European Commission, Borschette Centre Brussels Upgrading to Compete in a Globalized World The Jamaican Experience as told by: Tijule Company Limited Dr. Juliet Newell Brussels Rural Development Briefing European Commission, Borschette Centre Brussels September 23rd, 2009

Overview of Tijule Company Ltd. Company Type - Agro processor Size - Medium sized - Over 40,000 sq. ft. Location - Rural Jamaica Number Employed - Permanent 64 - Part time 150 Products - Canned & frozen vegetables, Frozen (convenience meals), Baked Products, Jams Jellies Fruit bars, Jerk seasonings & Jerk Sauces, Condiments, Dips, Pastes and Marinades and dressings Suppliers - Over 100 farmers supplying raw material

The Jamaican Operating Environment The World Financial Crisis Drying up of loans for investment High collateral requirement for companies seeking to access loans High Interest rates Lower market demand for products High Unemployment Manufacturing slump world wide impacting local employment Pending cuts in GOJ expenditure will mean more job cuts High Crime Rate

Specific Challenges for Tijule Finance: Difficulty in accessing loans at concessionary rates for investment and business development High levels of raw material inventory Financing the company’s quality initiatives Financing Market Research Market: Lower market demand for some products How to maintain a fresh presence in the market place How to find new or expand current market share with limited resources Human Resource: Retaining trained staff as markets dry up and demand slumps Accessing consultancy to help build capacity of the factory

Tijule’s Strategy to Compete Finance: Challenge Strategy 1.Difficulty in accessing loans for retooling etc. 2. High levels of raw material inventory 3. Financing the company’s quality initiatives 4. Financing Market Research The company uses retained earnings and seek grant funding where possible e.g. PSDP It is important to be able to fill orders in a timely manner so this gets priority funding Many donor agencies are willing to provide grants and technical assistance for improving Quality Initiatives – Tijule has been capitalizing on this thru funding from CDE and PSDP for HACCP/EMS(ISO14001) ISO22000 Seek assistance from trade organisations such as JTI/ JEA’s research desks. Use library resource (ITC Trade Map etc)

Tijule’s Strategy to Compete Tijule has a wide variety of products for customers to choose from. Therefore when demand for one falls cheaper substitutes are demanded . Sustain market visibility thru continued presence at trade Expo. - Maintaining constant contact with distributors also help to push the Tijule brands (Juliana and Nel’s Old Time) Revamped and upgraded collateral material/labels with the help of grant funding (PSDP) – This has helped to Build and enhance brand awareness 3. Tijule has now adopted the use of technology with the establishment of a web presence www.tijulecompany.com This was done with the assistance of grant funds from PSDP. The company is now able to reach new streams of potential buyers. Market Challenge: Lower market demand for some products How to maintain a fresh presence in the market place How to find new or expand current market share with limited resources

Tijule’s Strategy to Compete Resource Challenge: Retaining trained staff as markets dry up and demand slumps Accessing consultancy to help build capacity of the factory Strategy The company has adopted a 4 day work week in order to retain employment for all staff during the slow period Technical Assistance is always appreciated. Retaining overseas experts is only affordable through the assistance of Donor Agencies. Tijule has been the recipient of such assistance through the CDE, PSDP and PUM Senior Expert Service.

Thank you!