Jeffrey Hall, business development director, Jamaica Producer's Group speaks with collegues. - File

Susan Gordon, Business Reporter

Jamaica Producers Group (JPG) has invested more than US$2 million in banana Hon-duras, saying its farmlands there are spread across some 500 acres.

Divisional Director of Jamaica Producers, Jeffrey Hall, said the operation represents about 20 per cent of the production capacity of its Jamaican farms whose output is about 40,000 tonnes of banana per year.

He said JP chose to grow the bananas in Honduras as the Central American country is known for efficiently growing the product, complemented by very good soil.

The first phase of harvesting began late last year on the farm which according to Hall strictly grows bananas.

For the financial year ending December 31, 2006, JP pulled in profits of $44.6 million for its banana division - down from $91.7 million in 2005 - which takes into account production, the transporting and logistic operations of the fresh fruits.

Hall says JP's principal customer in Honduras is the United States where the product is exported and purchased at a lower cost than from customers in the United Kingdom.

"We expect it to pay off. We are expecting positive results," he said of the investment.

Wage costs in Honduras are said to be lower but Hall steered away from a direct comment on what the company pays, saying only that JPG pays a fair wage.

He said the company plans to expand the Honduras farms over time.

susan.gordon@gleanerjm.com