Market and Trade Data
Look East to the Caribbean’s Food Ingredient Markets
June
2006
Printable version
By
Kay Logan
See
also . . .
FAS Report C16001
Food
processing is an important manufacturing sector for the
eastern Caribbean region. With little arable land, the
islands must import about 80 percent of the ingredients
they need for food processing industries.
In 2005, the United States supplied about 37 percent of
these ingredients, exporting $129 million worth of bulk,
intermediate, and seafood products to the islands. U.S.
suppliers also claim the largest market share in the
region for imported meats, dairy, fresh vegetables and
fruits, nuts, cereals, oilseeds, fruits, grain, animal
and vegetable fats, and soybean, cottonseed, and corn
oils.
Trinidad,
Barbados Lead Growth
The
islands of Trinidad and Barbados claim the most medium-
to large-scale processors of meats, fish, fruits,
vegetables, pasta, bakery, confectionery, and dairy
products. They also process and package convenience
foods, edible oils, and fats.
Several factors drive the growth of food processing in
Trinidad and Barbados — relatively high standards of
living and education, increased exposure to other
regions, more women in the workforce, the pursuit of a
healthier society, and an increase in foreign direct
investment.
Food processing is the largest non-energy manufacturing
sector in the two-island republic of Trinidad and
Tobago, contributing over 50 percent of total
manufactured output. About 9,000 people are employed by
424 firms, accounting for approximately 3 percent of the
total GDP (gross domestic product) of $13.7 billion. The
islands also have 16 fish processing plants.
Barbados
has 192 food processing firms, the largest employing
manufacturing sector in the island. In 2005, food
processing accounted for roughly 3 percent of the total
island GDP of $3.1billion. The firms also account for
35.7 percent of the export earnings of Barbados.
Barbados, Grenada, Guadeloupe, Martinique, St. Vincent,
and Trinidad also have wheat, rice, and feed mills.
The Personal Touch Matters
Food processors buy about 50 percent of raw materials
and food ingredients directly, 30 percent from large
importers, 20 percent from local suppliers, and 10
percent from large wholesalers or distributors. Personal
visits and product samples are very important to
customers on the islands. U.S. suppliers can also meet
representatives of island food industry firms at trade
shows such as the IDDBA (International Dairy-Deli-Bake
Association) Show and the Interbev (International
Beverage Association) Show.
|
Competition Getting Stiffer |
|
The
United States is the leading supplier of raw
materials and ingredients to the food processing
sector of the Eastern Caribbean. Food processors
within the Eastern Caribbean region regard U.S.
products highly with respect to quality and
consistency. However, due to the highly
price-sensitive market, there has been an increase
in competition from other foreign suppliers. This
table ranks the top three suppliers for product
categories in 2003. |
|
Product
Category |
Import
Value |
Top
Suppliers by Rank |
Import
Market Share |
|
Meats
|
$71.3
million
|
1.
United States
2.
Canada
3. New
Zealand |
43%
16%
15% |
|
Fish and seafood |
$25.4
million |
1.
Canada
2.
United States
3.
Caribbean Islands |
26%
17%
15% |
|
Dairy
|
$87.9
million |
1.
United States
2. New
Zealand
3.
Ireland |
19%
18%
14% |
|
Fresh vegetables |
$41.8
million |
1.
United States
2.
Netherlands
3.
Canada |
36%
25%
21% |
|
Fresh fruits and tree nuts |
$23.9
million |
1.
United States
2.
Caribbean Islands
3.
India |
57%
17%
8% |
|
Coffee, tea, and spices |
$8
million |
1.
Chile
2.
United States
3.
Caribbean Islands |
29%
18%
9% |
|
Cereals |
$59.3
million |
1.
United States
2.
Guyana
3.
Caribbean Islands |
84%
11%
2% |
|
Milling products, malt, starches, and wheat gluten |
$28.4
million |
1.
Caribbean Islands
2.
United Kingdom
3.
United States |
33%
20%
17% |
|
Oilseeds, fruits, grains, and seeds |
$40
million |
1.
United States
2.
China
3.
Argentina |
85%
5%
4% |
|
Fats and oils |
$35
million |
1.
United States
2.
Caribbean Islands
3.
Argentina |
40%
24%
10% |
|
Sugar and confectionery |
$46.3
million |
1.
Guyana
2.
United Kingdom
3.
United States |
42%
16%
15% |
Best
Prospects
There has been a growing trend in the islands for safe,
healthy, and nutritious foods, as well as functional and
convenient products with little or no preparation time.
Over the past few years, Caribbean food processors have
extended their customer base to many countries in the
Americas, and some have opened plants abroad.
These products offer the best prospects for growth:
• Beef, turkey, and pork
• Nuts
• Tomato paste
• Soybeans
• Wheat and rice
• Coarse grains
• Nutraceuticals
• Non-Caribbean produce
• Ethnic spices
• Dairy
• Sugar, sweeteners, and bases
Kay Logan is an agricultural marketing assistant with
the Caribbean Basin Agricultural Trade Office in Miami,
FL. E-mail:
cbato@cbato.net
|
