1 / 6

THE COCOA INDUSTRY BOARD OF JAMAICA ENTERPRISE TEAM ______________________________ UPDATE SINCE NOVEMBER 22, 2010 ON T

2. (1) Overview Partnering to add value. Since last year November 22, 2010 when I presented my Cocoa Industry Divestment / Restructuring Report at the Exclusive Fine Flavoured Cocoa Forum here in Trinidad the cabinet of Jamaica has approved my committee's recommendations on the divestment and rest

afi
Download Presentation

THE COCOA INDUSTRY BOARD OF JAMAICA ENTERPRISE TEAM ______________________________ UPDATE SINCE NOVEMBER 22, 2010 ON T

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. 1 THE COCOA INDUSTRY BOARD OF JAMAICA ENTERPRISE TEAM ______________________________ UPDATE SINCE NOVEMBER 22, 2010 ON THE DIVESTMENT OF THE COCOA INDUSTRY OF JAMAICA ‘Partnering to add value’ ______________________________ 14th June 2011

    2. 2 (1) Overview – Partnering to add value Since last year November 22, 2010 when I presented my Cocoa Industry Divestment / Restructuring Report at the Exclusive Fine Flavoured Cocoa Forum here in Trinidad the cabinet of Jamaica has approved my committee’s recommendations on the divestment and restructuring of the Cocoa Industry of Jamaica. Those recommendations of significance were as follows:- Amendments to the Cocoa Industry Board Act to:- allow for the sale and export of the cocoa by cocoa dealers, to certify the quality of the coca products, and a cess would be charged on the importation of cocoa products (to close the gap of 1447% between importation and exportation of cocoa products) To develop a single estate origin of cocoa products by partnering with a capital venturer and produce a cocoa final consumable product. Separation of the regulatory functions of the Cocoa Industry Board and placing the commercial operations in the hands of entrepreneurs

    3. 3 (1) Overview – Partnering to add value Transferring the assets and liabilities to a commercial entity that would be the ‘vehicle package’ for divestment. A restructured and amalgamation agreement for a private limited company was drafted to facilitate this. To increase by no less than 20% the farm gate price to cocoa farmers. Currently our farmers fetch US$0.75¢ per kg while the Trinidad & Tobago farmer fetches US$1.05 per kg. To use funds from the cess to improve the infrastructure and technologies of the fermentaries so that the cost of operating them will decrease. The commercial entity will have 4 departments:- Sales and Marketing Accounts and Administration Fermentation and Processing Quality Management Control

    4. 4 Overview (‘cont’d) –Partnering to add value I now chair the Cocoa Industry Board Enterprise Team (‘ET’) to execute the recommendations of the Restructuring Committee. Our mandate is to:- (i) oversee the information memorandum for release to prospective bidders (ii) evaluate bids and submit recommendations with respect to the preferred bid (iii) examine options for structuring the privatization offer package (iv) provide any other necessary technical and logistical support needed for completion of the exercise

    5. 5 (2) Current Status –Partnering to add value My ET has meet on 3 previous occasions and we have so far:- determined an evaluation method to score prospective bidders to provide consultant services agreed on the terms of Request for Proposals agreed on the contract for Consultants’ Service and advertised in the print media the Request for Proposals agreed on an Enterprise Team Schedule . This schedule should achieve:– The final report to the Minister and Permanent Secretary of the Ministry of Agriculture and Fisheries submitted by the 15th November 2011. The Information Memorandum would be based on the evaluation method for determination. By the 01st day of December 2011 the ET final report should be submitted to the cabinet.

    6. 6 (3) Conclusion –Partnering to add value We believe that the divestment of the Cocoa Industry Board of Jamaica, based on the restructuring of the industry as per our recommendations submitted to the cabinet of Jamaica, to a capital venturer who shares with us our passion and vision will partner with us to elevate the returns on this industry. With the right focus and ‘sticktuitiveness’ to the game plan we expect a doubling of our productive capacity in 2010 of approximately 550 metric tonnes in the first thee years of divestment. The game plan is to:- (i) move up the value chain in the production of cocoa by-products, (ii) share the know how from those with the technologies, (iii) increase capacity building in the industry (iv) increase the returns on investment to make the cocoa industry more profitable (v) create enabling legislation to enhance trust and confidence in investor shy parties.

    7. 7 The time to partner with the cocoa industry of Jamaica has never been better. The world market for cocoa products remains very high and the cocoa industry of Jamaica is ready to tap into that market with the right technologies and innovative management techniques. Kent P. Gammon HEAD OF THE ENTERPRISE TEAM (‘ET’) COCOA INDUSTRY BOARD OF JAMAICA C/o 07 Barbados Avenue Kingston 5, Jamaica, W.I. Tel: 876.754.3000 Fax: 876.754.3333 www.kentgammonlaw.com

More Related