Lead Stories

THE GOVERNMENT is moving to relinquish its commercial interest in the Cocoa Industry Board as a first step to creating a more vibrant and competitive sector.

Minister of Agriculture and Fisheries Dr Christopher Tufton reported that Cabinet had approved the separation of the commercial and regulatory functions of the board. However, the Government will retain some regulatory responsibilities in the industry.

In his contribution to the 2010-2011 Sectoral Debate in Gordon House yesterday, Tufton said the divestment of government control over marketing and pricing would provide a powerful stimulus to increase production.

Currently, Jamaican cocoa has an estimated guaranteed market for 1,500 tonnes annually, but the country's highest output for the past five years was 768 tonnes in 2007.

Jamaican cocoa ranks among the top eight fine-flavoured cocoa internationally. Approximately 11,000 farmers are involved in the sector, which last year raked in $200 million, comprising mainly exports valuing US$1.8 million (J$155 million).

Pricing obstacle

Determined to encourage greater efficiency in the sector, Tufton said that although the frequency of hurricanes affected cocoa production, the greatest obstacle to increased production had been the low price paid to farmers as a proportion to export earnings.

He said this problem would persist if the Government continued to manage and control the industry.

"We believe that we will only maximise the earnings of the sector by moving up the value chain. To that end, I have had the pleasure of visiting major chocolate companies in the United States, and we are actively pursuing their investments in the sector," he explained.

Work is also being done through collaboration with the European Union, which is providing support to rehabilitate 3,000 hectares of cocoa, installing cocoa-drying infrastructure on farms, developingnew varieties and strengthening farmer organisations.

A little more than $76 million will be spent to carry out this exercise, which will benefit about 400 cocoa farmers.