When David Stedeford, a UK-born paper-manufacturer vacationed with his family in Jamaica several years ago, his expert eye quickly noticed the agricultural potential of the land he saw. Little did he know that this recreational trip would later lead him to conceptualize a new manufacturing facility, with the capacity to produce 250,000 metric tonnes of bamboo pulp annually— by the end of 2021, Stedeford’s company, Bamboo Bioproducts Ltd. (BBP) will break ground on the first Bamboo Pulp mill in the Western Hemisphere.
The new BBP facility will occupy the lands of the once famous Frome Sugar Plantation in Jamaica’s parish of Westmoreland with pulp that is slated for sale to celebrated multinational brands, which have partnered with the manufacturer in order to meet the industry mandate for ‘non-wood pulp fiber’ in the production of personal hygiene and tissue products using Bambusa vulgaris or common bamboo, an open-clump type bamboo species, which is endemic to Jamaica and the preferred species for pulp production.
Following the World Trade Organization (WTO) ruling in the 1990’s that preferential agreements between the island territories and the European Union contravened free trade principles, which virtually wiped out the Caribbean’s agricultural export market causing the once-booming sugar industry to be left for dead, all economic eggs were thrown into the single basket of tourism, which has now been derailed by COVID-19 travel restrictions.
Jamaica’s tourism sector, accounting for approximately 35% of GDP, reported an annual loss of $76 billion in 2020 due to the pandemic but government has become deeply intent on proving that it has not lost the race, but instead is switching into a higher gear, as it soars toward a diversified, stable economy.
“Jamaica has seen the potential impact that bamboo can have for its long-term economic growth,” says British High Commissioner to Jamaica, Asif Ahmad Growing. “Processing bamboo pulp for export is a solid step in moving the island forward. Export-led growth is essential for any developing country and in this case, there is strong demand from various industries for bamboo-based pulp.”
Jamaica has exercised leadership, leveraging global partnerships to diversify its agro-industry, making itself more resilient while earning foreign exchange. Jamaica’s Prime Minister Andrew Holness, believes the project is a step in the right direction towards greater growth opportunities for his people. The project is projected to create up to 5,500 jobs and earn $1.5 billion in revenues within its first 10 years.
“We are actively setting a new and positive trajectory for our development. That means being strategic in how we rethink avenues for growth, and aiming for opportunities which are rooted in sustainable industries,” says Holness.
“Introducing a new bamboo industry allows us to build on centuries of agricultural expertise, and to maximize the earning potential of existing resources. A shift [from sugar cane] to bamboo would see us re-purposing our sugarcane lands to grow alternative crops with major international demand. This is an excellent example of a revenue solution that builds value, is environmentally responsible, and immediately creates much needed jobs. There is also an added capacity for spawning additional industries from its bi-products, so Jamaica may realize the benefits of long-term industry expansion.”
Stedeford agrees that the timing of the project is opportune, explaining that “The cultivation and processing of bamboo pulp is a logical alternative to sugar cane, due to similarities between the species.”
“Jamaica’s centuries of tradition in sugar farming means that workers with existing labor skillsets will be offered sustainable jobs in a sustainable industry. Extensive rain-irrigated arable lands will be transformed into bamboo farms across Jamaica to supply the state-of-the-art Bamboo Market Pulp Mill, and support its full design capacity.”
With the high demand for bamboo pulp, BBP is working in close partnership with the Sugar Company of Jamaica (SCJ) Holdings Limited to finalise the acquisition and/or leasing of the necessary lands. The manufacturer is also in conversations with private landowners to secure supplementary farms.
The BBP execution team is comprised of a network of global paper manufacturing experts alongside Kingston-based Delta Capital Partners Ltd. (DeltaCap), a private equity firm which also provides management consulting support for the project. As lead financial arranger DeltaCap has facilitated local relationships for BBP and is actively advancing with the initial USD$300M capital raise, which is projected to generate an ROI of ~22%.
Zachary Harding, co-founder and CEO of DeltaCap, says that the project is one of many which will expose global stakeholders to game-changing investments in the Caribbean market. Harding has put his money where his mouth is, indicating that DeltaCap will be investing and taking an equity stake in the project.
Zachary Harding, co-founder and CEO of DeltaCap, says the project is one of many which will expose … [+] global stakeholders to game-changing investments in the Caribbean market.
Zachary Harding
“DeltaCap is genuinely proud of this raise as it is a fully sustainable project which is environmentally responsible while delivering long-term economic benefits,” says Harding.
“This Bamboo project checks all the boxes— it improves the quality of life for many people, removes carbon emissions from the air, and delivers risk-adjusted profits. The plant will be co-gen, using bamboo bi-products to fuel the mill. The excess energy generated can be sold back to the national power grid. Everything about this project will be green.”
Jamaican farmers will be the first to reap the benefits of Caribbean bamboo. Today, farmland in most of the English-speaking Caribbean ranges from 10-33% of land use. Jamaica surpasses this average with 41% of its 10,991 square kilometers set aside for agriculture. The target yield of raw bamboo of over 1 million tonnes annually will ensure high productivity of bamboo land.
Floyd Green, Jamaica’s Minister of Agriculture and Fisheries predicts that the project will have a deep impact on the lives of farmers across the entire country.
“In our present economic reality, countries have to pivot to effectively rebuild their economies,” says Minister Green.
“For us, bamboo cultivation and processing presents a competitive advantage. The BBP plant will be located in the West of the island and will actualize the ‘mother-farm’ concept by offering contracts for supplementary amounts of bamboo to smaller farms across the rest of the island. For thousands of farmers this means guaranteed sales and a steady income. For Jamaican farmers, growing bamboo means that they can now have a real shot at changing their lives, just by doing what they already do best.”
David Stedeford is confident that by the end of 2021, Jamaica will be well on its way to hosting the first sustainable bamboo industry in the region.
“Jamaica has the land, labor, logistics and climate to be the first Bamboo Market Pulp Mill in the West, delivering non-wood fibres globally, helping to meet the environmental sustainability mandate of the personal hygiene industry.”
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
