Agro Processing Strategy

a g r o - p r o c e s s i n g 7Table 2: Exports of selected agro-processed goods, 2002-2006(Value, USD thousands)Good 2002 2003 2004 2005 2006 2007 2008Other Fruits& FruitPreparationsMeat & MeatPreparations3.8 2.9 2.6 4.1 4.22.1 3.0 2.1 2.1 2.0Sauces 7.8 8.4 7.9 8.8 8.0Source: Exports, 2003-2007 (Statistical Institute of Jamaica, 2008)Beverages are Jamaica’s third mostsignificant exports, after inorganicchemicals and mineral fuel exports. Thisproduct category contributed US$135mto exports, with spirits, liquors and otherspirit beverages topping the productgroup at US$45m. Two products havebeen identified as emerging products –beer (made from malt) and mineral andaerated waters, which saw an increasedshare in world exports of 17 and 52%,respectively. 4Overall, exports of Beverages andTobacco had increased over 14% toUSD90 million.Within Jamaica’s export profile, someof the products are losing market shareto other exporters, while global demandis decreasing. For the sector, carefulpositioning is important to produce theright product for which there is growingdemand, and identifying the best marketsis also important. This means also thatthe competitiveness of the sector needsimprovement.A key factor in competitiveness for thesector is cost. In Jamaica, fixed costsas a percentage of total manufacturingare higher than in the other countries,reducing the ability of Jamaicanenterprises to be cost competitive. Asarticulated in the cross-cutting areaon human capital, Jamaica also haslower rates of productivity in industriessupporting manufacturing includingtransport, construction, and finance,with lower growth rates in productivitywhich have indirectly affected thecompetitiveness of the manufacturingsector.4International Trade Statistics, 2006 (CountryMap/Jamaica) (International Trade Centre, 2008).