A reduction in volumes and value of all major livestock produced by its members is being given as the cause of another year of losses for the Jamaica Livestock Association (JLA).

Losses totalled $117.5 million for the financial year that ended November 30, 2010, the fifth straight year of losses for the association even though the 2010 loss has slowed from the $187 million reported in 2009 and the $220 million in 2008.

The JLA cautions that the decline in the industry will continue if the factors which make the sector unattractive to investors are not corrected. Among the issues outlined by the JLA are the high cost of capital, the vulnerability of the sector to competition, high incidents of praedial larceny, and the large capital outlay required to get in.

The association has seen a decline in production of major livestock and livestock products such as beef, dairy, pig, poultry and eggs. Sheep and goat, the only two products to not decline, showed “no marked expansion” according to Henry J Rainford, chairman. Those which declined faced issues of market access and financing, competition and an overall lack of good management of some sectors.

“It is regrettable that despite the effort being made in some quarters the accumulative loss by stakeholders and reliance on importation continue to impact negatively on Jamaica’s balance of trade. Besides it jeopardises the effort to galvanise our status in food security while major national resources remain idle or underutilised,” said Rainford. Annual sales for the JLA, which operates from 14 branches across the island, declined by $152 million or 17 per cent year-on-year, the $753 million reported for 2010 was the lowest over the five years since 2006.

During 2010, local beef production declined three per cent from a total of 20,404 head of cattle slaughtered which yielded 5.26 million kilogrammes, with 4.38 million kilogrammes entering the legal trade. This compares to the 21,009 head of cattle and 5.43 million kilogrammes in 2009.

The situation with regard to the pig industry has also seen a decline of 13,366 pigs slaughtered for 2010 below the 121,954 produced in 2009. The JLA noted that many small farmers exited the pig-farming business in 2010, partly due to higher input costs associated with the price increases on feed. This left the market open to competition from overseas, the association said. “The exit of some small farmers negatively affected pork production and allowed for increase importation of pork legs and bellies for the production of hams and sausages respectively,” noted Rainford.

The poultry industry was similarly affected as a result of the decline in the supply of baby chicks. Poultry meat production declined from the 104,502,123 kg produced in 2009 to 100,636,988 kg produced in 2010. Egg production declined by 12 million eggs in 2010 from 120.0 million produced in 2009. The JLA said the decline resulted from market conditions which saw an oversupply in 2009 that forced some farmers out of the market, followed by a shortage in 2010 as a result of the fewer persons producing eggs.

“The industry is well developed with high-producing strains and if properly managed will eliminate the problems of oversupply and shortages,” noted Rainford. However, unlike the case with the production of pigs, the shortfall in supply of chickens was not filled with significant imports. The JLA noted that imports in this area was restricted to chicken necks and backs.

The dairy industry faces specific threats associated with resource allocation and management. The JLA noted that there is no programme in place to get the milk from the farm to the processors.

“The decline in the dairy industry is more alarming than the beef industry and without any serious expansion programme by the large farmers the dairy industry will remain threatened,” noted Rainford.

Milk production declined five per cent to 12.5 million litres compared with 13.1 million litres in 2009.

However, there are still positive signs in the industry. While sheep production remains flat, goats are seen as a way to get value added from the rearing of the farm animal to produce cheese.

And despite the competition, there was overall improvements in the pig industry with regards to the use of artificial insemination, birth weights, weaning weights, litter sizes and carcass quality, noted the JLA. There is also the possibility that farmers could return to the business if the Government’s programme to assist them with access to financing for pig rearing is successful.

The JLA is the primary representative body for the local livestock farmers and a major supplier of agricultural inputs including feeds, day-old chicks, animal health products, equipment, agricultural chemicals, herbicides and pesticides.