JAMAICA IS known internationally for its premium brands of coffee, the most famous of which is the Blue Mountain variety, which is grown 2,256 metres (7,402 feet) above sea level and at the highest point on the island.With its rare blend and unique aroma, Blue Mountain is the most demanded of all brands, commanding the highest price on the world market. Only 15 per cent of the coffee grown in Jamaica is authentic Blue Mountain, with the other two superior grades being the High Mountain Supreme and Jamaica Prime.
Traditionally, coffee farmers have found profitable markets abroad, especially in Japan, where more than 90 per cent of the product is sold.
But, the deregulation and liberalisation of the local industry in the 1980s brought significant changes to the structure and performance of the industry, triggering a swell in the number of persons who could grow and export the produce.
This resulted in a dramatic increase in the output of Blue Mountain Coffee, with production of the superior variety increasing from 40,000 boxes in 1978 to 430,428 boxes in 1997, while production of Lowland coffee declined by approximately 50 per cent, moving down from 322,857 boxes in 1988 to 164,404 boxes in 1998.
FURTHER COMPOUNDED
The problem was further compounded by the inability of the Coffee Industry Board (CIB) - the agency with responsibility for managing the industry - to deal with the complexity of issues that emerged from the opening up of the market, which include putting measures in place to protect small farmers and ensure that standards of quality were being met; to collect debt from the large number of growers and exporters; and making provisions to deal with risks associated with crop failures.
Developments in the international markets, including an expansion in e-commerce, heightened environmental awareness, food safety concerns, international drug trafficking, and pirating of the Blue Mountain brand also challenged the industry.
Additionally, the CIB faced high administrative overheads, while farmers experienced a reduction in income.
During this period, exports of coffee declined dramatically from a high of 1,838 tonnes in 1995 to 1,017 tonnes in 1998.
In the bid to resuscitate the sector and significantly increase production to 669,000 boxes by 204, the Government, some three years ago, instituted a Revitalisation Plan for the industry, with emphasis on improving the marketing ability of the CIB.
BETTER TECHNOLOGY
As such, new marketing, pricing, licensing and farming mechanisms were introduced, while assistance was provided to farmers to apply better technology to their farms. The market for the product was diversified and initiatives put in place to increase the quality of cherry purchased from farmers so as to improve exportable quality and quantity. The plan also called for the divestment of unprofitable farms.
So far, 10 farms comprising almost 300 hectares of coffee have been divested to private farmers in the Blue Mountains and these farmers continue to work actively to resuscitate the properties and bring them back to profitability.
The Commercial and Regulatory arms of the CIB were formally established as separate entities in 2002, with the Commercial section having responsibility for assisting with the processing and sale of wholesale coffee, while the regulatory arm is responsible for inspecting and certifying the product before export. Extension and credit services have been rationalised with the bulk of these services now being shifted to the processors on a commercial basis.
In addition, there was a reduction in the number of processing facilities with the closure of two of six pulperies, while a new processing plant was opened in Tarentum, Clarendon.
In keeping with the Revitalisation Plan, there has been on-going monitoring of the quality of coffee for export, to entail testing for pesticide residues, while efforts have been made to prevent environmental pollution from the cultivation and processing of the commodity. In 2002, a Code of Practice for the industry was launched to ensure the sustainable development of the industry in keeping with the highest environmental and business standards. An effective and efficient certification system has been established for all coffee exported from the island.
See Part Two next week.
