TO capitalise on international export opportunities and address Jamaica’s shortage of in-demand local products, small and medium-sized enterprises (SMEs) should explore value-added products, according to Ricardo Durrant, Jamaica Promotions Corporation’s (Jampro) exports expert.

Speaking at a recent BizCon presentation, Durrant highlighted the potential for growth in exporting value-added products, citing caster oil as a prime example of a product that saw surging demand despite a recent drought. By adding value to their products, SMEs can enhance their competitiveness in the global market and tap into lucrative export opportunities.

“Now we can’t get enough of it [castor oil],” said Durrant to a room full of SMEs. “If you have an acre or even a quarter acre of land idle somewhere down the country or in Kingston, just plant castor beans,” he suggested.

Durrant pointed out the lucrative market for castor beans, with prices ranging from $400 to $800 per pound and a bidding war underway for castor oil. Currently, straight castor oil fetches around US$1,800 per metric tonne, while Jamaican black castor oil commands a premium price of US$18,000 per metric tonne. He also noted the strong demand for ackee, driven by Jamaicans living abroad, which presents an opportunity for SMEs to establish orchards and supply the market. Additionally, Durrant encouraged SMEs to consider exporting agricultural products to Jamaican restaurants overseas. He reminded the audience that Jampro’s Export Max programme is currently recruiting SMEs to export their goods. Furthermore, he identified other profitable produce, such as breadfruit and mangoes, that SMEs can benefit from.

“We can’t get enough breadfruit, we can’t get enough mangos,” he revealed. “Last year, we sent a shipment of mangoes to New York, and people were lining up as if it were an iPhone, and in no time, they were out of stock.”

Recognising the need for increased orchard cultivation, Durrant acknowledged the challenges posed by Jamaica’s landscape but remained optimistic about the opportunities that exist. Shifting his focus to the non-food category, he highlighted products with high potential, including chemicals, beverages, mineral resources, non-alcoholic beverages, and coffee. He noted that the total unrealised opportunity in this sector amounts to J$721 million, indicating the significant potential for growth and investment. While noting that the data are based on trade agreements and Jamaica’s utilisation of these agreements, Durrant highlighted the Economic Partnership Agreement (EPA) between Jamaica and the European Union, as well as professional trade agreements like the revised Treaty of Chaguaramas under Caricom. He encouraged businesses to leverage these agreements, which offer signatory countries duty discounts and competitive advantages in domestic markets.

“If you fail to capitalise on these opportunities to enter foreign markets, you’ll be at a disadvantage,” he cautioned. “It is one of the most difficult things to do to get our Jamaican entrepreneurs to take advantage of these opportunities. I think I know why they label it bureaucracy.”

Durrant encouraged SMEs to leverage trade agreements to enter the export market, as various countries offer duty-free access to select products. He stressed the importance of packaging, labelling, and branding, as well as protecting intellectual property by registering trademarks and companies. Additionally, he emphasised the need for market research to understand consumer preferences, citing the example of how certain products, like dancehall music, may not be suitable for Arab countries.

“It just won’t fit with them, so you have to do research; you can’t blindly go into the market and get shot down,” he cautioned.

The Government has simplified the export process for SMEs, and while there is still room for improvement, business owners no longer need to register with Jampro to export. Alternative options include registering on the Jamaica Customs website or through the Jamaica Social Investment Fund (JSIF). Once set up, businesses can commence exporting. However, Durrant stressed the importance of marketing, e-commerce, and social media, as well as a long-term commitment, to succeed in the export market. He advised businesses to start by testing their ideas locally before expanding globally.

“Focus on your product, know your market and competitors, manage all the processes from factory to market, and support your product on the market,” he concluded.

Source: https://www.jamaicaobserver.com/2024/04/28/smes-advised-harvest-export-opportunities-value-added-products/