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Salada court judgement delayed

Salada Foods Jamaica Limited court judgement has been delayed from today to Friday November 13.

The judgement is in relation to Salada’s application for judicial review of a decision taken by the Jamaica Agricultural Commodities Regulatory Authority (JACRA).

Originally scheduled for November 6, Salada Foods advised the court has indicated that due to circumstances beyond its control the delivery of the judgment has been rescheduled to next Friday.
The two entities are in court over JACRA’s demand that Salada adjust its formulation of instant coffee from 10 per cent local coffee content to 30 per cent.

Salada projects that the increase in premium coffee in its blend would destroy its local market as a consequence of price increases.
Salada is seeking to block the enforcement of the rule in court. Court hearings were held in September following on the filing by Salada on August 31, 2020, of an application with the courts to block the regulator after talks between the two failed.

The conflict between the industry regulator and Salada in  March 2019,when JACRA first made its demand which Salada resisted, insisting that the move would cannibalise its local market which depends on output of cheaper instant coffee.

On August 18, 2020, Salada disclosed that it again received a letter from JACRA directing to include 30 per cent local coffee content in the formulation of its instant coffee powder with effect on September 1, 2020.
Presently, Salada uses 10 per cent local coffee, the company said.
In a release made via the Jamaica Stock Exchange at the time, management of the company stated, “Unfortunately, JACRA’s edict to change the instant coffee formula will be detrimental to the company’s cost of sales.”