Page 82 - SAC-Gender-Responsive-Market-Analysis-Final-Report-July-19-2021 (1)

3. Markets

Jamaica production costs & market pricing

Production & Pricing Ruminants Herbs & Spices This details the average production cost and pricing in
USD/KG
Goats Hot pepper Tumeric Ginger the current market:
West Indies Scotch
Variety
Red Bonnet
Production cost
farm costs $ 2.81 $ 0.78 $ 0.74 $ 0.40 $ 0.85 • Production costs are based primarily on RADA and
Farm gate channel
cash margin $ 1.08 $ 1.04 $ 1.51 $ 0.18 $ 1.83 the Jamaica Agro-Investment Corp.
% margin 28% 57% 67% 0% 68% Farm gate pricing is based on average prices from
farm gate price $ 3.89 $ 1.81 $ 2.25 $ 0.58 $ 2.69 •
Municipal market channel wholesalers or middle-men at farm gate.
cash margin $ 3.08 $ 2.26 $ 2.44 $ 4.08
% margin 51% 74% 77% 83% • Municipal market pricing is based on the average
distribution $ 0.16 $ 0.16 $ 0.16 $ 0.16
municipal market price $ 6.05 $ 3.04 $ 3.18 $ 4.94 delivered price paid by vendors in local authority
Wholesale channel
cash margin $ 1.40 $ 2.16 $ 3.14 food markets
% margin 64% 75% 79%
distribution $ 0.16 $ 0.16 $ 0.16 • Wholesale pricing is based on delivered prices
wholesale price $ 2.18 $ 2.90 $ 3.99
Retail channel paid by food wholesalers
cash margin $ 9.05 $ 1.18 $ 3.40 $ 0.46 $ 2.14
% margin 75% 48% 72% 43% 57% • Retail pricing is based on retail shelf prices less
processing $ 2.81 $ 0.33 $ 0.44 $ 0.05 $ 0.60
distribution $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 0.16 retail margins, average processing costs and
retail margin $ 4.00 $ 0.81 $ 1.58 $ 0.35 $ 1.25 distribution in Kingston supermarkets.
retail price $ 16.02 $ 3.26 $ 6.31 $ 1.42 $ 5.00
Goat Jamaica Joe Grace Tumeric Ginger Processing pricing is based on the retail price of
Processing channel •
cheese Sauce Sauce Tea Tea
unit 250g 250g 250g 36g (24) 36g (24) processed goods less retail margins,
cash margin $ 1.85 $ 1.33 $ 2.02 $ 26.81 $ 29.31
% margin 38% 28% 38% 79% 76% transportation, manufacturing costs and
product $ 1.82 $ 0.05 $ 0.05 $ 0.01 $ 0.01
other materials $ 0.10 $ 0.97 $ 0.92 $ 1.22 $ 1.87 materials. The raw agricultural product is often a
processing $ 0.98 $ 1.95 $ 1.85 $ 2.45 $ 3.73
transport/ distributor @10% $ 0.16 $ 0.48 $ 0.54 $ 3.39 $ 3.88 relatively small portion of the value.
retail margin @25% $ 1.64 $ 1.59 $ 1.79 $ 14.52 $ 16.63
processed goods price $ 6.55 $ 6.37 $ 7.17 $ 48.39 $ 55.43

Sustainable Agriculture in the Caribbean (SAC) Project

Slide 82