Jamaica: Macro-Socio-Economic and Environmental Assessment of ...

8,000 persons will be out of work for the aforementioned period in the export oriented activities.
As the new banana plants reach maturity and begin production, workers will be able to return in
a staged fashion.
Direct damage to export banana plantations exclusively, can be measured by the cost of
resuscitating the plants in 2,226 hectares, using unit costs derived by the Banana Export
Company Limited 6 . These damages were estimated as J$ 278.35 million.
Losses in production over the next six to nine months, while the plantations are being
resuscitated, have been estimated as J$ 930 million. Of that figure, approximately J$ 400 will
represent losses sustained in the present year, and the $530 will occur in 2005. This will have a
negative impact on the balance of payments as they represent exports that will not be made to the
tune of US$15 million.
In summary, the total impact on the banana export activities will reach $1,208.35 million, of
which $278.35 million (22 percent) are direct damages and $930 million (78) are indirect losses
that will accrue in the present and following year (see Table 3-1).
Coffee. The strong winds brought by Ivan affected the uplands where coffee is grown in
the island. They caused the breaking up or uprooting of coffee trees as well as damage to the
forest that provides shading to the plantation. In addition, the winds caused the loss of berries for
the current crop in the Blue Mountain and lowland coffee areas. This caused a major setback to
the increased coffee production that had been achieved in recent times as a result of major
resuscitation of coffee trees activities by farmers 6
The destruction of 5 percent the coffee tree population has been estimated at a value of $992
million. This figure was arrived at by estimating the value of new plants for an estimated area of
2225 acres as well as the rehabilitation of plants and lands in 2630 more acres. It is to be noted
that the new coffee trees will only begin producing after a three to five year period, when they
reach maturity.
The winds caused the loss of berries in nearly 45 percent of the coffee-producing area. It has
been estimated that this will impede the production and export of 213000 boxes of Blue
Mountain coffee and 41000 of lower quality coffee. Combined with a respective value of $2050
and $ 951 per box, this will translate into a loss of $475.7 million in export earnings that will
have a negative impact of US$8 million in the country’s balance of payments for 2004.
In addition to the above, a further indirect loss of $97.6 million is anticipated for at least the
following three calendar years until the new trees reach.
There exists an insurance scheme for the sector. Coffee production is insured, provided the losses
occur after berries are present on the trees at a rate of US$20 per box for the case of Blue
Mountain coffee and US$12 per box for lowland quality coffee, to a combined maximum
amount of US$8.8 million. The coffee trees were not insured since the premiums are considered
to be too high. Reinsurance is available from a number of large international insurance groups –
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