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By BALFORD HENRY
Observer writer balfordh@jamaicaobserver.com
Monday, October 01, 2007
Agriculture Minister Dr Christopher Tufton has asked Development Bank of Jamaica head, Milverton Reynolds, to hammer out an arrangement to prevent the world-famous seasoning manufacturer, Walkerswood Caribbean Foods, from closing down.
Tufton... it has a brand name that has done well internationally
The St Ann-based company is said to owe in excess of US$10 million to its creditors, including the National Commercial Bank (NCB), as well as some US$10 million to more than 100 local farmers who depend on its purchases to meet their debts.
"I have asked him to convene a meeting with all the parties, including the banks, the management of Walkerswood and other creditors... to try and find an amicable solution," Dr Tufton told the Observer on Friday.
His decision followed news that the seasoning giant could be closed down and eventually sold by its creditors to meet its debts.
"I am moving to try and prevent a shutdown, and to secure the continuation of the company and the livelihood of the farmers, as well as the symbol of the company and what it represents in the marketplace," Tufton added.
The Observer was told that the creditors had given the management an ultimatum to make good on commitments, but the company was unable to meet the requirements.
Several attempts to contact the company's manager, Woodrow Mitchell, on Friday failed.
But Tufton said that he is determined to keep the company open to save the jobs of its employees, the livelihood of the farmers and the international reputation of the brand and project.
"I came to office and saw the situation. I understand that there was some initiative before my time to facilitate dialogue, but those did not bear much fruit," the minister admitted.
"It has a brand name that has done well internationally and it is used normally as a model for doing such projects well," said Tufton. "Not to mention the fact that they have just undertaken some major expansion to modernise the facility and to introduce new products and so on."
Walkerswood, a community project registered since 1978, was the first local company to bottle and market Jamaica's famous jerk seasoning.
Considered a model for rural development, it traces its roots to the distribution of jerk pork to bars in the community as a means of providing employment within the community and discouraging the drift to urban centres.
Since then, its range of products has grown extensively, its visibility in foreign markets exceptional and its employment figures to over 100 persons, each having a stake in its ownership.
The company formed Walkerswood Marketing in 1994 to promote its products in Miami and London. It also opened an eatery in Brixton which was known as the perfect showcase for Caribbean dishes in London.
The European Union, under an initiative to help income-earning opportunities for farming communities, injected some $11 million into the project in return for a guarantee of contractual arrangements with about 150 farmers in the area to produce pepper, escallion and spices.
In March 2005, the company borrowed US$1.8 million plus J$29 million, from NCB, in senior secured loan facilities for the construction of a 42,000 square-foot factory and visitor attraction in response to the growing international demand for the company's products.
Observer writer balfordh@jamaicaobserver.com
Monday, October 01, 2007
Agriculture Minister Dr Christopher Tufton has asked Development Bank of Jamaica head, Milverton Reynolds, to hammer out an arrangement to prevent the world-famous seasoning manufacturer, Walkerswood Caribbean Foods, from closing down.
Tufton... it has a brand name that has done well internationally
The St Ann-based company is said to owe in excess of US$10 million to its creditors, including the National Commercial Bank (NCB), as well as some US$10 million to more than 100 local farmers who depend on its purchases to meet their debts.
"I have asked him to convene a meeting with all the parties, including the banks, the management of Walkerswood and other creditors... to try and find an amicable solution," Dr Tufton told the Observer on Friday.
His decision followed news that the seasoning giant could be closed down and eventually sold by its creditors to meet its debts.
"I am moving to try and prevent a shutdown, and to secure the continuation of the company and the livelihood of the farmers, as well as the symbol of the company and what it represents in the marketplace," Tufton added.
The Observer was told that the creditors had given the management an ultimatum to make good on commitments, but the company was unable to meet the requirements.
Several attempts to contact the company's manager, Woodrow Mitchell, on Friday failed.
But Tufton said that he is determined to keep the company open to save the jobs of its employees, the livelihood of the farmers and the international reputation of the brand and project.
"I came to office and saw the situation. I understand that there was some initiative before my time to facilitate dialogue, but those did not bear much fruit," the minister admitted.
"It has a brand name that has done well internationally and it is used normally as a model for doing such projects well," said Tufton. "Not to mention the fact that they have just undertaken some major expansion to modernise the facility and to introduce new products and so on."
Walkerswood, a community project registered since 1978, was the first local company to bottle and market Jamaica's famous jerk seasoning.
Considered a model for rural development, it traces its roots to the distribution of jerk pork to bars in the community as a means of providing employment within the community and discouraging the drift to urban centres.
Since then, its range of products has grown extensively, its visibility in foreign markets exceptional and its employment figures to over 100 persons, each having a stake in its ownership.
The company formed Walkerswood Marketing in 1994 to promote its products in Miami and London. It also opened an eatery in Brixton which was known as the perfect showcase for Caribbean dishes in London.
The European Union, under an initiative to help income-earning opportunities for farming communities, injected some $11 million into the project in return for a guarantee of contractual arrangements with about 150 farmers in the area to produce pepper, escallion and spices.
In March 2005, the company borrowed US$1.8 million plus J$29 million, from NCB, in senior secured loan facilities for the construction of a 42,000 square-foot factory and visitor attraction in response to the growing international demand for the company's products.
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