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

It is estimated that the coffee production activity sustained direct damage amounting to $992
million and total indirect losses of $768.5 million, bringing the total amount of the impact to
$1,760.5 million. The indirect losses will have a corresponding negative impact on the balance of
payment in view of the reduction in exports that is anticipated, and also a positive consequence
due to the amount of expected reinsurance reimbursements. (see Table 3-1). It is to be noted, that
the overall impact of this disaster is not restricted to this year, but will have medium term
consequences due to the destruction of the coffee trees.
Sugar Cane. The strong winds and the floods ensuing from the heavy rainfall affected
export activities, at a time when efforts were being made to increase the area of recently planted
fields, to improve reaping conditions and to increase the sugar-to-cane production ratio.
Sugar canes were broken and uprooted in significant extensions, and flooding affected extensive
areas. In addition, miscellaneous infrastructure and irrigation systems sustained damage and
destruction. Furthermore, future production in both the public and private sectors will decrease, –
based on preliminary data supplied by the Sugar Company of Jamaica that covers approximately
70.0 percent – 75.0 percent of the entire sugar industry in the country – will cause an estimated
loss of 190000 tons of cane, or 15.6 percent of last year’s production 6 .
It is estimated that the direct damage to infrastructure and plantations amount to $521.9 million,
and that indirect production losses to the cane producers will reach $365.3 million. The total
impact of the disaster caused by Ivan in these activities will thus be $887.2 million. (see Table 3-
1). It is to be noted that there will occur corresponding losses for the processing of cane and its
conversion into sugar, which loss will be accounted for in the Manufacturing sector.
Cocoa. Efforts were being made in 2003 to increase production to take advantage of
increasing international prices and demand of the product 6 . However, the scarcity of rains in the
first half of 2004 resulted in a declined production (by 47.7 percent), especially in Clarendon and
St. Mary, the main cocoa producing parishes in the island 6 .
The hurricane damaged the trees and compromised the corresponding future production of cocoa
in an area of 1100 hectares (2700 acres), thus compounding the problems of the farmers. While
the trees are expected to recover promptly, an estimated loss in production of $27.6 million is
expected for 2004 due exclusively to the action of the hurricane. This figure represents a loss of
foreign exchange earnings and the likelihood of losing some international markets, if production
is not restored promptly.
Pimento. The physical infrastructure – including warehouses and equipment – and stocks
of pimento already processed were damaged or destroyed. On the other hand, some trees were
destroyed and berries were lost.
Estimates indicate that direct damage amount to $209 million and that losses in future production
will reach $142 million, thus bringing the total effects on the pimento activity to $351 million
(see Table 3-1). These losses will have a bearing on the Manufacturing and Export sectors.
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