Who:

Dawson Trading Company Limited: www.easypickinsja.com,

Country:

Jamaica,

Sector:

Agro-processing and Distribution,

IMMEDIATE IMPACT:

• Product Development – 6 new (shelf stable) products;

MID-TERM IMPACT:

• Increase in staff – 6;
• Increase in exports – 17%;
• Impact on Sector (suppliers, etc.) – increased revenue;
• Increase revenue/sales –20%;

Profile:

Dawson Trading Company Limited (Dawson Trading) was established in 2013 by owner, Jordan Dawson. The company specializes in the growth, procurement, and exportation of traditional Jamaican fresh produce including mangoes, breadfruit, avocado, peppers, and yams, to overseas markets primarily Canada, USA, and the UK.

The Issue:

Dawson Trading sought to address several main concerns facing the Jamaican produce sector, namely: reducing spoilage; increasing volumes purchased from small and rural farmers; and accessing new markets. In addition, the company wanted to increase revenue; create new attractive and necessary product lines for overseas customers; keep workers employed for longer periods of time; and earn foreign exchange.

Assistance Received:

Dawson Trading’s received a financial grant via the Direct Grant Assistance Scheme (DAGS) in 2018 funded by the European Union under the 11th EDF Regional Private Sector Development Programme. With the grant Dawson Trading sought to develop a viable methodology to keep fresh fruit in its natural state for longer periods of time by processing/peeling, blast freezing and storing the product items in a frozen state. The project included the identification, acquisition, and installation of production equipment for the processing of fresh produce, the development of food safety – HACCP plan and recall program to meet HACCP certification. In addition, the project also included marketing and promotions including the creation of a website and suitable branding for the packaging and labelling of the products.

Immediate Impact/Outcomes:

The production equipment acquired, through the DAGS, has enabled Dawson Trading to create a new line of six different shelf stable flash frozen fruit products. This has allowed the company to increase the quantity of produce purchased from local farmers. Notably, these purchases now include bruised and below standard fruit, which would previously have been discarded. This action has, therefore, reduced wastage and increased revenue generated for Jamaican farmers.

The acquisition of machinery for processing fresh produce was central in producing a new product line of frozen fruits, for the export market. Frozen products are now exported to North America, Europe, and the Caribbean. It has also increased the volume of purchases, reduced spoilage, and increased revenues for suppliers, by purchasing below standard produce (with no effect on the final quality of the product) and higher volumes during peak bearing season.

In addition, the company developed a website and a logo. Training was carried out for the implementation of food safety standards for key staff members and major work was done on documentation and improvement of the facility towards HACCP certification.

Medium-term Results and Impact:

Over the medium-term, the DAGS project enabled Dawson Trading to increase staff by 6 employees, namely an administrative assistant, a driver, and 4 labourers. In 2020 the company’s exports increased by 17% and revenue/sales increased by 20%. Of this percentage 2% was from the flash frozen line. The project also significantly increased revenue for local farmers because they can now sell more volumes including bruised products.

The COVID-19 pandemic severely affected the export demand for fresh produce which were previously Dawson Trading’s primary export and the new product line provided considerable revenue to supplement the shortfall. Further, Dawson Trading’s increased purchase volumes from local farmers supplemented the farmers’ revenue shortfalls that occurred, due to shutdowns in the tourism sector (hotels).

“The Direct Assistance Grant Program (DAGS) through the Caribbean Export Development Agency, has been instrumental in helping to equip my company with the provisions needed to propel it into its next stage of growth. Primary drivers for this growth were the implementation of food safety systems and the tooling of our factory to further develop our line of Jamaican flash frozen produce. Without the DAGS project, the company’s survival would have been unlikely during the pandemic.” Jordan Dawson, Owner.

Who:

Cummings Wood Products; cwpgy.com,

Country:

Guyana,

Sector:

Manufacturing,

IMMEDIATE IMPACT:

• Enhanced Productive Capacity and Efficiency – 7-8%;
• Product Development – 4 new products;
• Reduced Operational Costs/Wastage – 7-8%;

MID-TERM IMPACT:

• Increase in staff – 23% or 10 employees;
• Increase in exports – 10% (2019);
• Entry into new market – Jamaica;

Profile:

Cummings Wood Products (CWP) founded by Andre Cummings (CEO) in 2008, produces and exports flooring and decking to the Caribbean. The company’s vision is to be the leading flooring company by enhancing beauty and value with its products and services.

The Issue:

CWP was challenged with high production costs due to the low production capacity of current machinery and low level of recovery from raw materials. The company also wanted to reduce the environmental impact of its production processes; offer quality products at an affordable price to consumers; create jobs and develop the economies of Guyana’s rural communities.

Assistance Received:

In 2018 CWP received a Direct Assistance Grant funded by the European Union under the 11th EDF Regional Private Sector Development Programme. The funds enabled Cummings Wood Products’ to implement a plan to increase the yield from raw material (hardwood) and lower the company’s production costs, through economies of scale. The project included the acquisition and installation of production machinery to make new hardwood product lines, and transform off-cuts, end trimmings, etc. into saleable hardwood products, to increase the percentage rate of gross timber resource inputted into the production system.

Immediate Impact/Outcomes:

The acquisition of new technologically advanced production equipment allowed CWP to aggressively pursue value-added development per Guyana’s National Log Export Policy, intended to curb the export of round logs in favour of downstream value-added products. Aggressive product development and innovation was completed to ensure all product dimensions satisfy buyers.

The company expanded product lines include ‘custom-built’ modular kitchen cabinets, standard and customised chest of drawers, framed and paneled doors and end matched flooring. The company also saw significant improvement in productivity performance, cost minimization and production yield output at all cost centers throughout the manufacturing plant.

Production and maintenance downtime, change-over (set-up) loss time, dropped, with better up-time and line availability at the machine lines. Factor and total productivity and surplus production yield performance were consistently achieved monthly at all cost centers, machine lines, and at the plant level. In addition, two members of the management staff benefitted from certified technical training overseas and were instrumental in disseminating formalized in-house training to lower-level staff.

Medium-term Results and Impact:

In the medium-term, the production machinery acquired by CWP through the DAGS increased the yield from raw materials by 20%. This reduced the demand for the quantity of trees needed and thereby reduced the environmental impact from production. In addition, promotion of lesser-known hardwood species is expected to reduce the likelihood of overharvesting popular species. Wastage from forest produce was also minimised by utilising wood pieces as short as 6 inches.

The new machinery also enhanced productive efficiency and reduced operational costs by 7-8%. The approximate increase in export sales induced by the project was 10% and the number of staff increased by 23% or 10 employees. The company also successfully entered the Jamaican market.

“The Direct Assistance Grant Scheme is absolutely relevant and indispensable for private sector development. Often times than not, most entrepreneurs / business owners in the private sector are cash strapped and are trapped in a cycle of repaying large sums of debt equity from insubstantial turnovers (profits), all in a dire effort to keep their businesses afloat. Moreover, most private sector businesses, particularly young start-ups, lack the financial resource to invest in critical capital acquisition, to take their businesses to the next tier of performance. Access to reimbursement funding from the Direct Assistance Scheme serves as a major help to suchlike business owners, and also to other entrepreneurs who would want to access such funding, even as they seek to develop strategic alliances with Caribbean Export to benefit from the other service platforms. Andre Cummings, CEO

Who

Coffee Solutions Limited, http://www.coffeesolute.com

Country

Jamaica

Sector

Agro-processing

IMMEDIATE IMPACT

• Enhanced Productive Capacity and Efficiency
• Product Enhancement (quality, packaging, etc.)
• Renewable Energy and Energy Conservation

MID-TERM IMPACT

• Increase in staff – 1 (part-time)
• Increase in exports – 2019 – 10%
• Increase revenue/sales – 2019 – 10%
• Reduction in Energy Costs/Consumption – 110%
• Sector Impact – increased profit margin for farmers
• Reduced Operational Costs and/or Wastage – 20-30%

Profile

Coffee Solutions Limited (Coffee Solutions) was registered in 2006 and has become a global player in the roasting and exporting of Jamaican Blue Mountain Coffee. The company provides equipment and machinery for pulperies, coffee factories and shops and offers consultancy services in the post harvesting and cultivation of coffee to clients.

The Issue

Coffee Solutions needed to improve the storage of its coffee beans to ensure quality and consistency of the products for the export market and become more competitive. To achieve this Coffee Solutions set out to reduce energy costs, generate revenue and decrease its carbon footprint on the environment.

Assistance received

Coffee Solutions undertook the implementation of an energy efficient, cost cutting and quality improvement venture under the Direct Grant Assistance Scheme (DAGS) in 2018 funded by the European Union via the 11th EDF Regional Private Sector Development Programme. The funds were used to improve the company’s competitiveness, growth, and long-term sustainability. The project comprised the installation of a solar power system/photovoltaic renewable energy system to lower energy costs and reduce the company’s impact on the environment. The project also included the acquisition of a shipping or trucking container to be retrofitted as a green coffee beans storage facility, and the installation of a solar power system to provide temperature and humidity-controlled storage to improve the quality of green beans and to ensure more consistent finished products going to market.

Immediate Impact/Outcomes

After project implementation Coffee Solutions saw a 20% reduction in energy costs. The electricity bill was reduced from JMD25,000 to JMD5,000. Exports increased in 2019 by 10%; quality improvement were realized in the stored green beans, and more consistency was observed in the finished products. Members of staff gained knowledge on the efficient use of energy and control storage system.

Medium-term Results and Impact

In the medium-term Coffee Solutions saw a 15% increase in export sales and a 10% increase in revenue in 2019. The company was also able to retain its current employees, provide extended working hours for temporary employees and increased staff by 10% or 1 employee, because of the DAGS project. The installation of the new storage facility resulted in a 20-30% reduction in the cost of the company’s coffee beans; improvements in the quality of beans; and an increase in the length of time that the products can be stored.

Coffee Solutions also installed a photovoltaic energy system that generates an estimated 10% energy surplus which is sold into the national grid. The company now earns revenue through this system. The company has also seen a 110% reduction in energy costs/consumption because of the installation of the system.

The cost savings have enabled the company to restructure its pricing mechanism and offer small farmers lower prices for contract processing services. The coffee farmers in Jamaica, importantly, include women, who can now access more competitive rates for processing and thereby increase their profit margin.

In addition, the implementation of nine renewable energy system projects has reduced and, in a few cases, eliminated the use of energy generated from non-renewable sources. By using less non-renewable energy, the carbon footprints of small farmers in the industry have been equally reduced.

“The Direct Grant Assistance Scheme is impacting regional businesses in a positive manner. It allows companies to undertake project[s] three to five years in advance of the company’s realistic projection. The funding facility should continue to help Caribbean firms achieve their full export potential.” Basil Jones, Managing Director