Demand for ice cannot be met locally, says factory operator

Following a devastating fire at the production plant of Pure National in Kingston last November that hobbled the dominant player in the market for block ice, eyebrows were raised when the Jamaican government granted permission for the importation of the product.

But the fact is, the demand for ice cannot be met by May Pen Ice Company, which is the only other ice manufacturer in the market.

“May Pen Ice Company only does about eight to 10 per cent of the ice distribution in Jamaica, and I want to hasten to add also that we do not do party ice,” Peter Thompson, owner of May Pen Ice, told the Financial Gleaner, underscoring the fact that his company could not fill the void left following the fire.

Thompson commended the Government for acting quickly in allowing Pure National to import ice to meet the local demand, especially during the holiday season.

“To my knowledge, this is the first time this (importing ice) has ever happened, and it happened because of an unfortunate situation involving the largest player in the business, which is Pure National. I think it was a very responsible move by Pure National to have jumped on it immediately,” he said.

“Initially, when I saw all the things on social media about Government being wicked and that May Pen Ice can supply the market, that’s rubbish.”

The Ministry of Industry, Investment and Commerce, in a news release on December 30 last year, confirmed that ice was being imported into Jamaica to meet demand for the next six months.

“The company, which sustained significant losses to its infrastructure, 90 per cent, is actively working to restore operations and anticipates a full return to production by mid-2025. This measure is necessary to ensure an adequate supply of ice for the festive season, while also supporting key sectors such as food and beverage, and tourism,” the release stated.

Pure National Limited was formed in 2019 from the merger of Pure National Ice, Kingston Ice and Happy Ice. In 2021, the company said it had poured $120 million into technology and infrastructure to grow the business. It also announced plans then for a new ice-making plant and regional expansion.

But a source at the company confirmed to the Financial Gleaner this week that the fire destroyed both old equipment and the new plant that had been installed.

Meanwhile Pure National said it had to increase the price of a 10-pound bag of ice to $460. It did not state the previous price.

“We understand that price increases are never ideal, and we assure you that this decision was not made lightly. Our team is working tirelessly to restore and rebuild our facility, committed to returning stronger and better than ever. Our goal is to quickly return to providing the high-quality ice you have come to trust, at the appropriate prices you expect,” the statement from the company said.

Commenting on changes in the business over the years, Thompson said May Pen Ice was founded by his father in 1965, at a time when there were eight ice factories in Jamaica – two in Kingston, and others in Santa Cruz, Montego Bay, Falmouth, Ocho Rios and Old Harbour.

“They were all closed one by one because manufacturing block ice is very energy-intensive and expensive,” he explained.

Thompson said his company makes 300 blocks of ice from 33 gallons of water. These blocks can then be cut into pieces as small as 12 and a half pounds. His main customers are in the fish and meat industry.

May Pen Ice also sells crushed ice made from the block ice, but does not do party ice, which, Thompson says, is less energy-intensive.

The company also does block ice in different colours for the hotel sector, which uses them for ice carving.

While acknowledging there may be an opportunity in the party ice segment of the market, Thompson expressed doubt that he would seek to capitalise on it.

“I’m not really looking at it in a serious way, because I’m not a youngster any more,” the businessman said.

Efforts to get a comment from Pure National about the cost of the fire and how the cost of making ice locally compared with importing the product were unsuccessful.

luke.douglas.gleanerjm.com