COCOA FARMERS across the island are to see an increase in the second payment per box for cocoa through a production incentive scheme approved by the Ministry of Agriculture. The scheme which is retroactive to July 10 and will end on September 30, increases the second payment per box for wet cocoa by $25, from $45 to $70.
The increase follows a consultative meeting held at the Orange River Experimental Farm in St. Mary in April, attended by cocoa farmers and the top brass of the Agriculture Ministry.
Secretary manager of the Cocoa Industry Board, Naburn Nelson, told The Gleaner that he had "joy" in his heart. "We are very happy that we have been able to achieve this and we are sure that the farmers will be delighted. They have been complaining for quite some time about the price of cocoa."
The first payment per box of wet cocoa is currently $270. With the second payment increase, farmers will now get a total of $340 per box for wet cocoa.
Mr. Nelson said that at the end of the incentive period, the prices will be reviewed for the next crop year which starts on October 1.
"We will either be looking to maintain this new price or to move it forward," he said.
Mr. Nelson said the local price of cocoa had remained stagnant for quite some time as the price on the overseas market had been "miserable". "We were only able to grant this increase after meeting with some of our larger European buyers with whom we have negotiated contracts valued at 1000 pounds sterling per metric tonne."
The current price for Jamaican cocoa on the overseas market is 600 pounds sterling per metric tonne.
"We will only be able to honour this contract if we are able to improve our productivity," said Mr. Nelson. At April's meeting, Minister Clarke declared the situation a "national disgrace", that the country was only producing metric 1600 tonnes of cocoa, when there was a ready market for metric 3,000 tonnes. One farmer commented that he would rather his trees become like flowers on his property, than reap a pod of cocoa at the existing price then.
Last year, Jamaica produced 1036 metric tonnes of cocoa. This year, with only two months before the crop year ends, the island has only seen 800 metric tonnes of cocoa. Mr. Nelson said there has been a loss of 600 metric tonnes to date this year, valued at J$36 million, due to the prolonged drought conditions affecting the island.
The Ministry of Agriculture is also putting in place a cocoa rehabilitation programme aimed at increasing productivity and attracting rural youth. The programme will include the injection of crucial inputs such as fertiliser and rat bait.
