Upgrading to Compete in a Globalized World The Jamaican Experience as told by: Tijule Company Limite

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Upgrading to Compete in a Globalized World The
Jamaican Experience as told by Tijule Company
LimitedDr. Juliet Newell

• Brussels Rural Development Briefing
• European Commission, Borschette CentreBrussels
• September 23rd, 2009

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Overview of Tijule Company Ltd.

• Company Type - Agro processor
• Size - Medium sized
• - Over 40,000 sq. ft.
• Location - Rural Jamaica
• Number Employed - Permanent 64
• - Part time 150
• Products - Canned frozen vegetables,
  Frozen (convenience meals), Baked
  Products, Jams Jellies Fruit bars, Jerk
  seasonings Jerk Sauces, Condiments, Dips,
  Pastes and Marinades and dressings
• Suppliers - Over 100 farmers supplying
  raw material

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• The Jamaican Operating Environment
• The World Financial Crisis
• Drying up of loans for investment
• High collateral requirement for companies seeking
  to access loans
• High Interest rates
• Lower market demand for products
• High Unemployment
• Manufacturing slump world wide impacting local
  employment
• Pending cuts in GOJ expenditure will mean more
  job cuts
• High Crime Rate

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Specific Challenges for Tijule

• Finance
• Difficulty in accessing loans at concessionary
  rates for investment and business development
• High levels of raw material inventory
• Financing the companys quality initiatives
• Financing Market Research
• Market
• Lower market demand for some products
• How to maintain a fresh presence in the market
  place
• How to find new or expand current market share
  with limited resources
• Human Resource
• Retaining trained staff as markets dry up and
  demand slumps
• Accessing consultancy to help build capacity of
  the factory

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Tijules Strategy to Compete

• 1.Difficulty in accessing loans for retooling
  etc.
• 2. High levels of raw material inventory
• 3. Financing the companys
• quality initiatives
• 4. Financing Market Research

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Tijules Strategy to Compete

• Strategy
• Tijule has a wide variety of products for
  customers to choose from. Therefore when demand
  for one falls cheaper substitutes are demanded .
  Sustain market visibility thru continued presence
  at trade Expo. - Maintaining constant contact
  with distributors also help to push the Tijule
  brands (Juliana and Nels Old Time)
• Revamped and upgraded collateral material/labels
  with the help of grant funding (PSDP) This has
  helped to Build and enhance brand awareness
• 3. Tijule has now adopted the use of technology
  with the establishment of a web presence
  www.tijulecompany.com
• This was done with the assistance of grant funds
  from PSDP. The company is now able to reach new
  streams of potential buyers.

• Market Challenge
• Lower market demand for some products
• How to maintain a fresh presence in the market
  place
• How to find new or expand current market share
  with limited resources

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Tijules Strategy to Compete

• Resource Challenge
• Retaining trained staff as markets dry up and
  demand slumps
• Accessing consultancy to help build capacity of
  the factory

• Strategy
• The company has adopted a 4 day work week in
  order to retain employment for all staff during
  the slow period
• Technical Assistance is always appreciated.
  Retaining overseas experts is only affordable
  through the assistance of Donor Agencies. Tijule
  has been the recipient of such assistance through
  the CDE, PSDP and PUM Senior Expert Service.

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Thank you!