Increased Access To Financing For Spice Farmers

Local spice farmers are to benefit from increased access to financing to expand their operations and boost productivity.

The support is being provided under the United States Department of Agriculture (USDA), Food for Progress Jamaica Spices (JaSPICE) Project, which targets the revitalisation of the turmeric, ginger, and pimento value chains.

The Local Umbrella Agreement for Tripartite Value Chain Financing, which falls under component four  of the project, was signed on Thursday (Nov. 23) at the Terra Nova Hotel in Kingston.

Addressing the signing ceremony, Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, noted the importance of access to financing to enable farmers to expand their enterprises and drive the sustainability of the spices sector.

Highlighting efforts to provide clean planting material, build technical capacity and identify markets, he argued that “if there is no access to financing then all our work will frankly be in vain.”

“This is why this component, component four, where we have zoned in on financing is so crucial,” Minister Green said.

“Part of our job has to be to work together to free up capital for our farmers, for our processors, for those involved in agriculture. This key component of the project, to expand access to financing and investment in these targeted spices, will go a far way in driving the sustainability of the sector,” he emphasised.

Minister Green said that the spices sector is being targeted as one of the strategic pillars under the New FACE of Food initiative, which focuses on food security, agribusiness development, climate smart technology and export expansion.

“My fundamental hope is that coming out of this project, we will not only build a well-financed spices sector, but we will use the lessons learned to build a well-financed agricultural industry. Once we do that, not only will we feed ourselves, but we will feed the world with the best food,” he said.

Chief of Party, JaSPICE Project, Dr. Ronald Blake, noted that approximately US$26 million has been invested to revitalise ginger, turmeric and pimento under the initiative.

Agricultural Specialist, USDA, Rasheeda Hall Hanson, in her remarks, said that the organisation is “pleased to fund and support the expansion and development of the Jamaica spice subsector along every aspect of the value chain including financing and investment.”

She noted that better financing access will ensure the commercial sustainability of the local spices industry.

The tripartite model functions through collaboration among key stakeholders, which are the financial service providers, input suppliers, and large, registered organisations acting as anchors for members of their supply chain (farmers/producers).

The current financial service providers are First Global Bank, Lasco MicroFinance Limited, and Carbyne Capital Investments Limited, while the input suppliers include Innovative Agricultural Solutions Limited, Newport Fersan, Hi-Pro Farm Supplies, H&L Agro Wholesale, Isratech Jamaica Limited, Evergrow Garden Centre, and St. Jago Farm and Hardware Supplies.

The JaSPICE Project is a five-year initiative being managed by economic development focused non-profit organisation, the Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance (ACDI/VOCA).

It  will support 7,500 local agricultural sector stakeholders, including women, youth, and other marginalised people, involved in the farming of spices.

The project is geared towards stimulating  the spices sector in Jamaica to meet existing export and domestic demands.