Creation of sustainable employment opportunities through economic diversification in the banana producing parishes of Jamaica

1.1    BACKGROUND
The European Union (EU) has provided support to the banana industry in Jamaica since 1996. The current EU Banana Support Programme (EUBSP) is financed under the 10 year Strategic Framework of Assistance (SFA), Council Regulation 856/1999 of the European Commission: Special Framework of Assistance (SFA) for Traditional ACP Suppliers of Bananas to the European Union. Funding from SFAs 1999, 2000 was devoted to improving export competitiveness and improvements in banana production techniques and fruit quality. The assistance provided under the SFA Programme to the Government of Jamaica [GoJ] has since the SFA 2001 Financing Agreement allocated funds for the provision of the following measures:

(i)    To promote the continued improvement in competitiveness of the export banana industry with emphasis being placed on certification and the adoption of international standards

(ii) To support diversification from banana production to alternative viable and sustainable livelihoods through the provision of assistance for rural diversification.

Over the 10 year life of the SFA programme €40 million has been committed to the programme by the EU, of which approximately €11 m is devoted to rural diversification.
The results achieved so far have been pivotal in enabling the banana industry to overcome a number of serious disease and environmental threats (e.g. Black Sigatoka, Moko disease and widespread damage caused by hurricanes). A number of key reforms (e.g. improved drainage, improved produce quality, formation of Banana Trade Company, initial phases of GLOBALGAP and Fair Trade compliance) have also been implemented.

Despite that, the sustainability of the banana industry has been challenged in recent years by the increased incidence of natural disasters and by the continuous erosion of the preferential access to the EU market. In the wake of Hurricane Dean that destroyed more than 90% of the banana crop on 19 August 2007, the Government of Jamaica (GoJ) started a review of its strategy for the Banana Improvement Programme of the EUBSP and banana sector in general. The passage of Tropical Storm Gustav in 2008 August has created an even greater urgency for the development of an appropriate policy framework for the banana industry.  Banana exports to Europe ceased shortly after that passage of the tropical storm. It should be noted, however that the export banana industry has declined significantly since the start of EU funding under the SFA with production dropping from 39,396 tonnes in 2003 to 17, 473 tonnes in 2007. Domestic consumption is estimated to be in excess of 100,000 tonnes. Plantain production, most of which is consumed domestically varies but is estimated to be above 15,000 tonnes per annum.  The banana industry has been impacted by five major hurricanes since 2004.  All indications are that re-entry to the export market is now very unlikely. Accordingly, emphasis is being placed upon the domestic banana and plantain markets, and the investigation of other potential markets in the near islands or elsewhere...


Click Here to download Guidelines and other Information