Board formally approves company’s exit beleaguered nation; directors saddened by outcome

Jamaican agricultural conglomerate, Jamaica Broilers Group (JBG) can now proceed to exit the troubled Caribbean country of Haiti.

This after its board of directors formally accepted the management’s recommendation to permanently cease all operations of its Haitian subsidiary, Haiti Broilers S.A. (HBSA) and its subsidiary T&S Rice S.A. (T&S), effective October 29. The board gave its approval at its meeting last Wednesday (October 26).

The board has revealed that the decision to exit Haiti will result in an impairment of JBG’s investment in HBSA of approximately $900 million, which represents the net assets, which are held by JBG. JBG has operated in Haiti since 2010.

The board said it was saddened by this outcome but that it has become unsustainable to continue the operations due to the country’s social and political instability. The board argued that it had to make the most prudent business decision in the interest of JBG’s shareholders.

For the first quarter ending July, Haiti recorded operating losses of $83 million, up from $48 million in the comparative period in 2021. This triggered a review of the business to determine its future viability, which has ultimately resulted in the decision to exit.

Revenues sank 18 per cent year-on-year as a result of its continued downsizing exercise. At its peak, JBG provided employment to more than 500 Haitians but that number slowly dwindled with the downsizing of farming activities.

Feed production continued, however, alongside the trade in table eggs.