Local News

Imported ice drives price increase as Jamaica’s top producer rebuilds

31 December 2024
This content originally appeared on Jamaica News | Loop News.
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Pure National Limited says it has been compelled to increase ice prices due to the high costs associated with sourcing ice from overseas in the wake of a massive fire at its facility in November.

"Unfortunately, the costs associated with importing ice — ranging from trucking to shipping and government clearance — far exceed our local production costs," Pure National Director, Khary Robinson said in a press statement.

As a result, Robinson said Pure National had to implement a price increase of between $100 to $200 per bag, which merely covers the increased sourcing and delivery expenses.

Pure National Limited, the largest producer of ice in the English-speaking Caribbean, said it has been navigating significant operational challenges after the fire caused a complete loss of production and storage capacity at its plant. This disruption has created a substantial gap in the supply of ice across Jamaica.

To bridge the supply gap, Pure National said it turned to a large-scale producer in the US that meets both FDA and Bureau of Standards Jamaica health regulations. However, the associated costs of importing ice have heightened expenses significantly, prompting the necessary price adjustments, the company said.

Robinson acknowledged the broader implications of the supply disruption, noting that local suppliers have struggled to fill the void left by Pure National. “Our rigorous quality standards and significant production volume are meaningfully more than we can garner locally,” he said.

The company’s leadership emphasised that the price increase is not aimed at profit generation but at maintaining supply during this critical period.

“We want to make it clear that Pure National is not seeking to profit from ice sales during this rebuilding period,” said Theresa Lindo, CEO of Pure National Limited.

“Our primary focus is on ensuring that we provide safe, high-quality ice to the market that has been served by our brands – Happy Ice and Pure National Ice – for over 30 years. It’s important to understand that we do not control final pricing to the consumer since our sales are to retailers who set their markups as they see fit for their business.”

Robinson further addressed the instability in pricing across the ice market, attributing it to the current supply-demand mismatch.

“We understand that pricing has become erratic as there has been instability in supply and its inability to meet demand. However, we are gaining traction and support from all stakeholders, including government entities, to stabilise pricing as quickly and steadily as possible,” he said. “Our ultimate goal is to rebuild the most superior production facility in the region, which will allow us to regain our lower production costs and stabilise ice pricing back towards previous levels.”

“From 2019, we have consistently made substantial investments in our state-of-the-art facility to deliver the highest quality ice and water at the most competitive prices, and we are committed to rebuilding and restoring our production capacity,” Lindo added.

As Pure National works to recover, Lindo urged consumers to prioritise health and safety when purchasing ice.

“Ice is food, and how it is produced is vital to your health,” she emphasized. “We encourage everyone to consume ice only from trusted sources as we work tirelessly to resolve these issues and meet the demands of our valued customers.”