JAMAICAN farmers are being urged to diversify their income streams by venturing into the processed meat market as the country continues to rely heavily on imported products. The call comes from the Scientific Research Council (SRC), following observations in the market space and the underutilisation of its Process Development Division.

“They can see it when they go into our supermarkets and our spaces that most of these products, these value-added products, are imported. And so what that means is that our local producers are not participating in the market,” said Arlando Dunkley, divisional manager in the Process Development Division at the SRC, in an interview with the Jamaica Observer.

Dunkley explained that meat processing includes smoking meat, sausage making, producing bacon, and preparing sliced meats, offering local farmers various opportunities to add value and help reduce Jamaica’s reliance on imports. He also emphasised that diversification doesn’t always mean starting a completely new business but rather rethinking current operations.

“If you’re already producing animals and meat, what’s the next level? Instead of selling fresh pork, why not process it into bacon or other value-added products? That’s the next step to increasing your profit margins,” he explained.

According to preliminary 2023 data from the Statistical Institute of Jamaica (Statin), Jamaica imported US$92.2 million worth of meat and meat preparations, with a total net weight of 37,648,870 kilograms (kg). Of this, 2,603,949 kg consisted of processed meat, with canned corned beef accounting for the largest share at 2,099,370 kg. The United States remains Jamaica’s main source of these imports. The SRC has emphasised the potential of meat processing to help reduce Jamaica’s trade deficit and retain more foreign exchange by cutting down on imported products. While Jamaica imports significant amounts of meat, there are limitations on exporting it, making the development of locally processed meat a key opportunity for the agricultural sector to help close the trade gap and create economic benefits. Although value-added products have been a focal point in agricultural discussions, poultry farmers have largely been excluded from conversations about increasing locally produced, value-added meat products.

The SRC has identified a lack of awareness about available resources and support as a major factor limiting farmers’ participation in meat processing. Many farmers perceive the overhead costs associated with machinery and equipment for meat processing as a significant barrier, believing it requires substantial investment. However, the SRC provides facilities and services to fill this gap, but its services remain underutilised, with operations largely focused on seasonal demand.

“It’s a service that the SRC has the capacity to deliver year-round. But currently, because we don’t have a demand for it, we only do it in anticipation of the Christmas season,” Dr Watson told the Business Observer.

On average, the SRC processes between 2,000 and 4,000 kg of meat every two months, a figure that could triple if operations were scaled up year-round. To meet growing demand and increase processing capacity, the SRC is expanding its smokehouse, the specialised equipment used for smoking meat. Currently, the facility can process up to 1,000 kg per week, but the planned expansion aims to double this capacity to 2,000 kg weekly.

“We would have invested in these equipment. We have the capacity. We want to maximise that capacity in an effort to also drive reduction of imports,” she said.

Farmers can contact the SRC to discuss their processing needs and receive a per-unit cost estimate based on volume. After making a deposit, processing begins. Turnaround times are typically four to five days for smoked meats due to the lengthy smoking process and two to three days for sliced meats. In addressing concerns about the profitability of meat processing by offering its services at highly competitive rates. The SRC’s pricing is often set at cost, with minimal or no markup in certain cases, to ensure farmers can maintain viable profit margins, stay competitive in the market with international producers, and strengthen their position in the market. According to Dr Watson, imported meats often outcompete local products in price, due to the scale and efficiency of overseas production. Foreign producers benefit from mechanised systems and high-volume markets, unlike Jamaica’s labour-intensive agricultural processes. This dynamic also impacts vegetables, with imported options frequently being cheaper than locally grown produce.

“Our main aim is to stimulate business, stimulate economic activity, and support our entrepreneurs and our small and micro-medium enterprises,” Dr Watson said. “There are instances where it is either just to cover, recuperate the cost to deliver the service, or even sometimes discount it.”