Jamaica Producers Group joint venture operation Mavis Bank Coffee Factory (MBCF) is on the hunt for more land to grow coffee in a bid to expand controlled sourcing of the premium bean for which demand is on the increase.

The company increased coffee sales to Japan by 62 per cent in 2015, with cherry coffee primarily sourced through purchase made from local farmers.

Norman Grant, CEO of MBCF, said Tuesday that an additional 200 acres of land is being sought. The company is owner of the 300-acre Andover Blue Mountain Coffee Estate.

MBCF currently has only 65 acres committed to coffee, but plans to increase this to 150 acres in the medium term and 500 acres over a longer time frame.

MBCF is a 50 per cent joint venture investment for JP Group. The company is the island’s largest processor and exporter of coffee.

Coffee supplies have been dwindling due to a number of adverse local conditions, and the company is striving to get more from the supplies under its control. Currently, only 15 per cent of supplies come from its farm, with the remainder supplied by a network of some 4,500 large and small farmers.

Norman Grant said that $50 million is budgeted for improving acreage for growing coffee in this financial year.

At the same time, he said MBCF has a programme for supporting some 100 large farmers with inputs, in a bid to improve output. This includes the provision of fertiliser and pest control material, coffee seedlings and the delivery of training in best practices for coffee husbandry.

In the annual report released by Jamaica Producers this year, it is noted that the 2014/2015 season delivered one of the smallest Jamaica Blue Mountain (JBM) crops in recent history. In response, the price paid for cherry coffee was hiked by an average 90 per cent year-on-year.

MBCF purchased more than 25 per cent of the annual total available from farmers in 2015, it was stated.

It is noted in the report that, following losses in 2014, MBCF was successful both in securing more favourable customer contracts in 2015 and in structurally reducing its fixed cost base, resulting in a turnaround in profitability.

Under its manufacturing division, the company has diversified its product range to include flavoured coffees and more soluble coffees.