Growth & Jobs | Keeping your small business afloat amid heat and drought

At the Morant Bay market, the prolonged heat and drought are adversely impacting Kaycia Graham’s vending business. The price of produce she purchases for resale increases each week, resulting in customers buying less. In addition, she frequently has to discard produce because of their rapid deterioration caused by the heat.

Graham sells a variety of fresh produce, including tomatoes, cucumbers, onions, plantains, bananas, limes, yams and peppers. She pointed out that, although some produce can last for several days under normal conditions, the heat is now accelerating spoilage.

“The cucumber don’t keep green because of the heat, so they’re turning yellow. The hot pepper [and] tomatoes shrivel up, so we have a lot of losses. Even the ripe banana that we sell, they don’t have a pretty yellow,” she bemoaned.

Limes, she added, have also been going bad quicker than usual.

“Everything just a ripe and spoil,” she lamented.

“Sweet pepper is $800 a pound [because of] the drought. I don’t know if we are getting any this week,” she said, noting that some goods have become scarce.

She pointed out that she first began noticing the extent of the problem in late July.

According to the Meteorological Service of Jamaica, El Niño is among the climate factors contributing to the dry conditions. With the heat expected to persist, Jamaicans are likely to face increasingly hot days and a heightened risk of heat stress and dehydration. The dry conditions are forecasted to continue through May next year.

Pivoting to survive

Graham is now turning her focus on selling other goods that are less vulnerable to spoilage, such as honey, molasses, powdered seasonings, pimentos and nutmegs to keep her vending business afloat. In addition, she works at a nearby cookshop some days of the week and does small-scale poultry farming. The strategy, she explained, is part of her effort to ensure that she has another source of income when the sale of fresh produce is slow.

As a JN Bank Small Business Loans client, Graham said maintaining her cash flow is particularly important because she has loan obligations to meet.

“Me have to ‘fight’. Sometimes people ask me how me manage,” the mother of three shared.

The heat is also taking a toll on Graham, who has to use a fan at her stall and drink lots of water to keep hydrated.

“Sometimes I sweat till my clothes wet,” she related.

Adapting to circumstances

Gillian Hyde, deputy managing director, JN Bank, said the current drought and prolonged heat underscore the importance for businesses to adapt when circumstances change.

“Every business has a role to play in conserving water and using this valuable resource responsibly. Water conservation should be part of how businesses operate as a regular practice,” she advised.

Hyde stressed that the current conditions also highlight the need to plan for disruptions that can affect business activities.

“Entrepreneurs should assess where their businesses are most vulnerable and put measures in place such as having ample water storage before a crisis becomes more difficult to manage.”

She suggested that market vendors, for example, could consider adjusting the quantities of produce they purchase, based on demand and the prevailing conditions, while also exploring alternative suppliers to help maintain their supply.

“The objective is not simply to get through a difficult period, but to use the experience to identify what can be done differently and how to better manage future disruptions,” Hyde emphasised.

“Where appropriate, small businesses can consider investments that improve efficiency, reduce operating costs, minimise losses or create additional sources of revenue. The drought and extreme heat demonstrate why business owners have to remain responsive and be willing to adapt their operations.”

Hyde also encouraged business owners who anticipate difficulty meeting their loan obligations because of the current conditions, to engage their financial institutions as early as possible, rather than wait until the challenge becomes more difficult to resolve.