John Myers Jr., Agriculture Coordinator

( L - R ) Stanberry and Grant

Increased competition from low cost pimento producers on the international market has forced the Ministry of Agriculture and Lands to reduce the farm gate price paid to farmers for dried pimento berries.

The ministry has announced that it is reducing the farm gate price for dried pimento berries to $100 per pound, effective September 25. Prior to now farmers were paid about $120 per pound.

Like Blue Mountain coffee, Jamaica gets premium price for its pimento on the overseas export market due to the high quality of the spice. The price for a pound of dried pimento berries on the export market is about US$3, while pimento producers elsewhere get about US$1.25 per pound.

Unable to maintain current prices

Donovan Stanberry, permanent secretary in the Ministry of Agriculture and Lands explained that the ministry, which is the main exporter of pimento, could no longer maintain the current prices as competition from low cost producers - mainly in Mexico - has been forcing down the price of pimento in the export market that Jamaican pimento is sold. The European Union is the main export market for Jamaican pimento.

"What has been happening is that the price on the export market where we sell our product has fallen and correspondingly we have to reduce the price at which we buy," he explained. "One of the explanations that has been given (for the price reduction) is that we are getting some heavy heavy competition from Mexico and two...we have built up quite a large inventory this year," Mr. Stanberry further explained.

Hazard Daley, a pimento farmer from Mavis Bank in St. Andrew, told Farmers Weekly that he was "surprised" upon hearing of the price reduction. "I don't think it will be good for the farmers," he said.

Discussion with the Export Division

But Senator Norman Grant, president of the Jamaica Agricultural Society, said he was currently in discussion with the Export Division of the ministry to negotiate an agreement to purchase pimento in an attempt to increase the marketing opportunities available to the farmers.

"What we are trying to do is to work towards a particular goal where the farmers will have a market for most of their crops," Senator Grant said. "We are working out a protocol where there will be stronger collaboration between the two agencies to ensure that we secure a market for the farmers."

He emphasised that the agreement was not intended to compete with private traders. "What we want to do is to ensure that there is an outlet at all times for the pimento farmers," he stressed0.