Modeling Profitability in the Jamaican Coffee Industry

Authors: Mario Mighty*, University of North Alabama
Topics: Geographic Information Science and Systems, Agricultural Geography, Business Geography
Keywords: Coffee, Profitability, GIS, Suitability Model, Jamaica, Agriculture
Session Type: Paper
Day: 4/3/2019
Start / End Time: 9:55 AM / 11:35 AM
Room: Stones Throw 3 - Mica, Marriott, Lobby Level
Presentation File: No File Uploaded

It is well known that producers of agricultural products do not / are 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 an intimate awareness of profitability across their respective geographic regions. By incorporating geospatial technologies, there exists an opportunity for producers to understand the potential for profit at much finer geographic scales. 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, we present a cost-surface model for coffee production in the island of Jamaica and derive potential profitability for growing coffee across the island. The model derived potential profitability that can give users present and future, better decision-making insight into growing coffee across the island.
The results of this research have implications for production and management decisions in the coffee industry around the world. It demonstrates the potential to facilitate a “plug and play” functionality to predict potential profitability. This makes it more accessible to stakeholders of varying technological capacities and enables stakeholders in agricultural production to create custom profitability assessment applications using various geospatial tools.

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