Jamaica Blue Mountain Coffee Prices to Fall

The price of Jamaica Blue Mountain (JBM) coffee jumped so much in 2015 that it now rivals the price of Kopi coffee and outpriced itself from Hawaiian Kona, but what goes up comes down.

Coffee bars around the world historically offer Kona and JBM at roughly the same prices . The 2015 local coffee shortage and rise in Japanese demand changed that with JBM retailing at about $60 per pound from about US$35 a pound a few years earlier for quality beans.

It resulted in the wealthy huffing and puffing but still buying the luxury super-uber-yummy coffee from Jamaica. The regular rich however choose to drink tea instead ( Starbucks buys Teavanna ).

Jamaicamocha spoke to key dealers who predict the fall in price of JBM by 2017 due to reduced demand in Japan and ramp up in supply. “A large Japanese dealer stopped carrying JBM and other roasters in Japan are bailing and crying about the price,” said dealer A. 

With the rise in prices for JBM every farmer’s son and grandson returned to till the soil. The rise in farmers on resuscitated lands will result in a jump in production and the magic number is 350,000 boxes for the crop year.

Hitting that target would put supply at a decade year high.

Another dealer said that JBM’s market is like a pyramid the higher the price the smaller the market. Simple economics dictates that price remains when demand and supply are in equilibrium: Yet demand is falling and the supply is rising.

Jamaicamocha believes on advise of dealers that the prices will fall back to about $45 a pound by 2017. Until then small poor farmers benefit. Dealers benefit and the discerning consumer gets his uber fix without counterfeits.

Marley coffee links with NFL

Marley Coffee which sells commodity and luxury Jamaica blue mountain beans will partner with The Broncos NFL team to cobrand  coffee.

“Marley Coffee is played to announce a limited edition Mile High Blend in partnership with the Denver Broncos,”  Marley tweeted.

The company which is on track to break even this fiscal year based on sustained sales growth.

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Salada Coffee complains of JBM prices

A respected local coffee brand SALADA Foods Jamaica Limited complained of Jamaica coffee price increases.

The increases slashed its gross margins by more than one-quarter, the company stated. It’s the latest processor to complain about the over 30 per cent price hike in one year, and 250 per cent hike over two years, towards $11,000 per box of coffee cherry. However the price rise is due to a severe supply shortage based on drought, disease, farm decay and now fire. Concurrently, large overseas buyers are demanding more coffee from Jamaica. On the micro-level farmers are demanding more per box due to the impact of currency depreciation on farm costs, and also the cost to protect the coffee against disease and theft. Two years ago processors paid roughly $3,000 for a box of coffee cherry to farmers.

“Profits continue to be adversely affected by the increases in price of coffee beans realised in the first quarter and the performance of its subsidiaries Mountain Peak Food Processors Ltd and Pimora Company Ltd,” stated Salada in a notice prefacing the financials signed jointly by Chairman Patrick Williams and Director Aubyn Hill. “The gross margin for the six months was 27.5 per cent, a reduction of 27 per cent when compared with the same period in the prior year. This resulted from the higher cost of coffee bean now being processed.”

Salada made $37-million profit before tax in the March quarter 2015 on $220 million in revenues, or 184 per cent higher profit year-on-year.

Just this week, large coffee processor Mavis Bank Coffee Factory Ltd makers of Jablum indicated that fire damaged at least $200 million worth of farms thus far. Last week US-based Marley Coffee cautioned its investors that the supply shortage of Jamaica Blue Mountain coffee could affect its sales going forward.

In recent times, Salada has faced increased local coffee competition in both the instant and brewed markets. Salada in its previous quarter hinted that it would seek to launch new coffee products this year. However, its latest March financials failed to add information on product development.

Last year, large coffee company Mavis Bank Coffee Factory Ltd launched True Brew, an instant coffee. It also launched Jablum Caribbean Blend, a mixture of beans from Jamaica and the Caribbean. In 2012, it also launched a high-end product called Jablum Gold.

Large Mavis Bank Coffee losses US$660,000

Lovers of Jablum will have to wait longer for roasted whole beans based on a coffee shortage which led to losses at the factory (pictured below).
Large Jamaica coffee factory Mavis Bank which makes Jablum Jamaica blue mountain coffee lost  J$41 million (US$356,000) to its 50% stake holder Jamaica Producers Group up to its December 2104 year end. That equates to US$713,000 in total.
The factory continues to struggle from an island wide coffee shortage which resulted in farmers doubling prices to Mavis Bank compared with year earlier levels.

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JP stated in Its just released financials that the group has a 50% holding in a joint venture company, Mavis Bank Coffee Factory
Limited that processes and sells Jamaican Blue Mountain coffee. “Up to December 31, 2014,
the group’s contribution to that joint venture was $136 million (2013: $136 million) used for working capital financing and start-up.”

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Jamaica Coffee factory starts 4 day work week

Jamaica Coffee shortage continues with a major producer resorting to  4 day work week, jamaicamocha understands.
“Due to severe shortage of coffee,” the notice started, workers will have the choice of a day off.
Annual coffee exports once US$30 million prior to the Western financial crisis nearly 7 years earlier are now half that level.

Jamaica Coffee shortage continues with a major producer resorting to  4 day work week, jamaicamocha understands.
“Due to severe shortage of coffee,” the notice started, workers will have the choice of a day off.
Annual coffee exports once US$30 million prior to the Western financial crisis nearly 7 years earlier are now half that level.

Coffee drought in jamaica rasta!

Coffee shortage continues to affect the availability of Jamaica Blue Mountain JBM beans. Its based on a confluence of factors now led by drought.
Less beans resulted in price increases of roughly 40% in real terms to consumers. Interestingly small farmers benefit with box prices of coffee cherries inching past J$8,000 (U$70).
” I hear they paying up to J$9,500 a box,” a source indicated.
To consumers it resulted in a shortage of favourite brands.
For instance, the beans of large supplier Jablum remain out of stock–going three months now or since November. “We won’t have brand before April,” another source said this week.

Twymans –started restricting sales.

Amber–only has ground available but peaberry beans are still available in its ‘Supreme’ brand

Island Blue –beans are once again available in limited supplies

Wallenford Estate–has beans

Cafe Blue —beans available

Coffee Traders–beans available

CRJ –beans and kcups available.

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Salada brewing new products

Salada Foods, a large coffee maker in Jamaica plans to launch new coffee products this year, according to its annual report.

The move comes within the context of increased rival coffee competition in both the instant and brewed segments.

“We strongly believe that creating new value for our customers is imperative to the success of the company, and with this in mind, in the upcoming year Salada will re-energise and revitalise our coffee category, providing our customers with new and improved products in the market space during the year,” stated the then Acting Managing Director Keshia Nelson-Brown in a statement accompanying the annual report 2014.

The annual report avoided disclosing additional information on the products. In late December, Salada advised that Jerome Miles would “replace” Nelson-Brown and commence work on January 5, 2015 as general manager.

Salada Foods, a large coffee maker in Jamaica plans to launch new coffee products this year, according to its annual report.

The move comes within the context of increased rival coffee competition in both the instant and brewed segments.

“We strongly believe that creating new value for our customers is imperative to the success of the company, and with this in mind, in the upcoming year Salada will re-energise and revitalise our coffee category, providing our customers with new and improved products in the market space during the year,” stated the then Acting Managing Director Keshia Nelson-Brown in a statement accompanying the annual report 2014.

The annual report avoided disclosing additional information on the products. In late December, Salada advised that Jerome Miles would “replace” Nelson-Brown and commence work on January 5, 2015 as general manager.

Jamaica Blue Mountain Stout

US based AleSmith Brewing Company and Mostra Coffee launched
‘Jamaica Blue Mountain Speedway Stout’ since March.

Since its launch online fans have been mostly supportive but some question the use of high quality coffee as a “quirk”.

The team will source beans from Mavis Bank Coffee Factory in Jamaica makers or JABLUM.

The company says that US based coffee roaster, Mostra Coffee carefully roasted and cold brewed Jamaica Blue Mountain coffee beans to complement its award winning Speedway Stout.

They will lightly roast the coffee to enhance aromas and well-balanced chocolaty finish and add to the stout.
“Thanks to Mosta’s diligent work, these 100% Blue Mountain beans were sourced from the renowned Mavis Bank Coffee Factory in Jamaica,” added the company.

Speaking about the collaboration, Mike Arquines, Roaster for Mostra Coffee said, “This opportunity is surreal. Prior to this collaboration, AleSmith was one of my all-time favorite breweries! Speedway Stout was my first “gateway” craft beer experience. It blew my mind because I didn’t know that beer could taste like this. My Mostra team and I feel like this has been a match made in craft beer and coffee heaven because it brings together two companies who pride themselves with being able to provide an un-compromised experience and product. Cheers to more amazing collaborations in the future!”

George Allen, General Manager for AleSmith echoed Mike’s sentiments about the collaboration, “AleSmith prides itself on sourcing the highest quality coffees for our single varietal Speedway Stouts. With this in mind, we reached out to local roaster, Mostra Coffee. Mostra shares our commitment to quality and bettering the customer experience. After several cupping sessions we found the perfect match in Jamaica Blue Mountain coffee. “

The beer goes on sale online (via Brown Paper Tickets) on Monday, March 3rd and AleSmith will host a release party at the brewery on Saturday, March 8th.

About AleSmith Brewing Company
AleSmith Brewing Company was founded in August 1995 in San Diego, California. The company currently employs 28 people and is projected to brew 15,000 barrels in 2014.

About Mostra Coffee
Mosta Coffee is a San Diego, California based artisan micro-roasting company that sources, roasts, brews and serves premium, fair-trade specialty coffee.

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