BY STEVEN JACKSON

Business reporter

jacksons@jamaicaobserver.com

Sweet River Abattoir & Supplies Company Ltd will aim to export pork after describing its first year since listing as its worst since incorporation.

The issue relates to the reduction in pigs fit for slaughter. Management reasoned that going forward it would seek to fortify longer contracts between three to five years with suppliers in an effort to avert a recurrence.

“The company is now operating at international quality standards, which serves to facilitate the company’s anticipated entry into the pork exportation market. We intend to target larger markets with more stable economy not affected by significant devaluations and high inflation rates,” stated chairman Henry Graham in the report accompanying the financials. “In order to achieve this, the focus has to be placed on attaining high international manufacturing standards.”

Graham added that in the ensuing months its revenues will grow gradually while it seeks new markets. The company made $1.9 million in net profit on $24 million in revenues for its June first quarter 2015. The profit reversed the net loss recorded a year earlier, however its revenues are down 44 per cent over the period.

“The year 2014/15 has been our most challenging since our inception in 2009 and more importantly the first year since we became a publicly listed company,” stated Valdence Gifford, managing director in his statement to shareholders in the annual report released this month.

Gifford explained that the recent mass exodus of pig farmers from the industry stemmed from an oversupply of pigs on the market in 2012 and 2013. A quoted survey in the annual report by Trevor Hamilton & Associates showed the glut resulted in a population of 144,917 pigs.

“Having identified the problem we have moved assiduously in fixing same by working with one of our business partners with whom we have signed a Memorandum of Understanding (MOU),” stated Gifford about the MOU with Hi Pro Feeds signed in August 2014 which will provide assistance to farmers in an effort to develop a sustainable pig and small ruminant industry.

“The signing of the MOU was done at an opportune time that marked the start of a mass exodus of pig farmers from the industry, which resulted in the worst shortage of pigs the country has ever experienced,” Gifford added about Sweet Abattoir which recorded a March 2015 year-end net loss of $4.6 million which reversed the $10.5 million net profit a year earlier. Also its revenue at $121 million declined by 60 per cent year on year.

Westmoreland-based Sweet River Abattoir procures and slaughters pigs, sheep, and goats from farmers in mainly western Jamaica.

CAPTION

GIFFORD… The year 2014/15 has been our most challenging since our inception

Sweet River plans to export pork