Overcoming a challenging year, one plagued by wide-scale raw material unavailability, coffee processing company Salada Foods Jamaica Limited managed to emerge from the shortfalls with marginal growth in profit and revenue at the end of its financial year ended September.

“In spite of a particularly challenging year in securing raw materials, revenue for the year increased by 5 per cent to $1.4 billion against last year’s $1.3 billion,” the directors said in the notes of an audited year-end report to shareholders.

The coffee industry, which in recent years has been depressed by a number of issues, including poor policy and reduced crop yields tied to low prices for the commodity, has been operating below its capacity. Vexed by the current state of affairs for the sector, both farmers and the Jamaica Coffee Growers Associations (JCGA) have been clamouring for a better overhaul of the industry – one driven by Government.

Salada’s general manager, Tamii Brown, in commenting on the company’s third-quarter performance, which saw its inventory dip 24 per cent below that of the corresponding period last year, said that steps to combat this are being undertaken through a ‘Grounds for Growth Initiative’, with the JCGA to improve the quantity and quality of the local product.

The initiative, announced earlier this year, aims to repurpose Salada’s manufacturing by-products into optimal organic fertilising material so as to cost-effectively improve crop yields for local coffee farmers.

Despite increased selling and promotional expenses, the company said it benefited from an expanded portfolio as a result of its launch in new Caricom export markets such as St Lucia, Antigua and Barbuda, and Barbados in the year. “This resulted in operating profit declining by 6.7 per cent from $223.96 million to $209.04 million for this reporting period,” the directors also said.

Domestic market sales, which also went up by some 8.5 per cent, was largely propelled by increased consumption of Salada’s flagship Jamaica Mountain Peak brand, which through its popular instant coffee and tea products positively added to the business across all trade channels.

“Export markets grew by 3 per cent, driven by improved sales in the south-east USA and Caricom,” the directors stated.

Net Profit for the year also grew near 3 per cent to total $179.8 million as earnings per share remained flat at $0.17.

The company’s management, in anticipating better outcomes, said it continues to proactively confront ongoing challenges regarding the low availability of Jamaican coffee, which it requires for the production of its coffee products.

“The board and management are optimistic that its efforts to lobby the Government and regulators, as well as to support initiatives geared towards boosting the quality and quantity of coffee production, will bear fruit in the short term,” the report concluded.