Mavis Bank coffee payments fall 25% amid farmers' exodus
Published:Friday | June 24, 2011 | 12:00 AM
Mavis Bank Coffee Factory (MBCF), the largest processor of Jamaica Blue Mountain coffee, says despite the coffee recession it would pay farmers J$234 million for the 2010-11 crop, or 25 per cent less than year earlier levels.
"I think it is quite an accomplishment that the price is down but we have found the money to pay the farmers, so that they can prepare for the next coffee crop," Senator Norman Grant, managing director and chief executive officer at MBCF told the Financial Gleaner on Thursday.
"We salute the farmers."
Total sales were not immediately available, however, Grant explained that "revenues from a box of coffee have declined by 30 per cent over last year" mainly due to the reduction in demand, he said.
Close to one million pounds of beans are exported in barrels and bags under the MBCF trademark in the green bean form, with the remainder roasted and packed in vacuum bags under the Jablum brand.
The Jampro investment guide indicates that pre-recessionary revenue ranged between US$8 million and US$11.6 million per annum.
"I understand the farmers' frustration because the costs of imputs are increasing. We are, however, hopeful that the [rise] in Jamaica Blue Mountain coffee market in the next five years and urge the farmers not to chop down coffee trees," he said.
MBCF is to issue final payment of J$81 million for its 99,500 boxes of coffee between Tuesday and Friday of next week. The company buys coffee from an estimated 6,000 farmers in the Blue Mountains.
"This brings total payment for the 99,500 boxes of cherry berries for the period ended February 28, 2011 to J$234 million for the 2010-2011 crop. The purchases of 99,500 boxes represents 43 per cent share of the Jamaica Blue Mountain coffee market," Grant said in a release earlier this week in an update on the payments for coffee farmers in the Blue Mountain regions of St Thomas, St Andrew and Portland.
Concurrently, the farming conglomerate Jamaica Producers Group and the Facey family-controlled property group Pan-Jamaican Investment Trust have partnered to purchase the 70 per cent of Mavis Bank held by state-owned Development Bank of Jamaica.
The remaining stake is owned by the Munn family.