Jamaica’s exports of alumina surged 57.8 percent, while beverages and tobacco jumped 32.4 percent in January this year, helping to push the country’s export earnings up 16.7 percent over January 2020 to US$117 million, data from the Statistical Institute of Jamaica (STATIN) show.
The increase in exports helps to trim the trade gap for goods along with a decline in imports for January this year.
Imports for the first month of 2021, amount to US$462 million, a decline of 12.1 percent compared to January 2020. “The decline was largely attributable to lower imports of Consumer Goods that fell by 23 percent and Transport Equipment with a decline of 33.4 percent,” Statin reported.
The result of the trade data is that the trade gap narrowed to US$345 million from $412 million in 2020, the second year that the gap narrowed in January, following the narrowing in January last year, from $461 million in January 2019.
A portion of the sharp fall in imports in 2021 is tied to the reduced tourist arrivals in the country as well as curtailment in some other economic activities in the country. As tourism visitor arrival numbers continue to increase, the demand for more imports will grow as well and the trade gap could increase going forward. On the flip side the country will generate more service inflows that will counterbalance any worsening in the trade gap.
The stars in Jamaica’s export world
Jamaica’s export earnings fell in 2020 from US$1.516 billion to US$1.165 billion, but it was not all bad news on the export front. Excluding mining that fell sharply due partially to the closure of the Alpart alumina plant and a fall in re-exports of mineral and fuels, other exports actually increased as a group but not anything like the fall in other major items.
Coffee exports have fallen but could recover
Export data released recently by the Statistical Institute of Jamaica shows the dramatic change that occurred on the export front with the traditional products giving way to new ones. Traditional Exports excluding mineral fuels earned just US$18.85 million down from US$16 million in 2019 and a fall of 44 percent from US$33 million earned in 2017, due primarily to a 43 percent fall in the export of coffee.
Export earnings from manufacturing, agriculture, and mineral fuels exceed the mining sector in 2020, accounting for 56 percent of exports compared to 51 percent in 2017 and 47 percent in 2019, but excluding mineral fuels, the rest of exported products accounted for US$430 million for 37 percent of exports earning in 2020 compared to US$382 million or 35 percent in 2017 and 27 percent with US$416 million in 2019, the decline in sugar, coffee and scrap metals were the main contributors to the slower growth. Excluding the three products along with mining and mineral fuel, exports would have risen an attractive 61 percent since 2017.
For example, sugar, bananas, cocoa are now shadows of their former glory. In their places come yams, now the leading agricultural export, followed by ackee and coffee. Sugar that was said to be king at one stage, generated just US$6.5 million in export earnings last year, bananas brought in a mere US$726,000 citrus US$383,000 and cocoa US$348,000.
Coming tomorrow – Declining sectors obscure export headway.
Jamaica’s 2020 trade gap narrowed sharply
Jamaica spent US$1.7 billion less on imports in 2020 than in 2019 but still imported a staggering US$4.71 billion in goods during the year, at the same time, the country’s exports fell $427 million or 26.4 percent to $1.22 billion, a release by the Statistical Institute of Jamaica (STATIN) shows.
Oil drilling offshore
Mining exports fell by $288 million for the year, accounting for almost all of $293 million in the decline in traditional exports. Total Non-Traditional exports fell 9.3 percent or by $59 million to $568 million as the category Mineral Fuels etcetera fell by 26 percent or $77 million to $220 million from $297 million in 2019. This category involves mostly the sale of fuel to aircrafts and ships leaving Jamaica and exports of lubricants.
Interestingly, both imports and exports declined by 26.4 percent for the year as imports fell by 26.4 percent from US$6.4 billion in 2019. STATIN states that the decline in imports was largely due to lower imports of ‘Fuel and Lubricants’ and ‘Raw Materials and Intermediate Goods’, which fell by 48.8 percent and 17.1 percent, respectively.
“The decline in total exports was mainly influenced by a reduction in the export of Alumina which fell by 39.8 per cent and “Mineral Fuels” by 36.1 percent,” the release stated.
Consolidated Bakeries Miss Birdie Easter bun.
While the data shows some disappointing areas other than mining and Mineral Fuels, etcetera, there are a number of bright spots on the non-traditional front. Food exports climbed 12 or by $22 million to $207 million, with yams increasing by 24 percent and adding $7 million to end at $37 million. The category of Breads, Biscuits, Buns, Cakes etc., grew 13.8 percent to $25 million while sauces climbed a strong 24 percent to $30 million. Other Food Exports grew by 23 percent to $33 million and other domestic exports jumped 151 percent to $9 million.
D&G new production line to push exports
Desnoes and Geddes producers of the world renown Red Stripe beer, is set to expand its export capabilities with the introduction of a new production line with the capacity to produce 40,000 bottles per hour and 26,000 cases of beer per day exclusively for its growing global markets, release from the company disclosed.
The new line will result in the brewery producing up to 1 million bottles of the Jamaican beer for the domestic and international markets. “Our 2020 Vision is a call to action to boost our target volume and we’ve invested close to US$18 million in this project. We firmly believe in the power of our brand and its appeal, so we are making a stronger push into international markets,” said Ricardo Nuncio, Managing Director, Desnoes and Geddes.
The company’s top export markets are the United States and Canada with two million and 700,000 cases in annual shipments, respectively the company stated. As at July 2017, there has been 15 percent growth in focus cities of Miami, Tampa, Orlando and Atlanta. Nuncio adds, “In early 2016, Red Stripe entered Australia, Dubai and Brazil and there’s robust brand building in those countries. We’re also moving to put down roots in Africa and Russia, following successful testing.”
The brewery’s new production line, referred to as ‘Line 8’, comes as the company adopted the use of liquefied natural gas (LNG) to power its operations. The brewer is now the first commercial company in Jamaica to be fully LNG-powered.
Nuncio explained that the addition of Line 8 dovetails with the company’s mission to streamline its operation throughout the supply chain. Nuncio noted, “The Red Stripe team is guided by the growing importance of sustainability and the need to lessen the adverse environmental impact of our operation. By using LNG, we welcome estimated savings of US$336,000 annually.”
Line 8 now frees up the existing production line to focus solely on domestic volumes. The new line is specially designed for one-way or new Red Stripe bottles, but it is also able to produce new Red Stripe Local and Dragon Stout in six-pack cartons. The project, which took 12 months to complete, involved infrastructure changes and extensive training for employees to achieve a greater level of efficiency.
Jamaica’s 2014 trade deficit falls
Imports of petroleum fell
Jamaica’s expenditure on merchandise imports during January to November 2014 fell by US$280 million or 5 percent to US$5,287 million when compared to the same period in 2013. Earnings from total exports fell by US$109 million or 7.5 percent to US$1.35 billion. The trade deficit a narrowed to by 4.1 percent or US$171 million to US$3.94 billion, compared to the similar 2013 period.
Major contributors to the fall in imports were declines of Mineral Fuels with a decline of US$154 million or 7.9 per cent, food declined by US$51 million or 5.8 per cent, to US$837 million. Chemicals fell by US$130 million or 18.6 per cent, lower imports of ethanol products were the primary contributor to this decline. Beverages & Tobacco decreased by US$66 million, US$4 million or 6.1 percent below the US$71 million recorded in the similar 2013 period.
Bauxite mining
Exports|Earnings from traditional exports increased up by US$19 million or 2.7 percent to US$739 million, due to increases in Mining and Quarrying but Non-Traditional domestic exports valued at US$549 million, fell 16.9 percent or US$111 million.
Drop in export pushes up Jamaica’s trade deficit
Jamaica’s trade deficit during the first seven months of 2014, deteriorated compared to the same period last year. The worsening position occurred as a result of a sharp fall in non-traditional exports, rather than increased imports.
The deficit ended at US$2.613 billion, compared to US$2.573 billion in the comparable period for 2013. The deterioration flowed from merchandise imports during the 7 months, valued at US$3.47 billion, decreasing by 2.4 percent or US$86 million, compared to the $3.55 billion recorded in the similar 2013 period. On the other hand, exports for the 2014 period, amounted to US$852 million, a decline of 12.9 percent or US$127 million below the US$979 million earned in the similar 2013 period.
Imports| According to the Statistical Institute of Jamaica (Statin), the decline in imports was largely influenced by lower spending on importation of Mineral Fuels, Chemicals, Beverages & Tobacco.
Exports fall| During the first seven months to July, traditional exports earned US$453 million, falling by 5.3 percent or US$25.6 million below the exports earnings during the 2013 period. Non-traditional export earnings from January to July 2014, fell by US$91 million or 20.2 percent, to US$360 million.
Trade deficit improvement loses steam in June
Jamaica’s trade deficit declined marginally during the first six months of 2014 ending at US$2.18 billion, compared to US$2.19 billion in the 2013 period, a decline of 0.3 percent, the Statistical Institute of Jamaica reported, today.
For the period up to May the trade deficit was US$125 million. Trade balance in June effectively wiped out the small positive gains to May.
For the six months period Jamaica imported goods valued at US$2.9 billion, a decrease of US$133 million or 4.4 percent compared to the same period in 2013. Total exports for the six months to June 2014, fell by US$125 million to US$729 million, down from US$854 million in the 2013 period.
The decline in imports was due mainly to a reduction in Mineral Fuels, Chemicals, Beverages & Tobacco, Animal & Vegetable Oils Fats.Imports of “Raw Materials and Intermediate Goods” decreased during the 2014 review period, and were valued at US$1.77 billion, compared to US$1.97 billion in the 2013 period, a 9.8 percent decrease.
Crude Oil imports amounted to US$413 million, moving down from US$451 million in the similar period of 2013, a decrease of 8.4 percent. Imports of Capital Goods (Excl. Motor Cars) increase from US$243 million in the 2013 period to US$264 million in the current year to June.
Jamaica’s trade deficit falls, March’s better
Jamaica enjoyed a reduction in its trade for the first four months of this year, compared with the same period in 2013. The trade deficit amounted to US$1.34 billion, down from US$1.46 billion in 2013.
The country imported goods valued at US$1.86 billion for the January to April 2014 period, a decrease of US$199 million or 9.7 percent and exported US$77 million or 12.9 percent less for the January to April 2014 period, representing a big improvement over the change to March. Total exports for the 4 months came in at S$521 million, down from US$598 million in the similar period in 2013.
For the three months to March this year, imports fell by US$281 million and exports were down US$111 million to US$358 million, down from US$469 million in the 2013.
