Friday, April 11, 2014


Introduction
Coffee is one of the most widely consumed commodity drinks in the world, but in Trinidad and Tobago, coffee is not heavily consumed as in other regions, such as North America, Asia and Europe. Nevertheless, imported coffee brands appear to be more widely consumed than locally produced coffee brands. For instance, Jamaica Blue Mountain Coffee is one of such coffee brands consumed locally. Despite the popularity of such type of coffee, it is not widely distributed across the nation’s retailing stores since it specifically serves a local niche market. However, the aim of this blog is to investigate through the lens of theories and scholarly articles on the commodity chain network of Jamaica Blue Mountain Coffee by understanding its geographical characteristics of production, distribution and transportation with regards to historical, social and environmental conditions.


The Theoretical Dimensions of Commodity Chains

According to Hopkins and Wallerstein (1986), a commodity chain is defined as the “network of labour and production processes whose end result is a finished commodity.” The spatiality of commodity chains plays a vital role in conceptualizing both policy and politics chains. Commodity chains have been analysed from the perspective of dimensions, approaches, conceptualizations and geography.
Three major dimensions of commodity chains have been highlighted, such as the input- output structure, territoriality and a governance structure. Input-output structure includes a set of products and services connected together in a sequence of value-adding economic activities; territoriality is the spatial and dispersion or concentration of enterprises in production and distribution networks; and governance structure deals with issues of authority and power relationships (Gereffi 1999).
Moreover, governance structures of the networked global commodity chains can be categorized into two main concepts, producer-driven and buyer-driven. Barriers to entry are the main difference between the two types of commodity chains. Producer-driven commodity chains are characterized as usually large transnational corporations that play the main roles in the coordinating production networks.  Buyer-driven commodity chain includes industries such as large retailers, brand-named merchandisers and trading companies that play a dominant role in dispersed production networks in a number of developing nations. Furthermore, governance structure of a commodity chain may either be centralized or decentralized. For instance, centralized organization is characterized as being producer-driven while decentralized organization succeeds in buyer-driven commodity chains. Characteristically, nodes with the greatest profits or power are more likely to be located in the core while the least profitable nodes are situated in the periphery of the chain. Nevertheless, there has been a noticed shift in the balance of power away from the supplier towards the retailer in commodity chain.
However, commodities have been analysed from both a vertical and horizontal approach. Linkages that emphasize between production, retailing and consumption are characterized by vertical approaches while horizontal approaches highlights how connections between commodities are built in distinct places on the chain such as retailing. Nevertheless, both approaches offer many advantages and disadvantages to the of commodity chain analysis. For instance, vertical approaches highlights the differential power relations between sites on individual chains while on the negative it tends to overlooked the interconnections between different systems of provision or chains. Moreover, horizontal approach offers insight to the issues affecting consumers, such as gender, ethnicity and others, while on the other hand it may lead to a predominant descriptive account of consumption. Nevertheless, both approaches remain crucial in order to analyse consumption. 
 The global commodity chain (GCC) is made up a group of inter-organizational networks gathered around a single commodity or product, linking households, enterprises and states to one another within the world economy (Gereffi 1994).  Global commodity chain analysis tends to emphasize the characteristics of each node. In essence, the GCC is a World-System Theory at the micro-level (Gereffi 1994). According to this theoretical approach, power is constructed along nodes of commodity chain at the micro-level from the similar perspective of core versus periphery in the World System Theory at the macro-level.
Systems of provision place emphasis on the production dynamics without any regards for the social relations at other sites in the chain. According to Fine and Leopold (1999), systems of provision are the most comprehensive elaboration of production-consumption relations. Basically, the concept rejects the horizontal analyses of consumption for the adoption of the vertical approach which highlights the differences in the means in which production and consumption are connected in many commodities without ignoring the factors of consumption at the same time. Moreover, production has become more consumer-driven since consumers demands are influencing the nature of production.
 The concept of commodity circuits has been used to basically understand how geographical knowledge of commodity systems is shaped and reshaped (Cook et al. 1997). In contrast to the concept of a chain, commodity circuit approach has no beginning or end but instead permits a dense web of interaction between all sites. The tracing of relationships is of little importance to concept of circuit as opposed to the idea of commodity chains.  However, aesthetic reflexivity is advocated by foregrounding the fabrications made available at different sites (Crang 1996).   This is achieved by contrasting various aspects of a product and acknowledging the fragmentary and contradictory nature of the knowledge through which commodity systems are imagined (Cook and Crang 1996).  Nevertheless, there is much debate over the language use of commodity circuits as opposed to commodity chains since it may avoid issues of exploitation.
Geography plays an important role in charting connection between places along the chain in order to better understand the complex decisions of consumers. As a result, geography is critical to the building of a politics of consumption since it facilitates traceability of goods from the producer to the consumer. Also, commodities vary with scale depending on the unique spatiality of the product. In general, the spatiality of commodity chains has vital implications for both policy and politics (Leslie and Reimer 1999).

An Overview of Coffee’s Historical,Social and Environmental conditions
Coffee is the second most traded commodity in the Post-World War II period. Coffee production remains one of the main commodities that have contributed significantly to Gross Domestic Product (GDP) of many developing countries. According to Ponte (2002), developing countries account for the highest coffee production worldwide while developed or industrialized countries are the highest of consumers of coffee. Coffee became one of the first commodities to be regulated due to governmental institutions involvement in the early 20th century of the coffee trade industry. Historically, coffee has been treated as a “strategic” commodity by many developing nations’ government. As a result, government authorities have been able to regulate the industry by the means of managing local marketing boards and quality operations before the advent of the market regulations in 1980s and 1990s.
The coffee industry is an important source of livelihood for millions of smallholders and farm workers nationwide (Ponte 2002). Therefore, any political action taken in the global coffee commodity chain can significantly impact upon the world’s developing economy and social welfare. Traditionally, coffee beans went through many chains before arriving at the final consumer. However, with the deregulation of the coffee market, there has been the removal of some key players within the coffee commodity chain, such as local coffee boards, institutes and other quasi-governmental bodies that regulated export sales. These observed changes in the coffee commodity chain primarily occurred with respect to the end of the International Coffee Agreement (ICA) regime which enacted it first regulatory in 1962 in order to facilitate better relationship between coffee producing and consuming countries in terms of implementing price schemes and export quotas. Thus, there has been a general shift of power from producing to consuming countries in the coffee-marketing chain due to the end of the ICA regime (Ponte 2002). As a result, retailers, processors and international traders are progressively dictating many coffee commodity chains. As a consequence, the standard of living for many coffee famers in developing countries has declined due to higher price instability and also events of exploitation on coffee estates are likely to proliferate since there is a withdrawal of government intervention to maintain proper working conditions between producers and consumers.
Moreover, retailers, processors and international traders have been able to manipulate the coffee commodity chain for their personal benefits by controlling standards and quality conventions, market and consumer information, vertical integration and branding. According to Ponte (2002), this imbalance in the global coffee chain can be resolved through initiatives that are focused on enhancing coffee quality in producing countries and the appreciation of quality in consuming countries. For instance, coffee producers are likely to benefit from the growth in conscious consumption or quality initiative whereby coffee producers provide high quality coffee beans in exchange for higher prices in order to meet the quality demands of the market. Fortunately, Jamaica Blue Mountain Coffee is one of the top premium coffee brands in the world and therefore, the industry has been able to capitalize on such opportunities. Nevertheless, such an initiative can be achieved through fair trade policies which would require consumers to pay a premium price for the high quality coffee so that producers or farmers receive the economic benefits for their effort. Also, developing systems of appellation as in the case of the wine industry can be very beneficial to coffee producers (Ponte 2002). Yet again, Jamaica Blue Mountain Coffee industry has been able to take advantage of such appellation system in which geographical indicator is being used to brand coffee beans grown within the Blue Mountains of Jamaica. As a result, Jamaica Blue Mountain Coffee has been able to successfully access niche markets across the world despite being a relatively small coffee producing country in comparison to Brazil and Colombia. 
As mentioned earlier, the major producers of coffee beans are located within developing countries whose climatic and soil type are conducive to growth of the commodity. It is stated that coffee is best grown in environmental conditions of high altitudes in a tropical climate where there is rich soil (National Coffee Association USA 2014). The most ideal location for coffee growth would be located between latitudes of 25 degrees north and 30 degrees south of the equator. Major coffee producing countries are Brazil, Colombia, Mexico, Costa Rica, Ethiopia, Ivory Coast, Kenya, Yemen, Vietnam, Indonesia, Puerto Rico, Guatemala and Hawaii (U.S State). 

Details on Jamaica Blue Mountain Coffee

History of Jamaica Blue Mountain Coffee
The history of Jamaica Blue Mountain Coffee can be dated back to the early 18th century when former governor of Jamaica Sir Nicolas Lawes brought the first coffee plants (Arabica Typica) to the island of Jamaica in the St. Andrew parish region. The coffee plants adapted favourably to the island’s environment that the coffee industry was rapidly extended from St. Andrew to the Blue Mountains area (Dr.Tortello 2002). Nonetheless, coffee from the Blue Mountains of Jamaica is the first ever type of coffee to be assigned a geographical indicator as a brand (Sea Island Coffee 2014).
The advent of emancipation in the year 1838 saw the closure of many coffee plantations in Jamaica. However, despite enjoying unlimited success in its earlier years of operation, the Jamaica Blue Mountain Coffee and the coffee industry in general began experiencing serious problems in the1890s. These problems included issues such as labour shortage, price fluctuation, unfavourable weather conditions and others (J. Martinez & Company 2014).  As a result, an earnest effort was made by the local government to improve the quality of coffee cultivation. An important decision was taken by the Jamaican government in the year 1944 to begin a Central Clearing Coffee operation in which all coffee for export had to be cleaned and graded. Also, the Jamaican Coffee Industry Board (JICB) was established on the 2nd June, 1950 in order to oversee the development of Jamaica’s Coffee Industry and also to promote the welfare of its local stakeholders (JICB 2014). Despite the rapid deregulation of many coffee boards around the world, Jamaica has been able to retain its coffee board for the benefit of the Jamaica Blue Mountain Coffee industry and its stakeholders.

Social and Labour Condition
Source: Blue Mountain Coffee 2014
Photo 1 shows a small-scale Jamaica Blue Mountain Coffee farmer.
Jamaica Blue Mountain Coffee industry plays a vital role in sustaining the social welfare of many people from rural communities. Coffee is the second largest agriculture industry in Jamaica (Tufton 2010). It is estimated that about 25,000 coffee farmers cultivate the Blue Mountain (Sea Island Coffee 2014). However, according to the Jamaican Coffee Industry Board (2014), there is an estimate of 7032 registered coffee farmers in the Blue Mountain of Jamaica. Additionally, the total number of registered famers with production and acreage within the Blue Mountain area is 5,796. Although there are many processing coffee companies involved in Jamaica Blue Mountain Coffee industry, there are only few major players such as Clydesdale, Mavis Bank and Wallenford Coffee Company, Clifton Mount Estate and RSW Estates that reap the highest earnings from export activities (Sea Island Coffee 2014). Nevertheless, the relationship between Jamaica Blue Mountain coffee farmers and processors may be analyzed according to the status of the existing farm system.
The relationship between independent farmers and smallholders of Jamaica Blue Mountain Coffee industry is unique because the processors operate a pricing regime combined with a pre-funding and balancing payment mechanism which categorically benefits the smallholder farmer (Blue Mountain Coffee (Europe) Limited 2014). The processors with the assistance of the Jamaica Coffee Industry Board aid small-scale farmers through the means of offering extension services and also covering the cost of their input supplies.
On the other hand, larger farms or coffee estates who are the dominant providers of Jamaica Blue Mountain Coffee to processors, their employees are paid and employed under standards regulated by the Jamaican labour Legislation. As a result, workers are likely to enjoyed better working conditions than many other coffee industries (Blue Mountain Coffee (Europe) Limited 2014). Also, the workers from the processing, sorting and warehouse facilities are provided with similar benefits as well.
Despite offering favourable conditions for workers, the Jamaica Blue Mountain Coffee industry is currently not certified by any Fair-trade label. However, the Clifton Mount Estate and Marley Coffee estate are the only estates to acquire Rainforest Alliance Certification within the Blue Mountain Coffee industry.  

The Production Environment
Jamaica Blue Mountain Coffee brand name is unique since it reflects the region where the coffee beans were grown. This has been used towards the Jamaica Blue Mountain Coffee industry advantage as a Geographical Indicator marketing tool that is authorized by the Jamaica Coffee Industry Board.  However, the Blue Mountains of Jamaica is situated on the eastern side of the island. Its highest recorded peak is 7402 ft. The total coffee production area on the Blue Mountain is approximately 6,000 hectares. Nevertheless, the environment in which Jamaica Blue Mountain coffee is produced may be identified by boundary, altitude and microclimatic and soil condition characteristics
Jamaica Blue Mountain coffee can be found primarily in three parishes, such as St. Andrew, St. Thomas and Portland. Majority of Jamaica Blue Mountain coffee land area are within the St. Andrew parish. In 2009, the total coffee area (in acres) in St. Andrew, Portland and St. Thomas were estimated to be 5,822ac, 4,12ac and 3,347ac, respectively (Jamaica Ministry of Agriculture 2009). Nevertheless, according to regulations of the Jamaica Coffee Industry Board (2014), the boundaries of the Blue Mountain Coffee area are defined as seen in Map 1. A number of coffee estates and micro-farms are found within in this boundary, such as Flamstead Estate, Clifton Mount Estate, Greenwich Estate and others.
However, in order for any coffee to be labelled Jamaican Blue Mountain, it must be grown at elevations between 3,000 and 5,000 feet (Caribbean Agribusiness 2014). The imported Jamaica Blue Mountain Coffees at the Petit Gourmet store are from Flamstead Estate farm which stands on an elevation of 3,300 feet (Blue Mountain Coffee 2014). On the other hand, coffee cultivated on altitudes between 1,500 and 3000 feet are known as High Mountain, while coffee grown below 1,500 feet are called Jamaica Supreme or Jamaica Low Mountain (Caribbean Agribusiness 2014). Moreover, it should be noted that no coffee is grown above 5,500 feet since such areas are forest preserve.
The Blue Mountain area of Jamaica offers an ideal microclimate and soil environment for the cultivation of Arabica Typica coffee. The landscape of the Blue Mountain area encourages high rainfall and also creates a mist that gives cool temperatures. As a result, the coffee cherries mature at a slower rate which eventually enables the development of a special aroma and rich coffee flavour (Prime Coffee Traders 2014). Also, the cultivation of coffee under naturally shaded and fauna-friendly conditions may have contributed to the high-quality taste of Blue Mountain coffee since the coffee are allowed to develop under cool temperatures as well.  Also, the fertile volcanic soil and excellent drainage of the Blue Mountain area enables the coffee plants to thrive (Slawych 2013).
Map 1 showing area where Jamaica Blue Mountain Coffee is produced within the light blue area of the Jamaica land mass outline.


How does Jamaica Blue Mountain Coffee get to Trinidad and Tobago?
In Trinidad and Tobago, Jamaica Blue Mountain Coffee is sold primarily at the Petit Gourmet store. According to information provided by store manager Mr. Colin Chan, the imported Jamaica Blue Mountain Coffee can be traced to farmers at the Flamstead Estate in the St. Andrew parish of Jamaica. After being hand-picked by workers from the Flamstead Estate, the coffee beans are sold to the largest and only fully integrated Jamaica Blue Mountain Coffee facility which is the Mavis Bank Coffee Factory (Blue Mountain Coffee 2014). The coffee beans are processed and branded by the Mavis Bank Coffee Factory as Jablum in which 100% Jamaica Blue Mountain Coffee is imprinted to guarantee the brand of coffee.  However, before the coffee is exported to Trinidad and Tobago or any other destination, the coffee must be thoroughly inspected by the Jamaica Coffee Board Industry (JICB) in order to ensure quality for clients oversee. After passing the inspection, the Jamaica Blue Mountain Coffee is shipped to Trinidad and Tobago by either sea or air transportation to the Port-of-Spain’s port or the Piarco International Airport, respectively. The imported Jamaica Blue Mountain Coffee is then distributed by road transportation to the Petit Gourmet store located at 33 St. Clair Avenue, Port of Spain, Trinidad where it is then sold to consumers as the Jablum brand of 100% Jamaica Blue Mountain Coffee. The diagram in Figure 1 shows a summarized version of the production and distribution system, and transportation networks of Jamaica Blue Mountain Coffee through a valued added chain.

Jamaica Blue Mountain Coffee Value Added Chain
Figure 1 showing the value added chain of Jamaica Blue Mountain Coffee in a transportation network.





Mavis Bank Coffee Factory (MBCF)

Source: Jamaica Observer 2014 http://www.jamaicaobserver.com/

Photo 2: showing inside of the Mavis Bank Coffee Factory.


There are many private stakeholders within the Jamaica Blue Mountain Coffee industry, but Mavis Bank Coffee Factory Limited (MBCF) can be easily classified as the central player in the Industry as the company controlled approximately 32% of the Jamaica Blue Mountain Coffee market during the year 2008 and 2009 (Blue Mountain Coffee 2014). MBCF was established in 1923 by Victor C. Munn and today, the company’s Chief Executive Officer (CEO) is Mr. Norman Grant. MBFC is the most technological advance and efficient coffee factory in the Jamaica Blue Mountain Coffee industry because of its fully integrated facility. The company processes approximately 1.4 million pound of green coffee beans from 6000 farmers annually (Blue Mountain Coffee 2014). In addition, MBFC is the owner of the Jablum 100% Jamaica Blue Mountain Coffee brand. This brand of Jamaica Blue Mountain Coffee is mainly purchased by the Japanese, European, North American and Caribbean market.

The Symbolism of Jamaica Blue Mountain Coffee to Society
    
   
Photo: 3a                                                       Photo: 3b
Source: Blue Mountain Coffee 2014
Photo 3a and 3b shows the Jamaica Blue Mountain Coffee brand and Flamstead Estate logo, respectively.

Jamaica Blue Mountain Coffee is sold and packaged differently across the globe. However, in Trinidad and Tobago, Jamaica Blue Mountain Coffee is packaged and sold under the Jablum brand. Nevertheless, Jamaica Blue Mountain Coffee is a very symbolic commodity that intrinsically represents the people of Jamaica. The use of geographical indicator to brand such commodity reflects the high degree of attachment of the commodity to its place of production. The commodity is usually imprinted with images of the Blue Mountain to also emphasize its attachment to such place. However, the image of the Blue Mountains of Jamaica on such commodity reflects positively in the minds of many local and international coffee consumers of Jamaica Blue Mountain Coffee as one might envisioned being spiritually connected to such site with just one cup of Jamaica Blue Mountain Coffee.


References

Blue Mountain Coffee Europe Limited. 2014. “Ethics.” Accessed 03, 2014. http://www.bluemountaincoffeejamaica.com/ethics.
Caribbean Agribusiness. 2014. “Coffee.” Accessed March 10, 2014. http://www.agricarib.org/primary-dropdown/coffee.
Chan, C. 2014. Personal communication. Petit Gourmet.
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Gereffi, Gary, and Miguel Korzeniewicz. 1994. Commodity Chains and Global Capitalism. United States of America: Greenwood Publishing Group, Inc.
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Hopkins, T., and I. Wallerstein. 1986. “The Commodity Chain at the Periphery: The Spar Trade of Northern New Zealand in the Early 19th Century.” In Agri-Food Commodity Chains and Globalising Networks, edited Stringer, Christiana, and Richard Le Heron, 202. Great Britain: Ashgate Publishing Company.
Jamaica Blue Mountain Coffee. 2014. “How Coffee is Cultivated.” Accessed March 03,2014. http://www.bluemountaincoffee.com/index.cfm?method=AboutUs.Cultivated&.
Jamaica Coffee Industry Board (JCIB). 2014. “General Producing Areas Maps.” Accessed March 15, 2014. http://www.ciboj.org/.
Jamaica Ministry of Agriculture. 2009. “Blue Mountain Coffee.” Accessed March 10, 2014. http://www.moa.gov.jm/.
J. Martinez & Company. 2014. “Jamaica Blue Mountain Coffee A Short History.” Accessed March 02, 2014.http://www.martinezfinecoffees.com/coffee-information/jamaica-blue-mountain-coffee-information/jamaica-blue-mountain-coffee-history/jamaica-blue-mountain-coffee-history-chapter-two.html.
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Ponte, Stefano.  2002. “The ‘Latte Revolution’? Regulation, Markets and Consumption in the Global Coffee Chain.” World Development 30 (7): 1099-1122.
Prime Coffee Traders. 2014. “Jamaica Blue Mountain.” Accessed March 25, 2014. http://www.coffee-traders.com/en/Jamaica-Blue-Mountain?coID=8.
Sea Island Coffee. 2014. “History of Jamaica Blue Mountain Coffee.” Accessed March 01, 2014. http://www.seaislandcoffee.com/browse-estates/jamaica-blue-mountain-coffee/history-of-jamaica-blue-mountain-coffee.html.
Slawych, Daina. 2013.  “Jamaica's Blue Mountain Coffee Ranks with World's Best.” October 16, 2013. Accessed March 15, 2014. http://www.torontosun.com/2013/10/15/jamaicas-blue-mountain-coffee-ranks-with-worlds-best.
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