Hugh Martin, Contributor
THE COOPERATIVE Movement has played a significant role in the social and economic development of Jamaica since its introduction in the first half of the last century. The credit unions have been particularly successful in the mission to raise the standard of living of workers by providing opportunities for saving and for low interest loans. They have done this with a high degree of style, efficiency and soundness that even in the financial crisis of the mid-90s, when other financial entities were collapsing, they remained strong and vibrant.
Unfortunately, the same cannot be said of the agricultural cooperatives which have had a chequered history of success and failure. There are several reasons for the difference in fortunes, but the two most obvious lie in the management structure, and in the nature of risk. In the case of the management structure the credit unions, unlike the farmers' cooperatives, have long moved away from volunteer-management to the employment of professionals to run the organisation under the guidance of a board elected by the membership. The level of efficiency so attained is maintained as a result of strict supervision and regulation by the Jamaica Cooperative Credit Union League.
CROP FAILURES
There is a greater degree of risk where the agricultural cooperatives are concerned. They are very often seriously affected by crop failures, market gluts in periods of high production, high input costs and poor prices. A flood or a drought can wipe out the crops of all the farmers in a region rendering them incapable of repaying their loans. Very often, this can weaken the cooperative to the point where it is very difficult for it to recover. The members of the Springfield Growers Association in Morant Bay, St. Thomas, were all aware of those factors when they decided to join together to produce vegetables for the local and export markets. That is why it took them the better part of three years from conceptualisation to launching on Thursday, January 27, 2005. They needed to put in place all the elements necessary for a successful operation. They will, therefore, have no fear of droughts for they have a drip irrigation system in place. They don't dread flooding for the drainage system is first class. They will reduce the input costs by bulk buying and their market is assured with signed contracts from a produce dealer.
When Agriculture Minister Roger Clarke toured the farm before the launching ceremony, he was heard to say, "I'm impressed." Bearing in mind that he is a representative of St. Elizabeth, a parish regarded as the bread basket of Jamaica, it was high praise indeed. Assistant Treasurer Paul Watson, while accepting the compliment in good grace, if not with humility, threw out the challenge to the minister that St. Thomas would soon wrest the title away.
PROJECT DOCUMENT
The brainchild of Ainsley Henriques, the owner of the Springfield property, the project has received assistance from a number of agencies including the Agri-business Council, which helped in the preparation of the project document; the Ministry of Agriculture's Agricultural Support Services Project, which provided funds to the tune of $11.4 million primarily to construct a packaging facility, purchase equipment for land preparation and to resuscitate the old irrigation system on the property; the Development Bank of Jamaica through the Peoples' Cooperative Bank, and RADA and the JAS which provided and will continue to provide advice and support services. The farmers' contribution is $8 million as equity for the construction buildings and irrigation lines.
The cooperative began production in November last year of a wide range of vegetables and up to last week had produced in excess of 12,000 pounds of cabbage, tomato, and sweet pepper. In addition, in production on the 150-acre farm are corn, carrot and pumpkin. In an effort to ensure the success and sustainability of the cooperative, a strong management team has been put in place led by a farm manager under the direction of a board elected by the 31-strong membership. About 290 workers will be employed on a full and part-time basis. The Springfield Growers Association is seen as a new model of a farmers cooperative which will be replicated throughout the country as it attempts to provide the answers to all the problem areas that have caused the demise of so many of its predecessors.
Hugh Martin is a communication specialist and farm broadcaster.
