Presentation

6 June 2012

WIBDECO, rebranded as Winfresh in 2009, has demonstrated clearly its plans and effort to diversify into other agricultural products, while maintaining its traditional base in bananas;

Shareholders: Governments of Dominica, St. Lucia, St. Vincent & Grenada

Headquartered in St. Lucia; operations in Dominica, St. Lucia, St. Vincent & Grenada

Marketing of fresh produce and processing, manufacturing and marketing of value added food products, juices and bottled water.

Mission Statement

“To serve our customers with a range of high quality products and services at just prices; to pay fair prices to our suppliers and to return fair value to our Shareholders.

We aim to do so by working in partnership with our suppliers in a manner that is socially and morally responsible and command respect for our integrity and the positive contributions we make to the society we serve”

Although owned by the Governments, Winfresh is not a statutory organization.

It was not established by legislation and, instead, operates under the Companies Acts.

It operates as a commercial entity, with no government preferences or subsidies, within highly competitive regional and international market environments.

The Winfresh Group:

Winfresh (UK) Limited (100%)—Importer/Distributor of Bananas and Fresh Produce (UK)

• Winfruit Limited (75%)—Manufacturer of Frozen Fruit Dessert (UK)

• Geest Line Limited (50%)—Shipping Line (UK)

Vincyfresh Limited (60%)—Processor of Agricultural Crops and Manufacturer of Food Products (St Vincent)

Sunfresh Limited (100%)—Manufacturer of Juices and Beverages and Bottled Water (St Lucia)

The Banana Trade

Winfresh UK business model incorporates Windward Islands bananas as a major element;

UK banana market—primarily the multiple Supermarkets (85%) and Wholesale Markets (15%);

Windward Islands bananas, Fairtrade or not, must compete with the lower cost, high quality fruit from the Dominican Republic, Africa, Central and South America;

High cost of Windward Islands bananas means the only viable outlet is the Supermarket trade; banana prices in the Wholesale Markets are highly competitive and volatile;

Notwithstanding, there is still a place in the market for good quality Windward Islands bananas.

The Banana Trade

There is also the scope in the Windward Islands for a banana industry that can deliver the price and quality requirements of the market—so, how can the two be brought together?

Since 2001, Winfresh has been advocating fundamental changes in the WI banana industry to improve its competitiveness and sustainability, but regrettably these changes have not been implemented and so the industry continues to decline.

The time has come, with the de-regulation of the EU market, the consequential increasing price competition and the advent of Black Sigatoka, for a radical approach to put the banana industry on a sound sustainable footing.

As it is, the banana industry is NOT sustainable. It will wither if some bold measures are not put place urgently. It’s now or never!

The Banana Trade

Cost and quality competitiveness continue to be the main issues undermining the sustainability of Windward Islands bananas.

Factors Contributing to Current Conditions: A “subsistence” rather than commercial approach to banana

production—farm business management competence;

Use of unsuitable lands;

Low land and labour productivity;

Low investment in farm development/operations;

Inadequate/inappropriate use of inputs;

Absence of diagnostic support;

Inadequate and high cost of Sigatoka control;

The Banana Trade

Winfresh has proposed the following way forward:

Focus resources on farmers identified with farm management competence, land and water resources to produce quality bananas at competitive cost;

Assist these farmers to build competence in farm business management;

Encourage production in areas suitable for bananas (good soil, water resources, gentle terrain) where Black Sigatoka can be more cost-effectively controlled).

Support these farmers by providing reasonable access to credit for working capital and farm infrastructure;

The Banana Trade

Way forward (Cont’d):

Improve efficiency of inputs procurement and Sigatoka disease control services;

Provide farmers access to diagnostic services;

Establish and support a crop loss mitigation programme;

Discourage farmers who cannot meet the required conditions from continuing in uncompetitive banana production;

Instead, encouraging them, by providing and directing appropriate support, to move into other areas of agricultural production or to other economic activities.

Development of Non-Banana Agricultural Sector

The Winfresh Group is well positioned, with is range of interests, to assist with marketing and management of a well-defined crop diversification programme;

Response to date has been disappointing and availability of supplies remain frustratingly low;

Need for innovative national programmes to stimulate production of selected crops;

Programmes to be well crafted to ensure desired output is achieved; link assistance/incentives to well defined production targets;

Programmes to draw on banana experience; similar development activities required.

Developing the Agricultural Sector

There is a very serious resource constraint, technical and financial, in the agriculture sector;

This must be addressed if:

The problems of the banana industry are to be resolved and

The factors constraining agricultural crop diversification and production generally are to be minimized if not eliminated.

The BAM presents an opportunity to effect the much needed changes but it will requires imaginative use of the resources; otherwise, to use a St Lucia saying “we will be spinning top in mud”. This is truly the Last Chance Saloon!

Thank You!