of the company's diversification programme, introduced a number of years ago as a strategy to offset any vagaries in the banana industry. The Group's UK subsidiary, Sunjuice Ltd. had an outstanding year, he said. Sunjuice manufacturers a range of juice drinks, smoothies and bio-yogurts. The company employs over 200 persons deployed on a three-shift basis, six days a week. Mike Lord, Head of Sunjuice, told shareholders that the company's extraction plant is the most advanced in the world, or capable of producing some 15 million litres of juice per annum. It is expected that on completion of the new tetrapak plant, the Sunjuice capacity will be 80 million litres of juice and drinks per annum. He noted that the increased emphasis on health foods worldwide suggests a tremendous future for the company.

As well as selling its own branded products - Sunjuice and Frobishers­ the company manufactures private label products for supermarkets and other customers. It also operates its own London distribution depot. Sunjuice is a major supplier to the chill cabinets of many of the major supermarkets in the UK. Mr. Johnston affirmed the company's intention to continue to build on the company's achievement through the strengthening of its brands.

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