In May 2023 the Jamaica Agricultural Society (JAS), which is currently partially funded by the Government of Jamaica, will transition fully to a non-government organisation. Managers will have to find new ways to pay staff, settle debt and finance its many activities.

The JAS, which is over 126 years old, receives a yearly grant of $80 million from the Government to assist with the daily running and functions of the all-island agricultural society, and this will be cut off next year. Most is used to cover staff payments. Managers will have to become more creative in use of assets.

The JAS is an umbrella body which is currently attached to the Ministry of Agriculture and Fisheries, although it began in 1941 as a private voluntary organisation.

Over the years, it developed various affiliated commodity boards and associations to include: Jamaica Citrus Growers Association, Pimento Growers Association, Cocoa Industry Board, All Island Cane Farmers Association, Coconut Industry Board, All Island Banana Growers Association, Coffee Industry Board, Jamaica Livestock Association, Ministry of Agriculture Export Division, and Sugar Industry Board.

Many of these associations and commodity boards have now been disbanded, with several superseded by the Jamaica Agricultural Commodities Authority (JACRA), a body on which farmers are excluded from the board.

Divestment

The JAS is set for divestment to fully private mode next. Internal sources told the Jamaica Observer that there are concerns as the organisation owes local banks $60 million with another $25 million owed elsewhere.

Although there is a listed membership of over 200 farmers, the source explained that the JAS suffers low membership and low collections of dues. While several viable projects have been proposed which could turn the situation around, government approval is needed to borrow and sometimes this is difficult to get.

Assets owned include lands in Montpelier, St James, Denbigh in Clarendon and other prime commercial properties including 11 Harbour Street in Port Antonio, Portland, and the JAS head office at 67 Church Street, downtown Kingston.

In all the JAS owns approximately 26 commercial properties islandwide. Parish associations are estimated to collect millions in rental monthly. Currently, a turnaround plan for the organisation is being crafted by PricewaterhouseCoopers (PwC). It is hoped that a green light will be given for use of assets that could turn a new page in the organisation’s history.

Transition date

On June 1, JAS leaders were finally informed that the transition date for the body will be no later than May 2023. One member commented, “The plan will be operationalised although it is still largely undefined. Clarity is needed.”

“The JAS income stream is weak. It needs capital injections for new projects. The organisation is indebted and has been struggling to service loans, which has been worse since the onset of the COVID-19 pandemic.”

Accounts seen by the Business Observer showed an operating deficit of $38, 511 as at May 31, 2022 from total revenues amounted to $2.17 million (up from $1.9 million in May 2021), while the cost of sales for the year ended were $2.2 million. At the end of the prior year, the JAS recorded a surplus of just over $733,000.

The JAS has been the organiser of the Denbigh Agricultural, Industrial and Food Show since inception, as well as involvement in parish shows (such as Hague Show, Agrofest, St Mary Expo and Montpelier Shows), that are geared at promoting agriculture.

It also organises the annual women in agriculture exposition, which brings in revenue of just under $1 million yearly, but costs an equal amount to stage.

Main revenue sources include this conference, the annual Denbigh show, car park fees, a bee revolving project and the eat Jamaica programme, amongst others. Operations in the year ended were negatively affected by the cost of agricultural shows which did not bring in the same revenue as in years just before the pandemic.

July AGM

The JAS is also expected to transition to new leadership in July when a national AGM on July 15 in a virtual form. Delegates will decide on the executives at that meeting. Current president is St Ann farmer Lenworth Fulton who declined to make a comment on the coming transition, on the basis of the elections which are due next month.

Fulton is a former CEO of Rural Agricultural Development Authority (RADA) and managing director, COA Jamaica Foundation and Spring Garden Farms.

No election has been held for a while due to the novel coronavirus pandemic. Members are optimistic as they say that assets owned far exceed debt. One problem, however, is that income earned through parish associations has not been handed over for some time. A member explained, “They have refused to do so and this is against the JAS constitution. The parish societies are associated brand societies or ABS which can neither sue nor be sued, and which have boards made of individuals who go their own way in collecting and making use of rentals that amount to millions.

Notorious

Members said the parishes which were notorious for such actions were Westmoreland, Manchester and St James.

The JAS operates the Jamaica Agricultural Society Commercial Enterprises Limited (JASCEL) which includes purchasing fresh farm produce from farmers on a contractual basis; promoting post-harvest practices among farmers supplying to the Central Marketing System (CMS) and promoting of Jamaican agricultural products and to aid in the reduction of imports, hence, increasing the consumption of local produce. It is also engaged in sorting, storing and packaging fresh produce at central locations.

The aim of JASCEL is to provide stable prices to the farmers, and improve the quality of produce to meet the specifications of clients. In the future it is hoped that it will help in increasing farmer output through packaging and promotion of a brand and through improved distribution systems.

JASCEL is said to be operating in the black and on track to remain commercially viable.