The Use of Technology to Improve
Competitiveness of SMEs in the
Agribusiness Sector
Dr. André Gordon
Strengthening the Caribbean Agri-food Private Sector:
Competing in a globalized world to foster rural development
18-19 October 2010
Grenada, W.I.
Introduction
• In challenging times many businesses
focus on what they need to do to survive.
• However, survival is not good enough.
Caribbean firms must find ways to make
themselves sustainably competitive
• Application
of
carefully
selected,
appropriate technology to make changes
in the way firms operate can result in
sustainable,
improved
global
competitiveness
Introduction
• Background anchored in work with
companies and organizations throughout the
Caribbean
– For Technological Solutions Limited
(TSL)
– At and for the Jamaica Exporters
Association
– With and for the Competitiveness
Company
Introduction
• Will move from the use of highly capitalintensive, technologies to less capitalintensive, more people-centred “soft”
technology
• Will cover a range of agri-business products
Focus on Building Sustainable
Global Competitiveness
Global Competitiveness
• Developing the capacity and systems to
deliver goods and services as, when and
where needed in the desired quantity and at
the expected level of quality to discerning
consumers willing to pay a price for them
that is profitable for the business (premium
price, preferably).
How?
• Developing and applying world-class
technology in a practical, hands-on manner
that is respectful of the culture of the
people, organizations and countries
involved
Six Components of Successful
Export Activity
•Market Expansion and Diversification
•Production & Technology
•Product Innovation
•Supply of Inputs (Supply Chain Mgmt)
•Financing
•Information Generation, access and use
Development & Application
of Technology
for Global Competitiveness
The Grace Kennedy /
Technology Centre Period:
1990-2003
Technologies Applied or Developed
•
•
•
•
•
•
•
Electron Microscopy (EM)
Ingredient Technology (IT)
Sensory Measurement Technology (SMT)
Texture Profile Analysis (TPA)
Rheology
Predictive Modeling Technology (PMT)
Shelf Life Measurement & Prediction
(SLMP)
• Thermal Process Development (TPD)
• Process Optimization (including PMT)
Technologies Applied or Developed
• This work improved the quality, manufacturing
and shelf life of a range of products to globally
competitive levels
• Facilitated new or continued market access into
key metropolitan markets
• Grace Kennedy, the many small manufacturers
that supplied them and Jamaica benefited
• All of this applied technology work was
published in refereed, international journals or
fora, where possible
Examples of Application and Outcomes
• EM, IT and SMT were used to:
– Allowed the continued operation of a meat processing plant in
the face of tremendous competitive pressures caused by
devaluation and continuously escalating input prices
– Viennas and frankfurter, supporting the local pork industry
• IT, SMT, TPA and Rheology.
– Address product quality and performance challenges, mitigate
the effects of declining competitiveness and the develop of new
products
– Developed a range of new products for the local and global
markets using these technologies and approaches
Examples of Application and Outcomes
– Created meat products, drink mixes,
drinks, juices, sauces and soups, among
others
– Through product matching created Fresh
Start® which remains a flagship product
and brand, and Grace Fish Tea® and other
soups
Examples of Application and Outcomes
– Created the first formula safe, uncooked
commercial jerk seasoning
– During this period, our work added
approx US$20M in sales and US$4M in
profit by end of the 4th year
Examples of Application and
Outcomes
• PMT, SLM, Rheology and IT were used to:
– Develop a range of combined approaches and
technologies that continue to be used routinely
by Caribbean manufacturers and exporters
today
– Solve problems with a range of products made
regionally by small producers from local
ingredients (inc. Browning and Juices)
Application of Technology for
Competitiveness in Caribbean Firms
• In 1996, with the formation of TSL, our focus
shifted to SME’s more directly and the
Caribbean, in general
• Required the incorporating all lessons of the
past into the use of “softer”, more people
oriented, less capital-intensive approach
Application of Technology for
Competitiveness in Caribbean Firms
• Focus on systems technology, catalyzing our
initial work with value chains and clusters
• Focus: problem solving, developing and
strengthening value chains, gaining or
maintaining market access and systems
implementation
Application of Combination and
Systems Technology
• Key successes in using the approach developed
to the application of technology included:
– Regaining EU market access for Strombus giga (Queen
Conch)
– Regaining US market access for Blighia sapida (Ackees)
after a 27 year ban
– Regaining US market access for Canned Process Cheese
(Tastee)
Application of Combination and
Systems Technology
• Key successes (cont’d):
– Improving the quality, upgrading, and gaining market
access for Benjo Seamoss
– The transformation of Ackee and Conch manufacturing
and export in Jamaica
– Upgrading, improved competitiveness and commencement
of sustainable exports of Barbadian SME manufacturers
– The transformation of many SME production and export
operations in the agribusiness sector across the Caribbean
Application of Technology for
Competitiveness in Caribbean Firms
• Key successes (cont’d):
– The application of technological know how to the layout and
design and/or redesign of pack houses, food processing
plants and technical centres across the Caribbean
• Plants and Pack houses - Haiti, St. Lucia, Grenada,
T&T, SVG, Dominica, Jamaica (Walkerswood,
Hounslow Pack house)
• Technical Centres – SKNBS/MPL complex (St. Kitts);
NCTE (Dominica), GTC (Jamaica)
Building Caribbean Agribusiness
2004 - present
Application of Technology for
Competitiveness in Caribbean Firms
• Key successes (cont’d):
– Gaining new markets in the Caribbean and contract
packing for MTS’ product
– Application of Systems Technology to Coconut Water
production
– Certification of Caribbean firms to access the US and EU
markets
Application of Technology for
Competitiveness in Caribbean Firms
• Key successes (cont’d):
– Use in structuring approach to market
access/trade agreements
– The application of the approach to building
productive collaboration and value chains –
Jamaica Business Recovery Programme
(JBRP), JEA and CC Clusters
Building Global Competitiveness
in Caribbean Firms
through Applied Technology
Case Studies
Barbados’ Sauce &
Condiments Exports
2001-2008
Thousands
Barbados’ Sauce and Condiments
Exports 2001-2008
500.00
450.00
400.00
350.00
300.00
Export to the US (US$)
250.00
Export to the UK (US$)
200.00
Total OECD (US$)
150.00
100.00
50.00
0.00
2001
2002
2003
2004
2005
2006
2007
2008
PROVING THE SAFETY OF
CANNED PROCESS CHEESE
Pasteurization During Cooking for
Tastee Cheese
Standard Graph - PU
800000
120
110
700000
100
600000
90
500000
400000
70
60
300000
50
200000
40
100000
30
20
27/ 08/ 2003 13: 53
14: 26: 20
14: 59: 40
Reading
M 3 T1 1 5 2 8 - °C
M 3 T1 1 5 2 8 (PU)
15: 33
0
PU
Temperature
80
Pasteurization During Holding for
Tastee Cheese
Standard Graph - PU
400
80
70
300
200
50
40
100
30
20
27/ 08/ 2003 13: 53
14: 26: 20
14: 59: 40
Reading
ST2 9 0 1 2 - °C
ST2 9 0 1 2 (PU)
15: 33
16: 06: 20
0
PU
Temperature
60
Pasteurization During Filling for Tastee
Cheese
Standard Graph - PU
500
80
70
400
60
PU
Temperature
300
50
200
40
100
30
20
27/ 08/ 2003 13: 53
14: 26: 20
14: 59: 40
Reading
ST0 4 8 2 7 4 - °C
ST0 4 8 2 7 4 (PU)
15: 33
16: 06: 20
0
Pasteurization During Cooling for Tastee
Cheese
Standard Graph - PU
8000
80
7000
70
6000
60
4000
50
3000
40
2000
30
1000
20
12/ 09/ 2003 12: 31
13: 04: 20
13: 37: 40
14: 11
14: 44: 20
Reading
ST2 9 0 1 2 - °C
ST2 9 0 1 2 (PU)
15: 17: 40
15: 51
16: 24: 20
16: 57: 40
17: 31
0
PU
Temperature
5000
Temperatures and Lethality During
Tastee Process Cheese Manufacture
Stage of
Process
Avg. Time
Blending
Temperature
(Avg.)
°C
19.5
Cooking
90
0.16
152.1
Holding
72
10
142.3
Filling
70
16
227.7
<62
>240
9,100
Cooling*
(min)
-
Process
Lethality
(PU)
-
20 PU – regarded as sufficient for adequate pasteurization for AFs (NFPA)
THE PROCESS
• NOT a Flash Pasteurization Process
• HOT FILL AND HOLD
THE PROCESS
• Traditional Processes 85°C / 10-15 min
• Give Pasteurization Cook of
PU/min (3,400 PU - 5,100 PU)
340
• Dairy’s Hot Fill and Hold Process
gives a Pasteurizing Cook of > 9,000
PU in total
THE TANAKA
PRINCIPLES
Model for “Formula-Safe” Concept
• Moisture
• pH
• Total salts
–
–
NaCl
Phosphate-based
emulsifier
• Water activity not good
predictor of safety
• Lactate effect
Tanaka et al, 1986
THE TANAKA PRINCIPLES
• Ensure safety of Process Cheese based
on a combination of factors that must
be met
• These combined safety “hurdles” allow
the safe production of process cheese
without “sterilization”
The Coconut Water Industry:
Systems Technology
Coliform
# microorganisms / mL
10,000
8,000
6,000
4,000
2,000
0
0
3
0oC
5
0
3
18 oC
5
0
3
26 oC
5
Storage Temperature
Figure 2
Yeast and Coliform Growth in Bottled Coconut
Water during Storage
Table 4
Correlations between the Independent and
Dependent Variables of Coconut Water Quality
Dependent Variables
Independent Variables
%TA
Turbidity
pH
PPO
- 0.758 **
0.507 *
0.868 **
PO
- 0.236
0.338
0.278
PV
0.466
- 0.506 *
- 0.533 *
FFA
0.976 **
- 0.867 **
- 0.972 **
Temp
- 0.652 **
0.577 *
0.646 **
Time
0.471 *
- 0.555 *
-0.526 *
APC
0.460
0.595 **
0.449
Yeasts
0.643
- 0.602
- 0.779 *
LAB
0.493 *
- 0.629 **
-0.481 *
* significant
p < 0.05
** highly significant p < 0.001
Mountain Top Springs
St. Vincent & the Grenadines
Mountain Top Springs Export Performance
2002-2008
450000
400000
350000
300000
250000
Export EC$
Export US$
200000
Volume in liters
150000
100000
50000
0
2002
2003
2004
2005
2006
2007
2008
Mountain Top Springs Export Performance
2002-2008
Contract Packaging EC$
500000
450000
400000
350000
300000
250000
Contract Packaging EC$
200000
150000
100000
50000
0
2002
2003
2004
2005
2006
2007
2008
Jamaica’s Ackee Exports
2001-2009
Socio-economic Importance
• Ackees are largely grown and processed in rural areas
where other employment opportunities are limited
• it directly impacts 13 communities across the island
• approx. 3,000 directly employed
• 6,000 indirectly employed
Figure 4: Structures of Hypoglycins
A and B
NH 3
H 2C
C
C
C
H2
CH
COOH
C
H2
HYPOGLYCIN A
L - (methylenecyclopropyl) alanine
O
H 2C
H
C
C
C
H2
H
N
C CH
H2
COOH
C
C
H2
COOH
HYPOGLYCIN B
 - glutamylhypoglycin A
C
H2
CH
NH 3
Figure 5: METABOLISM OF HYPOGLYCIN A
NH2
Hypoglycin A
H
C
C
H2C
C
H2
C
H
COOH
C
H2
O
MCPP
H
C
C
H2C
C
H2
C
COOH
C
H2
O
MCPA - CoA
H
C
C
H2C
C
H2
C
S
CoA
C
H2
O
H2C
H
C
C
C
H2
C
H2
C
N
H
C
H2
MCPA - Glycine
COOH
H2C
H
C
C
C
H2
C
H2
COOH
MCPA
Ripening Stages of Ackee (5 to 10)
Stage 5
Stage 6
Stage 7
Stage 8
Stage 9
Stage 10
Ackee Ripening and Hypoglycin A Content
Source: Brown et al., 1991
1600
1400
1200
1000
ppm 800
600
400
200
0
3
4
5
6
7
Ripening Stage
8
9
ACKEE EXPORTS – VOLUME (KG) VS. VALUE US$)
Jan – Nov, 2009
Build Back Better: The JBRP Story
Application of Technology through the Cluster
Concept along Value Chains
Application of Technology under JBRP
• Developing input supplier, farmer, buyer
relationships: building and strengthening the value
chain
• Understanding of the concept of producer/buyer
relationships as an enterprise in itself
• Use of specifications, planning and management
in the business of agriculture
Application of Technology under JBRP
• Soil analyses, crop types, proper spacing, fertigation,
proper crop rotation, etc
• Importance of plant nutrition
• Harvesting, post-harvest handling &
appropriate technology (field crates, etc)
storage
–
• Basic IPM techniques - Pest scouting, use of barrier
technology, use of pheromones, Bacillus thurigenesis
(Bt), etc for infestation and disease control
- Field Preparation & Management
- Pest and Disease Management
- Protected Agriculture: Greenhouses
Detailed Step-by-Step Greenhouse
Construction & Operation
Source: JBRP Production Manual 04: Greenhouse Production
Detailed Step-by-Step Greenhouse
Construction & Operation
Source: JBRP Production Manual 04: Greenhouse Production
Detailed Step-by-Step Greenhouse
Construction & Operation
Source: JBRP Production Manual 04: Greenhouse Production
Application of Technology under JBRP
• Results: significant yield increases >40 - 50% in some
cases, better quality, dramatically reduced losses.
• Agriculture being seen as technology intense,
interesting; a BUSINESS; a CAREER worth pursuing
• Young people/farmers getting back into agriculture
• Basis for current successful thrust into technology-led
and protected agriculture in Jamaica today
Summary:
Role in Technology Development
& Application in the Caribbean
SUMMARY
Our Approach over the years included:
• Technology Application in
– Effective Product Development
– Problem Solving
– Product and Process Optimization
• Application of Systems Technology in
– Market Access and Value Chain Strengthening
– Building Global Competitiveness in Caribbean Firms
Summary: Application of Technology
for Competitiveness in Caribbean
Firms
• Range of different kinds of technology, hard
and soft applicable
• Need to apply in a manner that is relevant to
the circumstance
• Must be cognizant of absorptive capacity of
persons being targeted
Summary: Application of Technology
for Competitiveness in Caribbean
Firms
• The knowledge base of all personnel involved,
the equipment and capabilities available, and
building
in
constant
upgrading
and
development are critical to success and
sustainability
Summary: Application of Technology
for Competitiveness in Caribbean
Firms
• Must gear information such that it can be
understood by the persons who are the
intended target – no use being “high science”
when the users are intimidated by it.
• Must be sensitive to culture of the country and
organization if success is to be achieved.
• Target sustainability. This can only be achieved
by a change in culture
Application of Technology for
Competitiveness in Caribbean Firms
• Caribbean firms that have benefited include:
– Benjo Seamoss – seamoss (Dominca)
– Mountain Top Springs Limited – water/coconut water (St.
Vincent & the Grenadines)
– Dairy Industries Jamaica Limited – dairy products
(Jamaica)
– Lasco Group Limited – range of food products (Jamaica)
– Sranan Fowru - poultry (Suriname)
– JBM SA – mangos, produce, F&V (Haiti)
Changing the Game
CHANGING THE GAME
• Starting with the objective, and only the
objective in mind
• Planning to achieve it without placing any
limitations on how it will be done
• Ignoring the current state or rules of play –
totally.
“Every morning in Africa, a gazelle wakes
up. It knows that day it must outrun the
fastest lion or it will be killed.
Each morning, a lion also wakes up. It
knows it must outrun the slowest gazelle
or it will starve to death.
It matters not whether you are a lion or a
gazelle. When the sun comes up, you
better hit the ground running.”
Dr. André Gordon
Technological Solutions Limited
agordon@cwjamaica.com
References
• Gordon, A. and Barbut, S. 1991.
Raw meat batter stabilization:
Morphological study of the role of the interfacial protein film. Can. Inst.
Food Sci. Technol. J. 24(4): 136-142.
• Gordon, A. and Barbut, S. 1991. The effect of chemical modification on the
microstructure of raw meat batters. Food Structure 10: 241-253.
• Gordon, A. and Ahmad, M.H. 1991. Thermal susceptibility of S. faecium
strains isolated from frankfurters. Can. J. Microbiol. 37: 609-612.
• Gordon, A. and Barbut, S. 1992. The effect of chloride salts on protein
extraction and interfacial protein film formation in meat batters. J Sci. Food
Agric. 58: 227-238.
• Gordon, A. and Barbut, S. 1992. The effect of chemical modification on the
stability, texture and microstructure of cooked meat batters. Food Structure
11: 133-146.
• Gordon, A. and Barbut, S. 1992.
The mechanism of meat batter
stabilization: A review. CRC Crit. Rev. Food Sci. Nutrit. 32: 299-332.
References
• Gordon, C.L.A. and Ahmad, M.H. 1993. Bacteriological conditions of a
chicken hatchery in Jamaica. World J. App. Microbiol. Biotechnol. 9: 282286.
• Gordon, A. 1993. Studying comminuted meat products using corroborative
techniques. Food Res. Intl. 26: 209-216.
• Gordon, A. and Barbut, S. 1995. Meat batter proteins - effect of chemical
modification on structure. J. Sci. Food Agri. 68: 457-464.
• Gordon, A. and Barbut S. 1996.
Meat batters: effect of chemical
modifications on protein recovery and functionality. Food Res. Int.
• Gordon A., Barbut S. and Smith A.K. 1996. Effect of cooking temperature
on the microstructure of meat batters prepared with salt on phosphate.
Libensm.-Wiss.u.-Technol., 29: 475-480.
• Blake, O.A., Jackson, J.C., Jackson, M.A. and Gordon, C.L.A. 2004.
Assessment of dietary exposure to the natural toxin hypoglycin in ackee
(Blighia sapida) by Jamaican Consumers. Food Res. Intl. 37: 833-838.
References
• J.C. Jackson, C.L.A. Gordon, G. Wizzard, K.McCook, R. Rolle. 2004.
Changes in chemical composition of coconut (Cocos nucifera) water during
maturation of the fruit. Journal of the Science of Food and Agriculture 84, (9)
1049-1052;
• Gordon, A and Jackson, J.C. 2010. Effect of ripening on the microbiological
profile of Jamaican ackees (Blighia sapida). Food Res. Intl. submitted.
• Gordon, A. 1992. The use of electron microscopy techniques in meat batter
technology research : a review. The 25th Anniversary Scanning Elect.
Microsc. Conf., May 9-14, Chicago, Il.
• Gordon, A. 1992.
The future of the food industry in Jamaica: is there a
role for science and technology? The Jamaican Food Processor 30 (2): 16-20.
• Gordon, A. 1994. How storage of meat batters prior to cooking affects
stability. Innovations '94 (CIFST Annual Conference), Vancouver, Canada
(Abstract).
• Gordon, A. 1995. Microstructure, texture and sensory properties of Vienna
sausages as affected by comminution protocol and added water. IFT Annual
Meeting, Annaheim, CA. June, 1995 (Abstract).
References
• Gordon, A. and Barbut, S. 1990. The role of the interfacial protein film in
meat batters. Scanning Elect. Microsc. Conf., May, 1990, Bethesda, MD.,
May 5-10, (Abstract).
• Gordon, A. and Barbut, S. 1990. The microstructure of gels in raw meat
batters made with five chloride salts. Scanning Elect. Microsc. Conf.,
Bethesda, MD., May 5-10. (Abstract).
• Gordon, A. and Barbut, S. 1990. The effect of chloride salts on protein
extraction and interfacial film formation in meat batters. IFT Annual
Meeting, Anaheim, CA. June, 1990 (Abstract).
• Gordon, A. and Barbut, S. 1991. The effect of chemical modification on raw
meat batter microstructure. Food Structure Conf., Bethesda, MD., May 5-10.
(Abstract).
• Gordon, A., Malcolm-Jackson, M. and Gooden, V. 1992. Optimization of the
sensory and textural characteristics of boneless sliced ham. Sixth Annual
S.R.C. Conf. on Science and Technol., "Food and Nutrition". The Jamaica
Conference Centre, November, 1992.
References
• Gordon, A. and Morgan, V. 1992. Use of sensory evaluation in product
development. Sixth Annual S.R.C. Conf. on Science and Technol., "Food
and Nutrition". The Jamaica Conference Centre, November, 1992.
• Barbut, S., Gordon A. and Smith A.K. April 1994. Microstructure of meat
batters during gelation and the effects of NaCl on phosphate - presented at
the Annual Poultry Science Conference (April 1994).
• Brown, M and Gordon, A. 1995. Use of accelerated shelf life testing in
predicting the shelf life of fruit drinks, Institute of Food Technologists
Annual Meeting, Anaheim, CA, June, 1995 (Abstract).
• Morgan, V. and Gordon, A. 1995. Application of sensory evaluation and the
hurdle concept to the commercialization of Jerk Seasoning. Institute of Food
Technologists Annual Meeting, Anaheim, CA, June, 1995 (Abstract).
• Wizzard, G., McCook, K., Jackson, J and Gordon, A. 2003. Quality of bottled
coconut water during storage; pH as a reliable indicator of coconut water
spoilage pre-processing. Caribbean Institute of Sciences Conference, Mona,
Jamaica (Abstract).
References
• Gordon, A. 2005. Food safety in the Caribbean. Challenges in the global food
market. Invited lecture to the US. Food and Drug Administration, Bethesda,
Maryland, USA, 2005.
• Gordon, A. and Lindsay, C. 2007. Effect of processing and handling on
hypoglycin levels in ackee. CARPIN Annual Conference, Kingston, Jamaica,
May, 2007.
• Gordon, C.L.A and Jackson, J.C. 2010. The effect of ripening on the
microbiological profile of Jamaican ackees (Bilghia sapida). Food Res. Intl.
(submitted).
References
• Gordon 2001
• Gordon, A. 2002. Traditional Beverages of the Caribbean. Institute of Food
Technologists Annual Meeting, ***, *, June, 2002 (Abstract)
•
Gordon and Jackson, 2002
• Gordon A and J.C. Jackson, 2003. Microbiological profile of Jamaican ackees
(Blighia sapida) during maturation. Institute of Food Technologists Annual
Meeting, ***, June** 2003 (Abstract)
• Gordon, A. 2003. Technical Issues in the positioning of the Caribbean in the
FTAA. Institute of Food Technologists Annual Meeting, ***, June** 2003
(Abstract).
• Blake, O., Jackson, J.C., Gordon, C.L.A and Jackson, M.A. 2003. Assessment
of dietary exposure to the natural toxin hypoglycin in canned ackee (Blighia
sapida) by Jamaican consumers. Institute of Food Technologists Annual
Meeting, ***, June** 2003 (Abstract)
• Blake, O., Jackson, J.C. and Gordon, A. 2004. The safety of ackee fruit.
Institute of Food Technologists Annual Meeting, ***, June** 2004
(Abstract)
References
• Mendonca, A and Gordon, A. 2004. Control of food safety and quality in
Caribbean countries: Implications for international trade. Institute of Food
Technologists Annual Meeting, ***, June** 2004 (Abstract)
• Knight, O.S. and Gordon, A. 2004. Alicyclobacillus in tropical Caribbean
beverages: Incidents and intervention strategies for control of this threat to
the industry. Institute of Food Technologists Annual Meeting, ***, June**
2004 (Abstract)
• Roosblad, M.R. and Gordon, A. 2010. Handbook for the export of fruits and
vegetables. Trade Sector Support Programme, IDB/IICA, Paramaribo,
Suriname, South America. April, 2010. Suriprint, N.V.