Scattered production among the different islands, the lack of an adequate and efficient marketing system and high post-harvest losses make farming an unprofitable venture in the Bahamas, and, in particular, on the Family Islands.
In its efforts to develop the agricultural sector, the Government has subsidized the marketing and distribution of agricultural output through the Produce Exchange, a chain of governmental distribution facilities. Despite technical and economic governmental support, however, the agriculture sector fails to attract young men, who prefer fishing. Young women, on the other hand, are almost all unemployed.
To address this situation, the Government has activated a plan to support sustainable development. It was envisaged that a substantial amount of locally-grown crops might be processed and preserved by artisanal home-scale and small commercial enterprises. These could provide appropriate opportunities for the involvement and participation of young people, particularly women, on each island.
Given the need to implement these activities, the Government, through the Ministry of Agriculture and Fisheries, requested FAO assistance to test the envisaged plan in Long Island, where Hurricane Lily had destroyed most horticultural crops in the summer of 1996.
The "Promotion of Pilot Agro-Processing Industry" project was approved by FAO under the Technical Cooperation Programme. It was scheduled to start in May 1996, with an FAO contribution of $US 97 000, a counterpart contribution in kind of facilities, equipment, material and follow-up management services and a scheduled duration of one year. The Project Agreement was signed by FAO on 19 June 1996 and by the Government on 9 July 1996 and the project was finally implemented between September 1996 and August 1997. The Department of Cooperative Development of the Ministry of Agriculture and Fisheries was designated as the counterpart agency responsible for project implementation. The project was revised twice to achieve its objective of sustainability and the final FAO contribution was $US 164 000.
The objective of the project was to establish a pilot small-scale agro-processing unit, managed by a rural group, to preserve key line as a liqueur, utilizing the peel and juice as an additive for other products; and to train identified cooperative groups in the techniques of processing, preservation, quality control and packaging of locally grown crops.
The agro-processing project was implemented as a joint venture between the Government of the Bahamas and the FAO. A pilot small-scale business was created to process locally grown crops into commercial food products, providing employment for young women in Long Island.
The liqueur was produced by making an alcoholic extract of lemon peel, to which sugar and water was added. The peel was submerged in alcohol for a defined period. The infusion was then filtered and water was added in order to reach the desired alcohol content. Sugar was added according to consumer preference.
Fresh lemon juice, extracted from peeled lemons, was pasteurized (85o C) and treated with 100 parts per million (ppm) of sodium benzoate and 200 ppm of potassium metabisulphite.
Hot pepper sauce could be produced by combining locally available ingredients with a specified amount of natural or modified starch, depending on the required flow characteristics.
Banana puree, frozen after preparation, could also be produced. Mango and guava are not available in sufficient quantities for even small-scale processing, while tomato and pineapple are too expensive for competitive production.
The discarded school building at Scrubbhill was selected and refurbished by the Government. However, the storage area remained inadequate.
A group of 13 women was trained, in collaboration with national Food Technology Unit staff, in theoretical and practical processing techniques and in management principles. The group is now able to produce high-quality lemon liqueur and fresh lemon juice, although more application and formulation work is required to produce other products. The manager and her assistant can provide efficient management under normal production conditions.
The establishment of commercial operations for the production of lemon liqueur was the basis of the project strategy to ensure sustainability. Other products should only be produced after their profitability has been demonstrated.
The processing capacity is 110 000 bottles/year/shift of lemon liqueur in 500 ml triangular-shaped glass bottles for the regional and export market and 2 100 gallons/year/shift of lemon juice in one-gallon plastic jugs for the regional market. This capacity is appropriate for current market requirements. The processing of other products would depend on the production plan and a viability study.
Production is based on 220 working days per year, five days per week. Peeling has been organized in 180 days of production/year, while packaging operates for 220 days/year.
The value of the equipment and material provided by project funds, as well as building facilities, was estimated at $US 130 000, of which materials accounted for $US 35 000. However, the establishment of a permanent operational unit would require an estimated fixed investment of $US 250 000, divided between equipment and materials and working capital.
The liqueur will be commercialized under the brand name of Yuma Gold. The women's cooperative managing the pilot unit has been registered under the name of Natural Products Cooperative Society Limited (NP). Burns House, the largest chain of retail liqueur outlets in the Bahamas, will commercialize the liqueur, exclusively, with terms of agreement of ten years and a ten-year option. The wholesale price to Nassau has been established at $US 4.90 per bottle, against a duty free retail price of $US 7.95 per bottle.
Burns House will start by ordering a minimum of 100 cases per month, equivalent to 1 200 bottles (approximately 10% of pilot-unit capacity). Terms of payment have been established at 1.5 months. It has been assumed that the market will absorb an average of 30% of the production capacity during the first six months and 100% by the end of the first year. The period from September to November is expected to be a slow period for liqueur sales as this is the low season for tourism.
The commercialization of the lemon juice should be planned for the near future. The viability for complementary products remains to be verified.
The production costs of the lemon liqueur were calculated at $US 4.13 per bottle. Two sources contributed to cooperative capital. The first contribution came from packaging material, alcohol and other raw material, provided by FAO and governmental funds, as well as cooperative members' contribution of wages (for certain periods during the first two years). The second came from the required loan to start commercial operations, obtained from local financial institutes. The loan will be reimbursed at the commercial interest rate of 12.5% in ten years.
It has been estimated that NP should have a credit requirement of about $US 120 000 during the first two years. By the end of the second year, it should start to earn a net profit.
At 100% of production capacity, the unit should provide farmers selling lemons to NP with an additional yearly revenue of $US 36 000.
A group of 11 women (13 if lemon juice is processed and marketed) would work on a permanent basis at NP, receiving a monthly salary of between $US 700 and $US 1 500 per person.
NP is now in a position to produce lemon liqueur, ensuring sustainability to the pilot unit. Production of lemon juice per se is not profitable. Investigations on microbiological spoilage, production yield and selling price must be conducted to determine functional constraints.
With the exception of pepper sauce, banana puree and banana chips, which require additional formulation work, the exceptionally high cost of raw materials makes the commercialization of other products unfeasible.
The development of agro-industry activities, particularly at a small-scale level, requires the strengthening of existing cooperative capacities through the provision of technical assistance and technological support, as well as financial and human resources. Governmental support is therefore required to provide managerial, technical, marketing and legal assistance to NP, to organize farmers and to promote a horticultural development plan in Long Island.
During the first two years of operations, NP should receive specialist technical assistance in product formulation and quality control from the Food Technology Unit and management, legal and marketing assistance from the Department of Cooperative Development at the Ministry of Agriculture and Fisheries. The Ministry should also provide storage area for packaging material and finished products.
Assistance should be provided in obtaining bridge loans from financial institutions, as required.
Abaco lemon and other imported varieties, as well as tropical fruits such as mango and guava, should be produced in selected areas in Long Island.
