Left: In this June 2008 photo, Minister of Industry, Investment and Commerce Karl Samuda (second right) is accompanied on a familiarisation tour of the JB Ethanol plant at Port Esquivel by (from left) John Carberry, plant manager, Robert Levy and Chris Levy. Right: President of Guyana Bharrat Jagdeo (left) smells the ethanol produced at the JB Ethanol plant at Port Esquivel, while Dr Christopher Tufton (centre), minister of agriculture, and Christopher Levy (right), president and CEO of the Jamaica Broilers Group, look on. They were on a tour of the JB Ethanol plant in July. - Contributed
Considered one of the most advanced and diversified agricultural producers in today's developing world, the Jamaica Broilers Group is on a path to greatness.
The company opened its doors as the nation's pioneer producer of broiler meat on the commercial market in 1957 and its products are popular among consumers across the country. From the most fancied of gourmet restaurants to the jerk man on the corner, Best Dressed products stand tall.
Quickly establishing itself as a trend-setter, the company in 1977 made a move that was quite unpopular at the time, becoming one of the first to offer an Employee Share Ownership plan. The firm was listed as a public company in 1992.
"The real reason was that the family felt that the Lord has blessed us in a mighty way from way back then, and the culture of the Lord's blessing has been ingrained in the family culture, and basically we wanted to share that prosperity with the employees," said CEO and president Chris Levy.
Positioning itself as the leaders in poultry production, the group formed the Jamaica Poultry Breeders Limited in 1978, to fulfil more than 50 per cent of the fertile egg required for its operation. This was in keeping with the group's policy of owning and operating the various elements of production to ensure the most efficient returns.
The following year, the company gained full ownership of the feed milling operations in which it was the minority shareholder, renaming it the Best Dressed Chicken Feed Mill after major upgrading. Content Beef is yet another Broiler brand that provides some of the best quality protein products to be found anywhere, while the 26-year-old Aquaculture Jamaica Limited has established itself as a household name, not only in Jamaica but throughout Europe and North America.
Largest ethanol investment
The group's investment of over US$20 million in the JB Ethanol Ltd was the single largest investment in Jamaica's ethanol industry to date. This is the investment which resulted in the group being named the 2009 Gleaner Honour Award recipient in the category Business.
The idea for this investment was born out of discussions involving the executive and board members during a retreat in 2006 which looked at ways to move the company forward.
"We did a quick checklist of the key elements required," recalled the CEO. "Were there lands next to a port? Yes. did we have the technical ability to run such an operation? Yes. and did we have the financial capacity for such an investment? All those queries came back positive. ground was broken in early 2007 and we began operation in August of that year."
In the first 10 months, more than 45 million gallons of fuel grade ethanol for export was produced, turning over an impressive $6 billion of revenues. The Jamaica Broilers Group (JBG) reported record revenues of $20 billion in its financial year ended May, 2008, up from $11.5 billion in 2007.
Doubling the capacity of its refinery to 120 million gallons a year, revenue from ethanol for the first quarter of 2009 was $2.23 billion, marginally higher than the $2.14 billion from its poultry operations which, not long ago, was the group's core business and which gave the group its name.
"It has been a learning curve, but it has brought the group into a different arena. It has broaden our horizon in terms of partnerships, in terms of opportunities, in terms of financial capacity, in terms of professionalism," said Levy. "This has served to enhance our reputation as a company outside of Jamaica."
This standing saw the group successfully securing a loan from the Inter-American Investment Corporation of US$7 million to refinance its debt. "Strategically, what we are looking at in the next couple of years is what we call our debt management. right now we are carrying $5 billion, and we are aggressively reducing that as well as reducing the interest cost that we are carrying. I think it is our best investment at this time; it also allows the company to grow out of its own cash flow."
Strong and steady operation
Robert Levy, former chief executive of Jamaica Broilers. - File
Chris Levy has been at the helm of the operation since early 2009, taking over the reins from his father, Robert Levy, who is now chairman of the JBG board. The elder Levy has majority control and has imprinted his personality, creating a strong and steady operation, but flexible enough to adjust to changing circumstances.
The new president and CEO intends to maintain the course set by his father. "The chairman and past president goes with the tenet, 'We trust in an active God', and certainly, God is actively involved the company.
"There is no doubt that the company revolves around the principles of God and the principle of stewardship," he added. "The executive team and I see ourselves from the perspective of stewardship; and while the company is an international company, that message is carried wherever we go.
"Do we get it right all the time? No, but it is no secret that our core dependence and foundation rest on our faith in the Lord Jesus Christ."
Chris played a pivotal role on the team that established the ethanol operations and became the group's senior vice-president for operations prior to his current post.
A director of the board of Jamaica Broilers Group Ltd and a trustee of the JBG Employees' Trust, Chris Levy holds a Bachelor's degree in business administration from the University of Miami, as well as an MBA from Regent University in Virginia, USA. He has also successfully completed the Executive Management Programme at Harvard Business School.
An eight-member executive management team manages the company, of which three are also a part of the 11-member board.
Organisationally, the board delegates authority to an established audit committee which meets quarterly.
Corporate citizen
The company's record as a corporate citizen cannot go without mention, playing a pivotal role in communities in which it operates and beyond. The Jamaica Broilers Fair Play Award was initiated to encourage journalists to be thorough and balanced in investigating and reporting on issues of national importance. For its 50th anniversary celebration, the company budgeted US$1 million for what it called a transformation series - which included the Best Dressed 50 Fest, an event which included three two-day gospel concerts and family fun days in Mandeville, Montego Bay and Kingston. Work on the two schools was undertaken by volunteers during the celebrations; this also included a series of medical outreach and sports clinics and a gospel transformation initiative.
Additionally, the Jamaica Broilers Group Foundation gives assistance to organisations locally and overseas which have a desire to enhance the lives of others, both spiritually and materially. Fun In the Son was conceptualised eight years ago as a religious alternative to Spring Break and has become an annual event.
"I am not apologetic about our stance because it is where our blessing comes from. It is where our protection comes from, and as long as I am responsible for this company God will be honoured," declared Levy.
mark.titus@gleanerjm.com
From left: Norman Grant, Agriculture Minister Dr Christopher Tufton and Lloyd Stanbury, permanent secretary in the Ministry of Agriculture, with Jamaica Broilers CEO Chris Levy.