The value chain breakdown of Jamaica Blue Mountain coffee
Few products so effortlessly merge luxury, heritage and national pride as does Jamaica Blue Mountain coffee.
From the misty peaks of the Blue Mountains in Jamaica to the five-star cafés in Tokyo and boutique roasters in Europe, JBM coffee is a global darling. But while the world sips, we must ask: ‘Who’s really profiting from this cup? And more importantly, how much of that profit stays in Jamaica?’
I’ve had the unique privilege of working with coffee-producing countries across 46 markets – many of them steeped in the same dilemmas. From Asian markets to Mexico, Costa Rica to Peru to Jamaica, I’ve seen first-hand how value chains are often structured to favour the buyer, not the grower. But JBM’s case is especially striking.
As someone who breathes strategy, obsesses over marketing, and, a confession, adores coffee more than I should, I’ve tasted brews across continents. Truthfully, JBM has ruined me for other coffee tastes. But being sentimental about our coffee beans, as many of us are, won’t keep value onshore. We need facts. We need strategy. We need action.
Let’s begin with one hard truth: there is an estimated 2,800 per cent markup from ‘farm to cappuccino’. But of that astronomical increase in value, less than nine per cent remains in Jamaica.
Consider this:
• Farmers receive just 3% of the final price paid for a cup of JBM;
• Processors/exporters earn about 6%;
• The rest? Captured by global intermediaries (roasters, distributors, retailers, and finally, cafés who enjoy the final astronomical markup).
In any other industry, that kind of disparity would set off alarms. But in coffee, particularly in countries like ours where history, bureaucracy and fragmentation still dominate the ecosystem, it’s par for the course. The real question is, should it be?
The farmer’s dilemma
At now $11,000 per box of cherry coffee – increasing from approximately $8,500 per box in 2022 – farmers may now net a profit of $1,000 to $3,000. With an average yield of 30 to 50 boxes per acre, and an increase of 75 per cent in fertiliser across Latin America and the Caribbean – a farmer with five acres may earn between $225,000 and $375,000 per crop, assuming profit per crop of $1,500, or $450,000 to $750,000, assuming profit per crop of $3,000.
Assuming $1.5 million as the threshold for a basic ‘liveable income’, the inference is that a farmer needs 20 acres to realise a liveable wage ($1,500 profits and productivity of 50 boxes per acre).
But 80 per cent of Jamaican coffee farmers own less than five acres. This is clearly unsustainable for the farmers.
The alternate solution?
• Raise the per-box price? Under the current pricing model, this may be a pipe dream.
• Increase productivity per acre? Can farmers boost yields without ‘effective’ government support?
• Change the model.
The processor’s tightrope
Processors and exporters receive 42 per cent of FOB, which still only represents six per cent of what the end consumer pays.
The math:
• Cost per box: US$90.94 (including farmgate + operations);
• Sale price: US$25.92/kg;
• Gross profit: US$15.05 per box.
This doesn’t even reflect net profit, which must account for marketing, certification, transport, warehousing, staff, and often ageing infrastructure.
So the question becomes: Can either the farmer or the processor truly survive, let alone thrive, on the current margins?
Globally, the journey from ‘cherry to cappuccino’ is marked by steep markups:
• From farm to export: ~229 per cent
• From trader to roaster: ~219 per cent
• Distribution to retail: ~5,425 per cent
In Jamaica, our increase from farm to export sits lower, at around 187 per cent, and we barely move past that point in the chain. That’s where the gold lies – further up the chain.
The key to capturing more of the value is strategic migration up the chain: selling directly to roasters can yield an extra 200 per cent; and operating retail coffee shops can deliver margins of 2,800 per cent or more.
Yet, access is systematically restricted. For example, to obtain a dealer’s licence to sell green beans, a farmer must produce 6,000 boxes annually. Over 90 per cent of farmers are excluded by default.
Isn’t it time we rethought this?
Unfortunately, we have an industry in fragmentation.
JACRA, the regulatory body, is largely agronomics-focused. Jampro’s role is perceived by many as marketing-led, even though their website indicates a focus on “promoting business opportunities in export and investment”. And brand strategy seems to be non-existent.
Without an ecosystem built around shared purpose, transparency, and clearly defined roles, we will continue to compete with ourselves while others profit off of us.
Brand vs commodity
In the ‘coffee world’ there’s a significant difference between speciality/premium coffee, which is crafted for flavour, and commodity coffee, which is produced for volume.
Jamaica Blue Mountain coffee is not a commodity. It’s a speciality coffee, a luxury brand.
Yet, it is continuously treated like a commodity – sold in bulk and marketed sporadically, with no centralised strategy or digital presence. There’s no e-commerce hub, no unified storytelling, and no formal marketing budget. Can you imagine Moët & Chandon leaving its branding to chance?
And still, despite all this, JBM commands premium prices. Imagine what we could achieve with actual brand stewardship!
So, who’s to blame? The producers? The processors? The regulators? The farmers?
Truthfully, blame won’t fix this. Balance will.
That means shifting from a power-heavy model to a shared ecosystem, where all players share responsibility and reward. Not idealistic – essential.
Jamaica Blue Mountain coffee is liquid gold. As we pour our gold and the world sips our story, we must now realise it’s time for us to own the ending.
From mountain to market, the value of Jamaica’s coffee must flow back home. It’ time to stop letting others bank the profits.
Dr Charlene Ashley is an international business strategist/organisational behaviour consultant and marketing st****************@***************nc.com
