Papaya exporter Advanced Farm puts assets up for sale

Papaya exporter Advanced Farm Technologies Limited has shuttered operations after some 30 years in business.

The assets, which include five acres of land in Martha Brae, Trelawny, on which sits a processing facility that spans 17,854 square feet and an office covering 1,792 square feet, have been put up for sale at a price of US$1 million.

At peak, Advanced Farm had over 200 acres of land under production in Trelawny and would also purchase papayas from contract farmers in surrounding parishes to serve markets such as the United States, Canada, and the United Kingdom. Some 400 individuals were employed to the company at the time, carrying out washing and grading and packaging of whole papayas for export.

Advanced Farm started in 1992 packaging vegetables like pepper for the export market but around 2002 decided to focus their attention on the papaya business.

As the market grew, the company was packing some 400,000 pounds of papaya per week, which led to the company developing a reputation of being one of the largest exporters of the fruit, which is said to contain a rich source of nutrients, antioxidants, vitamins, and enzymes that hold powerful health benefits such as improving skin, helping digestion problems, treating intestinal parasites, protecting the eyes and heart, and even decreasing the risk of cancer.

But disruptions from the outbreak of the COVID-19 pandemic was said to be the last straw that pushed the business that was already facing financial woes into death valley.

Its assets were officially advertised for sale earlier this week, with Omar Ramsamugh, a large supplier of papayas to the company when its operations were in full swing, being listed as the contact person.

“Over the years, I’ve developed a strong relationship with Advanced Farm and Mr Ericksen, supplying and at one point packaging papayas for the company from 30 acres of land I had under production,” he said.

Companies Office of Jamaica records list no issued capital or shareholders for Advanced Farm. However, Ramsamugh said American Gregory Ericksen, the man to whom he referred, was an owner of the business.

Given the decision to shut down Advanced Farm’s operations, Ramsamugh said he cut back on his own leaseholdings and is now down to eight acres of land that he owns in Lacovia, St Elizabeth. The farmer has also pivoted from papaya farming into the herding of cows to maintain his livelihood.

“Losing that arrangement with the Advanced Farm coupled with financial blows I suffered on the farms from heavy rains in 2020 have dampened my spirit. I’ve decided not to go back into papaya farming and instead chose to raise cattle,” the farmer said.

“By next year I should see some income coming from that business,” he added.

According to Ramsamugh, the land held by Advanced Farm in Trelawny valued at US$1 million in 2018; and the company is seeking to sell the assets at that price. The pricing is also based on the fact that renovation works are needed at the factory, he said.

Monies from the sale will be used to clear debt, while any remaining funds will be distributed to the shareholders, Ramsamugh said.

The most recent financial accounts seen by the Financial Gleaner showed that Advanced Farm Technologies’ losses had accumulated to US$4 million at year ending December 2019, which erased its capital and pushed the company into deficit with negative equity of US$486,000.

Sales in the year dwindled to less than half the prior period, falling from US$4.3 million to US$1.8 million.

karena.bennett@gleanerjm.com