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Modeling Profitability in the Jamaican Coffee Industry

Author

Listed:
  • Mario Mighty

    (Department of Geography, University of North Alabama, Florence, AL 35632, USA)

  • Gabriel Granco

    (Department of Geography and Anthropology, California State Polytechnic University, Pomona, CA 91768, USA)

Abstract

It is well known that producers of agricultural products do not able to capture most of the value from what they grow. As such, it is important for producers to be attuned to the various factors that impact the viability of their products. One such potential avenue for coffee producers is developing a strong awareness of profitability across their respective geographic regions. This research presents a fine-scale geospatial profitability model for coffee production using the test case of the Jamaican Coffee Industry, a sector which once guaranteed profitability but now presents variable (often losing) returns for many producers, this research presents a cost-surface model for coffee production in the island of Jamaica. Results indicated large scale profitability in the 2016–2017 coffee year but limited profitability in the 2019–2019 coffee year, highlighting the important role of revenue fluctuation in island-wide profitability. Results underscore importance of scenario planning in the coffee production cycle. By understanding the spatial properties of profitability producers will obtain better decision-making insight for production and management decisions in the coffee industry around the world. The geospatial profitability model establishes a baseline approach that can be accessed by industry stakeholders of varying technological capacities.

Suggested Citation

  • Mario Mighty & Gabriel Granco, 2021. "Modeling Profitability in the Jamaican Coffee Industry," Agriculture, MDPI, vol. 11(2), pages 1-24, February.
    • Handle: RePEc:gam:jagris:v:11:y:2021:i:2:p:121-:d:492187
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    References listed on IDEAS

    as
    1. Bateman,Ian J. & Lovett,Andrew A. & Brainard,Julii S., 2005. "Applied Environmental Economics," Cambridge Books, Cambridge University Press, number 9780521671583.
    2. Kilian, Bernard & Jones, Connie & Pratt, Lawrence & Villalobos, Andres, 2006. "Is sustainable agriculture a viable strategy to improve farm income in Central America? A case study on coffee," Journal of Business Research, Elsevier, vol. 59(3), pages 322-330, March.
    3. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.
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    Cited by:

    1. Giuseppe Timpanaro, 2023. "Agricultural Food Marketing, Economics and Policies," Agriculture, MDPI, vol. 13(4), pages 1-9, March.
    2. Goran Karanovic, 2023. "Exploring the Intrinsic Factors Influencing Return on Assets: A Case Study of the Hotel Industry in Selected EU Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 16(1), pages 54-61, October.

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