Two days after announcing the closure of the Appleton Estates Sugar Factory, J Wray and Nephew Ltd has announced that farmers and communities affected will benefit from over $500 million.
The assistance programme will begin this month and run until 2023.
In an official release, JWN noted that they are aware of the adverse effects that the closure would have had. Therefore, monies were set aside to cushion the impact.
The company has reported annual losses of US$12million (approximately J$1.8billion) on its sugar production operations for over a decade.
“These sustained losses have forced the company to take this necessary course of action,” the company noted in a statement released earlier this week.
“The negative impact of the novel coronavirus has also contributed to the company’s decision. The global pandemic resulted in the closure of bars, tourism and other routes to market, and in so doing, crippled the domestic and export earnings of J Wray & Nephew.”
According to the Sugar Industry Enquiry Commission Report of 2010, between 200,000 and 300,000 tonnes of raw sugar is required to keep the industry viable.
In 2018, J Wray & Nephew was forced to close its Holland & Casa Marantha sugar estates, also in St Elizabeth, in a bid to reduce its overall losses. But according to the company, those closures did not result in any savings.