BANANA SUPPLY CHAIN IN JAMAICA

Banana Supply Chain in Jamaica

Abstract

The complexities of banana supply chain impose enormous challenges to the processors. As compared to multinational banana companies operating in Jamaica, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the banana industry sector was studied in a qualitative survey covered 23 banana processing firms in Jamaica, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that banana processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures.

Keywords: Supply chain management, Inventory management, Customer perceived value, Banana industry

Table of Content

CHAPTER 1: INTRODUCTION4

Research objectives4

Research Question4

Background5

CHAPTER 2: LITERATURE REVIEW7

CHAPTER 3: RESEARCH METHODOLOGY12

Methodology12

Primary Data Collection12

Secondary13

CHAPTER 4: RESULTS AND DISCUSSION14

Processors' Knowledge on SCM Concept14

Inventory Management17

Pricing Strategy18

Customer Service and Customer Perceived Value20

Marketing and Distribution Strategies22

Market Structure23

ORDER PROCESSING24

Production Planning and Scheduling25

Application of Information Technology27

Challenges and Impediments Facing the Banana Industry Sector28

Technology and Technical Know How28

Research and Development31

Capital Investment and Managerial Skills31

Road Infrastructure and Power Supply32

Storage Facilities33

CHAPTER 5: CONCLUSIONS35

Summary35

REFERENCES37

CHAPTER 1: INTRODUCTION

Research objectives

The objective of the research is to analyse and critically discuss if the supply chain exportation of the bananas market benefits poorer countries such as Jamaica. What it needs to define firstly is exactly what the barriers are and restrictions the banana market is facing at present and how is the market facing competition from big rivals such as Chiquita and Del Monte from the USA. Secondly it needs to research in dept what is the purpose of the World trade Organization (WTO) in regulating International trade and if the barriers and tariffs imposing on such countries are fair and just too all countries involved. Does this type of trade actually benefits Developing countries such as Jamaica, or if by imposing stricter rules, the WTO is in reality affecting fragile economies than cannot survive without trading in an international market freely and fairly. Lastly it will make an attempt to find the answer required in order to clearly respond to such complex subject.

Research Question

How does the supply chain exportation of the bananas market benefits poorer countries such as Jamaica?

Where do the restrictions affect the banana producers?

Background

Banana industry is one of the largest branches of industries in Jamaica which is made up of micro, small, medium and large processors. Micro and small banana processors operate in an informal sector and use labour intensive and poor technologies, while medium and large scale industries use improved and modern technologies with large capacity output. Small and medium industries are the majority of local manufacturers of consumer ...