This document discusses policy considerations for the supply and demand of fresh agricultural produce for the hospitality sector in Jamaica. It provides data on the purchase profile of fresh produce from 2013-2015, showing that hospitality purchases increased from 6% to 7% while supermarket purchases decreased from 24% to 29%. The document also outlines supply and demand developments, including the growth of producer groups/aggregators and increased preference for local and exotic produce. Finally, it discusses related policy considerations such as traceability, infrastructure support, land use regulations, climate change impacts, and improving coordination across the supply chain.

1. Policy Considerations for Supply
and Demand of fresh and added
Value Food for the hospitality
Sector
Presented By: Mr. Jimmy Lindsay

2. 6%
24%
11%
59%
2014 Purchase Profile of fresh
agricultural produce
Hospitality Supermarkets Other MNIB
7%
28%
15%
50%
2015 Purchase Profile of fresh
agricultural produce
Hospitality Supermarkets Other MNIB
7%
29%
10%
54%
2013 Purchase Profile of fresh
agricultural produce
Hospitality Supermarkets Other MNIB
Data collected were for local
purchases made and don’t account
for actual demand or imported produce.

3. Supply Developments in the
Hospitality Sector
Growth of groups/clusters/aggregators as
suppliers of produce.
Improve professionalism e.g. Quality and
reliability.
Increase growth of exotics e.g. Kale, coloured
vegetables, pomegranate.
Land shortage; impact of Cane Co. on fresh
produce production.

4. Supply Developments in the
Hospitality Sector
Climate
change

5. Demand Developments in the
Hospitality Sector
Increase demand. New firms entering the sector.
Increase networking/ information sharing.
Preference for local produce.
Grater adherence to standards and procedures (e.g.
traceability).
Better relationship management and reliance on
relationships.

6. Supply Related Policy Considerations
• Traceability e.g. Inappropriate chemical use.
• Infrastructure; office, staff, resources,
communication, etc. Is MNIB relevant,
sufficient and necessary?
• Regulation of producer/supply/aggregator
organisations.

7. Supply Consistency Policy
Considerations
Land
use
• Tenure
• Location/zoning
• Incentives
Gov’t
Programs
• Priority
• Scope
• Determination
Climate
change
• Threat
• Opportunity
• Impact
Customer
Relationship
Management
?
Inconsistent
supply
• contract
• Conflict resolution
• Data protection

8. Demand Related Policy Considerations
for Fresh Produce
• Competitive behaviour.
• Infrastructure; office, staff, resources,
communication, etc.
• Import substitution.
• Local purchase guarantees from hospitality
sector.
• Procurement of food by government entities.

9. Challenges
Information asymmetry.
Poor price transmission mechanism.
Climate change.
Private sector financing for agribusiness.
Coordination, communication and accountability
amongst farmers, government and investors.