Gareth Manning, Gleaner Writer
A banana field in St. Mary - IAN ALLEN/STAFF PHOTOGRAPHER
THE BANANA industry is bracing for the worst if it should be severely affected by hurricanes or floods this year again, as stakeholders say there is no insurance or available funds to cover the damage.
Despite being vulnerable to damage from hurricanes and floods, the crop is not insured, which has got industry officials concerned.
President of the Banana Growers Association, Bobby Pottinger, says a fund has been established by the banana growers but is limited only to farmers who export the fruit and inadequate to cover the cost of damage.
LOW FUNDS
"The fund is at a very low end. We have to look at it. I don't think if we have a hurricane this year we could cover all our indebtedness," he continued.
Furthermore, with the passage of the recent hurricanes, Mr. Pottinger says those funds are almost depleted.
"When we have a hurricane there is only that fund and the European Union that come to our assistance, very little comes from central government," he says. Mr. Pottinger was speaking at a Gleaner Editors' forum on the banana industry on Tuesday.
In 2004, Hurricane Ivan did 100 per cent damage to the banana fields, according to the Planning Institute of Jamaica (PIOJ). This was repeated in 2005 by hurricanes Dennis and Emily.
Mr. Pottinger says the current fund is so small it can barely cover an acre of bananas. At the moment the fund pays out $10,000 to $15,000 per acre.
He adds that the cost of current insurance is too expensive and the industry should try to build its own fund to protect against catastrophe.
Managing director of the Jamaica Producers Group, Dr. Marshall Hall, explains that the fund works by paying out claims a year after the farmer submits a claim.
"So if you are coming off a period of hurricane where there were no bananas, but the fund (banana fund) pay(s) out then you have very little money available to insure in the coming year and that's a big problem," he explains further.
NO SENSE TO INSURE
Dr. Hall adds that since the 2001 September 11 attacks on the United States premiums represent 20 to 25 per cent of the sum assured, as opposed to a three to four per cent situation before the attacks.
He says with this percentage increase it makes no sense to insure bananas.
But while there is a fund to support farmers who export, there is no support for those producing for the local market. Mr. Pottinger says these farmers are left on their own. He is suggesting that a fund be established to aid these farmers.
"We have to look at a comprehensive thing, those in ripening and buying must contribute to the fund ... we must have a consensus between local (and export farmers). Because everybody dabbling in both markets," he says.
