annual report - Jamaica Manufacturers` Association

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annual report - Jamaica Manufacturers` Association
PRESIDENT’S REPORT
The Jamaica Manufacturers‟ Association (JMA) continued to lobby for the
removal of impediments affecting the sector, to advance its development
and socio-economic contribution.
While the year was rife with
opportunities, it was also beset with challenges. Manufacturers persevered
however and despite the stumbling blocks, contributed 8.1% of Gross
Domestic Product (GDP), employed 74,225 persons and earned US$646.7
million in exports.
The year 2010 started on a promising note with the Government‟s implementation of a Debt
Management Initiative, to restructure domestic debt and reduce interest rates, which the JMA
fully endorsed. It was a step in the right direction, because of its potential to stimulate growth in
the manufacturing sector and create jobs and signalled that the Government was taking strides to
address its fiscal deficit and debt profile. As a result of the JDX, the sector benefitted from
special financial windows as low as 7.5% and base lending rates trended downwards.
On the flip side, the Jamaican dollar revalued, affecting exporters. The JMA therefore called for
a balance between strengthening the Jamaican dollar and protecting our export markets, citing
that manufacturers needed to exist in an environment of macroeconomic stability.
The LNG issue was a very topical one. However, the JMA persisted in its call for diversification
of our energy sources, particularly investment in renewable energy. The Association will
continue to monitor and consult on the strategies in the energy policy, to ensure that the high cost
of energy is reduced.
Manufacturers were also faced with problems accessing incentives. There were many issues
raised with the Ministry of Industry, Investment and Commerce on behalf of our members such
as the treatment of audits for corrugated cartons and milk solids and the review of incentives
such as the Modernization of Industry Programme. We will continue to work to ensure that the
JMA is a part of the consultation process, to develop a clear incentive and growth regime for the
sector.
Towards the end of the year, beverage manufacturers were dealt a huge blow with the increase of
the Special Consumption Tax on wines and spirits. This sparked a concern with the overall
direction that Government policy was being steered. The JMA maintained that issues needed to
be viewed from a sectoral vantage point and that we must work in collusion to ensure that
policies implemented will stimulate job creation and growth in the economy.
The JMA continued to promote the use of the Credit Enhancement Facility to help with
collateral, as there was still a challenge with access. High bank charges were also an issue as it
was an added cost for manufacturers. The JMA‟s stance was that the bank‟s fee structure should
guide consumers towards efficiency, not make up for losses and unsustainable ways of making a
profit.
The productive sector was affected by the civil unrest and declaration of a state of emergency in
Kingston. However, despite this and the cancelling of the Diaspora Conference, pressed on with
JMA 2010 ANNUAL REPORT
Page 1
rebranded Expo Jamaica “Promoting brand Jamaica to the world.” With support from JAMPRO,
we achieved a huge milestone with our highest buyer‟s recruitment yet. The next Expo is being
planned for April 26-29, 2012 and represents forty-years (40) of partnership with the Jamaica
Exporters‟ Association (JEA).
The JMA also relayed its disappointment with the handling of the Manatt, Phelps and Phillips
matter, which brought the country, government and position of the Prime Minister into disrepute.
The Association called for full disclosure, to build the trust necessary to collaborate in the
Partnership for Transformation (PFT) and other endeavours.
On the positive side, Prime Minister, the Honourable Bruce Golding announced the provision of
factory space for start-up and expanding entities at concessionary rates. The JMA welcomed this
move calling it a “start in the right direction” as factory space affects the ability of manufacturers
to produce new stock, retool and grow.
As it relates to trade, Jamaican manufacturers continued to experience problems getting their
products, particularly patties, into Trinidad and other CARICOM member states; and contended
with discriminatory pricing of electricity. The issues were brought to the Industry and Foreign
Affairs Ministries for resolution. The Industry Minister has made a commitment to attend JMA
Board meetings, commencing 2011, to address issues pertaining to trade and other matters.
The Association continued to advocate for stronger linkages between manufacturing and the
other sectors of the economy. Minister of Agriculture, Dr. Christopher Tufton has already started
to work on strengthening the backward linkages between agro processors and farmers.
Regarding the “Buy Jamaican…Build Jamaica” Campaign, the JMA was unwavering in
promoting Jamaican products locally and overseas. The partnership with the National
Commercial Bank continued with a Road Show in Ocho Rios, the Tertiary Entrepreneurship
Challenge and billboards across the island. The JMA also sat on the National Planning
Committee for World Expo Shanghai 2010 held May 1 to October 31 in China, in an effort to
secure investment opportunities for our innovative producers. Additionally, the Association
participated in a Gleaner overseas feature targeting the Diaspora.
The JMA also began to explore the possibility of establishing a revenue positive centre of
excellence, to help manufacturers foster economic development through meeting the competitive
demands of today‟s global marketplace by increasing productivity and reducing costs; producing
quality products; and attaining high standards for customer satisfaction, while utilizing the best
of technology.
The Association worked more closely with the Jamaica Productivity Centre, particularly on the
Manufacturing Sub‐Committee to promote a culture of productivity within the sector; enhance
the productivity profile of entities within the sector; and measure productivity at the industry and
firm level.
The JMA continued to partner with the Ministry of Health for the HIV/AIDS Workplace
Programme and in February, parliament approved the National HIV Workplace Policy. Fortyeight (48) companies have policies or action plans, which is a significant step in addressing
HIV/AIDS in the workplace.
JMA 2010 ANNUAL REPORT
Page 2
To aid with Haiti reconstruction efforts, post the catastrophic 7.0 magnitude earthquake,
members of the JMA contributed to a Haiti Relief Fund. The Association was also a part of a
delegation to Haiti, led by the Most Honourable P.J. Patterson, CARICOM‟s special
representative. Other corporate social endeavours included contributions to the Jamaica
Constabulary Force and donations to the St. Lucia hurricane relief.
Despite the highs and lows of 2010, manufacturers continued to exude resilience. In 2011, let us
therefore strive to maintain world class standards in the local and export market. The JMA will
continue to be a strong champion for manufacturers and look forward to your unfailing support.
Together, we can impact the growth of the manufacturing sector, enhance competitiveness and
stimulate positive growth in Jamaica, home of quality products.
Omar Azan
PRESIDENT
JMA 2010 ANNUAL REPORT
Page 3
BOARD OF DIRECTORS REPORT
The Directors of the JMA are pleased to present this Report covering some of the activities of the
Association together with the Auditor‟s Report, Financial Statements and Balance Sheet for the
year ending December 31, 2010.
Composition of the Board of Directors
At the Annual General Meeting held on June 30, 2010, Mr. Omar Azan, Mr. Brian Pengelley and
Miss Jodie Summerbell were re-elected unopposed as President, Deputy President and Treasurer,
respectively.
Appointment of Vice Presidents
and Assignment of Portfolios
On the recommendation of the President and Deputy President, the Board of Directors, in
accordance with Article 27(3)(4) of the Articles of Association, the following Vice Presidents
were re-elected and remained in their position and portfolio, Messrs Milverton Smith, Simon
Roberts and Ian Forbes. The following Directors Messrs Steven Sykes, Christopher Ramson,
Harry Harper and Mrs. Paulette Rhoden, were re-elected and will be assigned portfolios.
Standing Committees
During the period under review, the Standing Committees were Government Affairs, Policy
Development and Advocacy, chaired by Mr. Milverton Smith; Trade Negotiations and
Development; Environment, Utilities and Energy, chaired by Mr. Steven Salmon; Membership
Development and Public Relations, chaired by Mr. Raymond Miles, Jr.; Fundraising and Special
Projects, chaired by Mr. Ian Forbes; and Finance and Administration, chaired by Ms. Jodie
Summerbell.
Meetings of the Board of Directors
During the year, members of the Board of Directors continued to meet at the Registered Offices
of the Association on the third Wednesday of each month at 1:45p.m. The policy of encouraging
members to attend and participate in the discussions was maintained and members capitalized on
the opportunity.
Ten (10) regular monthly meetings of the Board and five (5) meetings of the Executive
Committee were held. In addition, there were meetings of the Standing Committees.
JMA 2010 ANNUAL REPORT
Page 4
Attendance of Directors at Regular Monthly Meetings of the Board
January – December 2010
Name
Possible
Attendance
Omar Azan
Brian Pengelley
Jodie Summerbell
Doreen Frankson
Raymond Miles, Jr.
Simon Roberts
Stephen Salmon
Ian Forbes
Milverton Smith
Paulette Rhoden
Byron Thompson
Simon DuQuesnay
Vermont Murray
David Gaynair
Harry Harper
Christopher Ramson
Metry Seaga
Vaughn Morris
Neville Madden
Christopher Powell
Steven Sykes
Errol Lewin
Anand James
Radcliffe Murray
David Martin
Clarence Clarke
Sameer Younis
Anthony Hyde
Anthony Barnes
Anthony Robinson
R. Anthony Williams `
C. Henderson-Davis
Douglas Vaz
J. Paul Thomas
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
06
10
10
10
10
10
10
10
10
10
Actual
Attendance
Comments
07
04
06
08
02
05
05
06
04
04
03
07
07
03 (Resigned 2010)
05
01
04
08
02
08
05
04
05
06
01
01
01
01
00
00
00 (Deceased 2010)
07
03
00
Board of Directors Christmas Lyme
The JMA in its quest to revitalize the synergies of the Association hosted its first Board of
Directors‟ Lyme in place of the Annual Board of Directors‟ Luncheon in association with
Digicel, on Thursday, December 9, 2010 at Chez Maria. The effort was to show appreciation to
members of the private and public sectors who continue to support the Association and the
manufacturing industry.
JMA 2010 ANNUAL REPORT
Page 5
ECONOMIC REVIEW
International Environment
Following a contraction of 0.8% in 2009, the international economy showed signs of recovery
from the global financial and economic crisis as it recorded a 5.0% growth in 2010. This growth
was influenced mainly by the 7.1% increase in real gross domestic product of Emerging Market
& Developing Countries, led by China. Output of Advanced Countries grew by 3.0%. 1 Global
prices also increased due to increased aggregate demand which resulted in higher food and
energy costs.
Internal Environment
Despite the recorded global growth, for the third consecutive year the Jamaican economy
contracted. As recorded in 2010 the economy contracted by 1.2% with real GDP at $484 577.8
million, this followed a 2.7% contraction in 2009. GDP for both the Goods-producing and
Services Industries declined by 1.7% and 1.5%, respectively. This reflected the vulnerability of
the macro-economic environment in 2010.
The government implemented numerous policies to stabilize the economy and stimulate growth.
These measures were mainly conditionalities of the International Monetary Fund (IMF), as the
government secured a medium term Standby Loan Agreement to finance the budget. Key
amongst those policies were the Jamaica Debt Exchange Programme (JDX), which was
implemented to address escalating government debt and high interest rates, numerous tax
packages to increase revenue and the Public Sector Transformation Programme, which seeks to
reduce government spending.
In light of the challenging economic conditions only the Agriculture, Forestry & Fishing (0.8%),
and Hotel and Restaurants Industries (3.4%) recorded growth while all other sectors declined.
The specific macro-economic targets for fiscal year 2010/11 were:
Indicators Targets
-
Reduce fiscal deficit to 6.5 % of GDP
Real GDP growth of 0.5 %
Inflation 7.5 % - 9.5 %
Reduce interest rate
Narrow current account deficit to 9.0 %
Increase NIR to 16 weeks of goods and
services.
Exchange Rate
At the end of December 2010, the exchange rate was JM$85.86:US$1.00, compared to
$89.60:US$1.00 in 2009, which represented a nominal appreciation of 4.4%2.
1
2
Economic and Social Survey Jamaica 2010; Published by the Planning Institute of Jamaica
Economic and Social Survey Jamaica 2010; Published by the Planning Institute f Jamaica
JMA 2010 ANNUAL REPORT
Page 6
Inflation
The point to point inflation rate was 11.7% in 2010, compared to 10.2% in 2009. This mainly
resulted from increase in prices of international commodities such as food and fuel. Notably, the
average inflation rate was 7.8%, within the target range of 7.5 % - 9.5%.
Balance of Payments & External Trade
In 2010, Jamaica recorded the lowest Current Account deficit of US$991.5 million, since 2004.
This represented an improvement of US$136.0 million from 2009. Factors that directly
contributed to this narrowing were the improvements in all sub-accounts except the Goods subaccount, which deteriorated by US$171.1 million, relative to 2009, representing a deficit of
US$3259.0. Notably, the deficit in the Goods sub-account deteriorated due to an increase in the
value of imports of US$153.7 million combined with a decline in exports of US$17.4 million.
There was an increase in surplus on the Services sub-account by US$74.2 million which mainly
resulted from increased expenditure from tourists.
The Merchandise trade deficit deteriorated to US$3,866.4 million in 2010 as exports was
US$1,328.2 million and imports US$5,194.6 million. This represented an increase of US$8.9
million and US$136.4 million in exports and imports respectively, relative to the comparable
period in 2009. The increase value of exports was mainly due to a boost in Traditional-Exports.
However, it was not enough to offset increases in imports, as the cost of Mineral Fuel expanded
by US$166.1 million being the main contributing factor.
Interest Rates
The successful implementation of the JDX programme resulted in some of the lowest interests
Jamaica has seen in many years. For Commercial Banks deposit rates, the average lending was
18.95% at the end of December 2010 compared to 21.91% December 2009 while the average
saving rate was 2.47% compared to 5.35%. When compared to 2009 figures, the average
commercial weighted rate was 2.95% at the end of December 2010 less than half the rate at the
end of December 2009 at 6.38%.
Manufacturing Sector
The sector further contracted in 2010 as the rate of growth declined by 2.6%, employment
reduced to 74,200, (3500 less) and contribution to GDP was 8.1% (0.2% less) when compared to
2009. These indicators reflect the challenges that the sector continue to face with low demands,
as the world slowly emerges from the global economic recession. The production in all
manufacturing categories declined - Food, Beverage and Tobacco by 1.6% and Other
Manufacturing components by 4%.
The total value of manufactured exports was US$646.7 million in 2010, which represented a
reduction of 8.3% relative to 2009 as Traditional and Non-traditional Manufactured Exports was
US$97.4 million, 21.1 % less and US$549.3 million, 5.6 % less respectively, when compared to
2009.
JMA 2010 ANNUAL REPORT
Page 7
Selected Indicators 2009/2010
2009
2010
Exchange Rate
JM$89.60:US$1
JM$85.86:US$1
Annual Average Inflation Rate
9.6%
7.8%
Unemployment Rate
11.4%
12.4%
Rate of Growth in Domestic Economy
(2.7%)
(1.2%)
Population
2,698,800
2,702,300
Total Real Gross Domestic Product
JM$490.8M
JM$484.6M
Total Debt
US$6594.3M
US$8389.5M
Total Direct External Debt
US$5,463.9M
US$6287.1M
Total Internal Debt
JM$754,015.06M
JM$799,964.25M
Total Exports
US$1,320.2M
US$1,328.2M
Total Imports
US$5,065.7M
US$5 194.6
Average Lending Rates
21.91%
18.95%
Employment in Manufacturing Sector
77,700
74,200
Percentage Contribution to GDP (Manufacturing)
8.3%
8.1%
Rate of Growth in Manufacturing Sector
(5.0%)
(2.6%)
Commercial Bank Loans to Manufacturing Sector
JM$9389.9M
JM$8 295. 1M
JMA 2010 ANNUAL REPORT
Page 8
STANDING COMMITTEES’ REPORT
The Secretariat continued to implement policies, as outlined by the Board of Directors. During
this period of review, the Secretariat worked closely with the Chairmen of the Standing
Committees in the performance of their various roles and functions to implement programmes
and initiatives on behalf of members.
FINANCE & ADMINISTRATION
The Finance & Administration Committee is responsible for the monitoring and control of the
Association‟s finances as well as the continued development of the Secretariat.
Financial Results
During the year under review the Association‟s income increased by $4.1 million to $28.8
million from $24.7 million in 2009. This increase in income was achieved by 74% increase in
rental income, and income from Expo Jamaica 2010. Subscription Fees represented 44% of total
income, which included New Membership fees of $452,765.10 from eighteen (18) companies
and existing Ordinary and Associate Membership fees of $12,205,286.90.
Total expenses increased by $4.0 million to $26.3 million from $22.2 million in 2009. This
increase resulted from redundancy payment of $2.9 million.
The Association made a surplus of $2,104,424.00 compared to a surplus of $2,698,943.00 for
2009.
Administration
The Secretariat made three (3) staff adjustments in 2010. The release of the Receptionist, Miss
Stacy-Ann Simmonds; redundancy of position of Financial Controller, which was held by Mr.
Clifton Walker and the employment of Miss Kerry-Ann Chen, Research and Projects Officer.
The current 2010 complement consists of Imega Breese McNab, Executive Director; Andrea
Leslie, Membership Services Coordinator; Rochelle Roye, Communications and Marketing
Officer; Rheina-Lee Chambers (Aisha), Administrative Assistant/Receptionist; Rohan Christie,
Accounting Clerk; Paulette Williams, Office Attendant; Alvin Gayle, Bearer/Driver; Kerry-Ann
Chen, Research and Projects Officer and Blondel Facey Chambers, Executive Assistant.
Training
Two (2) training opportunities were presented for the Secretariat and these were attended by
Mrs. Imega Breese McNab, Executive Director. These included the ActionCoach Business
Coaching with Marcia Woon Choy, who administered the Coaching free of cost; and the
AMEC/CAIC/AIRD Capacity Building Project Training in Spain where focus was placed in the
areas of organizational structure, advocacy and lobbying, BSO financing, cooperation between
BSO, provision of business services, membership retention and revitalization of partners, among
others.
JMA 2010 ANNUAL REPORT
Page 9
GOVERNMENT AFFAIRS/POLICY DEVELOPMENT & ADVOCACY
The responsibility of the Government Affairs/Policy Development & Advocacy Committee is to
enhance the development of the manufacturing sector and maintain a competitive environment through
playing a proactive role and making meaningful representation on sectoral and national matters of
interest. In 2010, the issues addressed by the Committee were as follows:
Printing of School Books Locally: The Committee continued to champion the cause for the Ministry
of Education to implement policies to enable the local printing sub-sector to participate in tenders for
the printing of primary school text books.
Container Inspection Fees: The Committee partnered with the Jamaica Chamber of Commerce to
advocate against an increase in container stripping fees. However, whilst the increase was reduced for
a limited grace period the actual increase was implemented in September.
Suspension of Customs E-payment Facility: The E-payment system is integral to trade facilitation
and upon news that the system would be suspended, the Committee called for its speedy
reimplementation given the negative impact for businesses.
Special Consumption Tax on Wines and Spirits: Members of the wines and spirit sub-sector
approached the JMA for representation to be a part of the consultations with the Ministry of Finance
on the correct application of the SCT and to work out amicable solutions for those companies that were
found to be in breach.
Partnership For Transformation: The Association continued to be represented on the Partnership for
Transformation Committee. This Committee addresses issues such as Rule of Laws; Education and
Training; Fiscal and Monetary Performance; Job Creation/Employment Strategies; and Trust among
Partners
NEPA (Trade Effluent): Members registered concerns regarding letters received from NEPA with
short compliance timelines for improvements in disposal of trade effluent. The committee facilitated a
meeting with NEPA and members where their concerns were addressed.
Commission of Enquiry (Sugar): The Committee worked with members of the beverage sub-sector
to develop a position paper on behalf of manufacturers to ensure that the interest of the sector was
represented, namely that manufacturers continue to have the ability to import refined sugar.
Linkages with Agricultural Sector: To strengthen the linkages between the agriculture and
manufacturing sectors, the Committee continued to meet regularly with the Ministry of Agriculture to
exchange information, identify areas of collaboration and address matters of concern.
Treatment of Customs User Fee on Raw Material: Complaints were received regarding the
bureaucratic process of receiving incentive letters through the Ministry of Agriculture for the
importation of raw material as well as that the incentive was not applicable to all input for
manufacturers. As such the Committee successfully advocated that this incentive be applicable to all
manufacturing input and that blanket letters for regular importers of agricultural input be issued by the
Ministry of Agriculture.
JMA 2010 ANNUAL REPORT
Page 10
Enablement of Persons with Disability: The Committee continued to work with the Jamaica Council
for Persons with Disability and the Ministry of Labour and Social Security to promote the employment
of persons with disability within the manufacturing sector.
Export Requirement for Patties in CARICOM: The Committee voiced its objection to the
implementation of the requirement for USDA certified beef to be utilized for exported patties and
assisted patty manufacturers in their lobby for the granting of the removal of duty on imported USDA
certified beef for the export market.
Haiti Request For Non-Reciprocal Trade: Members were asked by the Committee to indicate their
position on non-reciprocal trade between Caricom and Haiti on certain manufactured items. This
motion was not approved based on concerns of monitoring and enforcing Rules of Origin of goods
exported from Haiti.
Jamaica Productivity Centre: The Manufacturing sub-committee was established and worked
on numerous initiatives to improve productivity within the manufacturing sector which included
the development of two project proposals for funding to the Inter-American Development Bank,
which were not approved.
ENVIRONMENT, UTILITIES AND ENERGY
The core focus of the Environment, Utilities and Energy Committee is to examine the relationship
between the environment and trade, promote the advancement of sustainable energy policies and lobby
for the provision of efficient and affordable utilities, in an effort to enhance competitiveness and ensure
that manufacturers comply with global environmental standards and requirements. The committee
addressed the following matters in 2010:
Discriminatory Pricing of Electricity in Trinidad: The Committee in collaboration with the Jamaica
Chamber of Commerce Trade Committee continued to have discourse with the Ministry of Industry
and the Ministry of Foreign Affairs about the impact of discriminatory pricing of electricity on the
competitiveness of locally made products and asked that this issue be discussed at the highest level and
remedial actions implemented.
TRADE NEGOTIATION AND DEVELOPMENT
The mandate of the Trade Negotiation and Development Committee is to update members about
developments in the trade arena and to represent the interest of the manufacturing sector in trade
negotiations.
CARIFORUM/EC Economics Partnership Agreement (EPA)
Further to the signing of the CARIFORUM-EC EPA in 2008 and the provisionally application
beginning in 2009, in 2010 as a part of the National Export Strategy (NES) a local programme of
the agreement was designed and submitted to the EU for approval. As a part of the EPA
agreement, Cabinet approved and instructed for legislative amendments, such as the Customs
Act. This marks the commencement of phased liberalization of specific tariff lines.
The EPA is WTO compatible and secures duty free quota free access of exports from
CARIFORUM to the EC market. The EPA covers all trades including: Trade in Goods, Services
JMA 2010 ANNUAL REPORT
Page 11
and Investment. The agreement also makes provision for financial and technical support to
members of CARIFORUM for institutional reform and to diversify product and services.
CARICOM/Canada
In March 2010, the second round of negotiations for the CARICOM- Canada Free Trade
agreement (FTA) occurred. It sought to advance the position of each party as to the scope and
coverage of the agreement.
The CARICOM- Canada Free Trade agreement will replace the current non-reciprocal economic
and trade development assistance programme, CARIBICAN which expires in 2011.
CARICOM/USA Negotiations
Following the 2009 approval of waiver by the WTO permitting specific goods CARICOM duty
free entry into the USA market, in 2010 negotiations started to establish the Trade and
Investment Framework Agreement (TIFA), which would replace the current arrangement under
the Trade and Investment Council (1992) between CARICOM and the United States.
MEMBERSHIP DEVELOPMENT & PUBLIC RELATIONS
The mandate of the Membership Development and Public Relations Committee is the
improvement of and the provision of new services to members; to attract new members to the
organization; to host seminars and workshops on issues relevant to the sector; provision of up-todate information; and marketing of locally made products through participation and hosting of
trade fairs and missions. The Public Relations arm continued its work to increase the public
awareness of the manufacturing sector‟s contribution to the economy, as well as the activities of
the Association.
Manufacturers’ Month
Church Service
Manufacturers‟ Month was launched on March 28, 2010, with a service at the Swallowfield
Chapel. The Hon. Michael Stern, Minister of State for Industry, Investment and Commerce, and
Mr. Reginald Budhan, the Permanent Secretary, joined the JMA in worship.
POWER 106 FM Feature
Members were invited to participate in a POWER 106 FM feature on how their manufacturing
operation was helping to positively shape Jamaica. Interviews were carried out with Home
Choice Enterprise, Edgechem, Local Spice, Boss Furniture, Corrpak Jamaica and Xsomo
International.
An outside broadcast also took place at the JMA on April 30, surrounding the manufacturing
sector, Manufacturers‟ Month activities, the Buy Jamaican Campaign and Expo Jamaica.
JMA 2010 ANNUAL REPORT
Page 12
Training Seminars
Implications of the Domestic Debt Restructuring
The JMA hosted a seminar on the “Implications of the Domestic Debt Restructuring on Financial
Institutions and the Opportunities and Threat for the Private Sector” on March 2 at the Terra
Nova Hotel. Bruce Bowen, President and Chief Executive Officer, Scotiabank and Ann Shirley,
Financial Analyst were the main speakers.
6 Steps to a Better Business
Marcia Woon Choy, Business Coach and owner of ActionCOACH Jamaica conducted a seminar
on “6 Steps to a Better Business” on July 27, 2010 at the JMA, which covered areas such as:
How to work on your business instead of in your business
How to turn your advertising and marketing into an investment instead of an expense
How to recruit, motivate, educate, and retain exceptional employees
How to leverage your time to maximize efficiency and profits
How to systemize your business to provide consistent, exceptional customer service
Membership Drive
During the reporting period, the following eighteen (18) companies joined the Association:
Ordinary Members
Yono Industries Ltd.
Rainforest Seafood Ltd.
Jamaican Teas Ltd.
Caribbean Producers (Jamaica) Ltd.
Fruit Essentials of Jamaica Ltd.
Pioneer Meat Products Ltd.
Chicken Mistress Ltd. T/A Island Grill
Everglades Farms Ltd.
Today‟s Home Centre Ltd.
Quest Woodcraft Manufacturing
Crowne Industries Ltd.
Choice Alloy Aluminium Products Ltd.
Bellina Jamaica Ltd. T/A Wassi Art
Book Empire
Caledonia Outdoor Jamaica Ltd.
Red River Ltd.
Wynlee Trading
Product Group
Chemicals, Cosmetics & Pharmaceuticals
Food & Agro
Food & Agro
Food & Agro
Food & Agro
Food & Agro
Food & Agro
Food & Agro
Furniture, Bedding & Wooden
Furniture, Bedding & Wooden
Minerals & Metal
Minerals & Metal/Furniture
Minerals & Metal/Furniture
Printing, Packaging & Paper
Printing, Packaging & Paper
Printing, Packaging & Paper
Textile & Sewn
Associate Members
SNH Worldwide Company Ltd.
JMA 2010 ANNUAL REPORT
Page 13
New Products Developed and Launched
In 2010, several new products were launched by member companies. These included:
COMPANY
Caribbean Cement Company Ltd.
Cameron Industries and Joinery
Ltd.
Edgechem Jamaica Ltd.
GK Foods and Services Ltd. –
National Processors Division
Honey Bun Limited
J3R Food Products Ltd.
Jamaica Broilers Group
Jamaica Flour Mills
Jamaica Producers Group
Juici Beef Ltd.
Mother‟s Enterprises Limited
Newport Fersan
P.A. Benjamin Manufacturing
Rainforest Seafoods
Seprod Group of companies
Very Amazing Products (VAP)
Limited
JMA 2010 ANNUAL REPORT
NEW PRODUCT(S)
Carib Block
Glass panel doors and sash windows.
Roof Compound
One Pot Seasoning with Protein
Flavoured cupcakes and donuts
Caramel and Browning Food Colouring
Reggae Jammin Chicken Frankfurter – 5 Pack, 10 Pack
and 20 Pack
Reggae Jammin Jumbo Chicken Frankfurter – Bulk
JF Mills Johnny Cake Mix
JP Tropical Foods St. Mary's Banana and Cassava Chips
(original flavour) 'big snack' 71g
Fruit Cake
Baked products including cakes, cookies, muffins and
danishes.
22 specialized fertilizer blends
Benjamins Cocoa Butter Cream 200g & 400g
Benjamins Hand Sanitizer 60ml & 240ml
Benjamins Antibacterial Soap 240ml
Benjamins Ultra Strength Pain Relieving Cream 55g
Benola Blended Oil 1 litre
Jamaican Choice Pickled Mackerel
Serge Island Cool Fruit Juice-Drink 200 ml
Cannon Bleach 475 ml, 940 ml, 1.89 litre
Snackables (Barbecue, Sour Cream)
Miracle Wheat Crackers 113g
One Shot Wine
One Shot Brandy
Page 14
Public Relations
The Board of Directors of the JMA was very active in ensuring that the interests of
manufacturers were being served. They participated in numerous public speaking engagements,
served on various boards and committees, attended several meetings and engaged in media
interviews.
The JMA website, newsletter, membership brochure, social networks such as Facebook,
newspaper supplements and press releases were also avenues utilised to get the voices of
manufacturers heard and to gain strength in numbers.
FUNDRAISING AND SPECIAL PROJECTS
The Fundraising and Special Projects Committee has been charged with responsibility for special
functions and projects undertaken by the Secretariat to generate additional income.
The Buy Jamaican…Build Jamaica Campaign
The JMA continued its partnership with the National Commercial Bank under the 2nd phase of
the „Buy Jamaican…Build Jamaica‟ Campaign with the following activities:
Mounting of Billboards
Billboards promoting the Buy Jamaican message were mounted in Buff Bay, Portland; Ocho
Rios, St. Ann; and Spanish Town Road, Kingston.
Tertiary Entrepreneurship Challenge
The Association in partnership with the National Commercial Bank Foundation (NCBF)
launched the Tertiary Entrepreneurship Challenge. The Challenge provided an opportunity for
tertiary level students to receive the jumpstart needed to setup their own businesses, as well as a
chance to win scholarships. To enter the competition, students were required to submit a hard
copy business plan, with a completed entry form for a business providing a local manufacturing
product, or a technology or service catering to the manufacturing sector.
After a three-month Challenge, Crystal Thompson and Chevaughn Bowen from the International
University of the Caribbean copped the top prize for their a hot and spicy barbe‐fry sauce. They
took home a $200,000 cash award towards enhancing their business, Jamdun‟ Company Ltd.,
$50,000 each in scholarships and an internship with Continental Baking Company.
Road Show
The third and final Road Show under the 2nd phase was held on April 24, 2010. The Road
Show/Motorcade made its first stop in Brown‟s Town, then moved on to Ann‟s Bay, and finally
culminated in Ocho Rios for the grand show.
There was also an exhibition in Ocho Rios displaying locally manufactured products. The
companies that participated include: Salada Foods Jamaica Ltd., Serge/International Biscuit Ltd.,
JMA 2010 ANNUAL REPORT
Page 15
Caribbean Foods Ltd., Laparkan (Jamaica) Ltd., Orion Sales Ltd., Jamaica Biscuit Company
Ltd., Honey Bun Ltd., Mackchem Chemicals, P.A. Benjamin Mfg. Co. Ltd., UBT Corporation
Ltd., J & E Industries Ltd., Boss Furniture, Edgechem Jamaica Ltd., Fleetwood Ltd., Spicy Hill
Farm, and National Commercial Bank. There was also a buy Jamaican tent with a cornucopia of
products from member companies.
HIV/AIDS Workplace Programme
The JMA continued its tripartite agreement with the Government of Jamaica and the Global
Fund to implement a workplace programme related to HIV and the world of work. The
programme continues to provide companies with technical assistance by taking a rights-based
approach when dealing with persons affected or infected by HIV at the workplace.
In February 2010, Peta-gay Pryce, a new HIV/AIDS JMA Workplace Programme Officer was
employed to the programme. The following were achieved by JMA members:
Twelve (12) new entities signed commitment forms declaring their intention to participate,
making the total number of participating companies fifty-nine (59).
Eleven (11) new focal points on HIV (HIV Coordinators) were designated by the Human
Resource Director or the CEO, making a total of (fifty-eight) 58 companies with focal points.
Six (6) new steering committees were established, making a total of twenty-four (24)
companies with steering committees.
Five (5) new policies/action plans, making a total of forty-eight (48) companies with
policies/action plans.
One (1) one-day workshop was conducted on October 15, 2010 in which fourteen (14)
private sector entities, two (2) GIPA (Greater Involvement of People Living with HIV/AIDS)
representatives and four (4) presenters participated.
The following companies conducted half day workshops with their staff on site: Mavis Bank
Coffee Factory, Jamaica Citrus Growers, Logo Stitch Manufacturers Limited, Caribbean
Flavours and Fragrances and Cool Petroleum.
The workplace programme under this current agreement is slated to end March 2012. Provisions
are still being made to engage new companies and to ensure that already reached companies are
fully equipped to continue the programme without a technical officer as provided by the Ministry
of Health.
Hermes Project
The JMA partnered with the Hermes Project, which was being carried out in collaboration with
the EU and PROINVEST. The project is aimed at encouraging Information & Communications
Technology skills development among individuals in member organisations across the
Caribbean. This is through the development of an E-Learning Portal where courses will be
available for free on different IT subjects such as Basic MS Office, website design, Social Media
for great marketing.
Expo Jamaica 2010
The JMA and JEA made a strategic move in 2010 to re-brand the JMA/JEA Expo to establish the
trade show internationally as a national event. The Exposition was rebranded as “Expo Jamaica”
and launched under a new theme “Brand Jamaica to the World” on March 16, 2010. Expo
JMA 2010 ANNUAL REPORT
Page 16
Jamaica 2010 was held from June 17 – 20, 2011, with the JMA and the JEA again partnering
with JAMPRO, whose role was the execution of the Buyer Recruitment Programme. Buyers‟
Days were Thursday, June 17 – 18.
The coordination of the Buyers‟ Recruitment Programme was very successful, resulting in an
overwhelming registration of 405 buyers. However, due to a number of factors, including the
unrest and State of Emergency in Kingston, Cancellation of the Diaspora Conference and a 42member Nigerian delegation due to non-issuance of visa, there was a significant reduction in
actual attendance of international buyers to ninety-two (92). The total number of buyers
participating in the show was two hundred and fifty-three (253) which includes one hundred and
sixty one (161) from Jamaica.
The Jamaica USA Chamber of Commerce, based in Florida, played a key role in extending
support towards the Buyer Recruitment Programme, in particular, as it relates to Miami, Florida.
Over two thousand (2,000) high quality locally manufactured products were showcased over the
four-day period. The exhibition hall consisted of two hundred and twenty-two (222) booth
spaces which were allotted to one hundred and thirty-six (136) companies. While over 11,000
patrons attended the event. This represents a significant decline when compared to past expos
which was attributed to the unrest in Kingston and the State of Emergency, date clash with
World Cup Football, change of name, among others.
JAMPRO, National Commercial Bank Jamaica Limited, Jamaica Public Service Company
Limited, Ministry of Industry, Investment & Commerce, Lithographic Printers Limited and
Grace Kennedy continued to be consecutive sponsors of the event and LIME a first time sponsor.
The event was also sponsored by National Import Export Bank (EXIM), FedEx Express and
Capital and Credit. Our media partners were the Gleaner Company Ltd., Nationwide News
Network, POWER 106, KLAS FM, Hot 102 and Wealth Magazine.
Expo Jamaica was also supported by the Kingston and St. Andrew Corporation, St. Johns
Ambulance, National Safety Limited, American Airlines, Hilton Kingston Hotel, Jamaica
Pegasus Hotel, Courtleigh Hotel & Suites, Knutsford Court Hotel, Altamont Court Hotel,
Spanish Court Hotel, Airports Authority, Exquisite Wicker, JHA Associates, St. Ann Chamber
of Commerce, J. Wray & Nephew Ltd., Continental Baking Company Ltd., Tastee Limited, H.
D. Hopwood & Company Limited, Wisynco Group Limited, Pepsi-Cola Jamaica Bottling
Company, Sherwin Williams W. I. Limited, Touchline Industries Ltd., Chocolate Dreams,
Tortuga Caribbean Rum Cake, Red Stripe, Coldfield Manufacturing Company Limited, Pastry
Passions, Spur Tree Spices, Home Choice Enterprise, Local Spice, The Jerk Place and
Restaurant, Gold Cup Coffee, Trade Winds Citrus, Parfums Jamaica and Main Events Ltd.
Expo Jamaica 2010 Opening Ceremony was held in a new format compared to previous
Ceremonies on June 17 at 5:00 p.m. at the Arena. The Co-Chairman of Expo Jamaica, Mr.
Aswad Morgan chaired the proceedings. Right Rev. Robert Thompson, Minister, Suffragan
Bishop of Kingston offered blessings, while the Hon. Bruce Golding, Prime Minister of Jamaica,
was the guest speaker, who declared the exposition open. Among the other government ministers
and dignitaries who attended was the Hon. Karl Samuda Minister of Industry, Investment and
Commerce.
JMA 2010 ANNUAL REPORT
Page 17
One of the main activities for exhibitors was booth competition where exhibits were judged and
category awards presented to the following companies:
Utilization of Technology in Display
Winner: Jamaica Yellow Pages
Runner-up: Berger Paints
Wow Factor
Winner: Trade Winds Citrus
Runner-up: Grace
Innovativeness/Creativity in Design
Winner: Poly Pet Company Ltd.
Runner-up: Diamond Paints
Buy Jamaican Spirit
Winner: Jamaica Biscuit Company
Runner-up: Jamaica Agro Processors
Association
Packaging
Winner: Annilu
Runner-up: Jerk Place & Restaurant
Most Informative
Winner: Sherwin Williams
Runner-up: Jamaica Standard Products
Best New Product
Winner:
P.A.
Benjamin
Manufacturing
“Honey
Jerk
Barbecue Sauce”
Runner-up: RBTT Bank - SME
USD-Line
Over the four-day event, a number of official tours were conducted with dignitaries such as
Prime Minister, Hon. Bruce Golding, the Most Hon. Patrick Allen and Lady Allen, Hon. Mike
Henry, Minister of Transportation, former Governor General, Sir Kenneth Hall and Lady Hall,
Hon. Portia Simpson Miller, Leader of the Opposition, Hon. Karl Samuda, Minister of Industry,
Investment and Commerce and Hon. Audley Shaw, Minister of Finance and the Public Service,
Hon. Andrew Holness, Minister of Education, Dr. German Grisales, First Secretary of the
Embassy of Colombia, Mrs. Aloun N‟Dombet Assamba, former Minister of Industry and Mr.
Reginald Budhan, Permanent Secretary in the Ministry of Industry, Investment and Commerce
JMA 2010 ANNUAL REPORT
Page 18
Annual Awards Banquet
The JMA in association with Digicel Business hosted its 42nd Annual Awards Banquet on
October 27, 2010, to honour top performing manufacturers. The winners of the various Awards
are as follows:
Manufacturer of the Year
J.Wray and Nephew
Best Small and Medium-sized Enterprise
Caribbean Flavours & Fragrances Ltd.
Breakthrough Product of Year
Cal’s Manufacturing
New Manufacturer of the Year
Newport Fersan
Champion Exporter (Large)
Caribbean Cement Company Ltd.
JMA 2010 ANNUAL REPORT
Champion Exporter (Medium)
Boss Furniture Company Ltd.
Page 19
Champion Exporter (Small)
Spur Tree Spices Jamaica Ltd.
Skills and Productivity Award
Red Stripe
Best Use of Energy and Resource Efficiency
Newport Fersan
Digicel Business ICT Award
JHA Associates
Buy Jamaican Award
P.A. Benjamin Manufacturing
JMA 2010 ANNUAL REPORT
Best Environmental Management Program
J.Wray & Nephew Ltd.
Page 20
Award for Competitiveness
Nicorp
Enablement Award
Smith & Stewart Distributors
SPECIAL RECOGNITION AWARDS
Community Development (large)
J. Wray & Nephew
Community Development (small)
JHA Associates
HIV/AIDS Advocacy
Designs by Marc
JMA 2010 ANNUAL REPORT
Page 21
PRODUCT GROUP AWARDS:
Electrical, Electronics and Automative
Nicorp
Chemicals, Cosmetics and Pharmaceuticals
P.A. Benjamin Manufacturing
Food and Agro
J. Wray and Nephew
Minerals and Metal
JHA Associates
Textile and Sewn
Designs by Marc
Printing, Packaging and Paper
MAPCO Printers
Furniture, Bedding and Wooden – Jamaica Fibreglass Products
JMA 2010 ANNUAL REPORT
Page 22
JMA 2010 ANNUAL REPORT
Page 23

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