Blue Mountain coffee farmers hope to strengthen United States and European markets. - File

Blue Mountain Coffee Cooperative (BMCC), a group of farmers from the St. Thomas side of the mountain, have signed Las Vegas-based firm, Coffee Pacifica (CFPC), as exclusive dealer outside of jamaica to distribute its Penlyne Castle brand.

Importantly, for BMCC the deal will give the 3,000 farmers represented by the co-operative a mark-up on the price of their green beans.

"Joining Coffee Pacifica's distribution system allows us to participate globally on a 'Growers Direct' basis to increase visibility, demand and prices for our world-renowned Jamaica Blue Mountain green beans," said O'Neil Blake, general manager of BMCC in a joint statement issued two weeks ago.

"Coffee Pacifica's 'Growers Direct' system will enhance price paid to our 3,000 cooperative farmers who represent approximately 30 per cent of the "Jamaica Blue Mountain" green bean annual production.

On average around 10,000 tonnes of cherry coffee is cultivated in the Blue Mountain each year, US$2,600 a tonne.

But for CFPC, the deal could mean salvation for the United States firm's cashflow problems that have eaten away at its bottom line.

"Supply of high quality green beans from Jamaica is expected to increase revenue, cash flow, and earnings for Coffee Pacifica while maximising value for the shareholders," said Terry Klassen, CEO of Coffee Pacifica.

The Company racked up accumulated deficit of US$11.4 million in less than two years.

For the nine months to September 30, the Company sustained net losses of US$7.1 million having only made US$2.1 million in revenue.

In its financial statement for the period ending September 30, the firm told its shareholders that "the company's continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenue and cash flow to meet its obligations on a timely basis."

"There are no assurances that we may be successful in generating any additional revenue," said its note to shareholders.

"If we are unsuccessful in securing (alternate) financing on acceptable terms, our potential as a going concern could be affected and our ability to continue with our business would be harmed. In such event, we may curtail or cease our operations."

A big part of the company's plan is to diversify the supply of green beans, from other countries.

CFPC currently distributes and a markets in the U.S., Canada and Europe green bean coffee grown in Papua New Guinea.

The Papua New Guinea (PNG) coffee harvest season is from May to August, while in Jamaica, the season runs from September to April.

Although, periods of heavy harvesting on the Blue Mountain typically last three months and occur at different times depending on the altitude of the coffee - the higher up the mountain, the later the season.

As a result, CFPC visited Jamaica last October to conduct the due diligence on BMCC.

"It is our goal to expand and add coffees from other origins to our current PNG coffee," said Klassen.

The firm is also looking at new markets as outlets for its coffee, exploring the potential opportunities to sell its green and roasted coffees in China with its partner, Trabocca BV.

BMCC represents approximately 3,000 coffee farmers within the Blue Mountain coffee region of Jamaica. factory located in Cedar Valley, St. Thomas.

CPC only has one coffee roasting facility. Its roasted coffees compete directly against gourmet speciality coffees sold at speciality retailers, discount stores, and a growing number of speciality coffee stores.

camilo.thame@gleanerjm.com