Food supplies stable
..but produce prices could rise after Hurricane Melissa
JAMAICA’S main food distributors say the country’s stock levels remain healthy following the passage of Hurricane Melissa, with staples such as flour, rice and canned goods sufficiently warehoused or in transit. But fresh produce is likely to tighten in the weeks ahead as damage to farms drives up prices through to Christmas.
While the wider supply chain remains stable, a visit to several Corporate Area supermarkets on Thursday revealed how quickly pre-storm shopping emptied shelves. Long aisles that once held dry goods, canned staples and household brands such as Lasco, Grace and Kendel were stripped bare, with only a handful of merchandisers — less than half the usual number seen at this time — restocking small batches of items.
Retailers say the rush ahead of the storm, combined with a temporary pause in manufacturing and deliveries, has disrupted store inventories and forced some to draw on stock meant for the holiday season. Nevertheless, stocks are expected to ramp up over the next few hours to days.
“In the days leading up to Hurricane Melissa, at Hi-Lo Food Stores, we observed a significant uptick in consumer purchases, particularly of shelf-stable and essential items. In some locations, sales volumes were two to three times higher than a typical week, with certain stores such as UWI, Portmore, and Liguanea experiencing the most rapid inventory turnover,” general manager of Hi-Lo Cathrine Kennedy told the Jamaica Observer.
She added that while this surge did absorb a portion of Hi-Lo’s hurricane buffer stock, the retail chain’s preparedness strategy ensured that core items remained available throughout the peak period.
Hi-Lo’s distribution partners, including the GK Foods Distribution Centre, increased stock levels to cover up to 12 weeks of projected demand, ensuring continuity of supply. The retail chain reopened its doors in Kingston, St Andrew and St Catherine on Thursday, and restocking efforts began immediately.
“A substantial portion of our pre-Christmas inventory had already arrived prior to the storm. While some of these stocks may be temporarily redirected to meet immediate consumer needs, we are actively monitoring inventory levels to ensure that December availability remains robust,” she continued.
At the manufacturing level, producers are working to restore normal output.
Seprod Group CEO Richard Pandohie said the company’s factories suffered minimal disruption and have resumed operations.
“Expectation is for distribution and manufacturing to resume on Oct 30 [yesterday]. We recognise the important role we play in the nation’s food and pharmaceutical supply chain, and as such want to minimise any downtime,” Pandohie told the Business Observer.
“The main challenge right now is the widespread devastation in the West could mean disruption to the movement of goods due to road blockages, infrastructural damages to retailers/wholesalers etc. Also with so many persons personally affected, there could be high absenteeism in the distribution and logistics ecosystem which could impact the customer service level which customers are accustomed to,” he continued.
He added that Seprod’s regional network through A.S. Bryden, which also distributes pharmaceuticals and fast-moving consumer goods, has provided flexibility in stabilising supply.
“I do not see any major supply risk nor will there be any price change. Jamaicans can rest assured about their food supply chain resilience,” he said.
Executive Chairman of Derrimon Trading Derrick Cotterell, which owns and operates the Sampars chain of retail stores, also echoed similar sentiments, noting that Jamaica’s food distribution system remains strong — backed by both local manufacturing and quick regional resupply.
“The major distributors have decent inventories of most products,” he said. “We have two flour factories on the island and regional supplies only a week away. Rice is well-stocked and more shipments are already in transit.”
He added that canned proteins such as mackerel, sardines, tuna and corned beef typically take four to six weeks in transit, but there is “decent stock already here or on the water”. Most locally produced snacks, baked goods and beverages should rebound quickly once factories regain full power,” he said.
“There may be a few items in short supply, but this should not last for long,” Cotterell reasoned.
Still, he cautioned that agricultural losses could affect certain raw materials in the short term. “Fresh produce is another story. There will be shortages and higher prices after the hurricane, and prices could remain high through to Christmas,” he said.
Cotterell added that poultry supplies will depend on the state of local farms, though imports from the United States could offset any shortfall.
In the agricultural belt, the picture remains mixed. Field officers from the Ministry of Agriculture and Fisheries are still assessing the extent of the damage, but early indications are that many crops were lost — a blow that could widen the supply gap for fresh produce and drive up market prices in the coming weeks.
Trade Winds Citrus Managing Director Peter McConnell said the company’s beverage facilities have already restarted, but parts of its farms suffered noticeable damage.
“Our beverage facilities are good to go, as we have been operating on back-up energy, but the farms were affected,” he told the Business Observer. “Sugar cane was hardest hit, and we lost about 10 to 15 per cent of citrus fruit and trees. Pineapples and dairy were less affected, though cows are stressed and milk yields could dip temporarily.”
Meanwhile, poultry producer Jamaica Broilers Group has also resumed full operations.
Senior vice-president Ian Parsard said the company restarted processing on Wednesday, October 29, and is now operating at near-normal capacity.
“The good news is that we started operations from last night, and all of our facilities — including processing and deliveries—are running as normal,” he said. “We didn’t have any significant damage at any of our locations or among our contractors.”
Parsard said Jamaica Broilers had already built up its inventories in preparation for the Christmas season, leaving the company well-positioned to meet demand.
“Our inventories are at a peak level. The bigger question will be how quickly shipping lines return to schedule and whether there’s any delay in production inputs over the next few weeks, but we have sufficient stock to carry us through an extended period,” he said.