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Red Stripe’s Project Grow to add 120 acres
Cassava starch is produced primarily by the wet milling of fresh cassava roots. Starch is the main constituent of cassava.
Business, Business Report
Karena Bennett | Senior Business Reporter | bennettk@jamaicaobserver.com  
April 19, 2024

Red Stripe’s Project Grow to add 120 acres

Beer maker Red Stripe wants to add another 120 acres of cassava under Project Grow.

The move, the company says, reaffirms its commitment to the local raw material sourcing initiative that was launched nearly a decade ago, but which has yet to meet its target. Weather-related challenges and competition for planting materials have largely been the reasons for the inconsistent results, so much so that Red Stripe pulled back from the farming venture three years ago, thus reducing both the acreages of cassava under its direct control as well as those farmed under contract.

The Kingston-based brewery owned by Heineken International now has some 460 acres of land under cultivation, of which 300 acres are owned by the company in Windsor, St Catherine. The remaining lands are being cultivated under contract by 12 farmers across three parishes.

Red Stripe now wants to move that number to 580 acres on renewed enthusiasm, having strengthened ties with the Jamaica Social Investment Fund (JSIF); the Meteorological Service of Jamaica; the Rural Agricultural Development Authority; the Agro-Invest Corporation; the research and development division of the Ministry of Agriculture, Fisheries and Mining; The University of the West Indies, Mona; and the National Irrigation Commission.

“They have partnered with us to provide necessary support and information for sustainable production amid weather and environmental uncertainty,” Nele Vanbeneden, head of supply at Red Stripe, told the Jamaica Observer.

The company is also looking to double the number of farmers engaged in the project, moving the number from 12 to 24, with each cultivating at least 10 acres. Cassava for Red Stripe is currently grown in four parishes: St Thomas, St Catherine, St Mary, and Clarendon.

“Through our partnership with the JSIF, we are equipping our 12 contracted farmers who supply us with cassava with comprehensive drip irrigation infrastructure, including fertigation systems, fertilisers, pesticides, and training in agronomy, farming as a business, as well as drip irrigation installation and maintenance,” Vanbeneden said.

He added that the support package is “crucial” for cassava cultivation, as it not only enhances yields but also reduces the overall cost of production for farmers. Moreover, he said the new initiative ensures consistency in supply, which in turn provides a stable and reliable source of local raw material for Red Stripe.

The brewery currently uses five per cent cassava starch in Red Stripe beer and Dragon Stout, thereby minimising the volume of high maltose corn syrup that it imports into the country. Still, its goal has been to get to 40 per cent since the project got underway in 2013.

Any increase in cultivated acres and improvements in starch volume and quality could lead to adjustments in the percentage used in brewing. But to increase the likelihood of success from each additional acreage, Red Stripe has invited proposals from qualified consultants/firms to conduct a comprehensive re-evaluation of the cassava cultivation value chain with the aim of enhancing the feasibility of the cassava project.

“We have extended a request for proposal (RFP) for enhanced feasibility of the programme,” Vanbeneden said. The RFP opened on Sunday, April 21 and will close on May 16.

According to Red Stripe, the primary objective of the request for proposal is to conduct an in-depth analysis of the entire cassava cultivation value chain, as well as identifying bottlenecks, inefficiencies, and opportunities for improvement. The company wants the selected consultant to propose strategies and interventions that enhance the feasibility of cassava cultivation integration into its supply chain.

The consultant’s responsibilities will include assessing technological innovations and best practices in cassava cultivation and processing globally; developing a comprehensive proposal outlining recommended interventions, timelines, and estimated costs; and conducting a financial analysis to determine the cost-benefit ratio for Red Stripe’s cassava supply chain.

In 2013, Red Stripe Jamaica initiated Project Grow after extensive research and planning spanning approximately two years. The project commenced with a 36-acre experimental farm situated on former sugar cane lands at Bernard Lodge, St Catherine. Subsequently, the initiative expanded to include additional locations such as Wallen and Windsor in St Catherine, as well as Springfield in Clarendon.

The exact investment made in the venture, which officially commenced operations in 2015, has not been disclosed, but the project is said to have racked up losses for the company.

During its peak in 2018, Project Grow enlisted 120 farmers under contract to cultivate cassava for Red Stripe across all parishes except for St James, Hanover and Trelawny. However, by 2020, the number of participating farmers had slightly declined to just over 100. The recent cutbacks have brought the number down to 12 farmers.

“We’ll continue supporting current farmers to regain full output capacity, train existing staff, recruit unattached individuals for employment, and expand the distribution of planting material in collaboration with the Ministry of Agriculture’s research department,” Vanbeneden said.

Since the start of the programme, Red Stripe has provided nearly $2.4 million in assistance and retraining.

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