Final report : Mid-term evaluation, agricultural development marketing, phases I & II


Material Information

Final report : Mid-term evaluation, agricultural development marketing, phases I & II
Physical Description:
Swanberg, Kenneth
Publication Date:


General Note:
Project No. 532-0060, Loan Number 532-T-013A

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
All rights reserved by the source institution.
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Full Text



November 2 through 22, 1983
Kingston, Jamaica

Dr. Kenneth Swanberg, USAID/W
Dr. Desmond Jolly, U. of Calif., Davis
Dr. Smith Greig, Washington State Univ.
Dr. Ron Curtis, Postharvest Institute for Perishables
Ms. Carleen Gardner, Peat-Marwick Associates

Assisted by

Leslie Orr, PAMCO, Office of the P.M.
Alex McLean, Data Bank, MOA
Herbert Knight, Project Coordinator

Project No. 532-0060
Loan Number 532-T-013A


I. Preface

II. Project Goals and Purpose Review

fII. Achievements to Date

IV. Viability of AGSs, PM~s and SWDMs (W. Smith Greiq)

V. Social Soundness Revisited (Carleen Gardner)

VI. MACD Structural Problems (Desmond Jolly)

VII. Team Recommendations

VIII. MOA Response and Follow Up


1. NUJC Memo of Understanding

2. MOA Draft Request for Budget Reallocation and Waiver Balogh Proposal


I. Preface

The evaluation team first met in Washington, D.C. for two
days of Team Planning Orientation, led by Bill LeClere, who
had previously worked to help structure the current MOA system.
The U.S. team was then joined by Ms. Carleen Gardner, a sociologist
who had done the original social soundness analysis, Mr. Leslie
Orr, from PAMCO, of the Office of the Prime Minister, and Alex
McLean from the Data Bank of the MOA.

The team made several interviews with all of the staff during
the course of the 3-week period allocated for the evaluation.
Several field trips were taken, to a livestock market in Santa
Cruz, a smallstock market in Old Harbour, several parish markets,
and to six potential producer marketing organizations (PMOs).
Visits were made to Douglas Castle, Christiana, Southfield,
Bushy Park, Spring Plain and Ebony Park. At each location,
except Spring Plain the :team met with the board of directors
and several farmers.

Many collaborating organizations were also contacted, most
notably, Agro 21, National Union of Cooperatives (NUCS), AMtC,
private exporters, FAO experts, and the Coronation market.

The team wishes to express its sincere thanks to all members
of the MACD staff for their gracious cooperation without which
these findings would have been impossible to attain.

Review of Project Goals and Purpose


The original project was designed to increase farmer incomes,
4 reduce food costs, and increase higgler or trader earnings.
These goals were to be achieved by reducing post-harvest losses,
increasing the volume of produce marketed, and reducing
marketing margins. The project paper suggested parameters of
35% to 25% for post-harvest loss reduction, an increase of
5% in production and a reduction in marketing margins from
68% to 60%. In reviewing these goals, the evaluation team
finds them to be conservative at best, but can find no evidence
to suggest that the specific levels of losses and margins currently
exist or not. Nevertheless, they do not seem to be unreasonable,
nor do the goals appear to be unachievable over the long-run.
However, it does seem to be presumptuous that these goals would
be achieved within a short time horizon. A ten-year period
might be more realistic for achieving these benefits on a global

In looking at farmer incomes, three approaches can be taken.
One is to increase acreage at given income levels. The second
is to increase productivity rates per hectare. Third is to shift
to higher income crops or crop combinations. All of these
techniques are to be used in the project with emPhasis being
given to the first and third. Food costs can be reduced by
lowering the price consumers must pay or by increasing the
nutritional value per dollar spent. It is presumed the former
will be pursued more than the latter. Increasing marketing
agent incomes is much more difficult to achieve, but some of
the models in VII will show how this can be done.

The elements of this project are fairly standard for a marketing
project designed in the late 70's. However, there are few
projects like this one which have succeeded and the original
design did not take into account the many failures which have
occurred over the years in building marketing infrastructures,
namely terminal and sub-terminal markets. Nevertheless, with
modest adjustments to the size of the infrastructures recommended
and increased support for the marketing operations per se, the
project should be in a position to achieve a good share of its
expected benefits.

Phase I of the project focused on developing an awareness for
marketing activities in the Ministry of Agriculture. This was
accomplished with a high level of success when judged against
the standard of similar projects throughout the third world.
A marketing division was established with technical components
in market information, market research, training, marketing
extension, and quality assurance. A separate structure has
been created within the MOA and capable staff have been recruited
to work within it. Although not all of the allocated positions

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have been filled, some of which are critical, a substantial
mass has been gathered together to promote marketing activities.
72 out of 94 slots have been filled, and several activities
are on-going and will be reviewed in the next section.

Phase II of the project envisions 25 assembly and grrading
stations (AGSs) and four sub-terminal wholesale distribution
markets (SWDMs). The AGSs will be managed by producer marketing
organizations, (PMOs). The project will provide foreign exchange
and local currency for constructing these stations and markets,
equipment for grading and packaging, vehicles, and some cold

In establishing the MACD in Phase I, the project would provide
GOJ funds for its operation. In addition, foreign exchange
would be disbursed from USAID for technical assistance and
overseas training.

In reviewing this project, it is obvious that Phase I was well
designed and has evolved in a timely manner, in spite of the
setbacks incurred early in its implementation. The original
technical assistance team was incapable of adjusting to Jamaican
staff and bureaucracy, and was terminated before a year had
Passed. A new consulting team from RONCO was contracted in
April of 1983, and hat worked quite well with the Jamaicans
since that time. They are well respected and technically
qualified to do the job.

With regard to Phase II and the 25 AGSs and 4 SW~DMs, a critique
is in order. For an island the size of Jamaica with a population
of 2.2 million and only 176,000 small farmers, 25 large scale
AGSs is inappropriate. .Domestic produce does not benefit to
any degree from excessive grading. Some benefits will accrue
to assembly activities and spatial coordination of supply and
demand, but 25 stations is excessive. However, if the AGSs were
to be modified in size and'in the volume of .through-put required
to break even, then 25 could be viable.

On the other hand, 4 major SWD~Ms would be unrealistic under
any circumstances. But since the SWDMs were designed to be
half produce and half livestock, a proposition which the KACD
and Jamaica Livestock Association feel is inappropriate, two
produce and two livestock SWDMs have been suggested at a scaled
down level.

III. Achievements to Date

Phase I of the project can be considered to be successful.
The MACD has been established and an awareness of marketing


issues is felt throughout the Ministry. From a technical
viewpoint, the following achievements can be observed.

Market news seems to be the most advanced activity, with prices
being collected three times a week on over 20 commodities from
Coronation market and other satellites in Kingston, plus four
regional markets spread throughout the island. Prices are recorded,
published, broadcast, and distributed, daily and weekly. Situation
and Outlook reports are also being developed for several com-1-.
modities. The program is iie most advanced that the evaluation
team has seen operating anywhere in the third world.

The market research unit is saddled with a heavy workload.
Initially, this section was charged with developing the feasibility
studies for all the PM~s. This is an extensive task, and a lot
of staff time has been dedicated to this end. Given the some-
what marginal value of the results of such limited studies, staff
may be more efficiently employed if transferred to other research

The training function within the MACD is still somewhat ill-
defin-ed. Discussions over how to accommodate long-term training
when short-handed never end. New accommodations for overseas
coursework are being developed with the University of Florida,
whereby students may study a- semester at a time and return to
work in the MACD for every other semester. This would reduce
the length of their absence. Short-courses and training
materials are being developed, and with the new arrangements
with NUCs, it is hoped that the effectiveness of the training
program will be enhanced.

Marketing extension started slowly but has come on strongly
in recent months. A highly motivated staff has been organizing
PMO groups in several areas, and six groups are presently
being registered. The field staff we met were well qualified
and quite capable of organizing and registering the farmers.
Peace Corps, ACDI and PFP were helping out in 3 cases. Organizing
the farmers into PMOs was originally left out~ of the project
activities which was a serious flaw in the overall concent.
Since this has been- corrected, significant strides have been
made towards achieving the projects ultimate goals.

In order to assist in PMO organization and training, a separate
project grant has been de~veloped witih NU~s to select PMO managers
and field officers for training and eventual assignment in each
PMO, for training of PMO Boards of Directors, and for organizing
future PMOs.

Ouality assurance has been establishing grades and standards
for root crops, commodities which traditionally are not graded
except by the traders themselves. Significant progress has been
achieved to date. However, grades and standards on domestic

produce may not add value to the crops in terms of the value
product after grading. Only some test marketing trials can
answer this question. Nevertheless, as more produce is prepared
for export, the role of this section will increase proportionately.

In Phase II, achievements have been more modest. It has not
been easy to register PMOs, sign up farmers and write contracts
with MACD for expensive equipment. At present, five PMOs have
been formed, with a few more ready to move ahead. Five groups
were visited by the team, and appear to be ready to start operating
as a PMO. The team met with the Board of Directors and several
farmers in each case.

IV. Viability of the Assembly and Grading Stations (AGSs). Producer Marketing
D ~ganizaton (F~s an te bb-ermna whlealeDitriuran Sr=>

LV.1 Feasibility/Options Concerning PMD/AGS/SWDM Marke~ting Syrstem

A. The original project paper specifies that twenty-five
Agricultural Grading Stations .(AGSs) and four Sub-wholesale
Distribution Ma~rkets (SWDMs) for fresh produce and meat will be
constructed during Phase II of the project.
B. Despite all the "feasibility" studies of positive PMa~s/AGs, it
is not possible to suggest that the system as a whole, or even
its individual parts will be successful (economically or
financially sound) in Jamaica. There are simply too many
untested and unmeasurable factors affecting total feasibility of
the project. Failure in other Caribbean countries of similar
systems (U. of West Indies Report), many failures in other
countries (Mittendorf FAO, letter to Mr. Zenny) and many
failures in southern U.S. suggest that at best the whole project
is a speculative venture. The options then are 1) cancel the
poet, or 2) despite limitations, assume that some
p~PM0/AGS/SWD ystem is feasible in Jamaica. If Option 2 is
chosen, then changes and/or modify the originally proposed system
to a more practical and workable system. The following
suggestions for: changes or modifications in project design are
based on Assumption 2.

IV.2 Assembly and Grading Stations (AGSs)
A. Number It is recommended tbat the Lmmediate construction
schedule for AGSs be reduced from 25 to about 6. The reason for
this will become clearer as the report proceeds, and the six
will be specified in more detail.

B. Sizes of AGS's Buildings and Equipment As the project was
initiated two3 or three years ago, the original buildings for the
first two3 or three PMOD/AGSs were too large and over-designed and
the original equipment: too expensive for the proposed use or
needs. The original building requirements have been scaled down
(redesigned by Urban Development Corporation [UDC1) based on
specifications furnished by MACD/RONCO.

Some of the original equipment was deemed unnecessary or
over-designed and too expensive for Jamaica's initial use. As
there has been so much discussion of the originally purchased
equipment and its "excessive" cost, the originally-purchased
equipment and the "extra" cost involved will be discussed in
some detail.

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The original equipment purchase was for US$979,336 to satisfy the
needs for the first three PMO/AGS and for a red pea and potato
grading line for Christiana Potato Growers Cooperative (CPGA) (see
Exhibit A). One red pea line and the potato grading line amounting
to US$166,084 was ordered and funded under the Integrated Rural
Development Project. However, the orders for one hydro-cooler, one
utility line and three proposed yam lines were cancelled. About
US$80,000 for the hydro-cooler, US$81,00Q for a utility line and
US$133,000 for the yam lines was recovered from the supplier. These
cancellations result in a total encumbered funds of around US$520,000
estimate around $1,200,000 equipment needs for 25 AGSs.

The original Packing Line Number 1, which combines a pepper, tomato,
cucumber and mango packing line (initially scheduled for Bushy Park),
was over-designed. The estimate for more appropriate equipment suggests
around US$130,000 could have been saved on this line (US$80,000 of that
figure was saved by cancelling the hydro-cooler). Similarly, for the
original Packing Line Number 2, utility packing line for various
fruits and vegetables. One was cancelled for a savings of around
US$81,000 of the two lines ordered an additional savings of $60,000
could have been'made if more.,appropriate equipment was ordered.
For Packing Line Number 3, which was three yam lines, all were
Packing Line Number 4 acceptable as is (red pea line).
Packing Line Number 5 Py~tato grading, washing and packaging line
acceptable as is (for Christiana).
Cold Storage System the eq~i'quent is in storage but will be used.

Of the total equipment ordered so far, perhaps $50,000 could
have been saved on Line I and perhaps $60,000 could have been
saved on Lines2. With a total possible unnecessary expenditure
of $[110,000 US, the options for the excecs!-rephpment are:

1. Do nothing use as is
2. Sell Line I and buy cheaper equipment(the equipment
has been offered to AGRO 21 for sale)
3. Keep the equipment, but MACD/AID pay the excess costs
over more practical equipment and that full costs would
not be charged to the PMO/AGS that eventually will use
the equipment. This would mean that MACD/AID would
absorb costs of around $ 110o,000 US.

Currently, building design and equipment design are deemed to.
be appropriate for the locations, crops and volumes expected
on the proposed AGS's,

C. Feasibility Analysis

Feasibility analysis for the AGS's have been developed for
Southfield, Bushy Park (Thetford), Dias, Douglas Castle, and
Guy's Hill. The quality of the analysis has improved through'
time and the Guy's Hill system and method of analysis will be
used as a "model" for future studies.

S 7

A recently completed re-eval action of the Dias AGS has suggested
that this AGS is unfeasible. Other analyses are in progress
including Moore Town, Wait-a-Bit, Trinityville and South Manchester.
A feasibility study of Rhymesbury (Ebony Park) is expected to be
undertaken soon.

The feasibility studies are based on the general assumption
that the AGS will receive some specified percentage of the total
crop marketed from an area in a 5 mile radius of the AGS, and
that a certain mark-up for grading and purchasing of 5 to 10%
of the value of sales will be received for the grading services
rendered. These assumptions 'are probably untestable until opera-
tions actually start.

D. Problems of the AGS concept

A grading and packing system contains the following elements
for financial and/or economic success.

1 Production
2 Assembly
3 Grading and packing
4 Distribution of the packed product and sale or disposal
of off grade products.

As such, a system was not designed. The AGS design was for an
AGS to stand in isolation. Project design did not include assembly
nor distribution of the product. Assembly and the associated
costs of loading and transportation tothie AGS was not incorporated
into the project design. Assembly can be a very costly and
time consuming process. Perhaps a series of assembly locations
needs to surround each AGS (Christiana, for example, has 26 assembly
po~i~nts, and CPGA sends trucks to the different assembly points
on a certain schedule). Small pick-up trucks, or in some locations
a group of donkeys may be necessary for efficient assembly and
transport to the AGS. Similarly, large trucks (3-5 ton trucks)
may be necessary for bdth~ assembly and for transport of graded
products to market. A recommendation is for at least one 3-to
5-ton truck to be owned by each AGS.

Finally,from a comparative international as well as regional
point o~f vliew, costs of production are an integral
part of the system. Conceptually, then, with an analysis of:
Production casts
Assembly costs
Grading and packing costs
Distribution costs
one can make comparisons among areas, and comparisons across
countries, i.e. tomato production in Southfield compared to
Ebony Park, or tomato production in either to costs in Dominican
Republic, Mexico, Puerto Rico, etc. when the markets are the
same (U.S. and Canada, for example).

If the proposed road is built to connect Dias to the market
road, this area will become feasible.


A systematized approach needs to be taken both in pro ject design
concepts as well as in direct operations of the AGSs, as a
grading and packing plant cannot exist in isolation but only as
a part of a complete system.

E. PRoblems of Volurme and Scale Economies The success of an AGS
will largely depend on the services offered. Volume, physical
quantities per day times the days of operation per year, is
extremely important.

Overhead costs of plant and equipment are fixed and the larger
the volume the less the cost per unit. This ties in to the
concept of assembly and distribution being integral parts of a
system .

F. Capital Costs of Operations A grading and packaging operation
has a need for considerable operating capital. Managers and
laborers have to be paid, as well as container costs, and some
advance ~payment (before final sales) must be made to members of
the PMD/cooperative. This may call for considerable operating
capital. Where, how, and when this operating capital will be
supplied to the AGS'havne not been specified in project design to

IV.3 PMOs (Producer Marketing Organizations)

Although PMOs are reported separately under another section,
a brief discussion will be given here, and then a brief
section will be given on PMO-AGS interactions--andsome of the
problems involved. The necessity for developing PMOs and the
process for developing specific PM~s was determined after
project initiation and instigated approximately eighteen
months ago. The establishment of A PMO and a contractual
agreement between the PMO and the Ministry of Agriculture
(MOA) is a Condition precedent (CP) before agreement on the
establishment and funding of an AGS and instigated about eight
months ago .

Several misconceptions in the establishment' of PM~s existed lat the MOA before
the arrival of the RONCO teaor-and to a certain extent, the same
misconceptions affect the progress and length of time to effectively
develop an operational system of AG;S. These misconceptions were a
general miFsunderstand~inJg and underestimate of the time and effort
required to:

1. establish an operational PU
2. to train PM3 members and overcome the organizational
problems that would be encountered
3. select and develop leadership
4. in getting enough growers and volume for a PM3
5. in establishing (legal) methods of incorporation when a
cooperative was not an acceptable organizational structure.

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6. in training and/or selection of appropriate managers
the AGS would need.

Currently, the KACD/RONCO teams are being quite realistic.
Effective PMO development is regarded as the major stumbling
block for the instigation of AGSs. The-National Union of Coopera-
tives (NUCS) is being retained to assist in training of PMOs
and assist in the selection and training of AGS managers. The
MACD/RONCO unit involved in organization and training must be
beefed up and resources of other MACD/RONCO units must assist
directly in developing information specifically needed in PMO/AGS
development. Specific recommendations concerning this will be
presented later. Concerning the legal aspects of incorporation
(see 5 above) the MACD is exploring the use of the "Industrial
and Providence Societies Act", which may be used in lieu of a
cooperative per se.

IV.4 PMO/AGS Interaction

As a part of the Conditions Precedent for the establishment of
an AGS: i

1. A clear title~~to the site must be obtained.
2. A feasibility study must be conducted.
3. The PMO must be a legal organization.
4. A contractual arrangement between a PMO and the
MOA must be agreed upon and signed.

Inherent in the process is that a manager of the AGS must
be trained or obtained. This may partially be through NUCS,
but the NUCS/MACD relationship is unclear. In effect, as I
understand it, the NUCS will train prospective managers in
business and cooperative management while the MACD will be
held responsible for marketing training of the managers. A
definitive agreement of authority, responsibilities, and'
coordination of NUCS/MACD activities in cooperative and
leadership training is being developed.
The CPs have not been fully accomplished-by any proposed PMO/
AGS to date. And, therefore, no managers have yet been appointed.

IV.5 Numbers and Locations of Immediately Possible AGSS

A. Potential numbers and locations of AGSS

MACD has been working with 11potent~ial PMO/AGSs to date, 12 if
Christiana is included. Of the II, feasibility studies of the AGSs
have been completed for five: Southfield, Thetford (Bushy Park),
Douglas Castle, Dias, and Guy's Hill; other potential locations
of AGS are Wait-a-Bit, Trinityville, South Manchester, and
Ebony Park (Rhymesbury). A revised feasibility analysis of
Dias (Nov 1983) has shown this potential AGS to be non-feasible.

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Apparently, the greatest opportunity for establishing
operational PMO/AGSs are (not necessarily in order):
1) Christiana
2) Southfield
3) Guy's Hill-
4) Douglas Castle
5) Ebony Park
6) Bus~ Park
A longer run potential exists at:
7) milk assembly
8) Mooretown
9) Wait-a-Bit
10) Trinityville
11) South Manchester
12) a fish assembly
Feasibility studies for the latter have as yet to be completed.

Because of the tremendous training and educational efforts
involved, and because no operational AGSs yet exist, it is
strongly recommended that extensive efforts be made to get the
first five PMO/AGS operational. Further, that new feasibility
studies not be undertaken for any more than the nine PMO/AGS
previously listed. If objectives of the total project are to
be accomplished, .a few operational AGSs are an absolute must.
Further, for the time being, no effort would be expended on
expanding the list of nine, until' one or more AGS are operational.

B. MACD Organizational .Broblems

It is strongly suggested that diffusing the work of the teams
involved in organizing the PMOs and obtaining the CPs for each
AGS to try to obtain the 25 PMO/AGSs is entirely out of the
question from the standpoint of staff time, but also limited
by the true politics of these types of operation which might
possibly evolve over a 5 to 10 year period in Jamaica.

If and when successful PMO/AGS are established and paying
reimbursement for the invested capital, these returns could
then be put into a revolving fund to develop possible potential
AGS above the nine previously listed.

C. Problems and Opportunities to Establish the :First Six AGS

It is the team's opinion that perhaps six operating AGS could
be established in a very short time. Opportunities and problems
exist at all of these.(If there were no problems, they would
already be established.) The following are some recommendations
for some specific actions which could overcome some current

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1. Assign the District Marketing Specialist in each area
to work solely and entirely on PMO/AGS problems. For example,
he might be appointed as an ex-officio member of the board
and as Secretary of the PMO/AGS. In that capacity he coul
take care of many communicational, educational, and organization
functions and obtain faster action by PMO leadership.
2. Opportunities for Christiana The CPGA is an established
cooperative and is not a problem organizationally. An opportunity
may exist for the development of afozefenhridoto
operation. Apparently there are three small scale frozen french
fry processors in Jamaica (at least 2 in Kingston and I in Montego
Bay). As frozen french fry production is a weight reducing
technology (only 50% of the weight of the raw product is shipped),
the optimum locations are in productive areas rather than
consuming areas. Finally, refrigeration needs are high in
frozen french fry production and CPGA currently has excess
refrigeration capacity. Finally, Burger King and other operations
have expressed interest in frozen french fries. Perhaps a brief
study by outside consultants could explore the potential feasi-
bility of this opportunity.
3. Southfield Apparently progress at Southfield is being
held up by the Conditions Prece~dent. (CP) largely because of an
early report which questioned water availability for the AGS.
'MACD/RONCO specialists suggest that water is needed only for
a carrot working line and that their estimates of water needs r
are a fraction of those in the original report. Our information
suggests that the water needs are ad'eq~uate for an AGS and
that the development of the AGS not be held up because of the
misinformation in the earlier reports.
4. Bus (Park A problem here is in leadership being unable
to get an action project going (see item I above as a possible
solution). Further, USAID apparently doesn't accept the idea
of an AGS for 8 to 10 larger farmers. Possible .solut~ionrs .atze
the expansion to many more small farmers (which several of the
leaders agree to), a possible change in leadership and direct
involvement of the District Extension Marketing Agent as his
sole activity.
5. Ebony Park An immediate abbreviated feasibility study
should be conducted. As this is a new development, approximately
110 farmers with 5 irrigated acres each, the farmers can easily
be reached. Further, a facility, electricity, and water are
already available. Essentially all that would be needed is
packing and grading equipment. A higgler interview probably
would not be necessary because of the "newness" of the area.
6. Guy's Hill The feasibility study for this proposed'
AGS was probably the best feasibility study. The results are
quite favorable.
7. Douglas Castle The farmers, in general, in this area
are not as advanced as in some other areas. This area will need
considerable "hand holding" See comment 1 above.

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IV.6 Organization and. OPeration of MACD/RONCO

The organization and operation of MACD/RONCO will be reviewed
only as it affects the direct establishment of operational
AGSs. Phase I, of the total project, the establishment of
an MACD division has been accomplished. The MACD was established
in the MOA and most units are functioning quite well, although
the Market Research Unit has been constantly and seriously
understaffed. Phase II, the development of operational AGG~sand
SWDMs is considerably behind schedule.

The establishment of legal PMO's was not started until RONCO
appeared on the scene in March or April 1983. Since then, the
work load of the unit andindividuals given this assignment (to
establish PMo's) has been tremendous While the unit and individuals
are highly competent and dedicated, the pressure to develop
operational PMO/AGSs has been high. Therefore, we strongly
suggest that the units responsible for Market News, Quality
Assurance, Training, Market Research and other units divert
some of their efforts toward work more directly related to
the establishment of PMO's/AGSs.

Market Research has largely been tied to feasibility studies
in the sense of a legal requirement -- as a part of the CPs.
'Each potential AGS had to have a feasibility study conducted
Which showed social, economic and financial feasibility of
the venture. In a non-legal but practical approach, even
after a feasibility has been accepted, there is much market
and economic research to be conducted for the PMO/AGSs.

We recommend that except for Ebony Park, no new feasibility
studies be conducted at the present time. Those substantially
in progress might be completed but no new ones initiated. And,
that the Market Research Unit reallocate its efforts, along
with other MACD units to (but not restricted to) the following
concepts and/or approach's:

1. Detailed market analysis for PMOs/AGSs.
(a) In depth studies of Hotel, Restaurant and Institutional
(HRI) markets in Jamaica
(b) More definitive work on sales through retail stores
(c) the potential export market

2. Experimental research -Does it pay to grade? Actual
experimental sales tests at retail, wholesale, higgler
and HRI marketsof various graded commodities should be

3. Seasonal cropping patterns of each PMO as related to
seasonal prices, possible modifications of cropping patterns
to take advantage of seasonal price increases.


4. Opportunities for special crops or commodities for
special markets.

5. Types and costs of packaging of graded products
(a) By type of market, commodity by commodity
(b) Reusable containers for special markets
(c) Packaging requirements for export,

6. Economies of Scale in Transportation
(a) Size of Higgler vs. Size of AGS TRUCK and comparative
costs from various producing areas to principal
consuming areas.

7. Economies of scale in Packing House Operations (AGS)
(a) Cropping patterns and commodities to expand length
of packing season. (Increase volume and time of operation
to reduce overhead cost).

8. Marketing costs and margin studies
1) cost of production
2) cost of assembly
3) cost of grading and packaging
4) cost of distribution (freight)
5) wholesale and retail margins
(a) To HRI
(b) To Higgler
(c) To Retail
(d) To Export

This work load should be a cooperative endeavor involving all
MACD units, and activities should be coordinated through the
MACD manager, with advice and counsel of the Market Research
Unit of the MACD. There are many examples where cooperation
among various units on market research of direct potential
value could be conducted. For example, item 2 above, "Does
it pay to grade?" Quality assurance could do the experimental
grading, Market Research could set up the experimental design,
and Market News monitor sales, and Market News or Quality
Assurance do the analysis of and publication of results. Of
course assignments may vary but the concept of units working
together to accomplish objectives to directly aid in PMO/AGS
establishment and operation is a must.

IV. J'The Establishment of Subterminal Wholesale Distribution Markets

The suggestion in the original Project Paper that 4 SWDMs be
established in Jamaica to handle produce and meat, as redistri-
bution centers. is considered to be impractical. This is the

-14 -

consensus of the review team. This review team consensus
is backed by discussion with many MACD officials and unit
heads. However, we wish to modify the original concept of
the 4 SWDMs to undertake wh~ole~sal'ing functions more needed
and more functional in Jamaica. The concept of additional
wtoPlesale marketing facilities is sound. We recommend that
funds be allocated from the original SWDM budget for the

1 A wholesale cattle and livestock "auction" associated
with abattoir.

2 A separate wholesale or retail cattle auction not
associated with abattoir

3 Produce wholesale/retail facility in Kingston
(a conversion of the Agriculture Marketing Corporation
(AMC) building in Kingston).

4 Place on reserve, the potential of a wholesale or
sub-terminal produce and meat facility in Montego Bay.

TV.8 Summary and Conclusion

If a PMO/AGS and SWDM system is feasible in Jamaica, and many
factors suggest that it is, then the organization, structure,
and expertise is largely in place to operationalize the system.
The MACD/RONCO personnel are by and large, eminently qualified,
hard working, and geared to accomplish the objective of a
more efficient assembly, grading and packing and distribution
system for fresh produce, meat and milk in Jamaica.

However, the original project paper proposal must be geared
down and modified to fit operational conditions in Jamaica.

The recommendation for an immediately attainable objective
is to get six AGS in operation rather than the originally
proposed 25. These six wodld most likely be -

Bushy Park
Guy's Hill
Ebony Park
Douglas Castle

Others can come on line in the future as efficient operations
after the above six are attained.

Finally, the original 4 SWDMs concept is considerably changed.
The recommendation is for wholesale markets specified
by commodity and locations as indicated below:


1. a wholesale/retail livestock auction market with an abattoir. ('Dais
would count as two SWDMs, one for each component)*

2. convert the Kingsto~n AMC market facility to a sub-terminal wholesale
market for produce.

3. hold SWDMI number four in reserve for a possible wholesale
sub-terminal market for produce and meet in Montego Bay.

The costs for Yhese markets would be reduced significantly as well, as is
shown in the new or revised budget, page 6 of Annex 2.

*~Ibhe abattoir would be included if the MACD/USALD livestock team agrees it
is necessary.


TOMATO,. CUCUMBER, AND MANGO PACKING 1 243, 816.00 11,990.00 255,806.00

LINE FOR VARIOUS FRUITS AND VEGETABLES 3 223, 602.00' 18,570.00 242, 172.00

CROP WASHING AND PACKING LINE 3 127,128.00 6,225.00 133,353.00

CLEANING, ELEVATING, DRYING AND 2 58, 276.00 N.A. 58,276.00

SIZING AND PACKING LINE 1 119,512.00 6,045.00 125,557.00

6 COLD STORAGE SYSTEM 3 99, 906.00 -1 15, 000.00 114,906.00


7 835.00














-17 -

Social Soundness Revisited


The purpose of this report is to summarize the findings of
the evaluation of the progress of PMO development and the
effectiveness of MACD strategy for promotion and establishment
of PMOs. To date, 6 PMOs are being established, feasibility
studies have been completed on one other and organizational
work on Moore Town has been initiated. The pace of develop-
ment of PMOs has been slow and a number of organizational
problems have arisen which indicated a need for more intensive
inputs with regard to the social and educational components
of the project. The proposed NUCs project will provide support
for this aspect of PMO development. MACD has meanwhile assigned sta:
bowo~rkwith each PMD and is proceeding with a reasonable strategy
of organization. This report will summarize some of the
problems and make recommendations for strategies to expedite
organizational development.

The original social soundness analysis identified possible
socio-cultural constraints which might affect PMO development.
In brief, these were:
1. Farmers dependency In government
2. Farmers lack of understanding of marketing
3. Farmers unwillingness to participate in cooperative
organizations -because of fear of elite control and inequity
in benefit distribution and past experiences with
other cooperative ventures
4. Farmers risk management strategies which could prevent
them from selling produce to the AGS in preference for the
certainty of higgler purchases
5. Farmers low level of education
6. Farmers individualism and consequent unwillingness to
become financially involved with other farmers
7. Political partisanship and clientelism which result in
8. Community decisions along district lines

While these constraints are evident in most of the. organizations
examined, MACD has attempted to address them and in most cases,
has controlled the negative effects.

During our evaluation visits, we met with the Steering
Committee of Douglas Castler Busly Park, Ebony Park, Southfield
and with the management of the Christiana Potato Growers
Association. In general, the progress of all PMOs, while
behind schedule, is impressive. Below we list the constraints
and facilitators in each area relating to the development of
the organizations.


Douglas Castle

A Steering Committee has, been formed and a site identified.
Land acquisition is in progress and the PMO has employed
legal assistance. A membership drive has been launched
to broaden the organization. Staffing for MACD includes
an experienced extension man and a promotions officer with
training experience.

The PMO is poised for take-off, but requires considerable
training and community support. Present constraints are:
- Dependency on MACD for decision making and action
- Poor planning and decision-making
- Lack of a strategy
- Poor analytic skills
- Unrealistic expectations in access to export market
- Low mobilization of farmers
- Difficulties in communication
- Need for input supply
- Lack of data on production and marketing costs
- Low literacy level of farmers

There are, however, moving facilitators which make the
success of the organization quite feasible.
- Large volume production
-Secure land tenure
- Some farmers have direct access to market linkages
- Considerable experience with JAS-AMC
- Enthusiastic leadership
- No political interference or partisan rivalries
- Land availablility
- PCV involvement and assistance
- Good MACD staff
- Effective control of clientelism

. Mobilization of farmers and community support
Meetings on a district basis are necessary to effect
registration of farmers, since the present strategy
of individual registration is slow and there is not
enough manpower to effect it in the time available.

. Training for Steering Committee
The present committee lacks planning skills and has no
strategy for its own development. Early involvement of
NUCS in this PMO is recommended.

. Marketing and Production Information
This PMO requires technical assistance regarding production
costs for the crops that they are now growing. Information


outputs and various types of markets is also necessary.
The Research Unit of MACD should provide assistance at an
early date.

Bushy Park

This PMO is already a formal organization and is being assisted
by 2 PFP officers. Membership is limited to a few larger
farmers and there has been little progress due to lack of
clarity on the role of the organization viz a viz the MACD.
This organization has received an offer for export marketing-
which it has been unable to utilize because of production
constraints, e.g., water and cost of inputs.

- Poorly defined mission
- Elite membership to the exclusion of small farmers
- Poor leadership
- Lack of water for production
- Unrealistic expectations regarding MACDs role
- Delay in design decisions for AGS

- Market opportunities
- Considerable small farmer interest
-PFP staff
- Considerable institutional support from MACD, Agro 21
- Well educated membership

. Redefine the mission
The Permanent Secretary has agreed to assist the leadership
to clarify its mission and develop a strategy for broadening
the base of membership

. Farmer Education
Considerable information is required to prepare farmers
for participating in the PMO, particularly since there
has been a misconception of the role of the PMO.

. Water and other production constraints
The PMO is unable to address the marketing functions until
production constraints have been removed. The need for
water and cheaper input supplies dominates the concerns
of members. MACD strategy should be to focus the PMO0 on
alleviating these problems before attempting to deal
with the AGS.

. Production Costs
The farmers require data on production costs for the proposed


crops and for the crops they now grow. Data can be gathered
from the farmer who is now growing for an export market.

Ebony Park

This pre-cooperative has had three years of technical
assistance and training with at least one years experience
of contract growing for exporters. The management is in
place and the organizational structure is well established.
The cooperative is in the process of registration and is
now seeking credit assistance from ACB.

The only constraint is the speed with which MACD can process
the request for an AGS. No organizational work is required
here; perhaps the only training and extension work required
is in packaging and handling.


There exists an established cooperative organization which
is being developed with NUCS assistance. A site has been
identified and production volumes make an AGS quite feasible.


. Production costs
Standardized production costs for existing and proposed
cro s is required.

Considerable information on local and export market
opportunities is required and the PMO has already made
a request to the MACD.

. Financial Management
Because of the past experience of the cooperative in its
farm store venture, this PMO is concerned about. financial
viability and credit. We recommend that MACD develop a
business plan for first year operation in conjunction with
the cooperatives management at an early date.

Guy's Hill

The Guy's Hill feasibility study indicates financial feasibility
and the organization is ready for registration and training.


We recommend early involvement of NUCS in this PMO to
initiate training of the committee.

- 21 -


MACD has been able to identify 6 suitable PMOs and has
achieved some measure of success in organizing these groups.
Since MACD does not have the appropriate skills to under-
take further development of PMO to the stage of cooperative
management, the NUCS project was initiated to close this
skill gap.

MYACD has taken quite some time to carry out this first phase
organizational work, because of its overt skill deficits
and also because organizational development does take time.
Since the extension staff has not had experience in organiza-
t~ional work, it will be difficult for them to develop more
PMOs without considerable neglect to those which now exist.
Most of the PMOs are at the critical stage of mobilization
which requires a high level of motivation, and enthusiasm
to recruit membership, develop a clear mission and undertake
tasks which should have a high success rate to carry the
groups through to the next stage. This requires close
monitoring and alot of staff support.

A missing element in the present MACD strategy has been
technical information. The groups now require information
and training in compiling production costs and evaluating the
cost/benefit of marketing opportunities. The Research Unit
should examine this as a priority task.

Community support is also required and the various institutions
in the target communities should be informed of the objectives
of the project. Churches, schools, PTAs and Health authorities
can be used to assist with farmer registration, disseminate
information, etc.

The proposed involvement of NUCS appears to be just what the
project requires at this time. Nevertheless, the institutional
arrangements are not conducive to timely delivery of services
and clarity of roles. The memorandum of agreement between
the two organizations is just the first step towards avoiding
overlap and duplication. Accountability for the NUCS operation
in the PMO~s should rest with MACD Extension and some mechanism
for ensuring this should be developed. The NUCS curriculum
outline appears to be appropriate, however, full curriculum
development should be accompanied by definition of the tasks
and performance criteria for the PMO managers. A management
system for PMO managers is required. It would be useful for
the MACD Extension Staff to participate in aspects of the
NUCS training since they will work along with or perhaps
operate in a supervisory role with the PMO managers.

- 22 -

Summary of Recommendations for PMOs

1. Mobilizing Farmers

The process of obtaining wide-spread membership in PMOs
has been slow and we recommend that MACD Extension Staff
- hold district level meetings for educational and need
definition purposes
- solicit assistance for existing community institutions
to encourage membership and to register farmers
- call a general meeting where registration has reached
adequate levels

2. Training

Most committees lack skills in planning, decision-making
and analysis of information. This has restricted their
ability to progress on a self-propelled path. We recommend
early training to include the development of an organization
plan of action for each Steering Committee.

3. Information

Production costs and marketing information are critically
needed to support PMO decision-making at this time. We
recommend that the Research Unit provide this to each PMO.

4. Reducing Dependency

Wherever possible, MACD extension agents should act as
facilitators or advocates for the PMO leadership. MACD
staff should not undertake tasks for the PMO but with
representatives of the PMO.

5. Future PMOs

The team has agreed that a strategy of concentrating on
the 6 PMOs which have been initiated allows a much better
opportunity for success than attempting 25 PMOs. Assigning
one staff member to each PMO would then allow for the kind
of attention and activity which would accelerate the develop-
ment of these organizations. This would also allow MACD
time to gather data on success .criteria and development
approaches which can be employed in developing less suitable

6. Peace Corps involvement in the PMO aspect of the project
would not have a detrimental effect on the project, providing
that the role of the PCV is clearly defined. Since critical
support staff, 2 NUCS officers and a marketing extension officer
will be in place, additional manpower could hardly have adverse


Short term training, and diploma courses and in-service
training are also useful strategies for immediate skill
up-grading which would have immediate impact on the project.


. MACD needs to identify the skills required for short and
long term maintenance of the project. The training advisor,
as a priority activity, should conduct a needs assessment
and dvelop a training plan to meet these needs. We strongly
recommend that a management development course be conducted
for first and second level managers in the project.

This training plan should seek to exploit local in-service
training opportunities as well as short-term overseas

. Training-opportunities should be provided on a merit system
and following staff appraisal.

. Training can also be used as an incentive to retain staff
for the duration of the project

- 25 -

V.2 PMos

With the difficulties being encountered by MACD in establishing
PMOs, no training has been mounted for these groups, except
for Southfield, where NUCS has begun to train the committee
in cooperative management. The constraints to MACDs delivery
of appropriate training services in cooperative management
have been identified and the ACDI-NUCS proposal is an attempt
to reduce these problems.

This proposal provides an adequate methodology for training
and management development for PMOs. It removes the respon-
sibility for mobilizing PMO members from the MACD which does
not now have the skills, manpower or experience base for
this kind of activity.

Interviews with the Permanent Secretary of the Ministry of
Agriculture suggest that there is considerable institutional
support for divesting the Ministry of this function.

The Ministry is an excellent resource for technical information
on production and the MACD is the only resource for information
and training on marketing. There does not, however, exist
a coherent plan for this aspect of training. Considerable
development work on visual aids, demonstration kits, ~manuals
and other methods appropriate to the level of education of
the target groups will have to be done. At present, the role
of the training unit has not been defined in light of the
proposed role of NUCS, and this could create serious overlap
and duplications in the project.

The NUCS organization has the experience and skills to under-
take cooperative development and the proposal is feasible.
The only modification which may be required is the time frame
for manager training which may have to be extended, depending
on the level of education of the managers recruited. The
proposal outlines a good training program which requires only
development of a more skill-oriented curriculum.


.A memorandum of understanding regarding the joint and
separate responsibilities of NUCS and MACD is to be prepared.
This should be regarded as an initial stage in the clarifi-
cation of roles as more specific planning and coordination
is required to achieve coherence. A direct reporting
relationship between NUCS and the MACDs Marketing Developmnent
Unit must be developed, with MACD having responsibility for
planning and coordinating.

.A plan for marketing training should be developed


.A set of performance criteria for PMO managers should be
developed jointly by MACD and NUCS and a system of appraisal
should accompany the employment of these managers.


V.3 Marketing Intermediaries

The project has not yet defined its objectives regarding
intermediary development. Some efforts have been made to
up-grade skills for butchers in the new markets being
developed under the IADB rural markets program, and this
has had some success. However, training in produce handling,
grading and packing for intermediaries in the agro-produce
trade has not been addressed. There is a proposal to direct
training to exporters in order to support the implementation
of the grades and standards now being developed. This seems
to be a useful application of the limited training resources
available to MACD. The task of market intermediary training
is enormous given the number of intermediaries operating,
the level of education and the methods of business management
and produce handling now being used.


.Given the limited resources of MACD, the Division should
clearly identify the target intermediary groups to which
it intends to deliver training services.

- 28

VI. MACD Structural Problems

Purpose of Project

The overall purpose of the project still has validity that of
improving the incomes of producers, intermediaries and consumers
involved in the Jamaican food system. However, whether these
goals are mutually consistent is open to question. The marketing
system can improve farmers' incomes by its effect on farm gate
prices or on the volume of sales. If demand is elastic, reduced
prices can cause an increase in sales as well as in total revenues.
Further, if intermediary costs are excessive due to an inefficient
dis tribution system the quantities of product consumed will be
reduced. This is a basic hypothesis of the MACD project.

There is need for consumer demand analyses for the range of
fruits and vegetables, roots and tubers that are expected to
be marketed through the PMOs AGSs. These would provide a
method of estimating the possible quantities that would be
demanded at alternative prices. Estimates of elasticities of
demand would provide the key coefficient necessary for making
reasonably reliable projections. Consequent to demand relation-
ships showing the potential price (and income) responses,
analyses of distribution costs need to be carried out to determine
marketing margins for the same range of products.

VI.1 Ability of MACD to recruit and retain staff

MACD, as is true of all government organizations in Jamaica, has
had and continues to have difficulty in competing for qualified
skilled personnel. Typically, private enterprise is able to
entice a majority of the dynamic, qualified persons. MACD was
able, during the first phase of the project to reduce the apparent
disparities by starting many of its employees at higher than
normal levels and accelerating their levels of rea rto
through merit increases which permitted salary advances of 10-15%
per year.

This monetary incentive is about to disappear as the salary and
salary advancement system reverts to government wide standards.
The staff is frightened of this prospect. Many staff have already
resigned and those who have other opportunities are giving them
serious consideration. The MACD, if it is to attract and retain
the calibre of staff capable of achieving the challenging objectives
of the project will need to maximize its use of non-monetary
incentives such as opportunities for training and acquisition
of advanced degrees.

Attitudes of some senior management officers do not support
long-term training opportunities ostensibly because the MACD
cannot afford to lose the services of staff for up to two years.
This view is probably short-sighted and, if not modified, will


defer the achievement of the skill levels needed to upgrade
and maintain a high level of functioning. So far, no long
term training opportunities have been afforded and not a great
deal of short-term. As mentioned, management policies have
militated against long-term training.


That the MACD division develops a strategy for improving
the financial incentives for recruitment and retention of
staff consistent with the legal and regulatory constraints
of the GOJ and AID. Possibilities include greater use of
contracts, houses and merit increases.

That MACD develop a coherent set of policies and strategies
for employing opportunities for long-and short-term training
in its recruitment and retention system for staff.

That MACD develops a plan to accommodate a significant number
of staff in opportunities for long-and short-term training.
These could include both Masters and Bachelors degrees as
well as summer intensive courses leading to certificates and
diplomas. Non-degree internship programs should also be pursued.

That staff be utilized in capacities that adequately challenge
their abilities and that non-monetary reward systems be developed
to provide the psycho-social gratifications necessary to
maintain a high level of morale.

That all members of the diverse units be integrated into the
total program, i.e., perceive how each member's and each unit's
contribution affects the performance of the total MACD system.

That management should, in concert with staff, develop goals
and targets for each member of the unit and give appropriate
recognition for individual.achievement. Underperforming staff
should receive timely and appropriate counselling and training
to correct deficiencies and improve performance.

VI.2 Impact of Phase I on Intended Beneficiaries
(Assessment of Marketing Services Infra-Structure and Performance)

It is not easy to assess the overall impact of Phase I on its
intended beneficiaries i.e., farmers, intermediaries and consumers.
No systematic surveys have been carried out to assess the impact
of any of the components of the project. Thus, not much can be.
said in regard to the effects on post-harvest losses, marketing
costs and increased production. In fact, it is probably safe to
say that the actual effects have not been great. The potential
impacts are nevertheless important. Realization of these potentials
will depend on continuity of many of the MACD's current functions

- 10o-

with a higher level of coordination and more focused direction
of efforts. The various units in the division have achieved
differing levels of operation and performance.

yrI.3 Marketing Economics Information and Research Branch

Market News and Information

The market news information component of the MACD system is well
along in the development of its system for data gathering, analysis
and dissemination. Already, the Market News Service collects
and reports on wholesale market price, supply and demand. Markets
covered include Coronation, Christiana and Newmarket. Retail
prices from Brown's Town, May Pen, Mandeville and Montego Bay
are being collected and reported. Say-la-Mar and Port Antonio
are being brought into the system. The news reports are currently
broadcast on Radio Central on Tuesdays and Thursdays.

A system for collecting and reporting on retail meat prices has
been put in place. Situation and Outlook Reports for non-traditional
crops are being published. The Situation and Outlook Report for
Coco is a good beginning (as a model) for the development of these
reports. It presents and organizes data in 'a concise', readable
manner. What is missing at this time is more detailed analysis
of the underlying factors and motivations for change in variables
such as production, yield, demand, prices and margins. The
analysis is as important, as the data.. Hopefully, as the M~NI system
matures and staff become better trained in economic analysis,
the report will take on more of an analytical flavor. The current
head of the unit is taking classes in Economics at the University
and will likely be able to do more of the economic analysis.
The analysis will need to draw on the knowledge and expertise of
agronomic and other technical staff.

The Situation and Outlook Report should also report f.o.b, prices
for exports and wholesale and retail prices in the key export
markets in the U.K. and the U.S.

The discussion format currently -used on radio reports of weekly
price and situation reports seems appropriate for the Jamaican
setting. The basic objective of the MNI should be kept in mind
alIways i.e., the benefits of market information for decisiion-
making. The information may be short-term, in which case the
daily and weekly reports are appropriate. They may be longer-
term in which event the Situation and Outlook reports will prove
more appropriate. But decision-makers-exporters, wholesalers
and farmers need inputs for more rational economic planning and
MNI can supply that information, or at least some of it through
its various media.


Work Plan for MNUI System

The objectives of the MYNI work plan are quite appropriate and
if achieved, would substantially satisfy the functions that
one would expect from a Market News Service. Achievement of
these objectives will depend on the quantity and quality of
staff. The unit is currently budgeted for 16 professionals
and 2 secretary-stenographers. This should be more than adequate
in terms of quantity. In fact, the number of professional
technical staff may be more than adequate to do the job. On
the other hand, the analytical potential of the staff may be
inadequate in relationship to the tasks outlined in the work
plan. Careful attention needs to be given to position descriptions
and to matching personnel with job requirements.

In particular, MNI needs to recruit and/or train 2 or more
economists to fill some of their professional positions. But,
this should await a thorough review of the organizational
structure and staffing patterns of the Marketing Economics and
Information and Research Branch of the MACD. There may be oppor-
tunities to consolidate activities to achieve greater levels of
utilization of professional staff and improve the performance of
individual units.


. That the MNI unit follow its~work plan for 1983/84 as much as

. That the analytical capability of the MNI be improved through
recruitment and/or training.

. That a review of the staffing pattern of the unit be carried
out with a view to consolidating activities and improving the
performance of the unit.

Market Research Unit.

Overall objectives of the Market Research Unit are:
To undertake research dealing with the marketing of agricultural
and food products. This includes both commodity and market
structure research, some of which are conducted on an "as needed"


A review of the goals for the reporting period as well as output
to date suggests that there has been too great an emphasis on
the feasibility studies for the AGSs and SWDMs. These have
consumed an inordinate amount of time. Dr. Feaster, in particular,
has been burdened with developing and redeveloping methodologies
for the feasibility studies along with his responsibilities to
the MNI unit. The feasibility studies that have been done for

-32 -

Guy's Hill and Dias are quite sophisticated and are fairly
standard for development and investment analyses. They are,
however, very time consuming. If the project focuses on a
limited number of AGSs as the evaluation team is suggesting,
there should be increased opportunities for the Research Unit
to undertake other kinds of research that are needed beyond the
feasibility analyses.

Demand studies are very important to point out opportunities
as well as limits in the marketing of the many kinds of produce
that are marketed locally as well as internationally. Demand
studies need to focus on domestic as well as international demand.
If other agencies such as JNEC or JETCO are already involved in
this kind of research, they should be consulted with and resources
coordinated so as to avoid the implicit waste in duplication of
research effort.

Certainly there is a body of existing literature on consumption
and demand, domestically and internationally, that is relevant
to the potential market for Jamaican produce. Someone needs to
develop a fairly comprehensive bibliography on these publications
and sift through them in order to distill relevant information
that can help the MACD, producers and intermediaries in develoPing
appropriate strategies for production and marketing.

The Research Unit needs to carefully define its sphere of operation
and match potential tasks with the skill levels needed to carry
out the tasks. A cursory observation of the present staffing
pattern suggests a mismatch of professional backgrounds and the
potential tasks.

The Ronco Status Report of November 2, 1983 details a number of
weaknesses in the information structure that constrain the
effectiveness of' project implementation. Those appear on pages
37-40. The evaluation team concurs in those observations and
support the recommendations with respect to priority directions
for the Market Research Unit. Those observations and recommenda-
tions are reproduced below.

- 33


Lack of information o~n the characteristics'of production

and marketing and the factors that affect these has been an

important constraint on project implementation. These

information deficiencies include:

a) Market structure, channels, characteristics and roles

of different participants.

b) Volume of current production, amounts marketed and

c) Prices at different levels in the marketing system

structure '. -~'

d) Quality and quality (price) differential at different

levels: quality standards or grades in use.

e) Exports as a sub set of the above volumes, channels,

quality, prices of products meeprted .from Jamaica.

) ReLevant data on pri ces qualities etc. in foreign


q) Supply, distribution channels, and users of different

production inputs.

h) Public policies affecting pricing, exports and imports,

production incentives and related factors.

Efforts are currently being made to develop facilities

and institutions to perform various functions with little

information on how and where these functions are now being

performed and what value may be placed on such services. E~g.,

what is the market structure within which PHO's will operate

marketing facilities and provide services. There appears to

be little felt need by producers for help to improve the

marketing of their produce, nor understanding of how an AGS

will operate. Nor is MACD able, with confidence, to tell the

PMfO how the operation of an AGS will improve the income of

individual members. What will be the differences in prices

they receive, in volumes they can sell?


A systematic program of study should be initiated to

provide information on a-h listed above. It should answer

questions such as:

a) Who is currently providing produce to retail food

stores, restaina~nts hotels, eteWhat services are being

provided by the supplier? What pricing structure does

the supplier useIs the retail outlet satisfied with

the current source of supply? If not, what would the

retail outlet like to have as additional servicent

Whether or not the retailer is satisfied, can the PMO,

either directly or through a wholesale market provide

the services, quantity and quality of produce that the

- 35

retail outlets went and particularly important, can

they be supplied at a price competitive with 'the

current system? How large is the retail food store,

restaurant and hotel market? Where is this market

located? How is this market now supplied in terms of

produce transportation from the field to the outlet?

Is this transportation satisfactory? What will it take

to develop a transportation unit to service these

needs? What will the impact on those*. currently

providing transport, or can the current system be

utilized and what will be the coat?

b) Who are the current wholesalers in Jamaica? What size

operations do they have? Do they have their own

facilities? If so, will they be willing to trana~fer

their opera Jtons to a wholesale terminal? What kind of

services would wholesalers want in a wholesale

terminal that would-assist wholesalers to better serve

their customers? Where should wholesale terminals be

located and how many should there be 'to adequately

serve existing and projected needs? What costs will be

incurred to provide services to wholesalers and/or

retail buyers and are they willing to pay these costs?

c) What is the specific role of higglers? What services

do they provide to producers? How do higglers

establish price? What are their costs? Will they

utilize the services of an AGSj


d) Who are the current exporters in Jamaica? What

products are they handling? What volumes do they

handle? Where do they get their produce, for export?

Are they satisfied with this source? Are they

considering handling additional volume? What are their

quality and quantity requirements? ef are the markets

or export? What export requirements must be met?

What are current imports? What is imported and at what
could they be
price? Under what conditions / produced locally? What

would this require in the way of incentive/, inputs,

-marketing structure, prices, quality standards etc.

The above array of questions are illustrative of the

types of questions that need to be answered to provide the

type of.. information required to adequately design

improvements and enable MACD to assure farmers marketing

their produce through the PMO/AGS of greater profits. Once

producers are convinced of this, it should not be difficult

to correct the primary problem faced at the present time -

that there generally does not exist an adequate membership

base to provide the volume of products required to make the

AGS's an economically viable enterprise."


The present staffing pattern of the Market Research Unit seems
neither adequate nor appropriate for the tasks confronting this
unit. There is need for at least one marketing economist, an
agricultural economist and possibly a specialist trained in
business organization and management. By reviewing the structure,
performance and requirements of the entire Marketing Economics
Information and Research Branch, the Director may gain information
on how resources can be better deployed in the Branch to improve
the actual and potential performance of the various units including
the Market Research Unit.

VI.4 Marketincr Economics and Credit Unit

This unit appears, for all intents and purposes, to be non-existent.
And the rationale for this unit is tenuous at best. Moreover,
it is a very small unit and may not possess the critical mass
needed for effective functioning. Budgeted for three professional
staff, it currently has only one recently hired person. Ostensibly,
demand and supply analyses would be handled by this unit.


-That the Marketing Economics and Credit Unit be merged with
Market Research as part of a rationalization of the entire
Branch and that its functions be subsumed under the expanded
functions for that enlarged unit.

VI.5 Quality Assurance Branch

The Quality Assurance Unit of the project is in the process of
developing a comprehensive system of quality assurance which will
include the development of grades and standards, acceptance and
dissemination of same among vital components of the system and
the provision of training for food handlers, shippers, supermarket
personnel, etc. The unit will undoubtedly be making a significant
contribution to the performance of Jamaica's food production and
distribution system. That .contribution, in all likelihood, will
begin with improvements related to exports of produce since there is
already an implied demand for product differentiation as reflected
in grades and standards. Export markets are already well attuned
to the system of product grading at least at the market level.
If Jamaican products are to compete with products from other
Caribbean areas, they must at least meet, if not exceed,the quality
of the competition. They must also establish some record of
consistency and predictability, and given the increased emphasis
on foreign exchange earnings, the attention to quality is inescapable
and the potential impact of a quality assurance system potentially

Initially, is is perceived that the Quality Assurance System will
similarly have a positive impact on the domestic market. Questions
have been raised as to whether Jamaican consumers are willing and
able to pay for the costs of standardizing and grading the array
of produce.


There is, however, little empirical evidence as to consumer
demand for and response to product differentiation based on
grades and standards. Some experimental projects to test
consumer responses to differentiated quality and price might
serve to buttress a oriori notions and help in the design
and/or redesign of grades and quality standards as well as
provide some indications as to demand elasticity for the various

If the various components of the food chain perceive benefits
from changing the present heterogenous system to one of standardized
quality, the implementation phase will proceed more smoothly and
expeditiously. It would be helpful to identify the expected
benefits for each component of the system. These have been
identified in general terms. Now it remains only to specify these
expected benefits for farmer, PMO, wholesaler, exporter, grocer
and consumer.

The- successful performance of a Quality Assurance System requires
constant monitoring, testing and feedback. It requires well
trained personnel whose activities place them in constant contact
with 'products and those responsible for the movement of products.
Ensuring the appropriate staffing and management of the unit should,
therefore, be of high priority. In addition, equipment for
testing and monitoring product quality must be acquire-d-before
the quality assurance system can go forward. Needed items are
estimated to cost $10,000.

The Quality Assurance System is currently operating as a low
profile technical operation. This may be an appropriate posture
during the early exploratory and developmental phases. However,
its contribution may be enhanced with greater attention to
outreach, communication and extension. The unit and/or the
Project Coordinator will need to take determined steps to communi-
cate the goals and achievements of the QA unit to Ministry
hierarchy, Ministry staff, other agencies related to the promotion
of agriculture. Perhaps, the QA unit could coordinate their
extension and communication activities with the Marketing Infor-
mation unit. Farmers, traders and wholesalers would thus come
to see QA and Marketing Information as complementary parts of a
total system.

Documents outlining the objectives, achievements and work plans
of the Qualityt Assurance Branch of MACD indicate that there is
a very good conceptual grasp of the role of the QA system in the
marketing of Jamaican products. Work plans for 1983/84 and for
1984/85 may be somewhat ambitious. They are, nevertheless, very
complete in their scope-covering research, development of standards
and training. If achieved, these activities would have served
to institutionalize and demonstrate the potential role of QA in
the marketing of non-traditional crops.

- 39

VI.6 .Markcetinla Develcoment Branch -

The overall objectives for this unit are outlined in their Half-
Yearly Report, covering the April-September 1983 period. Those
objectives include the following:

1. To improve the quality and value of agricultural crops-
(domestic/export) available to consumers

2. To improve efficiency in Marketing, to reduce post-harvest
losses and improve packaging and distribution methods

3. To assist farmers and marketing intermediaries with solving
particular marketing problems

Our brief experience here as an evaluation team does not suggest
that objectives 1 and 2 have or are being met. This is partly
a consequence of the slowed schedule of constructing the AGSs
which themselves have been retarded by the difficulty in organizing
and chartering the PMOs.

The third objective has been and is being dealt with perhaps to
the detriment of the first two objectives. Farmers are using
marketing extension officers to solve immediate problems related
to the marketing of their crops. Wholesalers, processors and
exporters, on the other hand, use the same officers to find sources
of products. This informal brokering function has expedited the
exchange of information necessary -to improve the efficiency of
the marketing system and has probably resulted in an increase
in the volume and value of products in the market, both domestic
and export.

The unit has established a close Liaisonwith a number of agencies
and organizations through which timely information can be exchanged
to facilitate decisions related to competitive imports.

VI.7 Development of PMOs/AGSs and JAS Collecting Stations

The objectives of the unit are as follow:

1. To provide technical assistance and training in organizational
methods to staff responsible for initiating sad developing

2. To provide training and guidance to PMO personnel; that is,
farmers, members, boards of directors, managers, and other
staff, in their various roles as they relate to the organiza-
tion, and development and operation of a viable marketing

3. To provide assistance to JAS groups in establishing Informal
Collecting Stations.

- 40

The inability to plan, organize and deliver appropriate training
to MACD staff re, organization of PMOs is at least, partly
responsible for the slow development of the PMOs. The effectiveness
of MACD staff in PMO identification and development varies from
region to region and PMO to PMO. It has not all been the fault
of MACD staff. Organizing farmers in rural Jamaica is quite a
task-formidable even for seasoned, experienced organizers. The
task was further complicated by the-project design which called
for 25 PMOs and AGSs in a 5-year period.

*Given all these limitations, the Marketing Extension unit has
brought several PMOs to an intermediate point, and this within
only the last 9 months or so. The MACD marketing extension unit
is to be congratulated for achievements to date.

Nonetheless, if the pace of PMO-AGS development is to be quickened,
some changes will need to be made.


. That the Marketing Development and Research Groups collaborate
in developing a set of criteria for ranking PMOs in terms of
those more likely to become operational with a reasonably good
chance of success in the short run.

That the MACD Marketing Development Unit focus its attention
and energies on a limited number of PMOs for the next couple
of years. Given the constraints probably no more than 6 can
be given adequate attention.

That a plan of training be developed for the MACD staff responsible
for PMO identification and development and that members of the
research unit be involved in the training in defining the critical
socio-economic, ecological and other variables important to
the spatial and socio-economic definition of PMOs.

That MACD Marketing Development Unit work closely with NUCs
in developing an educational program for farmers and managers
of PMOs the MACDs jrnput to include technical and economic
information related to the marketing aspect of the PMOs.

That MACD staff involved in PMO development meet.frequently'
(once per month, at least) to share information on problems
encountered or successful strategies in PMO organization.

That training in sociological and psychological material related
to their tasks be provided to MACD staff.

That staff incentives-material and non-material be developed
and provided for goal achievement related to PMO development
and operation.

In actuality, with the prospect of NUC's involvement, the MACD
role in the early organizational work should diminish. It should,
however, strongly support the NUC's effort with technical and
economic input related to marketing and the potential benefits
of the PMO marketing system on prices, quality and farmers' incomes.

- 41 -

V1.8 Manaqqment and Decision-Makina

The recent appointment of a Project Coordinator could improve
the management and decision-making system of the MYACD. We must
acknowledge that it took a tremendous effort of initiative,
leadership and management skills to launch and institutionalize
the MACD division. And commendations are in order for the top
management team that accomplished this. With the departure of
Ms.Viv Logan, however, the effectiveness of the management
system was reduced as the position of Project Coordinator which
she left vacant remained so for several months.

A project of this size, scope and complexity can ill afford to
be without a coordinator. Once policies are set, priorities must
be determined and resources must be programmed and coordinated
to achieve goals and objectives. It is in this latter area that
the project has been deficient over the past year or so. Priority
setting and coordination have not been sufficient to clearly
focus the energies of the staff on those activities that were
the next logical steps in the evaluation of the project.

The problem was exacerbated by the goals of the project (25 PMOs
and AGSs) and 4 SWDMs, etc. Unit heads and some of their staff
were confronted with great challenges but lacked the experience
in management and decision-making to sort out priorities. Further-
more, while they may have done well in terms of the goals and
objectives of their own individual units, they needed a greater
sense of integration of -the total project. At this stage, the
project cannot afford too much fragmentation of effort.

In short, the project needs an active coordinator who can expedite
decision-making, identify constraints and take steps to remove
or mitigate them. The coordinator must promote interaction among
units and communicate the goals and objectives, problems and
achievements to all members of .the MACZD staff.

VI.9 Quality of Technical Assistance

The quality of technical assistance supplied to the MACD has improved
Admittedly, the first team of consultants were not able to contribute
as much as had been hoped for. The feeling on all sides now is
that the RONCO team is a considerable improvement over the first
group. There does~, however, seem to be a somewhat uneven distri-
bution of responsibility among the various consultants. The slow
pace of development of the PMOs, AGSs is probably partly responsible
for the apparent disparities. Research and Market News, Quality
Assurance and the Livestock T.A.s are already deeply involved.
The Training component, for a variety of reasons, is off to a
slower start. For one thing, the RONCO consultant has had no
local counterpart until quite recently. In addition, few of the
MACD staff have met criteria for overseas long-term training, and
management policies have not supported long-term training abroad.

- 42 -

Thirty-six person months of short-term external training was
budgeted. Nineteen have so far been completed. In view of
the proposed reduction in the scale and pace of development
of the PMO-AGSs and SWDMs, there ought to be an increase in
the allocation of short-term external training for MACD staff.

The goal of ten persons to receive long term external training
may be difficult to achieve. This goal could be reduced to 5
over the next five years (assuming the life of the project is
extended. ) Consideration should be given to including persons
with JSA diplomas for external training leading to Bachelor's
degrees. This will upgrade the staff professionally. Training
will be critical to the success of this project and the Training
unit will need to accelerate its efforts and creatively design
and develop courses and programs for M"rACD staff, PMO and AGS

The slow pace of development of the PMO-AGSs has also reduced
the immediate impact of the consultant responsible for post-
harvest engineering and technology. The consultant has, never-
theless, contributed significantly to a reevaluation of the
designs of AGSs and a reassessment of equipment and technology
appropriate for various types of AGSs. The consultant's experience
and expertise is undeniably extensive. Hopefully, as the priority
list of AGSs become operational, his expertise will be used more

The Ronco November 2nd (1983) report points out what they perceive
as a weakness in the organization of the project and the team
which reduces the potential effectiveness of the consulting
team. Presently, consultants operate largely within the narrow
frames of reference of the units to which they have been assigned.
Ronco perceives greater benefits from increased levels of
collaboration and cooperation at a project level in addition to
the contributions now being made at the Branch and Unit levels.
While there has not been sufficient time to'examine this proposal
in more than cursory fashion, it merits examination. An effective
system of project coordination by the MACD division may preclude
the need for a Ronco TA coordinator to help coordinate the TA
team as well as serve as a counterpart to the MA4CD coordinator.

What is clear is that more' coordination, collaboration and co-
operation among the TA team would enhance their effectiveness.
and enhance achievement of the project's effectiveness. All TA
consultants should be involved in the development of PMOs and
AGSs and should gear their efforts to supporting the process.
They should become actively involved even before PMOs or AGSs
become operational.


.That MACD promote greater levels of cooperation and coordination
among RONCO TA team.


.That consultants become more involved in the developmental
work related to the PMO-AGSs.

VI.10 Potential Peace Corp~s Involvement

Peace Corps volunteers could supply an important increment of
resources which may facilitate the community development activities
which precede the formation and registration of PMOs. They could
also possibly be helpful in the early stages of implementation
of the PMO-AGS system. Responsibility for the supervision of
the Peace Corps volunteers would rest with the MACD extension
officers and the NUC's trained PMO management team after PMOs
become operational.

Mr. Gregg, a Peace Corps volunteer currently working with the
Douglas Castle group has obviously been of considerable usefulness
to the fledgling farmer group there. Mr. Gregg blends in well
with the community and has established good rapport with local
farmers and community leaders.

Peace Corps volunteers should be selected carefully. Knowledge
of rural community dynamics is important, but as important are
personality characteristics that enhance or inhibit their effec-
tiveness among rural Jamaicans. Patience, tact and a minimum of
arrogance and intolerance are characteristics that could prove
beneficial to quick and continuing effectiveness in the host


That where feasible, Peace Corps volunteers be assigned to
targeted PMO areas to assist in the development and operation
of PMOs. They should, however, play subordinate roles to MACD
and NUC's staff. This is critical. The initiative and respon-
sibility for organizing PMOs must come from the Jamaicans and be
so perceived by the farmers and the rest of the community.


VII. Team Recommendations

Given the discussions in the preceding sections, the evaluation
team recommends jointly with the MACD, to concentrate all efforts
on a limited number of fairly advanced areas as a pilot set of
activities. To this end, six sites have been selected for this
effort, namely, Christiana, Southfield, Bushy Park, Douglas Castle,
Guy's Hill, and Ebony Park. In each case, a PMO is registered
or about to be registered, and all conditions precedent have
been met or will be met in the near future. It is recommended
that USAID facilitate all actions necessary to put these six in
operation as soon as possible, waiving the need for strict adherence
to the CPs, if necessary, until a later date. The project needs
this added momentum, especially as it faces the transitionary
state dictated by a change in director at the end of the year.

By concentrating all activities on these six, to include assigning
a marketing extension agent exclusively to each one, dropping
further feasibility studies until proper demand analysis is
carried out, and assigning more resources to help each one get
off the ground financially, the probability of success will be
much greater than appears at the moment.

Several reasons exist for justifying this action. The first is
the need for placing in operation some of the PMOs to get an idea
of how feasible the overall concept really is, especially in terms
of its economic and financial feasibility. Only through actual
experimentation can this be demonstrated.

Several parameters have changed since this project was designed.
Demand for produce has increased and production costs have changed
because of the parallel market. Several economic models are
presented below to demonstrate what effect these changes may
have on demand and supply of produce from the PMO/AGSs envisioned
by the project.

Reasons why a strageqy of a limited set of pilot activities
seems viable

1. Evidence exists from several studies and conversations with
farmers, that the higglers market less than 100% of a farmer's
crop. An AGS should be in the position to guarantee a market
(not a price) for a larger percentage of each member's crop than
traditionally goes to market at present.

2. Through grading, a quality product will emerge which should
be able to penetrate the supermarket and hotel markets, to include
restaurants near the hotels. This will have the effect of increasing


demand. Moreover, as legislation protects local producers
against food imports, demand will increase even further. And
the hotel trade should increase in the short-run because of.
the parallel market exchange rate. Import protection is needed
in the short-run until the producers and PMOs learn how to
provide for this market. Initially, risks will be high and
not all contracts will be honored. Until the participants
learn how to deal with these risks, protection will be required.
Although all imports are licensed now, that is, there are no
free imports at present, specific policy analysis is required
in order to understand how imports affect fresh produce production
and what controls may be necessary. Even though a policy
paper is at the cabinet level to restrict powdered milk imports,
there has been an announcement of $13 M (US) credit for dairy
products to include powdered milk. These controls are especially
critical in the early stages of development, when establishing
the new crops is important. Once these production and distribution
systems are functioning efficiently, the controls can be relinquished.

3. The impact of the August 3 CBI legislation will be to
increase competitiveness of Jamaican produce in U.S. markets.
The costs of marketing will decline and the derived demand
curve in Jamaica will shift up to the right, expanding Jamaican
supply along the existing supply curve.

4. Ethnic and winter vegetable demand is increasing in the
U.S. Produce as a % of supermarket sales has increased from
5% to 15% in the last decade and is expected to reach 25% within
10 years. This moves the U.S. demand curve outward, expanding
total demand. The repercussion in Jamaica is to increase derived
demand with the same consequences as #3 above. Since Jamaica
has already penetrated this market with private exporters, it is
certain that this trade will expand.

5. If labor as a percentage of total cash inputs exceeds 50%,
the cost of production of Jamaican produce will decline in
relation to U.S. costs, making Jamaican produce more competitive.
Reducing production costs will shift the supply curve to the
right as shown in the accompanying diagram.

6. The AMC marketing system failed financially because it bought
high and sold low. Margins to pay for the costs of marketing
were squeezed down to zero. The reason for this was because
any market of last resort with a fixed floor price ends up buying
more at a higher price than would be bought if the price were
allowed to fall down the derived demand curve. Farmers, seeing
the security of a floor price, over produce and sell more than
they should when compared to a free market. By taking away the
floor priced purchases, uncertainty will rise, and supply will


decrease, and in turn, drive prices upwards. Until a degree
of coordination or certainty is reintroduced into the market,
supply will remain at a lower level with obvious consequences
on price.

7. Reducing spoilage and transportation costs will reduce the
margin between final and derived demand. This will lead to an increase
in farm gate demand and will lead to greater supply. See diagram #3.

8. Locating markets and organizing production schedules, plus
giving better advice on production technologies, will reduce
uncertainty, thereby lowering imputed costs, and increasing
supply as shown in number 5.


The models which follow are simply for reference, and were used
by the consultants to carefully predict the impact of changes
which have occurred in various conditioning parameters over the
last two years.

Case 1. Increase % of production marketed.


;6.00 1




Price (Py)

ntity (Y)
keted per farm)

Pyl gl = pyyl

(acres mar

Quantity (Y)

Value (PyY)


Al 7 2 = 14
Bl 5.5 3 = 16.5

A 4.25
B 3.75


A 33% spoilage, B 25% apoilage
Reduced transportation cost will increase K or raise D
meaning farmer will earn more, PyY.

Case 2. DI will shift to the right (in the upper portion)
causing farmers to respond with more supply of higher
quality. (See diagram on following page.)

(Case 2 con'd)


0U 1
k Al


BlB ) A1A
B1 ) Al

Quantity supplied by farmers will increase and
they will fetch a higher price. Moreover, returns
to marketing will increase marginally.

-r Cl _


A farm supply without imports
B with imports


C-B = quantity of imports


Case 3.

AS Quantity

Moving from A to 8, due to reduced marketing
costs (CBI legislation) will create producer's
surplus in Jamaica and consumer's surplus in U.S .

Case 4.

AB Quantity

An increase in demand in U.S. will lead to a
Jamaican supply response, i.e., price and cnuantity

SCase 5.





A BQuantity

If labor as a percentage of total cash production costs
is greater than 50%, which it generally is for annual
high valued vegetables, then the effect of the parallel
market would be to lower costs of production vis a vis
the U.S. market. With given demand, supply would increase
as shown in the diagram above. The total industry-wide
affect would be a shift in the supply curve as shown

AB Quantity


Case 6.

C A BlB Quantity

In a normal year, supply is A, farmers price is Pl, and
AMC takes 1%. In an abundant year, price stays at P ,
supply expands to B, and AMC is supposed to take 1% plus
B-A. Without AMC, price would fall to P2, and supply
would be Bl, with a sufficient margin to cover marketing
costs. At B and Pl, demand price is not sufficient to
cover marketing costs. In a short year, AMC would not
purchase and price would be at P3, absorbed 100% by the
higglers and traders. Because of the floor price guarantee,
even though AMC did not always have the cash to purchase,
supply tended to expand.. There was more expectation
of a favorable price even during a glut. However, without
AMC, supply will fall because uncertainty will increase
and be added to costs as a premium. The reverse of number
4 above will occur.


VIII. M0A Response
The recommendations derived in the previous section were developed in
close consultation with the MOA's marketing division and the technical
assistance team. Each point and issue has been agreed upon and actively
supported by these groups. It is felt that at this point a major redesign
is not necessary but rather a shifting of budget amounts from one line
item to another is all that is necessary through letters of
implementation. The principal objectives of the project and the expected
outputs remain the same. It was known by everyone involved that the
original project design could not achieve its objectives in five years,
and with the false start in terms of TA and equipment miscalculations,
everyone recognizes that an extension in the EOPs is required.
When the team first discussed the project with the Permanent
Secretary, and on the last day, with the Minister of Agriculture, it was
obvious that there was quite some concern about trying to do the original
twenty-five AGSs and four SWDMs all at one time. Moreover, there was a
concern about overlapping between MACD and other divisions of the Ministry
and to some extent with regard to outside agencies such as JAMCO, JCTC,
JETCO and AMC. However, when the recommendations which emerged from the
evaluation were presented, both the Permanent Secretary and the Minister
agreed in principle to the strategy developed. The evaluation team is not
afraid to unconditionally recommend movement on the six to eight PM0/AGSs
and three SWDMs identified as the pilot set by the MACD). Sufficient
production to support the operations clearly exists in these areas, and
with a concerted effort to organize and supervise the operations on the
part of the marketing extension unit with the assistance of training and
staff from the NUC's project, ACDI, PFP and the Peace Corps, it is felt
that a real breakthrough in small farmer marketing is imminent in Jamaica,
and the whole Caribbean for that matter. Key to this effort is the
shifting of resources from the excessive SWDM budget to the provision of
added support for creating


the PM~s, by providing more operating cost assistance, financing
vehicles as equipment, and discounting interest and some principal
charges for excessive design of equipment. The MYACD in its entirety as
well as the Permanent Secretary and Minister support these adjustments.
That is the key to evaluation, that the folks responsible for
implementation feel that they own the recommendation, that they were
instrumental in guiding their design, and that they are committed to
carrying them out. Since the evaluation team feels this to be the case
with respect to the blitz on the pilot set of AGS's, we strongly
recommend that AID/Jamaica look with favor on the M0A request that will
be forthcoming in early December and that is attached in draft form to
this report.
Missing Elements
Phase I of the marketing project has concentrated its efforts on
developing market information, demand analysis, and feasibility
studies. In Phase II, the focus has been on developing PMO's to operate
assembly and grading stations complete with buildings, equipment and
some vehicles. Sub-terminal wholesale markets are also to be
constructed to handle the produce in major consumption and staging areas
for export.
Although the project properly addresses the major marketing
activities, there are some missing links in the chain from production to
consumption. Visualize, if you will, three major activities -
production, marketing, and consumption. Each of these activities
requires capital, technology, labor and management. The project covers
several of these inputs for the marketing activity, and most effectively
the technology component and management issue. However, working capital
is not provided. Although it is recognized that a properly functioning
PM0 must finance its own working capital, by marketing members crops on
consignment in the initial stages, leaving this component out has led to
marketing project failures in the past. Moreover, it is very rare for
donor-funded projects to provide such credit because it is extremely


op ital, processing,transport


inputs, capital ,prices
J J L/


water, climate


S pro essi stzibution

cpital ,

*Wyuipment ,~n J
packaging, market identification
*labor, transport
*bldg i

(AMC) export


register PMO
clear title
contract PMO/MACD



sureducers higglers

Subsidiary activities
input supply
drying r



risky and often carries no collateral. Nevertheless, it remains an
unaddressed issue in the original design. For this reason, the M0A is
requesting AID to consider reallocating some of the excess funds from
the SWDM budget to the designated Special Fund, to be used for offering
a guarantee to the ACB if they open up a window in their portfolio of
agricultural credit to the PCB or other commercial banks for working
capital to PMO's or other traders/higglers who would market PM0 produce'
on a cash or partial pay basis. It is suggested that the primary
banking source manage the credit on strictly commercial terms as if it
were not guaranteed at the secondary level and insist that no loans at
the primary level be forgiven outright but that all means of
refinancing, collection postponement, or lien on buildings, equipment,
vehicles, stock or produce be applied until exhausted. Since this
activity would be run on a trial basis, with a limited amount of
guarantee capital, it would be evaluated in two years to see how
effective it is.

One other use of this fund~could be for the financing of secondary
activities to the assembly and packaging function. Pre-cooling or cold
storage is already being considered at some sites. Consultant team
member Smith Greig feels that a frozen french fry operation at
Christiana is feasible. He would be willing to come back down with a
technician to work up the feasibility study for such an operation early
next year. Apparently, the cooperative has already considered this
option. Coupled with the trimrming of produce could be the feeding of
hogs. Ripening or drying of produce such as onions is also a
possibility. Input supply should be an integral component of each AGS,
including seeds, fertilizer, dust and sprays, and animal feeds.
Consultants under RONCO have already been contacted to assist JAS in
straightening out their operation so that they may purchase in bulk for
the PMO affiliates. The last suggestion is to manage the vehicles in
the off-season and the back-haul to insure full loads for each trip.
Trucking for profit should be the motto.


Iisthe profit earned from these secondary activities that will
probably make the PM~s viable. There is a tendency for any
farmer-managed marketing operation to force higher prices for the
producers. Consumers (retailers) will always try to get cheaper produce
and expanded supply will drive prices down. Only by expanding and
totally integrating the PM~s operations will profitability be insured.

Specific Recommendations

.1. Concentrate all efforts on the pilot set of six PMO/AGSs for the
next year.

2. Add resources to extend coverage of start-up costs, namely,

a. Double coverage of operating costs to 100% for two years and 50%
for two years,
b. Add vehicles to equipment schedule and finance the same way,
c. Discount excessive equipment costs.

3. Extend life of project by 3 to 5 years.

4. Change approach to SWDM development as indicated in M0A draft

5. Accept M0A Request for Disbursement Waivers, as per attached draft.

6. Consider revised budget attached to M0A draft.

7. Develop the Special Fund as requested.

8. Include NUC's contract under MACD) management portfolio.


9. Consider NUC, PFP, ACDI and Peace Corps PM0 development contracts
under MACD management portfolio.

10. Upgrade staff and improve incentives by promoting more long- and
short-term training as suggested in Section V.1.

11. Pay particular attention to the role of professional staff in the
Market Research Branch. Demand analyses, market channel analysis,

and production studies are essential, particularly targeted to
crops designated for the first 6 PM~s/AGSs.

12. Restructuring of the marketing economic and Credit Unit seems to be
in order as stated in V.4.

13. Consider reducing total number of AGSs to 15.

14. Extend life of project according to request of M0A/J.


The evaluation team has been in constant contact with the MACD in

preparation of their proposal for AID/J consideration. The team leader
has also briefed the LAC Bureau in Washington.

If agreement is reached on the GOJ proposal, seven follow-up
actions are recommended:

1. That the mission invite Dr. Gupta, from the International Trade
Center, Geneva, to visit Jamaica in early 1984 to discuss plans for
second-tier bank portfolio guarantees, based on his work along
these lines in the agribusiness sector. The SFMA Project could
arrange this.


2. That Dr. Smith Greig return early 1984 with an engineer, on the
request of Christiana, to do a feasibility study for frozen fried
potato processing.

3. That in collaboration with RONCO, consultants be invited to study
the feasibility of expanding the Jamaican Agricultural Societies

input stores program.

4. That a consultant on farming systems be invited to advise the GOJ
on how to integrate on-farm adaptive research techniques into the

PM0 program.

5. Redirect market research unit towards costs oif production, demand
analysis, export potential and transport and processing costs
studies, for the six pilot PM~s. Include production and price
variation in the analyses.

6. Pursue concept-of secondary activities, i.e., processing,
transportation services, input supply, hog production, frozen
french fries, etc., as real money-making operations of PM~s/AGSs.
Let's prepare concepts paper on this.

7. Contract de Balogh to carry out market channel study as per
attached proposal, Annex 3.

Annex 1.



The successful establishment and operation of the Producer Marketing Organisations
(PMOs) require clarity and agreement on the precise functions of each'agency which
will be involved and perfect co-ordination of the in-puts of these agencies. There
must be understanding and agreement in respect of the agency which will perform
the lead role and be responsible for co-ordination.

The two (2) agencies involved"are :

1. The Ministry of Agriculture Marketing and Credit Division (MACD)

2. National Union of Co-operative Societies Ltd. (NUCS)

MACD has laid the ground work and began development of some PMOs and in fact a PMO
which is part of Christiana Potato Growers Co-operative Association Ltd., is operational.


The role of the MACD in the establishment of PM~s will be :

Identification of areas with the need for and the potential to
develop viable PMOs

Responsibility for the infrastructure required by PMOs to start and
continue operations acquisition of land, supervision of buildings,
procurement of suitable equipment

Conducting the necessary feasibility studies

Providing marketing extension services marketing research and marketing

Providing quality control guidance grading standards etc.

Co-ordinating with NUCS' Co-operative College in deciding on the marketing
component of the PMO training and curriculum

.Conducting training in marketing as required in the PMO training -programme
to be developed and implemented by NUCS' Co-operative College

.Analysing marketing problems of PM~s and recommending solutions

Assisting in the evaluation of marketing performance- of PMOs

C-ordinating with NUCS' Co-operative College in developing the technical
farming component of the PMO curriculum in keeping with specific needs
Conducting'. .~ technical agricultural training at various levels in PM~s as
dictated by programme developed by NUCS' Co-operative College

- 2-

.Analysing technical farming problems experienced by PMO farmers"and
recommending solutions

.Assisting in the evaluation of PMO farmers production performance


The role of NUCS in Producer Marketing Organisations will be as follows :-

To id'entitydarmuleaderss in prospective PMOs in which there is no existing
organisation through which to work

.Recruiting staff for new PMOs Manager and Assistant Manager in co-ordinatic
with MACD and Farmi Leaders

Development of comprehensive training programme for all sectors of PMOs to
neet all areas of training needs leaders committeee) staff and rank and
file members

Responsibility for effective implementation of training programme in PM~s.
This will involve :

(a) Organising in-house training and obtaining expert resource in-put
from other agencies as required

(b) Organising local on-going training on similar lines as in (a)

(c) Arranging for and conducting PMO personnel on visits to other
PMOs and marketing agencies locally as training exercise

(d) 'Aeranging for PMrO personnel to go bn overseas visits to marketing
agencies as part of training.

Monitoring performance. of all sectors of PMOs to evaluate training and
its effect on attitudes, detect weaknesses and need to re-inforce, intensify
or expand training in subject areas

Ensuring that adequate accounting system is instituted and maintained
in PMOs

.Ensuring effective flow of information and communication to PMOs and
within PMOs structure

.~Guiding PMOs to find solutions to problems likely to affect PM~s and
developing the necessary strategy. to avoid them

Ensuring that PMOs receive all the required in~-puts from the other
agencies involved.


The National Union of co-operative Societies Ltd. (NUCS) as a voluntary organisation

representing over 400,000.persons of which a large proportion is PMO type farmers,
should and will maintain overall co-ordination of in-puts by the two (2) agencies
concerned as it relates to training.

In executing this role, NUCS will :-

Plan and document a 'co-ordinating policy approach

Seek and obtain agreement from MACD

Maintain clear cut lines of communication and understanding between

Avoid over-lapping of agency and other resources or the creation of
gaps in resource in-puts.

NUCS will maintain harmonious working relationship between MACD, PMOs and other
agencies that may be involved from time to time.


The. Contact Personnel through whom co-ordination will flow in the respective agencies
are as follows :-










17th Novemlber, 1983

a. iiAnnex 2

On the ocession of th~e visit of the USAfID mid-term eval-ation team

comnprisilng five (5) USAID Consultants ?rnd four (4) GOJ staff uembe-rs* and bazred

on field visits and discussion, the! Ministry of Agriculture requests consideration

of the following adjustments to the Project Financial Plan and Loan Agreement,

amendment number one (1) March 31, 1982, including Annexed Amplified project


I. With regard to the development of four (4) Sub-terminal Wholesale Distri-

bution Mlarkets, it is requested that the following adjustments be made:

1. That the AMYC facility on Spanish Town R~oad be renovated and reopened

to serve the Kingston area, as a wholesale market and staging point

for exports, to be managed by a private contract to JCTC, AMC or some

other entity desibnate;

2. That the CP for fifty percent (50%) lease commitment for the AMC

markett be waived;

3. That the Livescock Center in Bushy Park, St. Catherine, be considered

as a SWDM;

4. That because of the design of such a center and its functioning, that

the fifty percent (50%) lease requirement be waived as not relevant;

5. That the proposed abactoir, to be located next to the Livestock Center

or other site to be determined, be considered as an SWDM1, with the same-

waiver of the fifty percent (50%) lease requirement;

6. That funds for one (1) SDM? be reserved for M~ontcao Bay, or other site,

as and when feasibility studies, to carried by ZMCD3, so indicated.

7. That savings on the S1WMD budget be released for application elsewhere

within the project. (See attached Budget Reallocation Table).

II. With regard to the ACS development and PM0 contracts, it is requested that

USA~ID accept the M0A anrd Evaluation Team recommendations to concentrrae a

pilot set of six (6) produce stations. This concentration will require~

special support as outlined below. The MiOA requests USAID to Eacilitate

thlis focus by approving disbursements immediately b~ased on recognition ofi

the status of each C250 as presentedl in the listing to follow.



Socio-Economic Study


Land Acquisition

PMO/MA~CD Contract



- o be addressed by P.S.

- t be signed 29/11/83


Socio-Economic Study


Land Acquisition 6



-Ministry of Finance has indicated
that funds for purchlase of land
can be paid out to account general.
(P.S. needs to expediate)

-Being reviewed by PM0.

-Present level sufficient to operate
equipment. Water Commission in the
the process of increasing supply to
Cooperative. (P.S. needs to
expediate) .

(d) PM0/MAiCD Contract

(e) Water Supply #"


(a) Socio-Economic Study

(b) Resistration

(c) Land Acquisition

(d) PPRO/LMACD Contract




-Being reviewed by PMI0.


(a) Socio-Economic Study

(b) Registration

(c) Land Acqluisition t

(d) PM0)/EACD Contract

-MACD vill submit to AID for
approval 30/11/83.

-Documnents being prepared for sub-
mission to registration. Expected
date of registration 15/1/84

-Permission needed for A'tC to trans-
fer building to PEM0/MDA1. (P.S. needs
to expeditee.

-Being reviewed by P80.


- MACD will alsk USAID to accept Stall~
College feasibility study on Dol:LmI:

(a) Socio-Economic Study

~~. --C' Contcrl-

5. ssi;:. ;r.3 ;-....-

-Sfing :avisy I 1 ? .;.

('6: EBONY?.1RK

toec so :24 as : :

.0 sbmial: 1.

\- -Economiz Stacy

ind neuisi ia.

i.10 MAC Contrace

Given this status, M0OA will expedite those cieened items, and requests

USAID give blanket approval to procede immediately with construction, financing,

and delivery of equipment for the six (6) pilot activities, as justified by the

scheduling of conditions precedent presented above.

In addition, the MDA requests the following shifts in budget allocations:

1. That $500,000 USS of the azcess generated (exhibit A) be allocated

to double the assistance provided each of the six (6) pilot P:3O's,

on the basis of 100% operating cost assistance for two (2) years and

50% for two (2) years;

2. That vehicles be added to the equipment provided each PM0O as listed

in the table, to be financed are equipment under the same terms for

said items;

3. That the general guidelines for equipment and construction be approved

at the revised budget; to be finalized by engineering specifications

as they become available;

4. That the LOP and EOPS be extended as indicated in the revised construc-

tion schedule (exhibit B)

5. That the excess saved (A) from the original budget be transferred to

the special fund for market development, broken down as follows:

$2,500,000 Credit Guarantee for PMO and farm input and working

capital line of credit through ACB, PAB or other

banking facility.

$1,000,000 Technical Assistance

$ 200,000 Pilot farms for each PM0 and farming systems research.

$ 100,00)0 Test marketing of graded produce and market devatopmecnt


aE-~i~fcr~-~ctr~;[~,-r~~ ---h.


S 130,000

$ 5j0,000

Market extension support.

Post harvest handling Laboratory and quality assurance

equipment .


Up to $2,000,000 additionally will be available from inspect contingency and

inflation~ reserves to be further allocated as deemed appropriate by Il0Al and USAIlD.

(Nrovember 1983) (In US Dollars)

BUT"ET 6 AGS 17 AGS (Defi cit)

127 30 190 (93)

2,370 975 1,894 (499)
1,058 915 545 (402)
445 215 303 (109)
--- O --- 300 1,170 (1,470)

4,000 2,471 4,102 (2,573)

202 80 40 82

6,849 700 400 5,749
1,145 500 250 395
897 250 100 547
105 60 (165)
9,093 1,635 850 6,608

13,093 4,106 4,952 4,035

E:::J ~

Construction and
Site Development
Equipmen t
A & E

Euipment r
VJehicl es
A & E (UDC Fees)


Total Programmed
Budget Surplus
Inflation allowance on surplus (.21x4,035)
Contingency on Surplus (.05x 4,035)
Contingency on programmed (.05x 9,058)
Inflation allowance on equipment already purchased
Construction sav~ings (Bushg Park & Southfield)



FX Foreign Exchange (US Dollars)
LC Local Currency (Converted to US Dollars at $1.78)

BUDGETs~ FOR9 6 PILOT AGS (In U.S. Dollars)

1. Christiana 213,452I~
(a) Yam line
(b) Bean line
(c) Potato line

2. Guys Hill 29,760FX 33,708LC 60,000 ---
Utility Line

3. Bushy Park 313,813W 291,011LC 60,000 10,112
(a) Combination
(b)~ Cold Store

4. Southfield 129,977F 341,573 60,000a 10,112
(a) Utility Line L
(b) Cold Store

5. Douglas Castle 89,760
FX 148,449
LC 60,0001 10,112
Utility Line
Auxilary Equip-

6. Etony Park 25,000FK 168,539LC 60,00 ...

Unassignd'd Cold
Store 40,217

*LC and FK

TOTAL 915,069 957,280 300,000 30,336
UDC FEES 14,628

F X Foreign Exchange (US Dollars)
L C Local Currency (Converted. to US~ D~ollars at $1.7S)

(In US Dollars)



FK Foreign Exchange (US Dollars)
LC" Local Currency (Converted to US Dollars at $1.78)


1. Renovate AMC
2. JLA Livestock
Cen tre
3. ALbbatoir


Fourth SWOM



LC and F.X













1 ,100,000 l









( In US Dollars)

FX Foreign Exchange (US Dollars)
LC Local Currency (Converted to US Dollars at $1.78)


FOUR (4), sWDM,~ (YE.1R I E~cCA APRIL 1, 1981)

i. AGS Schedule 1 2 3

Six (6) Pilot AGS

Christiana Year 2 1

Guy's Hill Year 3 i 1

Bushy Park 1


Douglas Castleon ar

Nineteen (19) Projected AGS

Milk Collection Station
Year 5
Fish Collection Station

Four (4) Fruit & Vegetable Year 6

Four (4) Fruit & Vegetable Year 7

Four (4) Fruit & Vegetable Year 8

Five (5) Fruit & Vegetable Year 9

II. SWDM Schedule

One (1) SWDM (AEIC F~acility) Year 4

Livestock Auction Center: Year 5


Fourth SWDM Year 7

S2 -

2.1.5 Pricing at the farms. Price differences according to
.Price differences between production zones and markets
,Price formation at different markets, rural parish
markets (Local and regional) and consumer centres
(Kingston Mectropolitan Asre:Coronation market) and
other institutional trad~e. Supply of institutional
buyers, supermarkets anld green grocers.
.Influence of export and. import situations

2.1.6 assessment of the activities of the market intermediaries
Marketing costs and margins at each level of the channel

3. W~arps to rationalize the marketing fujnctions and services: through
Producer Maketing Orgaanizations as welil as to create a~lternatilve
channels for marketing~
3.1 Probolems which had been idenjtifiedi (seasona'lity of production,
deficient quality of products for national and export market,
idadequate marketin-g outlets, physical losses at farm level
and during the marketing paooess, etc.)
3.2 Assistance to farmers with -respect to production
3.2.1 Growing of products of adequate variety and quality
S3.2.2 Taking into consideration effects of seasonality in
production and consumer demand
3.2.3 Ways to increase productivity sad decrease production
3.2.4 Supply of ag~riculturarl inputs

3.3 Defining exact functions of the proposed Assembly and Grading
Station, set operational methods and estimate costs and
benefits in comparison to alternative marketing methods
3.3.1 Define differences in market orientation of the
various types of farmers
3.3.2 Propose purchase arrangements with farmers and selling
arrangements with potential buyers
Receive products for arsmers account, prepare for
market, prooeas and sell: on firm or commission base)
Purchase products from farmers, prepare for market,
process and sell: cu firm or commission base)
MIake advance supply contracts with farmers
r Mkak advance sales contracts with trade, industry and

- 3-

Bfaft for discussion baos s FQ
Outline for a study 17.11. 1983


Objiective of the study: To formul~ate strategies for development of
an effective marketing system f~or ~aricultural
products (fruit, vegetables and root crops)
and inputs for small and medium size farmers,
linking marketing channels at the production,
wholesale and retail levels.
To define the potential involvement of the
proposed Producer Marsketing Organizations in
the marketing process through the Assembly
and Grading Stations.

1. Disanosis of production asoeois
1.1 Products grown, varieties, quality, yields, production costs
according to type of farms, seasonality of production.
1. 2 Reaserch and extension service available
1.3 Production or~edit alvailable.

2. Evaluation of roresent mcarketingf organization and identification
of major constraint, soeoially for the-rerions of the trooDosed
marketing cenatres. (Southfield, ?Thetford,M~oore Townm, Guys Kill

2. 1 Ezisting marketing channels
2.1.1 Sales by producers accord'ing to different size farms
Smrale scale producers ( less than 5 acres )
M1~edium scale producers ( between 5 sad to acres )
Large scale (commercial) producers ( more than 10 acres)
Sales at fa-me~ate to higglers, rural merchants,
industry and exporters
Direct sales by farmers in nearby markets (indicate site)
Direct sales by farmers in other markets (indicate site)
Usual sales arrangements sporadico sales, regullar sales,
2.1.2 Earvesting, grading, packing at fare or by market
intermediaries (quality differences, crates and other
packing material used, weighing)
2.1.3 Collection at farm level and transport utilized
.Transport to markets : assembly of individual lots,
transport of products to markets and passenger services..
Higglers and RUral merch~ants own vehicles or transport
provided by others: bus, truck, van, pick-up.
2.1.& Technical skill of market intermediaries

- 3 -

.Day to day selling for national market: at pack~ing
house, at selected markets at wholosale level
having own snta~ils/depots or to intermediaries
Selling for export markets: to exporters at packing
house or at shipping points or direct exports
Direct sales to industry at packing house or delivered
to processing plant
3.3.3 Additional marketing services required
.Grading. To what extend required and what grades
will be applied
.Washing. To what extend required
.;Packing. For which products required, types of crates
or other material proposed, how they will circulate
.Sales according to quality. Export markets, national
markets, industry. What use will be made of rejects
and what percentage of different qualities is expected.
.Transport, From producer to assembly and grading station.
From assembly sad grading station to markets or other
destination (export, industry) institutional buyers)
Alternatives: Farmers orga~iza~tion owns vehicles,
negotiated arrangements with transporters, organization
facilitates credit to outrepreneur or make contracts
with transporters
Storage. Organization owns storage facilities in the
production zone or markets. Participates in storage
or leases facilities. If necessary organization rents
available storage facilities.
Agro-industrial Contract sale to processors,
sale of part of the marketed products. Installing own
processing facilities.
.Market and price information service. Reqruirement for
short, medium and longfterm informa~tion. Provisions
available. Continuous study of present and potential markets.
Credit for marketing. Requirements and sources for
institutional credit for operation. Conditions

3.3.4 ways of achieving farmers cooperation. Views of farmers
3.3.5 Creation of vertical coordination between farmers and
traders. Power ig negotiations and leadership.

- 4-

- 4-

4.Organizationalt administrative and operational aspcts

4.1 organization
Rights and obligations of members
Excutive functions of staff. Decision making and
problem solving
4.2 A4dministration
Organization of the marketing enterprise and physical
facilities covering production, marketing, processing
and finance
Terms of Reference for each employee
4.3 Operation
Development of a pilot project
Support to producers: planning of production, technical
assistance for production and marketinge~linput supply.
Operation of .the centre: buying, seli~ng and prov~iding-
services: assembly, transport, grading, packing, storage,
Provision of credit for marketing at producer and organization
Technical assistance for the operation of the centre.
Training in marketing and operation, of the centre.
4.4 Financial aspects
..Whatt are the estimated minimum costs of thes services
provided' by the cautre. Competetive situation with the
traditional trade. Reduction of waste, costs and margins

5. Performance analysis

A systematic performance analysis of all Producer M~arketing
Organizations is necessary, comparing the operation with the
development targets, plans and orientations. Ant up-to-date
assessment permits to define
Targets achieved
Outstanding tasks not yet fulfilled
Indications of shortcomings and bottlenecks
Positive and negative experiences-
Opinions and suggestions of producers, traders and staff
Among others the following questions should be answered:
Are constructions and equipment suitable and fully utilized ?
Are marketing services adequate and utilized' ?
Is administration adequate ? Financial situation sound ?
Is operation satisfactory ? Could the Producer M~arketing Organization
contribute to improvement in the marketing process ?




Who lesale/Retiil
Improvement murder consideration
through IDB credit

Limited wholesale/retail
IERD credit
Supply local products
IBRD credit
IDB` credit
IDB credit
IDB credit
IDB credit
Decreasing importance as
regional market

National bMarket :

Regional MaIrrkets:



~onteg~o Bay (Ch.Gordon)
S'anta, Cruz
Savarna-la-Mar 3J
M;ay Pen
Browns Town

Old Harbour
Port Antonio
Grangs Kill
Falmouth .
Chapelt oe.
Montego Bay, satellite
Little London
Whit ehouse -
KSA4C Papine

IDg credit
`IDB credit
IBRD credit
IBRD credit
Refurbished locally
IBRD) credit
IDB credit
fDIDE ceioredit t ( l iesmall size)
IBDB credit (small size)
IDB credit smalll size)
fBDceI3RD oredit t small sizese~sze)
IBRD) credit (small size)
Needs local funds for

Local Mrarkets: