With an over US$4 billion deficit between the country’s trading activities, calls have intensified for exports to be strengthened and used among the key strategies for growth.

President of the Jamaica Manufacturers and Exporters Association (JMEA) John Mahfood, speaking with the Jamaica Observer earlier this week, said that while steps were being taken, a lot more needs to be done in advancing this very important objective.

“The reason this is so important is because the country at this time imports over US$5 billion but only exports about US$1.5 billion which leaves over US$3 billion in deficit and this means that more foreign exchange has to be found to pay for all of those imports.

“We have to find a solution to the shortage of foreign exchange, some of it already comes from remittances and tourism, but we need to ramp up production to bridge some of the shortfalls and our manufacturers need to play their part — they have become too dependent on selling only in Jamaica when there are other outlets for expanding their businesses overseas,” he told the Business Observer.

“If as a manufacturer you are only focused on the local market, you will never be able to get very big as you will be limited,” he further said, singling out companies such as GraceKennedy, Jamaica Producers and Rainforest Seafoods as examples of entities which have been growing their businesses through export.

Chief executive officer (CEO) of the GraceKennedy Group Don Wehby at the company’s annual general meeting earlier this year indicated that the conglomerate is targeting the doubling of exports by 2025.

Mahfood, in pointing to a myriad of supply chain disruptions and other challenges brought on since the novel coronavirus pandemic, said that local producers were now presented with a number of new opportunities, such as nearshoring and exploiting closer markets, some of which boast higher per capita incomes.

“In Caricom we are importing more than twice the amount that is exported, so this is an opportunity to target a market that is similar to ours in terms of the people, history and consumption habits. The cost of freight from the Far East to the Caribbean is also more expensive as at present, a 20ft container is about US$13,000-US$15,000 whereas a container from Jamaica to Trinidad is only US$2,000,” he noted.

“We have to try to sell more to the Caribbean and I feel we could double or triple our sales to Caricom if we went after that market,” he stated.

Admitting that there were challenges to first overcome before reaping export success, Mahfood, in referencing his own company Jamaican Teas as an example, said that it took his business over 15 years to achieve the growth it now has in this area. The company as one of the largest tea producers in the region exports to some 14 Caribbean markets as well as others in North and South America and the United Kingdom. Exporting over 60 per cent of its products, it currently earns the bulk of its revenues from overseas sales.

He said for the smaller companies that may not have the necessary resources needed to expedite growth in this way, the progression of digitisation and the fourth industrial revolution offers new opportunities for expansion through e-commerce, which he believes could also be used as an avenue to expose and facilitate the purchasing of products beyond local borders.

Outlining the work of the Jamaica Promotions Corporation (Jampro) led Export Max III programme along with the efforts of the JMEA through a raft of training and support initiatives as well as its biennial Expo Jamaica trade show, the JMEA head said some immediate steps were being taken to connect producers to buyers, build capacity and increase exports.

“Steps are being taken and we are also seeing signs of increased exports but we haven’t yet turned the corner in making significant achievements,” Mahfood stated.

Minister of Investment, Industry and Commerce Aubyn Hill supporting the need for greater exports said that with Jamaica now ranked among the lower quartiles of per capita income in the Caribbean, selling to only its relatively small and poor population of three million was not sustainable.

“We’re going to have to export exponentially to become a much better off country. When we look at our trade deficit figures, it shows how far we have to go. We are nowhere near exporting enough and if we keep that ratio, all we are going to do is remain in poverty, so we are going to have to find various ways to increase our legitimate exports. We therefore have to find markets for what we now have and then develop new products and services to further export,” he said to the Business Observer.