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Spur Tree Spices Jamaica Limited says its 240-acre farm in Bernard Lodge in St Catherine is currently supplying 60 per cent of the raw materials utilised in the manufacture of its products, CEO Albert Bailey said.
The food processing and distribution company set up the farm last year to alleviate supply shortages of raw materials besetting the spice maker since 2022.
“The farm became a centrepiece to what we did in 2024. It was like a lifeline for us. We planted over 44 acres of pepper and got well over 500,000 pounds of produce from the farm last year. It gave us the opportunity to sustain our business in a very difficult time, where raw material was just not available,” Bailey reported at the company’s annual general meeting on Monday.
Spur Tree continues to purchase hundreds of thousands of pounds of fresh produce, including scallion, onion, pimento, pepper, and thyme from its farming partners, he said.
For the second quarter ending June, Spur Tree Spices made net profit of $9.3 million, an increase of 22.9 per cent over the corresponding quarter in 2024, on revenue of $346.7 million. Sales turnover also improved in the period by more than five per cent.
However, one of the company’s most profitable items, canned ackee, was unavailable due to shortage of the fruit following damage wreaked by Hurricane Beryl.
“The lingering impact of Hurricane Beryl in 2024 continues to weigh heavily on ackee supply, as trees are still in recovery and yields for the first half of the year were well below normal,” said Spur Tree Spices Chairman Metry Seaga.
“Ackee is a critical SKU [stock-keeping unit] for the company and the main product manufactured at both subsidiaries, each of which had to navigate this ongoing shortage,” he said. SKUs are distinct products in inventory.
Seaga reported to shareholders at the meeting that Spur Tree faced ongoing challenges linked to raw material shortages from 2022, supply chain disruption, the lingering effects of last year’s hurricane and extended periods of heavy rainfall.
The farm was a strategic lifeline during a year of unprecedented agricultural disruption, he said.
“Securing critical raw material supplies from the farm at a time when external sourcing was very challenging, allowed the company to fulfil most of its orders within a reasonable timeframe. Without the farm maintaining consistent production and meeting growing markets, demand would have been significantly compromised,” the chairman said.
During 2024 the company introduced 38 products, inclusive of a dry line that included a fried-chicken mix and a festival mix.
The company also opened a storefront on Amazon.com, which Seaga described as a major milestone in Spur Tree’s digital expansion strategy.
Looking ahead, Seaga reported that Spur Tree Spices is focused on expanding its footprint in key international markets, including the United States and Canada, and the United Kingdom, while continuing to strengthen its presence locally.
“Into 2025 and beyond, we are committed to growing our e-commerce presence aggressively, making our authentic Caribbean product more accessible to customers around the world. We are focused on product innovation, portfolio diversification, and expanding our digital footprint, including partnerships with major platforms like Amazon.com and Walmart.com, to position Spur Tree Spices to better meet the evolving needs of a growing global customer base and drive sustained revenue in new markets,” the chairman said.
English (US) ·