Jamaica Citrus Growers Limited (the Company) was established as a limited liability company on December 19, 1949 and has been engaged in the business of processing, packing and marketing of citrus products since 1951 and chilled beverages since 1962.
The Company is a subsidiary of Citrus Growers Association Limited (CGA), which own 96% of its issued shares with individual citrus farmers directly holding the remainder. It has an authorized share capital of J$13,050,000 consisting of 6,525,000 ordinary shares each with a par value of J$2.00. The Company's issued and paid up share capital is J$6,664,270.
OVERVIEW OF BUSINESS OPERATIONS
The Company's factory and main offices are located on ten acres of land near the town of Bog Walk, St. Catherine that is approximately 25 miles northwest of Kingston along the main road from Kingston to Ocho Rios on the north coast of Jamaica.
The Company was established in 1949 to provide an outlet for Citrus farmers to sell their surplus fruit in the height of the citrus bearing season. The fruit is processed into frozen concentrate citrus juices (FCCJ) that are sold on the local and international markets and also used by the Company in the manufacturing of its own chilled beverage products.
The Company's capacity for processing citrus fruit is approximately 60,000 field boxes per week (a box of orange or Ortanique contains 90 pounds of fruit and a box of grapefruit 80 pounds of fruit). This level of capacity is more than adequate to process the fruit that is likely to become available. Due to the seasonal nature of citrus, processing is normally done during November to May of each year.
The major aspect of JCG's business operation is the manufacturing of chilled beverages, which includes chilled orange juice and other natural and artificial fruit flavoured drinks, which are sold under the Juciful brand name. Fresh milk and flavoured milk products are also produced and sold under the Dairy Farmers brand name. Juciful Squash is a shelf stable product, which is produced in three flavours - Orange, Grapefruit and Lime, and is also sold under the Juciful brand name. Squash is manufactured by a local entity under a contract packaging arrangement.
Caribbean Preserving Company Limited (CPC) another subsidiary of CGA is now responsible for the sales, marketing and distribution of all the products manufactured by JCG. This change took effect in February 2005. Currently CPC operate depot outlets at Newport West in Kingston; Bog Walk, St. Catherine and is seeking to commence operations in Montego Bay, St. James. From these depots, chilled drinks and milk products are marketed through independent distributors and sales contractors. Sales of FCCJ are done directly by CPC.
The local chilled beverage market is very competitive and price sensitive, with several suppliers marketing similar products.
The present staff complement of all three subsidiaries is approximately 160 employees.
The Citrus Growers Association (CGA) as indicated was established in 1944, and essentially functions as a grower's representative organization concerned with the collective welfare of citrus farmers' island wide. There are presently some 5,200 registered growers representing a vast majority of citrus farmers in the island.
Structurally, the Association consist of sixty six (66) district branches, which are located in the main citrus producing parishes of the island. District branches are in turn grouped into four area councils covering the island. At the Annual General Meeting of the Association a nine member Board of directors is elected, drawn from representatives of the four area councils and consistent with the CGA Articles of Association.
Functions of the Association