Grace Food Processors upgrades plant

Avia Collinder, Gleaner Writer

Having spent more than $60 million over the past two years on technology upgrades, the GraceKennedy group is spending another $15 million in 2011 on equipment at its meat-processing plant in Westmoreland, that will allow it to bring new products to market.

"During the period 2009-2010, there has been ongoing, continuous improvements," said Carl Barnett, general manager of Grace Food Processors Limited, the facility in Savanna-la-Mar where Grace processes and packages a range of products, including its hot-selling Vienna sausages. The GraceKennedy brand dominates the market with this product.

"We continue to streamline our operations by upgrading the facilities, implement cost-cutting initiatives and put in place new equipment for some of our processes," Barnett said.

Next year's spending on equip-ment at the factory will be 37.5 per cent on Grace Food Processors' capital budget for the year.

Claiming fear of tipping off competitors, Barnett declined to say what new bit of equipment is to be installed or what new products will come off his lines. It would, however, see an increase in output, as well as additions to the current staff of 100.

Indeed, the investments since 2008, including those on smoke-house upgrades and on new Vienna sausage canning equipment, has translated into greater efficiency at the plants, which, in turn, means better performance in the market.

For instance, not only has there been a 20 per cent increase in the plant's capacity, yields have increased 10 per cent. In other words, according to Barnett, "thousands of kilograms" of products that would previously have been wasted now reach the market.

Big benefits for farmers

Additionally, the plant, in addition to its range of sausages and hams, was able to add a range of veggie burgers to its line.

The upgrades, driven in part by a growing demand in the market for Vienna sausages, have had benefits for both livestock farmers and consumers, Barnett said.

Pig farmers are assured of selling their animals, even though "the cost of pork has been increasing significantly over the last two to three years".

"In fact, all our inputs have been increasing in cost," said Barnett.

However, the company has been able to hold the price of its products relatively stable because of the efficiency gains.

Another spin-off of the upgrades is the consumers' assurance of quality, signified recently by the award of the Jamaica Bureau of Standards' National Quality Awards for Ex-cellence to Grace Food Processors Limited.

Said Barnett: "The companies ... are assessed in the areas of organisational focus, customer focus, human resource focus, process management and business results in both the manufacturing and service sectors.

"In accessing the companies for business results, auditors from the BSJ examined how the company meets requirements with regard to fiscal accountability; market share analysis; analysis of organisational efficiency; cost control analysis and return on investment analysis. Grace Food Processors Division was awarded the sectional prize for business results in the manufacturing sector, owing to the fact that we were very strong in the last three categories."

business@gleaner.com