
Dear Customers:
As you have noticed the price of our kava has risen drastically
lately. We cannot apologize for this. We can however offer you an
explanation
for it that we feel you deserve. The world is currently in an
unprecedented kava shortage. Every kava producing nation is affected.
Vanuatu
was hit by category 5 cyclone Pam in Vanuatu in 2015, the Fiji islands
were hit by category 5 cyclone Winston in 2016, and recently Tonga was
hit by a category 5 cyclone Gita. The cyclones destroyed much of the
mature kava supply. This was followed by a drought that killed off what
the farmers tried to replant. I have personally gone to these regions
and surveyed the crops myself and there is very little mature kava to
be
purchased or believe me we would be buying heavily.
Kava is a 5-6 year crop to yield the high quality kava you are used
to receiving from Nakamal At Home since 2003. Ultimately the laws of
supply and demand have taken precedence here as they should. As well as a
supply shortage, worldwide demand for kava has skyrocketed
particularly in the United States where over 50 kava bars have opened in
the last decade. Many of them in just the last few years. And they
continue to open putting downward pressure on supply. Most kava bars in
America sell a single serving of kava for around $5, give or take a
little. They are all doing brisk business and running out of kava
quickly which is fueling a panic in some areas where demand is high,
particularly south Florida where we are located. One kilogram of kava
sells for over $500 across a kava bar when sold by the shell. Therefore
the kava bars are now in control of the market price of kava as they are
willing to pay the highest prices because of their high profit
margins.
We have kava bars buying up our kava for full retail price. Now we
realize that several of our competitors are selling kava for much lower
prices but we believe they will not be able to maintain those prices for
long based on the demand we’re seeing. They are struggling to
maintain supply as well. Low supply and high demand commands a high
price with regards to the economic laws of supply and demand.
Kava has become a scarce resource for the time being even in Fiji and Vanuatu which are the worlds largest consumers of kava.
Nakamal At Home is hopeful that the farmers in Melanesia, Polynesia
and Micronesia are planting kava at a rapid pace to meet the rising
demand for the future and we believe the supply will increase, albeit
slowly, but we have not seen the bottom yet. You have our word that we
will lower our prices accordingly when we start to receive more kava or
when this buying frenzy subsides. We truly appreciate our customers
and wish we had better news but it is what it is for now. If you can
find a cheaper product elsewhere of similar quality the law of
substitution
of economics says you should buy it. We understand.
Thank you kindly for your understanding and continued support as we all get through this together.
Respectfully, I Am,
Jeffrey A. Bowman, M.B.A
Proprietor @ TheRealKave At Home