Increased Jamaica Producers’ investments

Jamaica Producers to introduce a new line of banana chips.

Jamaica Producers has been undergoing major changes for a number of years as it morphs from a predominant banana marketing company to a much more diversified group.
The group sold its banana ripening and fruit distribution business in the United Kingdom years ago bought a juice business in Holland and more recently bought more heavily into Kingston Wharves that is now considered a subsidiary.
It also bought out the Tortuga Rum Cake business and relocated production to Kingston. With all of that its core business has only recently started to show sign of profitability that the level of investment demands. In furtherance of improving return on investment in the legacy business as well as newer ones, the group says they will continue a programme of investment that is designed to improve its product and service offering while enhancing its operating efficiency.
In line with this programme, prior to the end of this year, Kingston Wharves will launch new logistics facilities for the warehousing of general cargo, and the storage of bulk and automotive cargo for domestic and transshipment markets. The location of this is slated for lands adjacent to the Tinson Pen airport.
The subsidiary, “JP Tropical Group will commission new state-of-the-art cold storage and ripening facilities at Retirement Road in Kingston for its banana and pineapple business and will introduce a new variety of St. Mary’s banana chip for the first time in 20 years.” “The group’s head office activities will move from Oxford Road in New Kingston to the locations in Kingston where operations are centred. This will mean that we will enter the 2018 financial year operating from purpose built corporate offices in Newport West with a lower overhead cost base,” the company reported.
“These new initiatives will build on the recent completion of a high specification bakery in Kingston to consolidate the production for international markets of Tortuga Rum Cakes, the launch of a new packaging facility for fresh pineapples in St. Mary, and a new juice line in the Netherlands that deploys high pressure processing technology to extend the shelf life of fresh juice produced by us. We are particularly pleased to report that these completed capital programmes are all contributing positively to the performance of the Group,” Jamaica Producer advised shareholders in a report accompanying the half year results.
The shift of Tortuga Rum Cakes production to Kingston will result in major cost savings for this operation than the other locations within the region, with lower cost and economies of scale for that operation.

About IC Insider.com