The Jamaican government has launched a rescue plan for banana jobs with a guaranteed US$4.2 million (£2.03m) loan from the Development Bank of Jamaica to preserve the export market to the European Union.
The Golding administration will also foot the insurance bill for the banana industry should it be affected by hurricanes at anytime throughout the life of the loan, it was reported in the Jamaica Gleaner.
The assurance was given to the island’s largest banana grower, Jamaica Producers Group (JP), on the understanding that JP would secure employment of some 800 workers at the Eastern Banana Estates Limited, in St Thomas, and St Mary Banana Estates Limited, in Annotto Bay.
The workers were laid off in August after Hurricane Dean decimated field crops.
Permanent secretary in the ministry of agriculture and lands Donovan Stanberry said: “Jamaica Producers indicated that they were not prepared to go back into exporting banana without some assistance from the government, having sustained losses over three consecutive years - first Hurricane Ivan, then Emily and Dennis in 2005, and now Dean.”
Stanberry could not estimate the insurance costs, but said JP would be taking out a loan to re-establish the banana fields “not only for themselves, but the entire export banana fraternity”.
JP chief executive Jeffrey Marshall had signalled after Hurricane Dean that the continuation of banana exports was uncertain as it was not prepared to spend the estimated $400 million to recover the damaged banana plantations.
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