CIB aims to earn US$12m annually from coffee sales to China
The Coffee Industry Board’s (CIB) strategy to offset the global downturn involves growing annual coffee sales to China by some US$12 million ($1 billion) in five years.
The projection represents about 40 per cent of the current annual crop’s earnings and would diversify it reliance on Japan which buys 85 per cent of the Jamaican coffee.
“If the execution of a strategic marketing plan works for China, then the this market may be worth in excess of US$12 million to Jamaica in another five years, depending upon the mix of value added products, maybe worth twice as much as this,” stated the CIB in a written response to Observer queries.
The CIB estimates that less than 15 tonnes of Jamaican coffee has ended up in China over the last five years. The market however is estimated at 30 tonnes a year.
“This could be transformed in a relatively short period of time, if the current rate of growth in the market holds and if the market is focused on quality,” the CIB stated in the response which was endorsed by CIB director-general Christopher Gentles.
Gentles went to China and Japan in October and had talks with stakeholders to plan the strategy. The CIB stated that members of the Association of Café owners in China will visit Jamaica next year “to see the location and production systems within the Blue Mountain Coffee Industry some time in the second quarter of next year”.
The CIB added that the Ministry Of Agriculture is currently structuring a high level strategic marketing committee to guide the diversification of the marketing of Jamaican coffee. There will be representatives of the Jamaica Coffee Exporters Association the CIB, the Ministry of Agriculture and other agencies. Diversification has long been theorised but never achieved however the global downturn has renewed its call.
“It is now evident that the Coffee Industry has to diversify the market for Jamaican coffee. It will require a paradigm shift in the thought processes of the farmers, licensed coffee dealers,” stated the CIB.
Some five years ago the CIB made with the agreement of the Jamaica Coffee Exporters Association to export roasted beans to China but not “facilitate the export of green beans to China”.
“We are currently reviewing this position and the report on the trip to China will indicate,” the CIB stated.
Some 85 per cent of coffee is bought by Japan, 10 per cent to North America and some 4 per cent to Europe. The CIB has been looking actively at the regulatory framework to protect the wider distribution of Jamaican coffee.
“The US and Canada currently consumes approximately 20 Million bags of Coffee per year, and it is estimated that Jamaican coffee can do significantly better than it is doing right now,” added CIB. “The Board of directors and the Committee set up for the Strategic Diversification of Jamaican Coffee Industry Board will be evaluating a proposal for the long term plan (5-10 years) for sales of coffee to China among other countries.”