PriceSmart to expand direct farm purchase programme
Published:Friday | April 8, 2022 | 7:46 PMKarena Bennett - Business Reporter
Large grocery retailer PriceSmart is expanding its ‘direct farm programme’ to all 12 countries where it operates, including Jamaica, but is still working through the details.
Through the programme, PriceSmart procures “high-quality fresh products” for its warehouses across Central America, the Caribbean, Colombia and the United States, simultaneously supporting local farmers.
It allows PriceSmart to provide its customers with produce at a better value than purchasing from distributors, CEO of PriceSmart Sherry Bahrambeygui said during a virtual tour of the company’s new store that was developed in Portmore.
Direct-farm distribution centres are already operational in Panama and Costa Rica, and the warehouse club last year announced plans to open two additional produce distribution centres in other markets this year. Its third is slated for Trinidad & Tobago, in which PriceSmart is investing TT$17 million.
“It is in multiple countries at this moment, and there is an aggressive schedule for it to be rolled out in other countries. The timeline of that schedule we don’t have access to, but the intention is that all markets will eventually get the direct-farm programme,” said Senior Vice-President of Operations Dhanraj Mahabir, during PriceSmart’s virtual press conference.
Various companies in Jamaica already incorporate ‘farm-to-table’ concepts in their operations, for example, MegaMart, a direct competitor to PriceSmart, which is currently sourcing vegetables from large farm Lakes Pen Agri-Ventures. Both businesses are owned by Gassan Azan.
PriceSmart began operations in 1996 in San Diego, California, with the intent to bring its US-style membership shopping warehouse club concept to underserved countries. The chain made a profit of US$98 million off revenue of US$3.6 billion at year ending August 2021.
This week, PriceSmart will open its 49th warehouse club in Portmore, following the construction of another club in Guatemala City, Guatemala.
Two years ago, the retailer got approval for the construction and operation of a complex at Catherine Hall, Montego Bay, but is still to provide details on plans for the property.
“I can’t comment on that publicly. Our analytics showed that Portmore was the second option after Kingston, and the company is continuously reviewing expansion in all markets and in Jamaica, but the data will dictate what we do,” Mahabir said.