Workers at the Mavis Bank Central Factory sort coffee beans to remove non-standard ones. - IAN ALLEN/STAFF PHOTOGRAPHER
THE EDITOR, Sir:
THE TRUSTEES of the local coffee industry appear to be hard-pressed to maintain consistency in the plethora of reasons given as to why crop insurance payments in the wake of Hurricane Ivan have not been made.
Earnings from the sector is expected to be significantly down, at least for the next three to four years. The long-awaited funds to rehabilitate the ailing industry, expected from sources such as grants, crop insurance etc., will in all likelihood be employed in resuscitation activities which itself will effectively defer production for years.
Alternatively, if we seek to put off the individuals, then the prospects for the recovery of the industry in the short to medium term will be increasingly perilous.
MARKETS
In the meantime, there can be little or no expectation that the almost 50 per cent fall in supply to our major markets of Asia will result in increased prices. This is because Jamaica's coffee is already positioned at the very high end of a highly specialised niche market.
The only positive aspect of the present scenario will be the obvious depletion of stockpiled coffee, mainly in places like Japan, giving rise to other extremes where steps are under way to safeguard the industry against those who are minded to blend our product with sub-standard brands.
This is a concomitant effect which is usually exacerbated whenever we face shortages. The question of confidence is also now positioned from the standpoint of commitment to sustained supplies to newly opened markets, which was the subject of product promotion in recent years.
The reasons given for the delay in the insurance payments include the fact that the local trustees are having extended negotiations with the adjusters in order to procure the best possible settlement for the farmers, the brokers have been delayed in a procedure of trying to unravel fictitious claims on the part of some farmers, and the field assessors have been unduly hampered by blocked roads and inaccessible farms brought about by Hurricane Ivan.
Additional causes for the delay are the policy option which was purchased on behalf of the farmers being of the 'Distant Maturing' type and the fact that the payout is pending the islandwide completion of post-Ivan harvesting, as a means of ratifying each claim.
The tragedy of the prevailing situation is that farmers must face up to the stark reality that their own livelihood and that of their community depends on personal self-insurance. At the very best, the cess charges which are deducted from our coffee sales is essentially 'tribute'. Like our taxes, they are collected but they do not
adequately procure for us any of the amenities which we require.
I am, etc.,
DERRICK SIMON
Camp David
Golden Spring
Derrick Simon is a coffee farmer operating in the Blue Mountains.
