Expanding Jamaica Blue Mountain Coffee in the EU

Executive Summary

Expanding Jamaica Blue Mountain coffee in the EU Windward Commodities 30th June 2022

1.2. A European Problem The reason given by EU buyers is simple. The rest of the world has moved on while Jamaica has not. Innovative processing, traceability, micro-lots, new varietals, sophisticated marketing and competitive cupping have replaced the single-origin model. While Jamaica is still firmly behind the ‘third-wave’ of coffee, the rest of the world, and the EU in particular, is moving towards the ‘fifth’. In this respect, the EU specialty coffee market is more complex and demanding than that of the US and Japan which represent better short term opportunities, as does expansion into growing markets such as China and Emirates, where the expanding middle class values scarcity, luxury and brand reputation. The EU focus on traceability, ethics, measurable quality and innovation as well as stringent import requirements and a complex market structure make it an expensive place to operate. However, it would be a mistake to ignore these trends. The EU represents the world’s single largest specialty coffee market and many ideas that originate there become mainstream elsewhere. These same trends have increased competition and impacted both pricing and demand for Jamaica blue mountain coffee in Japan over the last decade despite strong historical links and an outstanding brand. And, while the price premium that Jamaica Blue Mountain commands has been highly resilient, export revenues have halved over the last fifteen years from USD30.35m in 2007 to USD15.57m in 2021. 1.3. Domestic Structural Issues In part this reflects deep seated structural problems in the industry rather than simply demand. Production is down because farmers do not make enough money at a farm level to make a profit. This is despite the fact that demand for Jamaica Blue Mountain outstrips supply, and farm gate prices are multiples of those in other countries. Yields are low, coffee is a second income for many, and investment and technical support to support farmers is almost non existent, with the most consistent coming from larger farms to secure their own supply chains. Outside the Blue Mountain areas, the picture is worse still due to the limited price premium that can be extracted for non-blue mountain coffee, and this is reflected in a sharp decline in both incomes and production. Further, the use of terms such as ‘Jamaica High Mountain’ serve primarily to confuse buyers who are overwhelmingly negative about these sub-brands. This report therefore focuses almost entirely on Jamaica Blue Mountain coffee given the quality credentials required in the EU and the price points needed to motivate farmers.

Time to Wake Up and ‘Cup’ the Coffee | 5