KINGSTON, Jamaica — Dr Norman Grant, chairman of the Jamaica Coffee Exporters Association (JCEA), has formally recommended to the Jamaica Agricultural Commodities Regulatory Authority (JACRA) that it withdraw the mandatory use of the blockchain platform recently introduced to digitise Jamaica’s coffee exports and safeguard access to key international markets.

Despite its intended benefits, the platform has raised concerns among some farmers and processors over risks including exposure to the theft of trade secrets, data ownership and increased costs associated with the phased rollout of the platform.

In his letter addressed to JACRA Acting Director General Wayne Hunter and copied to the Minister of Agriculture, Fisheries and Mining, Floyd Green, Dr Grant outlined that JCEA’s position is based on a lack of transparency, a lack of necessity, the cost to stakeholders and market readiness.

In regard to transparency, Dr Grant said that despite several meetings with JACRA and numerous requests to obtain a copy of the contract between JACRA and the sole-source service blockchain provider, this has not been provided. He said this lack of access affects the membership’s ability to assess the value and terms and conditions of the contract. He further noted that this contract would bind JCEA members to use a platform and pay fees to the blockchain provider, but said there was no input from JCEA members.

On the point of lack of necessity, the chairman outlined that the system is not required for compliance with the European Deforestation Regulation (EUDR). He explained that the European Union market currently purchases only two per cent of total Jamaican coffee exports, and the existing buyers already utilise systems such as Hazard Analysis and Critical Control Points (HACCP), Safe Quality Food (SQF), and International Organization for Standardisation (ISO) certifications to meet EUDR requirements, including traceability.

As for the cost to stakeholders, Dr Grant said that based on the charges to be imposed on individuals using the blockchain platform, costs are expected to increase by over J$100 million or J$1,000 per box, which will ultimately reduce the price paid to coffee farmers. He stressed that this traceability will not result in increased revenues in the short term and therefore represents a net cost to the coffee industry and its farmers, which he said the industry simply cannot afford, given rising operating expenses, declining productivity and resistance from buyers to price increases.

As it relates to market readiness, Dr Grant highlighted that there are currently hundreds of international stakeholders (traders, roasters), primarily in Japan, China, Europe, the United Kingdom, and the United States, who import, trade, and produce Jamaica Blue Mountain (JBM) coffee products in various forms—bags, pods, cans, bottles, etc. These range from large corporations (e.g. UCC, Nespresso, and Starbucks) to smaller businesses. He warned that, given that no coffee-producing country has implemented mandatory government-enforced traceability laws, there is a real risk that Jamaica’s decision could backfire.

“If our buyers choose not to comply, they may switch to other competing speciality coffees. A loss of foreign buyers could signal the end of the Jamaican coffee industry,” he said.

Dr Grant added that the most pressing concerns for the coffee sector currently are “addressing the continued decline in coffee production and productivity”, noting that Jamaican producers do not have sufficient coffee to meet global demand.

“JACRA’s priority focus should therefore be on working with our members and farmers on key initiatives to increase productivity and production. That is the most important issue facing our industry. If we don’t address this now, we will soon have no coffee to trace!” he shared.

He recommended that attention instead be directed toward the full implementation of the Crop Restoration and Establishment Programme (CREP), including an input support supplies programme of J$350 million per annum over five years.

“This would involve the supply of 1,000,000 coffee seedlings to farmers, fertiliser and chemicals, farmer training, research and development, the rollout of a coffee crop insurance scheme, the development and maintenance of the rural road network in the Jamaica Blue Mountain regions, and the construction of irrigation capacity for the Jamaican coffee industry,” Grant said.

He continued, “Such support would increase annual coffee production from 225,000 boxes to 450,000 boxes over five years and raise industry earnings from US$25 million to US$100 million annually over ten years. Additionally, the completion of the coffee registration programme would incorporate an additional 5,000 farmers—potentially a game changer for the coffee industry and the rural economy—benefiting approximately 200,000 farm families in Jamaica’s coffee-growing regions.”