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JACRA to handle Wallenford land deal
Both growers of high mountain and Blue Mountain brands on Wallenford say they need to access credit to support their operations. (Photos: Greenbiz)
Business
December 20, 2022

JACRA to handle Wallenford land deal

The Ministry of Agriculture and Fisheries (MOAF), headed by Pearnel Charles Jr, has shifted queries over the future of Wallenford Coffee estate to the Jamaica Agricultural Commodities Regulatory Authority (JACRA). The MOAF indicates that talks about the repurchase of Wallenford are the responsibility of the regulatory body.

In 2019 the ministry received a formal offer from Wallenford, indicating that it wanted to re-sell leased lands occupied by farmers to the Government of Jamaica (GOJ). Since then, some 1,000 farmers have also formally requested that the Government buy the property on their behalf, subsequently selling to them individuals.

The Jamaica Observer reached out for an update on whether or not the GOJ was interested and the timelines for repurchase, but was told by head of communications at the MOAF, Joan Smalling, “Kindly be advised that your query has been sent to the Jamaica Agricultural Commodities Regulatory Authority, the agency with responsibility for the coffee industry.”

It was recommended that the agency be asked for a response.

Attempts to get further updates from JACRA were not successful. Local coffee farmers have been asking for a direct meeting with the Government over the issue of Wallenford, citing challenges which are affecting Blue Mountain and also high mountain production.

The farmers want arrangements for the land which will allow them to get bank financing or other funds for production.

Donald Salmon, farmer and president of the Jamaica Coffee Growers Association (JCGA), told the Business Observer that farmers are unable to secure loans to support crop and business development due to insecurity of tenure.

Their prolonged request to the Government of Jamaica to consider buying back Wallenford and selling to them so far has not been responded to by the MOAF to which several representations have been made.

Once the premier producer of coffee, Wallenford estate was sold to Michael Lee Chin’s AIC International Investments for US$16 million ($1.6 billion) in 2013.

The deal saw new owners offer to pump an additional US$23.5 million into the factory and coffee farms to upgrade the 5,000 acres estate.

The producer of Blue Mountain coffee had the capacity to process over nine million pounds of the beans in its facilities. Subsequently, AIC also purchased Mavis Bank Coffee, another large BMC producer, and consolidated operations in that entity.

Since 2019, Jamaica Observer understands from reliable sources, Wallenford has been re-offered to the Government of Jamaica, with the statement that it would be best sold to the farmers who lease the lands on the property.

Over 1,000 coffee farmers on Wallenford are said to be affected by insecurity of tenure and have come together to ask the MOAF for a solution.

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