Farmers, hoteliers welcome call for long-term supply contracts
SAVANNA-LA-MAR, Westmoreland — Stakeholders within the local hotel and agricultural sectors say they are looking forward to working together to put long-term supply contracts in place.
“I will have to endorse it; it will be a good thing for the farmers to uplift them because there are many times where many of the farmers produce their goods and can’t dispose of it properly,” president of the Jamaica Agricultural Society (JAS) Owen Dobson told the Jamaica Observer.
He was asked to react to a recent directive by Prime Minister Dr Andrew Holness for investors in the tourism sector to enter into long-term contracts with Jamaican farmers that supply them with produce.
Dobson said farmers are looking to see how the initiative would be implemented. According to the JAS head, many of his members are now complaining about difficulties in getting their produce directly into local hotels.
“Based on some of the probes that I have done, a lot of farmers are saying that they would feel good about it and would be happy to be a part of it. [However], the whole thing about it is the execution; that is what they are looking at. They are hoping that it will be executed well so that the farmers themselves can get the contract instead of other people, who don’t farm, will go and look [the] contract and then come and buy it from them [farmers] to take it back [to the hotels],” argued Dobson in an interview with the Observer on Wednesday.
Addressing a ground-breaking ceremony for the second phase of Grand Palladium Hotels in Hanover in February, Holness noted that it is difficult for farmers to grow crops and not know if they will be called upon to supply the tourism sector within six months.
It is within this context that he called for the use of long-term supply contracts.
“The question about whether or not they have the capacity to deliver, and whether or not they have the quality or the delivery of the product, those questions can’t be answered until they get a chance, until they get the opportunity. And that is a critical part of the ASPIRE agenda. We must give our local producers who supply the tourism industry long-term supply contracts so that they can invest in building capacity, so that they can invest in making the quality the standard that you would like,” stated the prime minister.
ASPIRE Jamaica is the Government’s recently launched six-pillar framework for inclusive economic growth.
Holness said while he is relying on players to do the right thing and move towards the desired outcome, the Government is prepared to take additional steps as needed.
“If we don’t see it happen by virtue of this kind of moral suasion, then we will have to go further to ensure that, as our tourism grows, it is genuinely growing in a sustainable and fair way — which, for me, means everybody will prosper,” the prime minister argued then.
Both Dobson and president of the Jamaica Hotel and Tourist Association (JHTA) Robin Russell are of the view that moral suasion will be enough.
“The support is there and we are pledging our support that the Government won’t have to take such a drastic measure,” stated Russell.
He is convinced that the initiative is in the best interest of the tourism sector and the country as a whole.
“We are going to get fresher and better products. We are going to get products that are indigenous to Jamaica — something that our guests are asking for. We will be supporting local industries, which means that we will be growing the economy,” argued the JHTA head.
He pointed to one hurdle that needs to be overcome.
“The challenge that we are having is working out what that demand is, what we can do well versus what we will have to import,” Russell told the Observer.
The hotelier said discussions have started with the Ministry of Agriculture Fisheries and Mining.
“I just came out of a three-hour-long meeting with the Minister of Agriculture [Floyd Green] to discuss how better the JHTA and the Ministry of Agriculture can work to support local farmers. It is very dear to our hearts as hoteliers and we are going to continue to support our farmers,” he promised.
The JHTA president pointed out that several hotels are already utilising local produce, including his own Deja Resort which utilises 100 per cent locally produced farm supplies.
“A lot of produce in Jamaica is already locally sourced, but there is more that can be done, and we are going to ensure that it is done,” stated Russell.
He noted, however, that rates and long-term contracts will need to be hammered out.
“We will have to find a way to make it all work together. How do we make our farmers more efficient and how do we encourage all members [hoteliers] to offer better contracts so that the farmers can survive?” reasoned Russell.
He spoke of the importance of putting systems in place before the opening of new hotels that have been planned.
“It is important that the Ministry of Agriculture understand these numbers so that when these hotels open it does not create a shortage, not only in the hotel market but Jamaica as a whole. It is about balancing what the hotels use against what local production is,” cautioned Russell.