The Jamaican Minister of Agriculture, Karl Samuda, has hinted at a further increase in the price of coffee exported to the Japanese market. Coffee farmers will be paid an average of J$8-thousand (US$62.8) in the first instance per box of coffee.
However, this figure may be increased depending on negotiations due to take place with Japanese importers this month.
Samuda made the announcement during a stakeholders meeting last week, during which the coffee sector was reviewed.
The level of coffee production and the price to be paid per box to farmers were among some of the topics discussed.
Processors explained that prices are dependent on market forces that obtain in the Japanese market to which 70 percent of locally produced coffee is sold.
There has been a decline in the demand for Blue Mountain Coffee on the Japanese market because of the increase in prices charged by local processors.
The product has moved from US$27 to US$65 per kilogramme in the last two years.
The Agriculture Minister has agreed to lead a team to include persons from the Ministry as well as processors to visit farmers in the Blue Mountain coffee region to explain the pricing mechanism.
In addition, the Coffee Exporters Association, in collaboration with farmers, has been asked by Mr. Samuda to present a proposal to establish Agro-Parks in coffee producing areas.
