Salada rescues coffee farmers with $100M purchase
Salada Foods Jamaica Limited, local manufacturer of instant coffee products, announced today that it would support the local market with a $100 million purchase of beans from small farmers.
Salada stated in a filing to the Jamaica Stock Exchange that it would purchase 25,000 boxes of cherries from coffee farmers for processing.
The announcement comes less than a day after Agriculture Minister Audley Shaw announced that he had convinced an unnamed company to restart buying from farmers.
There was only one company buying beans in any large quantity from farmers in recent months and that company ceased purchases last week, Shaw reportedly told the media without identifying the specific firm.
"The cost of this initiative is approximately $200 million, with $100 million to be paid directly to farmers and the balance used to process coffee cherries to green beans coffee, which is raw material used by Salada to manufacture its instant coffee products," stated Salada.
The purchase forms a part of Salada’s business model for continued local manufacturing of its instant coffee products.
The board and management of Salada said the purchase would form part of the solution to the worries facing local farmers, who have found in difficult in recent times to find markets for their coffee berries.