Farmers call for greater links with tourism sector

FARMERS ACROSS the island continue to express concern about the lack of a ready market for locally grown produce, particularly in the tourism sector, even as the country's food import bill stands at some US$1 billion.

To develop stronger linkages between tourism and agriculture, JN Small Business Loans Limited (JNSBL) targeted its town hall meeting in Junction, St Elizabeth recently to assist farmers to identify workable marketing strategies to tackle this ongoing problem. The meeting, held at Junction Assemblies of God Church focused on the Tourism Enhancement Fund (TEF) Five by Five Loan Scheme, which seeks to improve the performance of businesses that can "enhance tourism."

"There is clearly room for more of our farmers to supply the tourism sector," Thelma Yong, credit and risk assessment manager at JNSBL, said.

"Our hotels, attractions and restaurants operating in the tourism sector, in particular, still depend heavily on imported products including agricultural produce."

Many hotel and restaurant properties in the tourism sector require more local food supplies, she noted. They maintain that they have been unable to access the supplies in the quality and quantity they need.

"It is in everybody's interest, in our country, to reduce imports and encourage the sector to better access goods and services supplied by local farmers and other persons in the agri-business sector," she said, pointing to the increase in the sector's tourism arrival figures, which grew to 2.8 million visitors last year.

Growth

Data from the Planning Institute of Jamaica shows that agriculture recorded a 0.8 per cent growth, contributing some 5.8 per cent to gross domestic product in 2010; and the sector continues to grow, recording an increase of 13.5 per cent in the first quarter of this year, with St Elizabeth remaining one of the country's largest centres of agricultural production.

Laurel Lewis, a farmer in Junction, St Elizabeth, acknowledged at the meeting that while there is potential for improved linkages with the tourism sector, the real need may be for additional assistance to enhance the capacity of farmers to deliver produce to the marketplace.

Yong pointed out that the collateral for the loan product includes a first charge on assets purchased with the loan funds, land or house titles; motor vehicle or non-specialised equipment; or any other assets owned by the applicant.

"Real estate and equipment given as collateral for loans must be supported by valuation reports, which are not more than six months old; and, in the case of motor vehicles, the valuation report should be no more than three months old," Yong advised. New businesses must also provide a satisfactory report from their bankers.

The JNSBL manager pointed out that the TEF Loan Scheme provides entrepreneurs in the tourism sector, including farmers, with access to funds of up to $5 million to expand their operations and marketing initiatives. This loan amount may be borrowed, by application through JNSBL, for a period not exceeding five years, at an interest of five per cent per annum on the reducing balance.

A moratorium of six months is available to beneficiaries of the loan, she added; and this will provide the businesses with a respite during the start-up phase.