Jamaica sugar marketer loses client base, mulling winding down operation
(Jamaica Gleaner) Sugar marketer Jamaica Cane Products Sales Limited (JCPS) is laying off its entire staff as it contemplates winding down the business, Chairman Karl James confirmed on Friday, even as it looks to the Government for help.
James blames the agency’s misfortunes on the opening up of the market to competition by sector regulator, Sugar Industry Authority (SIA), which, he says, has robbed JCPS of its entire client base. The company makes most of its earnings from the produce it distributes for its sugar-producing members, but it also trades in retail sugar under the Jamaica Gold brand.
JCPS was expected to approach the Ministry of Finance & Public Service last week for assistance to shore up its operation, which is running a high deficit and facing declining revenues, but James said that the meeting did not happen.
JCPS was the sole marketer of sugar for Jamaica up to 2012, when the sector underwent radical changes. The Jamaican Government killed JCPS’ monopoly three years into the last round of divestment of sugar estates when it granted marketing-agent status to Pan Caribbean Sugar Company, the Chinese owners of the Frome and Monymusk sugar estates. Then in 2015, it granted the same status to Seprod, which operates the Golden Grove Estate in St Thomas.
Both entities withdrew from JCPS once they got their marketing permits for sugar and molasses. Seprod is also now a competitor with JCPS in the retail market through its Golden Grove brand.
Two months ago, JCPS was again faced with the prospect of another haemorrhage. James said the two remaining members Worthy Park Estates and J. Wray and Nephew Limited, JWN - gave notice of their withdrawal from the agency in September.