$50m glut-management fund

The government has launched a $50-million revolving fund which it hopes will help provide a cushion to farmers during down cycles in their business, such as when gluts wipe their earnings leaving little, or no cash to prepare for the next crop.

The money is being provided by the Development Bank of Jamaica for on-lending to farmers under a scheme being administered by Agro-Investment Corporation (Agro-Invest). It was formally launched this week by Agro-Invest.

Christopher Tufton, the agriculture minister, said that scheme will, in part, ensure that when there is a glut in the market interim financing is available to growers and the agro-processsers so that they take off, and store, excess capacity, which would then be available during shortages.

Interests on borrowing from the fund will be below 10 per cent.

"It's very important for us ... as part of addressing the value chain, to even out the flow of raw materials that are available to our agro-processors," Tufton said at the launch.

Hershell Brown, the CEO of Agro-Invest, explained that the agency's mandate is to mobilise and facilitate investments in the agricultural sector.

The fund was a natural complement to such initiatives, Brown said.

Call Aggro-Invest at:

758-8963; 923-9268; 723-9261