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Stabroek News

LETTER - Lopsided coffee niche market
published: Friday | January 4, 2008

THE EDITOR, Sir:

The reality of Jamaica's present marketing arrangements for coffee is one in which the exportable is a primary raw material in the form of green beans.

The greatest threat inherent in this kind of arrangement is that such a rudimentary export provides fodder for adulteration and the creation of the 'brand impostor'.

It would have been far better for us to have been selling a coffee brew rather than a basic ingredient to which we have elected to give up critical control, thereby endangering Brand Jamaica.

How we ended up here is immaterial. The conventional wisdom way back when these prevailing arrangements were made, may very well have good reasons to recommend such a protocol for selling Jamaica's coffee.

What faces the local coffee industry now however, is a beacon of changes since we have all but lost 'low land' production, and only see very marginal returns which stagnates the development of even the most efficient Blue Mountain grower.

We cannot overemphasise that it is the grower who represents the primary link in the chain for any agricultural industry. We will therefore have to extract every commercial benefit after creating a totally value-added market orientation.

'Flow back'

Only this approach will guarantee the kind of 'flow back' of economic returns to the growers, for taking a multiplicity of risks.

Our present situation suggests a failure more in keeping with overdue policy revision and general direction of the country in respect of this crop.

In order to assist with the survival of the coffee grower and other operatives at this level, one has to begin to look at the full gamut of value-added opportunities which exists for the product.

It is to be readily acknowledged that we are at the optimum in terms of the pricing structure for the green beans we now export, and that further scope is thin.

It makes it an opportune time to establish whether it will be cost-effective for Jamaica to engage in serious off-shore value-added processing. This type of research must never be seen as too expensive since it has the potential to revolutionise the industry once it can prove viable.

Own awareness

In the present era of the abolition of preferential trade arrangements, this provides a forum for Jamaica to at least indicate its own awareness to the fact that our best interest is no longer being served by out-dated protocol.

The greatest tribute which could be paid to our outstanding coffee legacy is to evaluate the implications of marshalling it to the brewery and beyond.

Future marketing deals should among other things, speak directly to the interests of the growers and need not reflect the vestiges of past negotiations.

The Coffee Board must now issue the rallying cry for its own trade specialists, as well as Jamaica Trade and Invest and the average Jamaican to take an interest in maintaining coffee as a part of our rich heritage.

Derrick Simon

simon@anngel.com

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