By McPherse Thompson, Assistant Financial EditorTWO NEW managers have been brought in by the Coffee Industry Board (CIB) to continue a restructuring process which began about three years ago when the Government injected $3 billion into the cash-strapped entity.
However, David Martin, the new chief executive officer of the CIB's Commercial and Marketing Division, said the Board was now solvent and he was positive about the outlook for the industry.
Mr. Martin, formerly brand manager for Smirnoff Ice at Red Stripe, took up his new duties on January 1. He succeeds Gonzalo Hernandez, a Costa Rican, whom the Government had brought in at the height of the financial crisis to undertake a review and evaluation of the Jamaican coffee industry, as well as to instil operational efficiency at the CIB by upgrading the manufacturing facilities.
The other manager is Graham Dunkley, a partner in Blue Mountain Coffee Venture, who has been appointed director-general of the CIB's Regulatory Division. Mr. Dunkley replaces Dr. Cecil Goodridge, a long-standing director of the CIB and a former vice-president of the Jamaica Agricultural Society (JAS), who was asked to take a lead role in restructuring the CIB following the Government bail-out just over two years ago.
Mr. Martin told The Financial Gleaner that much of the $3 billion injected by the Government was spent under both Mr. Hernandez's and Dr. Goodridge's watch to restructure the operations and streamline the manufacturing side of the business. As a result, he said, the CIB "is now far superior to what it was three years ago."
In May 1999, Richard Downer, chairman of the CIB, announced that the Board was insolvent, with liabilities exceeding assets by about $1 billion, in addition to debts of more than $500 million.
Mr. Martin said the CIB's debt was now being properly serviced and therefore, within two to three years, the organisation should have "relatively light debt."
He said the value-added products of the CIB were growing, and this included a new thrust to roast and export finished coffee products instead of raw beans only. "We are also actively developing new markets for roasted coffee and this will play an increasing role in the development of our business portfolio," Mr. Martin said. In addition, the CIB has sought to diversify its markets for Blue Mountain Coffee.
"So, the debt is reducing, markets are opening and value-added products are growing," said the chief executive.
With the capital restructuring, which began in October 2001, the CIB's regulatory and commercial functions were separated, with each division having its own chief executive officer. The regulatory arm began handling the statutory functions of the coffee industry, with emphasis on quality control and certification of coffee. It also took charge of responsibility for issuing licences to processors and traders, as well as research and development to improve coffee productivity and marketability.
On the other hand, the commercial arm concentrated on the purchase and processing of coffee for sale to customers, in addition to the processing of cherry coffee for a fee to other parties.
