Jeffrey Hall, CEO-designate for Jamaica Producers' Group, says his strategy is to reshape the group from a production-led to a consumer-led operation. - File

Susan Gordon, Business Reporter

BUILDING ON its new strategy to concentrate on new segments in its food processing business and branded products going forward, the Jamaica Producers Group (JP) has budgeted $590 million for its capital expenditure this year.

Company executive Paul Samuels told the Financial Gleaner that the snack factory being built in the Dominican Republic would account for at least 25 per cent of the budgeted funds.

The construction of the snack factory is said to be costing US$2 million (J$136 million).

The company had announced at its annual general meeting that it would be investing heavily in five target areas.

Chief Executive Officer-designate, Jeffrey Hall, said with the exception of the focus on ethical banana brand, the funds would be evenly applied to three investment areas: fresh smoothies, serious soups and desserts.

Referring to the $590 million plan, Samuels said based on past trends, JP may end up not utilising all the funds approved by the board,noting that the company negotiates the best deals and prices to contain its spending.

"The board approved $1.465 billion for the Group at the end of 2005, and we spent $1.44 billion across the Group in 2006," said Samuels, citing an example.

For the five target areas, JP last year spent $1.29 billion of which $557 million was for new acquisitions.

susan.gordon@gleanerjm.com