Dr Henry Rainford, managing director and CEO of the Jamaica Livestock Association. - File

Two Jamaica Livestock Association Limited (JLA) subsidiaries have been absorbed into the farm supply company, a strategy meant to contain tax payouts and increase shareholder value.

The 55-year-old JLA said Thursday it had completed the Scheme of Arrangement approved by the Supreme Court.

"It will mean that profits generated by the feed mill and the hatchery operations, which previously bore tax at 33.33 per cent when declared as dividend to Jamaica Livestock can now be paid to stockholders on a tax-free basis," said Dr. Henry Rainford, managing director and CEO of the Livestock group, in a statement issued by JLA.

Accounting books

"In addition, there will be cost savings on the administrative side for, among other things, the Livestock group will no longer need to run three separate accounting books, but instead all accounting functions will now be consolidated into Jamaica Livestock."

Jamaica Feeds manufactures animal feeds for sale to and distribution by JLA, while the hatchery is engaged in importation of eggs for hatching and the production of chicks that are also sold to JLA.

The association sells from 13 commercial stores islandwide.

"The transaction was completed by a vesting order granted by the Supreme Court of Jamaica under the Companies Act," said the JLA. "... all claims and legal proceedings (if any) which hitherto existed against Feeds and Hatchery will survive and exist against Jamaica Livestock.

Rainford said no jobs would be lost as a result of the amalgamation, and that employment would continue at current salaries and under existing terms.