Local Stakeholders Encouraged to Capitalise on the Benefits of the ‘Hot Pepper Value Chain’ Project

Local investors and manufacturers, particularly those in agro-processing, are being encouraged to capitalise on the benefits to be derived from the recently launched hot pepper value chain project.

The initiative, titled ‘Improving Phytosanitary, Food Safety and Market Access Opportunities along the Hot Pepper Value Chain in Jamaica’, evolved from a strategic collaboration with the United Nations Food and Agriculture Organization (FAO) and the Jamaican Government, through the World Trade Organization (WTO) Standard and Trade Development Facility (STDF).

It aims to strengthen Jamaica’s international competitiveness in the hot pepper industry and stakeholders’ technical and resource capabilities to have consistent local and international market access.

Additionally, the project seeks to support sustainable and resilience practices within the sector.

Speaking during the project’s launch at the Bureau of Standards Jamaica (BSJ) on April 19, Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, shared some of the dividends the initiative is expected to yield, particularly for small-scale producers.

“It is anticipated that this project will… strengthen linkages to the storage industry, supermarkets and local and overseas households,” he informed.

The Minister further noted that the project will result in greater market access and expanded trade.

To this end, Senator Hill said Jamaican companies must be ready to maximise production, exports and the profits that will arise.

Referencing an FAO report, the Minister said data over the past five years indicate a 39 per cent growth in local production levels within the sector.

Outputs moved from 14,263 metric tonnes in 2012 to 19,850 metric tonnes in 2021. Export earnings also increased, moving from US$1,539,000 to US$2,681,000.

“We need to see a lot more of that kind of percentage increase. There is an enormous opportunity to improve Jamaica’s export revenue by selling much more Jamaican hot peppers,” Senator Hill said.

Consequently, he said stakeholders must continuously seek to capitalise on market access opportunities and meet product demand, to maximise local exports and grow Jamaica’s economy.

“In order to achieve market access and meet high-quality product demand, it requires sustained effort and collaboration among stakeholders with the implementation of sustainable and resilient farming,” the Minister added.

Coupled with this, Senator Hill further stated, is the need for a quality product that is available in consistent and reliable quantities, and which adheres to international food-safety standards, which, he maintained, is a key driver in gaining a competitive advantage and accessing international markets.

Meanwhile, Senator Hill advised that a significant portion of the US$1 million provided for the project should be allocated to the production process.

“Jamaican hot pepper is regarded as a very lucrative investment opportunity because of the low capital startup cost, the ease and availability of market information and the high potential returns. The product is in high demand in both the local and international markets… [and so] the vast majority of that US$1 million must go to production,” he maintained.

Production factors to be considered are the purchasing of fertiliser and sourcing sufficient water, among other things, to ensure the crop can be produced, processed, and be ready for export in large quantities.

Senator Hill expressed gratitude to the STDF for recognising the local hot pepper industry’s enormous potential.

“It is well established that there is a global market for hot peppers… and collaborations, such as these, play a vital role in driving any industry to improve its efficiency and quality at every stage along the production and value chain,” he noted.

“This intervention is very timely and critical, and I continue to encourage our local investors and our manufacturers, including agro-processors, to expand our product and service offerings, and increase Jamaica’s exports,” Senator Hill added.