IICD supported project: Central and Satellite Agriculture Information Centres

Countries: Jamaica [JM]
Sectors: agriculture livelihood ebusiness

Summary

Domestic food crop production and marketing in Jamaica can be characterised as ad hoc, the unavailability of reliable information of the entire chain of activities has resulted in it's retardation. Producers of the primary product have limited access to information to inform choices such as appropriate inputs such as seeds, chemicals and technology, having to rely on the distributors of these products. The raw material requirements of agri-processors, hotels, exporters etc. are also not readily available to the producers which results in the importation of large quantities of primary and semi- processed goods.

Update

Updated: 2005-03-09

The project started operations in October 2000. The project has
hitherto produced the following outputs: <br />
1) The development of 2 Agriculture Centres for Information <br />
2) Training of project staff <br />
3) The development of a prototype of a database-driven website<br />
4) The direct support to subscribers in solving specific production and
marketing problems (e.g. credit scheme for water provision)<br />
5) A first transaction between subscribing producers and a major buyer
set up via e-mail<br />
6) Subscription of 300 farmers to the information centres<br />
7) Extensive promotion of the project at local and national level.

Objectives

Central And Satellite Agricultural Information Centres (CSAIC) will provide information on all the various activities pertaining to agriculture in Jamaica, production, marketing, processing, export, import while simultaneously providing up to date information on global competition, trends which impact on local production.

The key beneficiaries are the 400 members of the farmers' association St Elizabeth/Manchester Vegetable Growers Association. The STMVGA members and other vegetable-producing farmers in the region will be able to access information relative to demand, quality, standards, price and inputs, the most productive seeds, chemicals and equipment post-harvests technology. This will help the farmers to determine what crops to grow based on demand utilising the most productive inputs and technology.

Other beneficiaries include operators in the agriculture sector including agri-processors en exporters etc. The centre will serve as a brokerage house, where the operators can determine the capability of producers and then enter into agreement for the timely delivery of their requirements.

The information centres will provide 3 types of information services including Standard information services, Customised information services and Farm plan services. Standard services: A limited body of information will be collected and made available through a web site, to be distributed via the Internet and as printed material. The standard information includes data includes marketing and production information on the listed products only. Customised services: Based both already compiled information and newly gathered information at farmers level and at collaborating agencies, the information centre will offer specific information on the basis of requests by clients of the centre. Farm Plan services: The centre will offer producers the service to prepare farm plans to be submitted to banks. A partnership is sought with PC Bank to develop the service and to train the project staff in preparation of farm plans.

The project will be Central Information Centre based in Mandeville, Manchester and two Satellite Information Centres in rural communities. At the Central Information Centre, project staff will be trained in the collection, packaging and storage of information in databases and a web site format. The Satellite Centres are linked to information via the Internet. Initially, customers will have access to information through personal visits to the centres. Eventually, customers will be able to access the information via the Internet.

Development Impacts

This project is to facilitate the growth of the domestic food crop sector through the provision of relevant information relating to standards, market and processing of domestic food crops for storage. Thus, the project will support producers to overcome the lack of important information linkages on supply and demand, standard, specifications, inputs and contribute to it's preparation for global competition, thus protecting the agricultural sector in terms of income and employment.

Market and finance

In total around 3,450 potential beneficiaries are present in the areas where services are offered in the regions of South St. Elisabeth and South Manchester. The St. Elizabeth/Manchester Vegetable Growers Association is the first user group of services, including about 400 producers. In addition, individual producers and members of other targeted customers include around 1,600 producers in the capture area. Other potential customers are found among 1,450 operators in the service area, including wholesalers, agro-processors, exporters and importers. The projected number of subscribing customers is projected to grow to 790 subscribing members by the end of year 5.

The sustainability of the project is guaranteed through the revenues from information services. The pricing system is based on service fees. Standard information services will be sold on the basis of annual membership fees or a fee per services. Customised information services will be sold on the basis of fees per man-hour. A fixed fee per farm plan is set for Farm Plan services. In the first year, it is expected that the services will generate US$ 12,000 and will grow to US$ 50,000 in the fifth year of operations.

In the first year, a starting capital of US$ 60,000 is required to develop the project. In the second and third year of operation, the project is expected to face a financial gap of respectively US$ 7,500 and US$ 5,000. The project reaches the break-even point in the fifth year of operations.

Budget

Financial Rate of Return: n.a.			Project Life: 5 years			Break-Even: 5 yearsr
Net Profit (Loss):
	Year 1	Year 2	Year 3	Year 4	Year 5	Capital Cost		Financing Plan:
Revenues	12	35	42	50	61	15		Owner own contribution 0.0
Operating Costs	52	46	47	49	52			External Funds (1st year): 60.0
Depreciation	3	3	3	3	3			External Funds (2st year): 7.5
Profit (Loss)	-43	-14	-8	-2	6			External Funds (3st year): 5.0
								Total = 72.5
Working Capital Requirements								Investment Opportunity: 72.5

Project Owner : St. Elizabeth/Manchester Vegetable Growers Association

Project Partners : Mandeville Weekly
NCST
IICD

Contact Organisation : St. Elizabeth/Manchester Vegetable Growers Association

Project Contact : Anthony Freckleton