CARICOM/CARIFORUM FRESH AND PROCESSED PRODUCE …

FOOD AND AGRICULUTRE ORGANIZATION

CARICOM/CARIFORUM

FRESH AND PROCESSED

PRODUCE MARKET- OPPORTUNITY STUDY

A REPORT PREPARED

FOR THE

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

UNDER THE

PROJECT “PROMOTING CARICOM/CARIFORUM FOOD SECURITY” (PHASE II)

(GTFS/RLA/141/ITA)

Prepared by: Fitzroy James FAO Marketing Consultant

May, 2009

ii

CARICOM Fresh and Processed Market Opportunity Study

Acknowledgement

The author wishes to acknowledge with great appreciation the assistance and support provided by farmers,

the private sector (hotels, food service, retailers, and supermarkets), the CARICOM secretariat, various government agencies and fresh produce and marketing boards that were consulted during the in-country

field visits.

The author is also grateful for the administrative and logistic support provided by the Project Coordinating Unit (PCU) of the GTFS/RLA/141/ITA “Promoting CARICOM/CARIFORUM Food Security” project, in

particular Kathy Rovedas, Secretary and Marlene Callender, Project Administrator. In addition, the

technical guidance and feedback provided by the FAO and PCU is very much appreciated.

Finally, this report is a result of a combined effort by several consultants and the author would like to thank Dr. Andre Gordon, Mr. Don Fletcher and Mr. Govind Seepersad for their huge and valuable contributions

to the report.

Fitzroy James

Disclaimer

Every effort has been made to ensure the accuracy of the information contained in this publication. The author does not accept any responsibility or liability for error or fact omission, interpretation or opinion

presented and any cost(s) associated as a result of any decisions based on this information. Any views or

opinions expressed do not necessarily represent the official view of the FAO.

Table of Contents

Table of Contents ....................................................................................................................................... i

List of Tables ............................................................................................................................................ ii

List of Boxes ............................................................................................................................................ iii

List of Abbreviations ................................................................................................................................ iv

EXECUTIVE SUMMARY ....................................................................................................................... v

1. INTRODUCTION ............................................................................................................................ 1

2. CARICOM FRESH AND PROCESSED PRODUCE INDUSTRY .................................................... 2

Introduction .......................................................................................................................................... 2

Fresh and Processed Produce Industry Overview ................................................................................... 2

Fruit Sub-Category ................................................................................................................................ 3

Roots and Tubers Sub-Category ............................................................................................................ 9

Vegetables Sub-Category .....................................................................................................................14

Herbs and Spices Sub-Category ............................................................................................................18

Pulses and Nuts Sub-Category ..............................................................................................................22

3. TRADE IN CARICOM FRESH PRODUCE PRODUCTS ...............................................................24

Introduction .........................................................................................................................................24

CARICOM Trade in Fresh and Processed Produce ...............................................................................24

Intra-Regional Trade ............................................................................................................................26

Market Opportunities and Prospects .....................................................................................................29

Extra Regional Trade............................................................................................................................30

Market Opportunities and Prospects .................................................................................................38

Summary..............................................................................................................................................38

4. VALUE CHAIN ANALYSIS AND SELECTION ...........................................................................39

Introduction .........................................................................................................................................39

Profile of Value Chains Short listed for Selection. ................................................................................39

Conclusion: Value Chains Subsequently Selected at the Workshop .......................................................57

5. SUMMARY OF MAIN FINDINGS / RECOMMENDATIONS .......................................................59

Main findings: ......................................................................................................................................59

Domestic market ..................................................................................................................................59

Export markets .....................................................................................................................................60

Recommendations ................................................................................................................................62

References................................................................................................................................................64

Appendix 1: Value Chain Maps ................................................................................................................66

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List of Tables

Table 1: CARICOM Match of Fresh Produce Import and Export Interests ................................................. 1

Table 2: Question Guide Used in Developing Value Chain Profiles ........................................................... 3

Table 3: Study Methodology...................................................................................................................... 1

Table 4: Availability of Fresh Produce in CARICOM (MT), 2006 ............................................................. 2

Table 5: CARICOM Production and Availability of Fresh Fruit Produce (MT), 2006 ................................. 4

Table 6: CARICOM Production and Availability of Roots and Tubers (MT), 2006 .................................... 9

Table 7: CARICOM Production and Availability of Fresh Vegetable Produce (MT), 2006........................14

Table 8: CARICOM Production and Availability of Fresh Herbs and Spices (MT), 2006 ..........................18

Table 9: CARICOM Production and Availability of Fresh Pulses and Nuts (MT), 2006 ............................22

Table 10: Total Trade in Fresh and Processed Produce in CARICOM, 2003-2006 ....................................24

Table 11: Intra Regional Trade of Fresh Produce in CARICOM, 2003-2006 .............................................26

Table 12: Intra Regional Trade of Processed Produce in CARICOM, 2003-2006 ......................................28

Table 13: Extra Regional Imports of Fresh and Processed Produce in CARICOM, 2003-2006 ..................30

Table 14: CARICOM Exports to Main Extra Regional Markets, 2006 ......................................................31

Table 15: CARICOM Exports of Fresh Produce to the United Kingdom, 2003-2006 .................................32

Table 16: CARICOM Exports of Fresh Produce to the United States, 2003-2006 ......................................34

Table 17: CARICOM Exports of Fresh produce to Canada, 2003-2006 .....................................................37

Table 18: Shortlist of Value Chains ..........................................................................................................39

Table 19: A list of Selected Value Chains for Promotion and Development...............................................57

Table 20: The Alternative list of Value Chains ..........................................................................................58

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List of Boxes

Box 1: Project Profile ................................................................................................................................ 1

Box 2: Intra Regional Exports of Selected Fresh Produce from Guyana (MT), 2004-2008 .......................... 6

Box 3: Selected Fresh Produce Exports from Jamaica, 2006-2007 ............................................................10

Box 4: Trinidad and Tobago Roots and Starch Crop Domestic Gap (MT), 2007 ........................................11

Box 5: Exports of Root Crop from St Vincent and the Grenadines (MT), 2006..........................................12

Box 6: Ackee Export from Jamaica (kg), 2006-2007 .................................................................................16

Box 7: Selected Herbs and Spices Export from Jamaica, 2006-2007 .........................................................20

Box 8: Growing Cashew in Belize ............................................................................................................23

Box 9: Fresh Papaya Imports to the United States (MT), 2003-2007 .........................................................35

Box 10: Market Prospects for Developing country of Certified Fruits and Vegetables ...............................36

Box 11: Value of Imports of Fresh Produce from Guyana to Canada (US$'000) cif, 2004-2008.................38

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List of Abbreviations

BAPS Group Belize Agro-Productive Sector Group

BAS Barbados Agricultural Society

CABA Caribbean Agribusiness Association

CaFAN Caribbean Farmers’ Network

CAIC Caribbean Association Industry and Commerce

CARDI Caribbean Agriculture Research and Development Institute

CARICOM Caribbean Community

CARIFORUM Caribbean Forum of the African Caribbean and Pacific States

CARIRI Caribbean Industrial Research Institute

ECTAD Eastern Caribbean Trading Agriculture and Development Organization

EU European Union

FAO Food and Agriculture Organization

GABA Guyana Agri Business Association

GFAFO Grenada Federation of Agricultural and Fisher-folk Organizations

GMNIB Grenada National marketing and Import Board

IICA Inter American Institute for Cooperation on Agriculture

MFI Multilateral Financial Institutions

MNIB Marketing and National Import Board

MSME Medium, Small and Micro Enterprises

NAMDEVCO National Marketing and Development Cooperation

New GMC New Guyana Marketing Corporation

NIPPA Nature Island Pineapple Producers Association

OECS Organisation of Eastern Caribbean States

TTABA Trinidad and Tobago Agribusiness Association

UK United Kingdom

USA United States of America

UWI University of the West Indies

WINFA Windward Island Farmers Association

Currency The currency unit used throughout this report is the United States Dollar (USD$), unless otherwise stated.

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EXECUTIVE SUMMARY

Introduction

The CARICOM Fresh and Processed Market Opportunity Study was conducted during March and April

2009. The methodology used included desk research on production and trade databases, review of recent

fresh and processed produce industry studies and field visits and interviews. The quality and reliability of the available production and trade data posed some limitations on the analysis. However, all attempts were

made to validate the existing data and to ensure that the conclusions arrived at were in line with observed

industry trends.

This report documents the findings of the CARICOM1 Market Opportunity Study. The study was

undertaken to identify the 5 national and / or regional agri-food value chains, which will become pilot

projects for support by FAO with the objective of becoming demonstration models to catalyse further

adoption across the region, demonstrating private sector led, value chain approaches to reduce rural poverty and enhance national and regional food security.

Key Findings

Size and value of the Fresh and Processed Produce Market

In 2006 the CARICOM fresh and processed produce market amounted to 2.7 million metric tonnes valued

at US$2.1 million. Fresh produce accounted for 87 percent by volume and 83 percent by value of this market. Domestic production contributed 92 percent of the total fresh produce market.

Fresh Produce Availability

Total availability of fresh produce in 2006 amounted to 2.1 million metric tonnes valued at US$1.6 million.

Fruits were available in the largest amount (63%) followed by roots and tubers (23%), vegetables (9%), herbs and spices (4%), and pulses and nuts (1%). Per capita availability of fresh produce in CARICOM

averaged 365 kilograms in 2006. Dominica (1,320kg), Belize (1,108kg) and St. Vincent (391kg) had the

highest per capita availability and St, Kitts and Nevis (97kg), Trinidad (103 kg) and Grenada (130 kg) the lowest. The per capita availability in CARICOM was highest for fruits (247kg) and roots and tubers (80

kg).

Distribution Channels

Distribution channels varied significantly among product categories and between countries. Domestic

markets utilized 88 percent of domestic production and imports of fresh produce and 12 percent of

domestic production were exported. Fruits had the highest percent exports (40%) followed by herbs and

spices (8%), roots and tubers (5%), vegetables (4%) and pulses (3%). Supermarkets were the major outlet for fruits while the local public market was the largest for roots and tubers. The hotel food service sector

was an important user of fresh fruits and vegetables accounting for 5 to 15 percent of domestic availability.

Trade

The trade of fresh and processed produce experienced a bearish rally between 2003 and 2006 decreasing by

2 percent in volume but increasing 7 percent in value (US$600 million in 2006). Imported processed

products were the only category increasing in both volume (5%) and value (9%) traded. Intra regional trade in fresh produce showed a similar bearish rally decreasing an average 1 percent annually in volume

and increasing 3 percent in value. Roots and tubers was the main category showing growth in volume and

value. Intra regional trade of processed produce; however, was positive with growth averaging 5 percent in

1 Excluding Haiti and the Dominican Republic

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volume and 17 percent in value during the same period with fruits, herbs and spices showing the strongest

growth. In 2006, the United Kingdom was the largest export market accounting for 50 percent of exports from CARICOM followed by the United States (21%) and exports to the region (20%).

Market Gaps and Challenges

The following market gaps were identified from the market research and field visits:

Unmet demand for high value fruits and vegetables (salad fruits – melons, pineapples, cantaloupes;

romaine and iceberg lettuce, coloured peppers, broccoli, cauliflower, etc) in domestic markets, in

particular the agro-tourism sectors;

Unmet demand for healthy and safe foods such as organic fruits and vegetables in the more

sophisticated segments of the local markets;

Unmet demand for products that are produced using environmentally and socially acceptable practices

in the developed markets such as the United Kingdom e.g. ‘Fair Trade’ label, certified organic production;

Disorganized unplanned production with limited alignment between production and market

requirements;

Absence of quality assurance systems, adherence to good agricultural practices (GAP), HAACP, BRC

and Euro GAP, official standards for grades, traceability systems and facilities for product and residue testing;

High cost of certification and conformance to international standards;

Potential for growth in value added and convenience food items such as pre-cut vegetable salads, fruit

salads, peeled vegetables and root crops etc.;

Integrating small farmers in the commercial marketing systems;

Limited Intra Regional transportation and financing for investment in agriculture production and agro

processing.

Market Opportunities

The main potential market opportunities identified during the field visits and market research were as

follows:

Domestic Market

Freshly cut and packaged fruit salads (i.e. melon papaya, pineapple) prepared for domestic market (i.e.

food retail, food services) and the hospitality industry (i.e. hotels);

Freshly cut and packaged vegetables for the domestic market and the hospitality industry;

Processing of fruits into tropical fruit juices, i.e. passion fruit, pineapple, Barbados cherry and soursop;

Import substitution opportunities for selected tomatoes that are grown in green houses to take

advantage of the off-season when imports fill the shortfall in supply;

Import substitution of carrots, onions, cucumbers and brassicas

Fresh cut and packaged vegetables for export to inter-regional markets;

Roots and tubers for import substitution of white potato including frozen products such as French fries

by cassava, sweet potato, and domestically produced white potatoes;

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Other new semi-processed/retail ready roots, tubers and stables which replace products currently only

cooked in households and restaurants, i.e. pre-cooked plantain, frozen pre-cut cassava, dasheen on

vegetables and eddoes packs for the domestic market. This also includes mixed frozen root soup packs targeting the domestic market;

Herbs and spices, including fresh pepper, ginger and processed sauces, jellies and jams for the domestic

and export markets;

Processed herbs and spices, including hot pepper sauce, onions and condiments.

Regional Markets

Fresh fruit for main inter-regional markets and other tourist destinations with limited domestic

production, such as Barbados;

Pre-cut and packaged roots and tubers;

Processed cassava (i.e. cassava flour) (note: research work is currently undertaken by CARDI in

Trinidad and Tobago), i.e. market opportunities for processors but also for farmers with the potential to

increase cassava production and depending on the price, development of imported feed ingredients (i.e.

corn);

Fruit juice production, i.e. citrus and pineapple;

Processing of hot pepper sauce and coconut water:

Import substitution of chilli peppers from Latin America and Dominican Republic to satisfy demand in

hot pepper sauce processing industries in Jamaica and Trinidad and Tobago,

Primary processing of coconut water in Guyana and Trinidad and Tobago.

Extra-Regional Markets

Overall, the market opportunities for the extra regional markets will continue to rely on already established export links and market contacts.

In the UK market, sweet potato and dasheen are believed to have potential for growth, given the

demand for these exports and some favourable transport linkages. Other opportunities include a niche

market for products such as pickled gherkins and hot pepper sauces targeting the large Caribbean population.

For the US market, potential market opportunities exist in the organic and certified market segments for

fruits and vegetables. Especially, organic pineapple and mangoes have good prospects given the

growing market demand and the growth of imports in the market over the years.

Herbs and spices as well as pulses and nuts have good prospects for the Canadian market. These exports have enjoyed growth over the years, although it represents a small amount of the total exports

from CARICOM into this market.

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Short Listed Value Chains:

Having explored the opportunities identified by reviewing the secondary data sources and existing studies, the market opportunity consultants conducted interviews with food retailers, hotel operators, agro-

processors, exporter associations, agri-business associations, farmers’ organisations and government

officials to develop profiles of several value chains for further development. Field interviews were conducted in all CARICOM states except Haiti and St Kitts and Nevis. A list of value chains explored by

the consultants in the field was presented to the regional value chain workshop for selection.

The fourteen value chains short listed for further profiling are summarized in the table below. For each of

the value chains, a 4 to 6 page profile was prepared which included in many cases a description of the chain, a value chain map, analysis of market opportunities, a comparison of price competitiveness, a value

chain margin build up, a gap analysis and some indication of interventions required. Summary profiles of

the value chains are provided below.

Shortlist of Value Chains

No Production

Country

Market

Country

Commodity/Product Farmers Organisation

1 Antigua and

Barbuda

Antigua and Barbuda Small Ruminants Antigua and Barbuda Livestock

Improvement and Cooperative Society

2 Antigua and

Barbuda

Antigua and Barbuda Onions and Carrots

Fresh

CABA – Antigua and Barbuda

3 Barbados Barbados Onions Fresh/Processed

Condiments

Barbados Agricultural Society (BAS)

4 Belize Belize

USA

Hot Pepper

Fresh and Sauces

Belize Agro-Productive Sector Group

BAPS Group/Hot Pepper Association

5 Belize Belize

Pineapple

Fresh and Juiced

BAPS Group/Buenos Amigos

(Pineapple) Cooperative

6 Dominica

Dominica

Martinique

Pineapple

Organic Fresh

Nature Island Pineapple Producers

Association (NIPPA)

7 Grenada Grenada

Trinidad and Tobago

Sour Sop

Fruit and Pulp

Grenada Federation of Agricultural and

Fisher-folk Organisations (GFAFO)

8 Guyana Guyana/CARICOM

USA/Canada

Coconut Water

Bottled

Guyana Agribiz Association/Pomeroon

Women’s Agro Processors Association

9 Guyana Trinidad and Tobago Eddoes /Plantain

for Frozen Packs

GABA/Kuru kuru Framers Association

10 Jamaica Jamaica

UK/USA

Ackee

Canned/Tetra Packs

Jamaica Agro Processors Association

11 Jamaica Jamaica Carrots

Retail Packs/Exports

Christiana Potato Growers Farmers

Association

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No Production

Country

Market

Country


12 St Lucia St Lucia

Hotels

Salad Fruit/ Papaya/

Melon/Pineapples

Bellevue Farmers Cooperative Ltd

13 St Vincent

and the

Grenadines

UK

Trinidad and Tobago

Roots/Sweet Potato/

Dasheen

Caribbean Farmers Network/ECTAD/

Agricultural Society of Trinidad and

Tobago

14 Trinidad and

Tobago

CARICOM

USA/Canada

Papaya

Fresh

National Papaya Association

Selected Value Chains and Alternates

The following value chains and alternates were selected at the ‘Kick-Off’ Workshop:

A list of Selected Value Chains for Promotion and Development

Country Value chain: commodity /

product

Market Agri-food organisation

Belize Hot pepper

fresh and sauces

Belize Tourist and

Extra regional Markets

BAPSGroup / Belize Hot

Pepper Association

Dominica Pineapple

organic fresh

Regional and DOMs Nature Island Pineapple

Producers Association (NIPPA)

Jamaica Ackee

canned and tetra pack

Tourism and Extra

regional Markets

Jamaica Agro Processors

Association

St Lucia Papaya / melon / pineapple -

salad fruits

Domestic Hotels and

Supermarkets

Bellevue Farmers Cooperative

Ltd and Other Associations

St Vincent and Grenadines

Roots / sweet potato / dasheen fresh and processed

Regional and Extra regional

Caribbean Farmers Network / ECTAD

The Alternative list of Value Chains

Country Value chain: commodity

/ product

Markets Agri-food organisation

Grenada Sour sop

fresh and pulped

Regional and Extra

regional markets

GFAFO

Antigua and Barbuda Onion – fresh Domestic and regional

markets


Guyana Bottled coconut water Regional and extra

regional markets

GABA/ Pomeroon Women’s

Agro Processors Association

Processors Association Guyana Eddoes / plantains

fresh for frozen packs

Regional markets via

Trinidad and Tobago processor

GABA/ Kuru Kuru Farmers

Association

From the outset, the process to select five (5) value chains for promotion and development sought to focus the use of limited resources to a few countries (5), the regional markets, commodities prioritized by

x


member states and the fresh produce industry where impact on small farmers is thought to be greatest. In

addition, attempts were made to identify value chains which were common to several member states so that the upgrading strategies developed for these chains could serve as a demonstration effect for similar chains

in other countries.

The process of selecting the chains included review of trade and production statistics to identify opportunities and gaps in supply; review of commodity studies; field work to explore, profile and validate

value chains which were largely previously identified; and the presentation of a short list of value chains to

a workshop of regional private and public agro-food stakeholders for chain selection.

Recommendations

The following recommendations are made to assist in the promotion and development of value chains:

There is a need to provide regular information on the market situation and outlook of fresh produce in CARICOM. Better monitoring and collection of data (production and trade) at the regional level is

required, which at the moment appears to be ad hoc and sporadic.

Notwithstanding this, there are real efforts in the industry to provide this information with regular reports provided by national marketing agencies such NAMDEVCO. A possible intervention of the FAO-

GTFS/CARICOM/CARIFORUM Project is to facilitate such activity which could provide a better

foundation for informed planning and for overall credible policy making.

Upcoming value chains promotional work needs to include economic appraisals of costs and margins along

the value chains as well as farm enterprise budgets. This would facilitate the monitoring of improvements

in profitability, incomes and, if labour is included, effects on employment for all relevant actors along the

chain. In addition, there addition impacts on overall food security and the enhancement of rural livelihoods may be monitored.

Based on the production and processing potential available, the project will make an attempt to explore new

markets in Europe and promote Caribbean produce and food, especially in Italy.

In general and to be successful and become a sustainable supplier to modern export markets, it is important

to target niche and speciality markets for i.e. fair traded and organically certified products and work

towards the establishment of a “Caribbean brand.” Such a brand should guarantee customers quality and safety with a Caribbean flair. Low volume, high value and non-perishable products are seen to have an

advantage over perishable fresh produce which, in addition, face quarantine and phyto-sanitary as well as

more stringent food safety barriers. The project will promote niche and speciality marketing when the

number of beneficiaries justifies this.

Further Work

Further work would involve detailed analysis of the 5 value chains that were selected at the Kick off Workshop, development of specific projects for the development of these chains and implementation of the

proposed interventions.

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1. INTRODUCTION

Food Security Project

The Project is the second phase of the “Promoting CARICOM/CARIFORUM Food Security Phase II

(GTFS/RLA/141/ITA)” and a core part of the Caribbean Regional Programme for Food Security. Studies

conducted during the first phase of the Project showed that the challenges faced by CARIFORUM in ensuring food security and addressing broader welfare objectives outcomes originate from different

sources, including smallness, vulnerability to natural disasters, a changing economic environment

characterised by a lack of international competitiveness and loss of preferential markets and a rules-based approach to agricultural policy.

Box 1: Project Profile

Project: Promoting CARICOM/CARIFORUM Food Security - Phase II

Project Symbol: GTFS/RLA/141/ITA Phase II

Donor: Government of Italy

Contribution: Euro 2 438 946

Government Implementing Agency: CARICOM Secretariat and national level partners.

Implementing Agency: FAO - Food and Agriculture Organization of United Nations

Duration: January 2008 to December 2010

Location: Regional Project Management Unit/Commodity Chain group: Port of Spain

Food Security Policy Advisor: CARICOM Secretariat, Guyana

The Project supports the development of a regional CARICOM/CARIFORUM food security policy and

the role of the agricultural sector herein by strengthening the capacity of the CARICOM Secretariat in

providing food policy advice and guidance to member governments, and by building up regional and

national capacities of associations along the value chains of non-traditional agriculture commodities from production to a range of domestic, regional and export markets.

A network of national farmers and agribusiness associations will be strengthened in the region to support

continued development of value chains in the CARICOM/CARIFORUM countries. It is expected that all of the stakeholders along selected value chains will benefit from this support and result in more

sustainable business relationships. The Project will initially work on selected commodities; support

project activities in a limited number of locations and seek close collaboration with other donor-funded projects. The Project will benefit farmers and farmer groups producing non-traditional commodities,

traders and exporters of the local, regional or international markets, agri-food processors, buyers, retailers,

professional and inter-professional associations, marketing organizations and, more broadly, food

insecure and poor households.

The overall objective of the Project is to improve the food security situation of the

CARICOM/CARIFORUM states at different levels through strengthening the food policy environment

and the support services to promote efficient and sustainable food systems. The Project has five main results: I) Agriculture Development Unit at CARICOM secretariat strengthened; II) Institutional

framework for agribusiness and enterprise development strengthened; III) Commodity value-chains

development strengthened; IV) Partnership and strategic market alliances strengthened and V) Farmer based organizations, production skills and agro-processing strengthened.

2


The Project includes two teams working on each of the two main components: a Policy Support Team and

the Value Chain Team. The Policy Support Team is hosted in the CARICOM Secretariat, while the Value Chain Team is based at the Trinidad and Tobago at FAO office.

Country focus

For regional activities, such as regional workshops, includes all member states of CARICOM CARIFORUM. For national activities this project focuses its in-country work on a limited number (5) of

CARICOM countries i.e. excluding Haiti and the Dominican Republic. As a result the market

opportunity study focused is research on the CARICOM markets, not including Haiti.

Study Objectives

The study was undertaken to identify the 5 national and /or regional agri-food value chains, which will

become pilot projects for support by FAO with the objective of becoming demonstration models to catalyse further adoption across the region, demonstrating private sector led, value chain approaches to

reduce rural poverty and enhance national and regional food security.

Market focus

Among the project goals is the need to align production to available market opportunities and to integrate

small subsistence farmers and agro-processors into the commercial marketing system. The key markets

considered were the domestic markets, the regional markets and with somewhat lesser emphasis on the main extra-regional export markets of the United Kingdom, United States and Canada.

Product focus: Why fresh and processed produce?

The Project considered the wider range of agri-food value chains and decided to focus on a limited

number of chains and commodities to increase impact. The fresh produce category was selected since this is an area where there are many small farmers with a high concentration of women and young farmers.

The fresh produce sector also provides raw materials for the growing agro-processing industries in these

countries. Also, the project took the opportunity to use the work of Ranjit Singh et al on the regional small ruminant industry to present the small ruminant value chain to the workshop.

However the emphasis is to work with a limited number of chains which can serve as a demonstration

effect and thereby catalyze the use of value chain analysis and promotion to improve the output quality and performance of agri-food chains across the region.

3


Study Methodology

The approach to the study was structured based on the following methodology.

Data collection:

A desk search was conducted on production and trade databases2for secondary data;

A review of existing fresh and processed produce industry studies was undertaken; and

Field visits and interviews to follow-up on opportunities were conducted with government agencies

(Ministry of Agriculture), farmer organisations, post harvest groups, processors, importers, exporters, retailers and food service providers in the region.

Analysis:

A market gap analysis of fresh produce commodities value chains was undertaken. This included an

assessment of current trends in production, trade in main markets and potential growth in the fresh produce sector.

Priority commodities

An attempt was made to align the choice of chains to the priorities of CARICOM member states. A CARISEC list which matches the member states (9) interests to import and export fresh produce

commodities was used to determine commodities of regional importance. At the national level,

consultants sought to dialogue with Ministries of Agriculture to determine priorities.

Selection criteria

The field work was guided by a series of value chain selection criteria, which were developed from those

proposed in the GTFS Global Work Plan 2008 – 2010 and an assessment matrix proposed by the

ValueLinks Manual3. The matrix presents the criteria and the questions which guided consultants in the field to describe the chains.

Challenges and limitations

The production of this report was constrained by the difficulty of obtaining reliable information, particularly for production and processed fresh produce for member states of CARICOM/ CARIFORUM.

Where the report remains general rather than specific, it is because the study took a conservative

approach, and remained within the limits of the information available.

These challenges and limitations include:

The quality of available production, market and trade data: Production and trade figures from several

sources for the region were challenging to verify and cross-check. There were variations between

datasets4, and in some cases, a degree of discrepancy in which the study took a more conservative

approach with estimates of volume and value that are presented.

Throughout the report, the analysis of production and market data is limited to the 2006 year. The

year 2006 was used as the base reference because it was the most complete and available dataset that

could be analysed.

Production figures for some countries have been skewed as a result of natural disasters i.e. hurricane

Ivan that devastated Grenada and Jamaica in 2004 and flooding that affected Guyana in 2004 and 2005.

2 CRNM/UN COMTRADE, FAO STAT 3 ValueLinks Manual, the Methodology of value Chain Promotion, GTZ, 2007 4 CRNM/Comtrade, National databases, Commodity Studies and FAO STAT

4


Processing industries production was difficult to collect and was therefore hard to capture the levels

of transformation and the value added.

Imports of semi-processed and processed food commodities (i.e. frozen fruit and vegetables, canned

fruits) form a significant part of the food consumed in the region and the study acknowledges this contribution but was unable to quantify it. In cases in which these products are of high relevance the

study makes an attempt to document the cases qualitatively.

A roadmap of the approach used in the study is outlined in Table 3. Field interviews were conducted in all CARICOM states except Haiti and St Kitts and Nevis.

1


Table 1: CARICOM Match of Fresh Produce Import and Export Interests

Importing

Countries

Exporting Countries

Antigua and

Barbuda

Barbados Dominica Guyana Jamaica MNT St Lucia Suriname Trinidad and

Tobago

Antigua and

Barbuda Bananas Bananas Bananas

Peas

Beans

Dasheen Dasheen Dasheen

Plantains Plantains Plantains Plantains

Barbados Bananas Bananas Bananas

Grapefruit

Mangoes Mangoes Mangoes Mangoes

Oranges Oranges

Papaya Papaya Papaya

Pineapples Pineapples

Basil Basil

Cinnamon Cinnamon

Nutmeg Nutmeg

Onions

Beans

Coconuts Coconuts

Corn

Coffee

Sweet Potato Sweet Potato Sweet Potato Sweet Potato

Cabbages Cabbages Cabbages Cabbages Cabbages

Carrots Carrots

Christophene

Lettuce

2


Importing

Countries

Exporting Countries

Antigua and

Barbuda

Barbados Dominica Guyana Jamaica MNT St Lucia Suriname Trinidad and

Tobago

Okra Okra Okra

Peppers Peppers Peppers Peppers Peppers

Dominica

Pigeon Peas

Potatoes Potatoes Potatoes Potatoes

Carrots Carrots

Guyana Nutmeg Nutmeg

Onions Onions

Potatoes Potatoes Potatoes Potatoes

Carrots Carrots Carrots

Jamaica

Saint Lucia

Pineapples Pineapples

Watermelons Watermelons Watermelons Watermelons

Onions Onions

Sweet Potato Sweet Potato Sweet Potato Sweet Potato

Cabbages Cabbages Cabbages Cabbages Cabbages

Carrots Carrots Carrots

Peppers Peppers Peppers Peppers Peppers Peppers

Pumpkins Pumpkins Pumpkins Pumpkins Pumpkins

Suriname Nutmeg

Beans

Coconuts Coconuts

Trinidad

and Tobago Dasheen Dasheen Dasheen

Sweet Potato Sweet Potato Sweet Potato Sweet Potato Sweet Potato

Yam Yam Yam

3


Table 2: Question Guide Used in Developing Value Chain Profiles

Criteria Question

Market opportunities and gaps

Size and value of contribution to GDP/exports What is the size and contribution to the agri food economy/exports?

High market potential/absorptive domestic demand Is the market potential /absorptive capacity of the local market high? Why?

Extent of existing/potential market contacts What is the extent of existing /potential market contacts?

Positive market growth prospects Are there positive growth prospects? Describe

Competitiveness vs. other suppliers and substitutes How competitive is the chain to other suppliers and substitutes? Describe

Impact on food security

Significance and distribution of SMEs in chain How significant are the presence of small and medium enterprises in chain?

Chain employment/location in rural areas Does the chain offer significant employment especially in rural areas? Describe

Opportunities to increase production +/value What are the opportunities to increase production +/or value for SMEs? List and describe

Farmer production, performance, profit imp.

Potential

Is the opportunity for improving farmer productivity, performance profit high?

Regional/national priorities

CARICOM/Government priority ranking Is the chain a priority for CARICOM/national governments? Describe

Enabling environment support Is the enabling environment supportive of the chain? Describe

Opportunities for program intervention

Key actor openness to partnership/intervention Are the key farmers organisation and chain operators open to intervention? Describe

Presence and seriousness of farmers organizations Are there serious functioning farmers’ organisations present? Describe

Relevance of constraints to FAO intervention Are the constraints faced by the chain the type that FAO can address? Describe

Relevance of cross cutting issues

Gender/poverty How significant are gender and poverty issues in the chain?

Environment/sustainability How significant are environment and sustainability issues in the chain?

Complementarily of intervention

Major donor synergies, niches, coordination Are there other agencies supporting the chain? List and describe

How complementary is the FAO intervention to these?

How important are coordination challenges between agencies?

Adapted from GTZ ValueLinks, 2007

1


Table 3: Study Methodology

Method Purpose Main Source/ Personnel

Meeting Agree Methodology

Market focus – EU/ US CARIFORUM

Country focus - CARICOM

Product focus – fresh/ processed

Study Methodology

Fitzroy James/ Robert Best

Skype - Heiko Bammann

Desk Research Farm production FAO STAT

Trade volume and value

- CARICOM

- EU - UK

- USA/ Canada

- CRNM/ UNComtrade

- COLEACP

- USDA FATUS

CARICOM Priority Commodity Lists

- Intra regional trade

- CARISEC

Value chain opportunities and gaps Existing value chain/ agribusiness studies

Field Research Validate desk research

- Production

- Processing

- Trade

- Agriculture Ministry

- Statistical Departments

- Marketing Boards

Processed production - Agriculture Ministry

- Statistical Departments

- Industry Departments

- Industry interviews

Produce prices - Agriculture Ministry

- Marketing Boards

Value chain opportunities and gaps - Food retail/ Food service companies

- Exporters/ Marketing boards

- Agribusiness firms / associations

- Farmers organizations

- Ministries

Draft report Intra regional and Extra regional trade - Fitzroy James

Draft report Country profiles

Value chain profiles

Export markets

- Fitzroy James – Barbados and OECS

- Don Fletcher – Trinidad &Tobago,

Guyana, Suriname

- Andre Gordon – Jamaica, Bahamas,

Belize

- Govind Seepersad

Power Point

presentation

Caribbean Agri-Food Value Chain Kick-

Off Workshop

- Fitzroy James

- Don Fletcher

- Govind Seepersad

Final report - Fitzroy James – Overview/Barbados and

OECS

- Don Fletcher – Trinidad and Tobago,

Guyana, Suriname

- Andre Gordon – Jamaica, Bahamas,

Belize

- Govind Seepersad – Small Ruminants

2


2. CARICOM FRESH AND PROCESSED PRODUCE INDUSTRY

Introduction

This chapter seeks to give an overview of the CARICOM fresh-produce industry as a basis for locating

the value chains which are short listed for development and promotion.

In order to understand the importance of fresh produce to smaller states, the overview focuses on the English-speaking CARICOM member states and does not include Haiti or the Dominican Republic.

The main sources of information are the Caribbean Regional Negotiating Machinery

(CRNM/UNCONTRADE), for trade data, and FAOSTAT, for production data. Both of these have been modified with national statistics where these have become available. Data on the local production and

consumption of processed produce was challenging, and as a result that data was largely omitted from the

analysis. Trade data (import and exports) of these products was however available from the trade

statistics. Analysis of the available trade data on processed products was also limited by the amount of mixed products in that category.

Throughout the analysis, availability is used as a proxy indicator for consumption, and represents the

amount of a commodity available for consumption without adjustments for post harvest losses or shrinkage in the distribution channel. Total supply represents production plus imports.

Fresh and Processed Produce Industry Overview

Fresh produce supply was estimated at about 2 million metric tonnes valued at over US$1.5 billion in

2006 (Table 4). Domestic production accounted for more than 90 percent of total supply. Of the total

produce available, 7 percent was imported while 12 percent of total domestic production was exported.

Table 4: Availability of Fresh Produce in CARICOM (MT), 2006

Product Category Production Imports Exports Availability Availability

(%)

Fresh Fruits

Volume (mt) 1,504,346 32,418 236,878 1,299,886 63

Value (US$) $923,083,970 $26,235,860 $105,711,573 $843,608,258 54

Fresh Roots and Tubers

Volume (mt) 412,131 79,684 19,629 472,187 23

Value (US$) $395,138,002 $36,936,028 $27,647,604 $404,426,426 26

Fresh Vegetables

Volume (mt) 185,983 13,964 6,804 193,143 9

Value (US$) $178,362,234 $13,582,184 $4,343,635 $187,600,783 12

Fresh Herbs and Spices

Volume (mt) 36,110 41,751 2,950 74,911 4

Value (US$) $70,960,781 $27,225,646 $7,184,748 $91,001,679 6

Fresh Pulses and Nuts

Volume (mt) 20,890 7,956 558 28,288 1

Value (US$) $25,551,544 $11,593,569 $695,240 $36,449,873 2

Volume (mt) 2,159,461 175,773 266,819 2,068,415

Value (US$) $1,593,096,531 $115,573,287 $145,582,799 $1,563,087,018

Source: FAOSTATS, CRNM/UNCOMTRADE, national statistics and field interviews with industry experts CARICOM excluding Haiti

3


Fruit accounted for the largest sub category by volume available for consumption with 63 percent,

followed by roots and tubers (23%), vegetables (9%), herbs and spices (4%) and pulses and nuts (1%). Notably as sub category share fell, unit value increased as shown with the unit value of pulses and nuts

being US$1,200 per metric tonne compared to US$650 per metric tonne for fruit.

Roots and tubers accounted for the largest category of imports representing 45 percent by volume of total imports. Herbs and spices followed by fruits were the other significant categories of imports accounting

for 24 percent and 18 percent respectively.

Exports of fruits in 2006 were also considerable. This category accounted for over 89 percent of total

exports by volume, around 63 percent of fresh produce available for consumption and accounted for 70 percent of total production. Citrus and bananas were the main fruit commodities dominating production

and exports.

Fruit Sub-Category

Fresh fruit was by far the largest sub category of fresh produce available for consumption in CARICOM.

Table 5 shows that there was 1,299,000 metric tonnes of fruit available for consumption in the region in 2006. This does not include exports of bananas (178,000 metric tonnes) and papayas (36,000 metric

tonnes). Banana, citrus and coconuts accounted for over 90 percent followed by pineapples, mangoes,

melons and apples each with less than 3 percent. All other fruit commodities made up 1 percent of available production. However, it should be noted that these statistics do not adequately reflect the

production or trade of non traditional commodities, many of which are produced in small and back yard

holdings and much of which is consumed by producers.

Citrus is the largest fruit produced with an estimated total of 595,789 metric tonnes in 2006 and represents 40 percent of total fruit production, which is dominated by Belize and Jamaica (Table 3). Banana

production accounts for 33 percent of total fruit production in the region and the main producers are

Belize (28%), Jamaica (25%) and the Windward Islands (25%) of overall production. Coconuts (18%), papaya (3%), pineapples (2%) mangoes (2%) and melons (1%) were the other commodities with

significant production while all other fruits comprising less than one percent of total fruit production in

the region.

4


Table 5: CARICOM Production and Availability of Fresh Fruit Produce (MT), 2006

Commodity Production Import Export Availability Availability

(%)

Citrus 595,789 3,197 13,308 585,678 45

Bananas/Plantains 499,951 7,620 178,642 328,929 25

Coconuts 275,133 465 939 274,659 21

Pineapples 32,467 742 627 32,582 3

Mangoes 27,386 - - 27,386 2

Melons 21,854 1,996 1,124 22,726 2

Apples - 8,887 2 8,886 1

Avocadoes 6,515 372 910 5,976 <1

Grapes - 5,045 27 5,018 <1

Golden apples 3,250 - - 3,250 <1

Papaya 39,300 61 36,236 3,125 <1

Pears and quinces 345 1,678 1 2,022 <1

Cherries 1,161 54 - 1,215 <1

Sour sop 1,136 - - 1,136 <1

Other fruits5 60 2,302 5,062 -2,701 0

Total 1,504,346 32,418 236,878 1,299,886 100

Source: FAOSTATS, CRNM/UNCOMTRADE, National Statistics and field interviews with industry experts

CARICOM excluding Haiti

Fruit imports into CARICOM for 2006 were dominated by apples (27%), bananas (25%), grapes (16%)

and citrus (10%), which made up over 76 percent of total imports. Most of the fruit imports come from the USA (62%) and from intra regional trade (34%). These imports do not include significant amounts of

processed fruit that are ingredients in the production of jams, jellies and juices.

Fruit exports from the region accounted for 16 percent of total fruit production. The main export commodities are banana (75%), papaya (15%), and citrus (6%). The main banana exporters from the

region are Belize, Jamaica and St Lucia. Around 93 percent of total banana production6 was exported to

the EU market. For citrus, the main exporters were Belize and Jamaica. Exporters of other main fruit

commodities (papaya, coconut, mango, and avocado) include the Grenadines, Dominica, Belize, Jamaica, Bahamas, and Trinidad and Tobago.

Processed fruit and fruit products imports in 2006 was estimated to be around 62,000 metric tonnes with

a value of US$85 million, while exports amounted to 74,000 metric tonnes with a value of around US$103 million.

Mixed fruits and vegetables juices were the major processed fruit products imported (26%) followed by

processed citrus products (20%), 50 percent of which were imported frozen. Juices accounted for 52 percent of imported processed fruit products. Prepared and preserved products were the second largest

category of processed fruit products. The latter include jams, jellies, nectars and various forms of

preservations. Citrus and mixed fruits and vegetables were also the major export of processed fruit

products accounting for 86 percent of total imports. Frozen product and juices also accounted for 90 percent of import commodities.

5 Other fruits: avocado, golden apples, cherries, soursop, pears and quinces, plums and sloes, cashew apple, apples, grapes, strawberries, peaches, kiwifruit, mixed berries, dates, apricots, figs, and mixed fruits. 6 Excluding banana exports from Haiti and Dominican Republic

5


Market Opportunities by Commodity

The following draws heavily on the “Baseline Review of Non-Traditional Commodities Produced in the

Caribbean ACP Countries”, conducted by the FAO7 in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status

and market opportunities of main fruit commodities and is captured in modified extracts below.

Citrus: oranges dominate citrus production in the Caribbean, making up more than two thirds of all citrus

produced. The crop is both sold whole and processed as juice in concentrated and single strength forms. Production is concentrated in Belize and to lesser extent Jamaica, Bahamas, Trinidad and Tobago,

Dominica and Suriname. Oranges are exported both as whole fruit and as juice. However, only about 5

percent of the CARICOM’s production is exported as whole fruit. In a few countries, a substantial proportion of the crop is processed and the value of regional juice exports significantly exceeds that of

whole fruit exports by a factor of three or more

Regional imports of orange juice are considerable, averaging 14,000 metric tonnes per annum. However,

most of this is imported from within the region, which is therefore a net exporter of orange juice. Grapefruit production, at approximately one-third of orange by volume is distributed amongst a range of

countries and export volumes are effectively concentrated in two countries. The Bahamas led in the

export of whole fruit accounting for 92 percent of exports, while Belize accounts for 99 percent of all grapefruit and pomelo juice exports.

Bananas: the estimated total banana production for CARICOM in 2006 was around 499,000 metric

tonnes (Table 5). Around 178,000 metric tonnes was exported, mainly to the European Union market. Imports over the same period were estimated at around 7,620 metric tonnes and is largely intra regional

trade between CARCOM member countries with the main importing countries being Barbados (3,938mt),

Trinidad and Tobago (2,525mt), Antigua and Barbuda (1,000mt), and St Kitts and Nevis (45mt). Other

major importing countries such as the Bahamas, which imported around 3,750 metric tonnes in 2006, is believed to be sourcing its bananas from extra regional sources. Total banana availability for consumption

in 2006 was estimated at around 328,000 metric tonnes.

While banana is viewed as a traditional export commodity to extra regional markets such as the EU, there is anecdotal evidence suggesting that growth in the intra regional market may offer better market

opportunities for producers in the region.

Plantain: plantain is widely grown in almost all the Caribbean countries. The volume of crop produced exceeds that of any other non-traditional commodity. The crop is grown almost exclusively by small-scale

producers. During the five years to 2006, growth in production was observed in Belize and St Vincent and

the Grenadines.

Most of import of fresh plantain comes from intra regional sources and only a small surplus is exported out of the region. Plantain is not widely processed except as chips in Jamaica, which use a very small

portion of overall production. Processed and cooked chips for snacks are imported into the region from

Latin America.8 Cooked frozen plantain sections have been identified as a growth opportunity by one country9

Coconuts: the Caribbean produces approximately 412,000 metric tonnes of coconuts, Of this, 83 percent

is produced in three countries, Jamaica (61%), Guyana, (16%), and Trinidad (6%) which have coconut oil

processing facilities. Of the 11 countries producing coconuts, six export unprocessed coconuts consistently, and of these Guyana, Jamaica and Dominica account for 90 percent of exports.

7 EU funded All ACP Agricultural Commodities Programme 8 Caribbean Bakery and Snacks Association 9 Trinidad and Tobago Transformation Plan

6


The coconut industry has traditionally concentrated on coconut oil but is developing higher value non-

traditional products such as coconut milk, coconut water and cosmetic products. In particular the chilled coconut water beverage market is developing significantly in some countries led by Jamaica, and Trinidad

and Tobago and interviews with industry experts suggests this market will continue to grow rapidly (Box

2).

Box 2: Intra Regional Exports of Selected Fresh Produce from Guyana (MT), 2004-2008

Commodity 2004

2005

2006

2007 2008 2008 Value (US$)

Growth Volume

(%)

Main Markets

Fruits

Copra 585 622 1,546 2,667 1,903 $946,815 27 Trinidad and Tobago, St Lucia

Coconuts 45 28 37 219 259 $76,293 42 Barbados, Antigua and Barbuda

Coconut water 0.18 - - 58 30 $21,773 178 Trinidad and Tobago, Barbados

Watermelon 252 399 217 316 215 $96,765 -3 Barbados, Antigua and Barbuda, St Lucia

Pineapple 71 43 20 42 15 $15,672 -27 Trinidad and Tobago, Barbados, Antigua and Barbuda, St Lucia

Orange 12 14 23 47 15 $10,834 5 Barbados

Vegetables

Pumpkin 134 268 388 456 418 $25,677 26 Barbados, Antigua and Barbuda

Roots and Tubers Eddoes 11 23 32 31 49 $27,605 35 Barbados, Trinidad and

Tobago, Antigua and Barbuda, St Lucia

The overall performance of selected export fresh produce from Guyana has shown significant growth over the years

from 2004 to 2008. The exception is pineapple and watermelon exports which have fallen 27 and 3 percent

respectively over the same period. While growth in exports of these commodities has plummeted, other major

exports have shown considerable market growth, notably eddoes and coconut water. In addition, exports of pumpkin

and oranges have also grown apart from traditional export commodities of copra and coconuts.

Source: New GMC, 2009

Papaya: is grown in a number of Caribbean countries although only four, Belize, Guyana, Jamaica and

Trinidad and Tobago produce commercially significant quantities. The bulk of production is concentrated in Belize. Approximately half of all papaya produced is exported, mainly from Belize which exports most

of its production to the United States and Canada. Jamaica has exported to Canada, but has recently lost

that market to Brazil as its own production has suffered from disease. The industry has expanded considerably as improved packaging and freight technologies have opened up new export markets for

what was once a notoriously fragile and perishable commodity. Papaya exports from Belize grew by 91

per cent in five years to 2005 to 28,635 metric tonnes. Papaya is increasingly being used as filler for processed products such as catch-up, jams, and nectars b regional agri-processors.

Pineapple: is produced in at least eight of the 15 countries in the region, especially in Jamaica, which

accounts for approximately 15 percent of the region’s total production. However, less than 2 per cent of

this volume is exported. Imports to the region amounts to approximately 600 metric tonnes annually, primarily to the tourist destinations of Barbados, Antigua and Barbuda, Saint Lucia, and St Kitts and

Nevis. Growth in pineapple production over the five years leading to 2006 was achieved in Belize and

7


Trinidad and Tobago. Similarly, there was growth in exports from Dominica and Trinidad and Tobago

over the same period. Apart from fresh pineapple exports, there is pineapple processing occurring in Belize, Guyana, Jamaica and most of the processed production is also consumed within the region.

Mango: most CARICOM countries grow and export mangoes. An estimated total of 2,43010 metric

tonnes of mangoes was exported in 2006 mainly to Canada (61%), the UK (25%) and within the region (11%). Table variety mangoes such as ‘Julie’ are classified as tropical exotics and command a premium in

these markets. Assortments of other table mango varieties also have strong market appeal. The main

exporters are Guyana, Jamaica and St. Vincent.

Melons: watermelons are grown predominantly in Jamaica, and to a lesser extent, Suriname, Belize and Trinidad and Tobago. Less than 10% of the crop is exported and the region is neither a net exporter nor

net importer of watermelons, but is approximately self-sufficient. Small and medium sized producers

produce watermelons as a cash crop and sell primarily to urban centres by producers and small traders. They are retailed at market stalls and supermarkets without grading or packaging. There is no processing

outlet. The market for watermelons is relatively small and unstructured. This, together with the high cost

of exporting means that there is no readily available outlet for any market surplus, consequently regional prices fluctuate considerably and volumes tend to vary from year to year for the same reason. Trinidad

and Tobago and Guyana experienced growth in watermelon exports by 26 per cent and 72 per cent in the

5 years leading up to 2005.

Avocado: total Caribbean11 production from 2001 to 2005 was estimated to be around 1million metric tonnes and 5 percent of production comes from CARICOM countries. The main producers are Jamaica

(2.4%), Grenada (0.92%), Dominica (0.40%) and Barbados (0.34%) with less significant production from

other countries within the region. The region is relatively self-sufficient in avocado. In terms of trade, there is little import of avocado into the region with little intra regional trade between member countries,

mainly to Antigua and Barbuda, Barbados and Trinidad and Tobago.

Golden Apple/June Plum: some 3,000 metric tonnes is produced in the region annually. Industry

commentators believe there is future growth in these commodities, particularly in agro-processing. Jamaica and Trinidad and Tobago are actively exploring these as potential growth options.

Emerging Tropical Fruit: while the commodities above represent the major fruits available in the region

several other fruit offer some potential for growth. These include soursop12, Barbados cherry13 and passion fruit for sale as fresh fruit and for agro-processing into tropical fruit juices and nectars.

10 FAO, 2008, Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries 11 Including Dominican Republic, Haiti 12 Grenada Export Strategy 2006 13 TTABA Agribusiness Development Program

8


Summary: Market Opportunities and Prospects

The fruit sub-category offers potential market opportunities for both fresh and processed produce. Based

on the desk research that focussed largely on market and supply volume gaps and existing studies

Fruit commodities with potential market opportunities include:

The analysis identified banana, plantain, citrus, coconut, papaya, pineapple, melon, golden apple/june

plum and emerging tropical fruits as having potential market opportunities and prospects.

Fruit Value Chains Identified by Field Work for Possible Promotion:

In addition, the main field work identified several fruit commodity value chains for possible promotion and development by the project. These include:

Bottled chilled coconut water from Guyana for regional markets with potential to expand to US

export market,

Fresh papaya from Trinidad and Tobago for the intra regional and extra regional markets, mainly to

the US and Canada,

Fresh salad fruits (i.e. papaya, pineapple) in St Lucia prepared for the domestic market (i.e. food

retail, food services) and the hospitality industry (i.e. hotels)

Export of fresh plantain from Guyana for export to Trinidad and Tobago for processing (slicing,

cooking and quick freezing) for the retail, hospitality, and institutional markets.

9


Roots and Tubers Sub-Category

Roots and tubers is the second largest fresh produce sub-category by volume in CARICOM. Table 6

shows that in 2006, there was over 472,000 metric tonnes of roots available for consumption in the

region. Of this amount yams accounted for 28 percent, followed by carrots and turnips (18%), white potato (16%), cassava (12%), sweet potato (7%) mixed roots and tubers (7%)14 and dasheen (5%). It is

difficult to know exactly what constitutes “mixed roots and tubers” and “mixed vegetable roots” which

together represent 11 percent of the sub category but it is assumed that at least half of these are dasheen, eddoes and tannias.

Regional production in 2006 was estimated to be 412,131 metric tonnes, representing 23 percent of roots

and tubers available for consumption.

An estimated 79,684 metric tonnes of roots and tubers were imported in 2006. White (Irish) potato accounted for 83 percent of imports and is the largest commodity by volume. This was followed by

carrots and turnips (9%), mixed roots and tubers (5%), and sweet potato (1%). Most imports of roots and

tubers to the region, particularly white potato comes from North America.

In 2006, CARICOM exported an estimated 20,000 metric tonnes of roots and tubers. Yam is the largest

export commodity making up over 30 percent of total exports. Other major export commodities include

dasheen (20%), mixed roots and tubers (14%), sweet potatoes (14%) and eddoes (10%). The main export markets include other CARICOM member countries absorbing 46 percent, mainly to Trinidad and

Tobago, Barbados, Antigua and Barbuda; 29 percent to the United States; 12 percent to the United

Kingdom; and 8 percent to Canada. The main exporters of roots and tubers are St Vincent and the

Grenadines (49%), Jamaica (45%), Dominica (4%), and Guyana (2%).

Table 6: CARICOM Production and Availability of Roots and Tubers (MT), 2006


(%)

Yams 139,174 - 7,069 132,105 28

Carrots and Turnips 77,322 7,154 1 84,474 18

White (Irish) Potatoes 9,699 66,527 4 76,222 16

Cassava 56,581 104 48 56,636 12

Sweet Potato 36,995 907 2,826 35,076 7

Mixed Roots and Tubers 33,267 3,640 2,797 34,110 7

Dasheen 25,630 - 3,912 21,717 5

Mixed Vegetable Roots 20,000 378 - 20,378 4

Eddoes 10,916 - 1,950 8,966 2

Ginger 1,943 586 838 1,691 <1

Tannia 605 - 128 477 <1

Turmeric "curcuma" - 388 54 334 <1

Total 412,131 79,684 19,629 472,187 100

Sources: FAOSTATS, CRNM/ UNCOMTRADE, National Statistics and interviews with Industry Experts CARICOM excluding Haiti

14 Mixed roots and tubers, largely consisting of dasheen, eddoes and tannias

10




Caribbean ACP Countries”, conducted by the FAO in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status


Yam: is the largest commodity in the sub-category with an estimated volume in 2006 of around 132,000

metric tonnes. Jamaica is the main yam growing country of the region, and produces about 90 percent of the Caribbean production. Yam is essentially a domestic staple within the Caribbean and only 5 percent of

the total production is exported. Exports of yam are mainly to the United States (69%), Canada (11%),

and the UK (13%) and within CARICOM (4%). Growth in export volume of Jamaican yellow yam between 2006 and 2007 went up by some 2 percent and this appears to be driven by increased demand

(Box 3). It is likely that the marketing of the Jamaican yellow yam will be given a huge boost by the

outstanding performance of the Jamaican 100 metres sprint champion, Usain Bolt in the recent Olympics.

Box 3: Selected Fresh Produce Exports from Jamaica, 2006-2007

Carrot and turnips: estimated carrot and turnip production for the region in 2006 totalled 77,000 metric

tonnes. Around 7,000 metric tonnes of carrots and turnips were imported, making 84,000 metric tonnes

available for regional consumption. An insignificant amount was exported in the same year and much of this export is between CARICOM member countries. While most countries in the region produce between

80-90 percent of their requirement, others like Trinidad and Tobago and the Bahamas import a significant

amount of carrots and turnips. This opens up market opportunities for major producing countries like Jamaica and Suriname to supply the Bahamas and Trinidad and Tobago. Similarly, there would be market

opportunities for countries in the region which have seasonal shortfalls to store surplus production

through better storage technology. For example in St Lucia, St Kitts and Nevis, and Guyana with marked seasonal shortfalls maybe able to extend carrot supply with cool storage.

Commodity 2006 2007 Growth

(%)

Yams

Volume (kg) 3,574,500 8,176,753 2.29

-- Yellow 2,435,821 5,629,599 2.31

-- Sweet 331,491 906,161 2.73

-- Negro 807,188 1,640,993 2.03

Value (US$’000) 6,540,942 7,215,430 3.27

US$/kg $0.88 $1.25 22

Sweet Potato

Volume (kg) 1,394,464 3,773,853 2.7

Value (US$’000) 1,311,765 2,429,855 1.85

US$/kg $0.94 $0.64 45

Exports of yams and sweet potato from Jamaica in 2007 recorded just over 2 percent growth in

volume from the previous year. The main market for yam is North America, UK and to other

CARICOM countries. For sweet potato, the main export market is the UK.

Source: Jamaica Ministry of Agriculture, 2007

11


White (Irish) Potato: is the third largest by volume with an estimated 76,000 metric tonnes available for

consumption in the region. This makes up around 16 percent of roots available in 2006. Only 13 percent of the potatoes available for consumption are produced in the region with Jamaica accounting for 88

percent, followed by Belize (8%), Dominica (1%) and St. Kitts and Nevis (1%). Expansion of production

seems to be faced with several challenges.

The case of Trinidad and Tobago is instructive. In 2007, Trinidad and Tobago imported 42,500 metric

tonnes of roots of which 37,800 metric tonnes or 90 percent was white potato (Box 4). Sixty five percent

of imported potatoes were whole fresh and the rest is frozen pre-cut (i.e. French fries) potatoes primarily

for the large fast food industry. In addition, a further amount of over 10,000 metric tonnes of preserved and prepared potatoes (chips) was also imported. The large volume of fresh and frozen potato products

imported presents an opportunity for major producers such as Jamaica for import substitution and value

addition. Additionally, there may be market opportunities for other value added in tropical roots such as cassava and sweet potato to substitute potato in the fast food french fries market.

Box 4: Trinidad and Tobago Roots and Starch Crop Domestic Gap (MT), 2007

Root and Starch Commodities

Domestic Production

Imports Exports Availability Domestic Gap

Availability Share

(%)

White potato - fresh - 25,510 563 24,947 24,947 60

White potato - frozen - 12,904 9 12,895 12,895 31

Plantain 2,500 1,100 16 3,584 1,085 3

Cassava 2,322 149 10 2,461 140 0

Dasheen 1,625 780 1 2,404 779 2

Sweet potato 1,654 468 3 2,119 465 1

Eddoes 867 674 8 1,533 666 2

Green banana - for cooking 1,100 - - 1,100 - 0

Yam 206 850 - 1,056 850 2

Tannia n/a 22 - 22 22 0

Breadfruit - not included n/a n/a n/a n/a n/a -

Total 10,274 42,457 610 52,121 41,849 100

In 2007, the most available root commodity for consumption in Trinidad and Tobago was white potato and white potato products. While the bulk goes to the fast food industry, the demand for white potato illustrates

that market opportunities exists for import substitution, but more importantly the need to reduce the domestic

production gap for other major root and starch commodities such as plantain, dasheen and sweet potato.

Source: TTABA, 2007

Cassava: with an estimated 56,600 metric tonnes in 2006, cassava is the fourth most consumed root in the region. Virtually all the supply originates in the region with the largest producers being Guyana

(50%), Jamaica (30%), and Suriname (8%). Exports and imports are of the same order indicating that the CARICOM is effectively self-sufficient in terms of this commodity. Nevertheless, field research indicated

that some smaller volumes are exported extra regionally from time to time.

Recently there has been a lot of interest in cassava and several member states (Jamaica, Barbados,

Trinidad and Tobago, and Guyana) have initiated cassava development programs for food, livestock feed and fuel. For example the Trinidad and Tobago Agribusiness Association (TTABA) has installed a

multipurpose agri-food processing plant and is currently making frozen sweet potato and cassava chips

for the domestic, regional and extra regional markets. Spurred on by the recent high corn prices, the Caribbean poultry industry has been exploring the production of cassava chips for feed as up to 25

12


percent of the 450,000 metric tonnes of corn (for feed) imported into the region can be substituted by

cassava. However, the subsequent crash of global corn prices has made the proposition less attractive.

Sweet Potato15: an estimated 35,000 metric tonnes of sweet potato were available for consumption in

2006. The root crop is produced throughout CARICOM with the major producers being Jamaica (78%),

Guyana (6%), Barbados (6%), Dominica (4%) and St Vincent (3%). Less than 3,000 metric tonnes are exported with Jamaica (52%) and the St. Vincent and the Grenadines (46%) accounting for most of

volume exported. About 55 percent of Jamaica’s exports go to the United Kingdom and 45 percent to

Canada, while St Vincent exports within the region to Barbados, and Trinidad and Tobago (the main

importer within the Caribbean)16 (Box 5). The United States market is closed to CARICOM producers since the United States has an embargo against all sweet potato imports from CARICOM countries based

upon sanitary and phytosanitary concerns.

Box 5: Exports of Root Crop from St Vincent and the Grenadines (MT), 2006

Export Markets Dasheen Eddoes Sweet Potato Tannia Yam Total

Trinidad and Tobago 3,463 1,818 1,095 124 311 6,811

Grenada - - 103 - - 103

Netherlands Antilles - - 35 - - 35

British Virgin Islands - - 28 - - 28

Anguilla - - 9 - - 9

Barbados - - 9 - - 9

EU/Martinique - - 5 - - 8

Grand Total 3,463 1,818 1,289 124 311 7,004

The main intra regional market for exports of roots crop from St Vincent and the Grenadines is Trinidad

and Tobago. In 2006, over 6,000 metric tonnes of root crop was exported with dasheen being the largest crop by volume. Other significant crops include eddoes and sweet potato.

Source: CRNM/COMTRADE

Dasheen, Eddoes, Tannia: This cluster of root crops is similar in cultivation requirements and the way in

which they are consumed. It is believed that these roots constitute the bulk of “mixed roots and tubers”

and “mixed vegetables” group. That being so, dasheen, eddoes and tannias may represent up to 18 percent

of the sub category or 84,000 metric tonnes. These commodities are produced in large quantities in the Windward Islands, and Trinidad and Tobago and are crops of resource poor farmers producing under less

than ideal conditions. Volumes of dasheen exported from the region are second only to yams. The

Windward Islands are competitive in European markets as a result of the availability of low-cost shipping to Europe generated by the substantial trade in bananas. If this route were not available, the viability of

dasheen exports in these countries would be substantially affected. Nevertheless, while low cost freight is

available, dasheen production is expanding and the status of the crop in exporting countries is changing

from subsistence to cash crop. The Windward Islands, especially St. Vincent and the Grenadines is a major exporter with close to 90 percent of exports going to Trinidad and Tobago.

15 Jamaica Social Investment Fund Study 16 CARICOM Regional Transformation Programme for Agriculture: “The Global Market for Sweet Potato: Sources

of Supply and Competitiveness for the CARICOM Industry”, 2006

13



Several market opportunities for roots and tubers commodities may exist based largely on market and

supply volume gaps. These opportunities were also identified by existing studies undertaken in the region as having future potential

Roots and Tubers commodities with potential market opportunities include:

Potential opportunities for yam will continue to rely on the export markets, particularly where there is great concentration of expats from the Caribbean. The export markets of North America and the UK will

remain important and market growth will likely to be modest over the coming years.

For carrots, there is potential opportunity for import substitution by local and regional production, in particular for Trinidad and Tobago and the Bahamas, provided that supply is price competitive against

carrot imports from outside the region. In addition, several countries may be able to meet seasonal

shortfalls through better post harvest management and storage facilities.

Imports of fresh white potato and potato products are relatively high in the region and there is a potential market opportunity to substitute these imports (i.e. frozen french fries) with tropical root fries from

cassava, sweet potato, and possibly even fresh potatoes in Jamaica.

For sweet potato, a possible resolution of the Sanitary and Phytosanitary (SPS) concerns of the United States may open these markets to CARICOM suppliers.

There is potential for cassava and sweet potato for livestock feeds, once production costs have been

shown to be competitive

Roots and Tubers Value Chains Identified by Field Work for Possible Promotion:

Furthermore, the field work identified several roots and tubers commodity value chains for possible promotion and development by the project. These include:

Export of fresh roots (sweet potato, cassava, dasheen and eddoes) from St Vincent and the

Grenadines, possibly in collaboration with other OECS member states to Trinidad and Tobago, where

energy is cheaper, for processing into frozen pre-cut and retail packed roots, sold either individually or as mixed root packs, targeting the regional market.

Export of fresh eddoes from Guyana to the Trinidad and Tobago market for processing into French

fries and wedges and mixed root packs for the retail, hospitality, and institutional markets.

14


Vegetables Sub-Category

Vegetable is the third largest fresh produce sub-category in CARICOM with an estimated volume of

around 193,000 metric tonnes available for consumption in 2006. The main commodities consisted of

pumpkin (26%), tomatoes (19%), cabbages (18%) and cucumbers (13%) that make up around 76 percent of vegetable available for consumption. Most vegetables in the region (96%) are produced domestically

(Table 7).

Table 7: CARICOM Production and Availability of Fresh Vegetable Produce (MT), 2006


(%)

Pumpkins, squash and gourds 51,130 - - 51,130 26

Tomato 35,755 1,158 427 36,485 19

Cabbages and other brassicas 31,921 3,122 538 34,504 18

Cucumbers and gherkins 25,823 63 191 25,695 13

Spinach 13,708 45 1 13,751 7

Lettuce and chicory 8,491 - - 8,491 4

Eggplants (aubergines) 6,462 34 293 6,203 3

Okra 6,095 - - 6,095 3

Cauliflower / broccoli 1,925 3,059 5 4,979 3

Mixed vegetables 3,658 3,060 4,858 1,861 1

Lettuce - 1,713 - 1,713 1

Maize, green 760 - - 760 <1

Cabbage lettuce - 708 1 708 <1

Mushroom - 417 - 416 <1

Pepper (piper) 255 463 459 260 <1

Asparagus - 99 6 93 <1

Brussels sprout - 15 - 15 <1

Globe artichokes - 8 24 -17 -

Total 185,983 13,964 6,804 193,143 100

Sources: FAOSTATS, CRNM/ UNCOMTRADE, National Statistics and interviews with Industry Experts CARICOM excluding Haiti

Imports were dominated by cabbages (22%), cauliflower (22%) and mixed vegetables (22%). In addition to these, frozen and canned vegetables are also believed to be significant in volume and while this is not

reflected in the analysis due to limited data available, processed vegetables are nevertheless important

imports. The main importing countries in the region for vegetables in terms of volume include Trinidad and Tobago, Barbados, Jamaica and St. Lucia.

Around 6,800 metric tonnes of fresh vegetables were exported in 2006. The main export commodities

were mixed vegetables (71%), cabbages (8%) and peppers (7%) which are exported mainly by Trinidad and Tobago and Guyana. The main export markets for vegetables are the US, Canada and other

CARICOM countries.

15




Caribbean ACP Countries”, conducted by the FAO in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status


Pumpkins, squashes and gourds: These commodities are significant component of the Caribbean

vegetable sub sector and Jamaica followed by Guyana, and Trinidad and Tobago are the most significant producers. The region is effectively self sufficient in these commodities, which are marketed both

domestically and in North America.

Pumpkin and squash production is undertaken by small and medium size growers in most of the region but due to limited investment, both the marketing infrastructure and the institutional framework required

to achieve the necessary standards and certification for export are inadequate. In some countries, such as

Trinidad and Tobago, the necessary institutions have developed appropriate standards and can certify

production, and exports meet requirements of the markets.

Tomatoes: are produced throughout most of the Caribbean. In 2006, tomato was the second largest

vegetable available in the region (Table 7). Total production was estimated at around 35,000 metric

tonnes, with around 36,000 metric tonnes available for consumption (imports making up for the shortfall in the offseason). The region is relatively self sufficient with tomato production. However, there is usually

a seasonal shortfall in the off-season (generally throughout the rainy season from July to December) and

demand for tomato is highest during this period, more so in countries with well developed tourism industries.

Cabbage and other brassicas: Jamaica accounts for the bulk of production and is the largest exporter of

cabbage. While some domestic production is consumed by the tourism sectors, most is consumed by

households throughout the region as a staple vegetable. The level of national production is roughly proportional to the national consumption. Grading and packaging are unusual. Unmet demand exists in

the food service and agro-tourism sector for the more exotic varieties of brassicas such as red or purple

cabbage, cauliflower, broccoli and lettuces. Trinidad and Tobago is the main importer of cabbages and other brassicas.

Cucumbers and gherkins: cucumbers are produced throughout most of the Caribbean, both by small-

scale growers in most Caribbean countries and under greenhouse conditions by medium scale producers in Jamaica and Trinidad and Tobago. They are produced both for the local domestic market and for the

tourism sector and for pickle processing.

16


Ackee: while ackee is considered as a fruit tree, it is widely consumed as a vegetable and for that reason

it is included in this sub category.

Between 2004 and 2006, some 27 million kilograms of ackee, an average of 9 million kilograms per

annum were produced in Jamaica17. Of this, over 80 percent was consumed in Jamaica mainly by

households harvesting the fruit from neighbourhood trees. Ackee is sold fresh (84%), frozen (1%) and canned (15%), the latter two being the forms exported.

In 1973 and 2005, exports of ackee to the US were banned because of concern about the natural toxin,

hypoglycin, which is present in unripe fruit and the inability of the country to satisfactorily address the

concern. In 2006, when exports began to regularize again after the 2005 hiccough, up to 1 million kilograms with an estimated value of over US$6 million were exported (Box 6), mainly to 31 countries.

These include the UK (70%), US (18%), Canada (8%), which account for over 90 percent of exports, as

well as France, Germany, Switzerland, Netherlands and CARICOM. Exports volume fell by 10 percent in 2007, while value went up by the same proportion driven by a 22 percent growth in price per kilogram.

Box 6: Ackee Export from Jamaica (kg), 2006-2007


(%)

Ackee

Volume (kg) 1,049,868 947,443 -10

Value (US$000) 6,540,942 7,215,430 10

US$/kg $6.23 $7.62 22

Source: Jamaica Ministry of Agriculture, 2009

Ackee also grows in Nigeria and Ghana but is not used for food. However, Haiti, Belize and the Ivory

Coast are among countries where ackee is now being grown, canned and exported mainly to Canada and

the UK by the latter two countries and to the US by Haiti. Despite this, the demand for ackee far outstrips supply and new countries are becoming interested in the product (e.g. Spain). Jamaican ackee also

remains in much higher demand than others and command a significant premium in the market place

(US$3-5 per can). Currently there are 20 processors and canned ackee for export (80%) and use by hotels (10%) food service operators (5%) and a limited amount for supermarkets (5%).

17 Statistical Institute of Jamaica (STATIN)

17



While the vegetable sub-category faces numerous challenges, i.e. highly seasonal production, limited

production of high value vegetables such as romaine lettuce, little GAP implemented, limited used of technology, it also offers substantial opportunities for growers. A recent study on vegetables in the OECS

found that lettuce production is viable and is price competitive given the high transportation costs for

imports18.

Vegetable commodities with potential market opportunities include:

Green house - import substitution for tomatoes that are grown in green house technology to take

advantage of the off-season when imports fill the shortfall in supply. Other commodities with good

market potential that could be grown under green house technology include lettuce, bell peppers, and broccoli.

Fresh cut - other opportunities identified include fresh cut and packaged vegetables for the domestic

and the inter-regional markets.

GAP - regular and specialty (i.e. romaine and iceberg lettuce, coloured bell peppers, broccoli)

vegetables that are GAP certified are increasingly demanded by supermarkets and the tourism sector.

Organics - in addition to GAP certified vegetables, there is potential for a niche market in organics,

although the market is small and highly specialized. Nevertheless, demand for organic vegetables from hotels to cater for customer safety and health concerns exist albeit small.

Extra regional exports, particularly to the U.S market, offer potential opportunities for growers.

Trinidad and Tobago export pumpkin, eggplant, okra, cucumber and sweet peppers to the U.S market

and export protocols are strict.

Vegetable Value Chains Identified by Field Work for Possible Promotion:

Apart from vegetable commodities with potential market opportunities, the study also identified vegetable value chains for possible promotion and development. These value chains include:

Canned/tetra pack ackee for export from Jamaica (Jamaica Agro-processors Association), which has

great potential with growing demand from main markets (U.S, Canada and UK) outstripping supply.

18 ADB, 2008 Organization of Eastern Caribbean States Increasing Linkages of Tourism with Agriculture,

Manufacturing and Service Sectors.

18


Herbs and Spices Sub-Category

In 2006, over 74,000 metric tonnes of herbs and spices were available for consumption (Table 8). Of this,

the most abundant was onions (59%), hot pepper (18%), garlic (13%), nutmeg (4%) and mixed spices

(3%).

Table 8: CARICOM Production and Availability of Fresh Herbs and Spices (MT), 2006


(%)

Onions 16,356 28,003 35 44,323 59

Peppers (capsicum/pimento) 13,941 970 1,730 13,181 18

Garlic 0 9,602 5 9,597 13

Mixed Spices 2,648 325 66 2,908 4

Nutmeg 3,040 78 701 2,417 3

Celery 0 823 21 802 1

Coriander seeds 0 691 0 691 1

Other herbs and spices 125 1,259 392 992 1

Total 36,110 41,751 2,950 74,911 100

Sources: FAOSTATS, CRNM/ UNCOMTRADE, national statistics and interviews with industry experts

CARICOM excluding Haiti

Herb and spice production in 2006 was estimated to be around 36,000 metric tonnes (Table 6). The bulk

of this production was onions (45%) and hot pepper (39%) which accounted for some 84 percent of total production. Much of the hot pepper production goes into hot sauce processing and the main producer of

both fresh pepper and hot sauce is Jamaica. Jamaica is also the main producer of onions (69%) followed

by Guyana (15%), Barbados (7%) as well as Antigua and Barbuda and St Kitts and Nevis.

It should be noted that while for some commodities there was congruence between the data sources, for

other there was significant disparity. For example, for hot peppers in the FAOSTATS for Jamaica in

2005, it was 11,444 metric tonnes, and in the AAACP Baseline Study (2008) it was 5,722 metric tonnes

and in the RTP Competitiveness Study (2007) it was 4,566 metric tonnes. This difference may arise from the definition of peppers (hot and/or sweet peppers) or the levels of transformation (fresh, dried peppers,

pepper mash). The statistics used here was from the FAO and where possible updated with national

statistics.

Total herb and spice imports were estimated to be 41,000 metric tonnes and the main commodities were

onions (67%) and garlic (23%). Other significant commodities included pepper (3%) celery (2%) and

coriander seeds (2%). The major importing countries are Trinidad, Jamaica, Guyana, Suriname and Barbados.

The largest export commodities from CARICOM by volume are hot peppers (59%) and nutmegs (24%).

Most of the hot peppers are exported either as fresh or processed condiment products, by Trinidad and

Tobago and Jamaica. Grenada is the main exporter of nutmegs. Other significant export commodities include curry, mixed spices, ginger, celery and black pepper.

19




Caribbean ACP Countries”, conducted by the FAO19 in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status


Onion: the main countries producing onions in the Caribbean are Jamaica, Belize, Barbados, Antigua and

Barbuda and St. Kitts and Nevis. The crop is grown almost exclusively for domestic consumption, and use in the condiment processing. The region regularly imports over 40,000 metric tonnes of onions (as

compared with production of 50-60,000 metric tonnes and exports of 200-500 metric tonnes). The region

is a strong net importer of onion, which offers a potential for further import substitution. Trinidad and Tobago imports from South America, and repackages for re-export to other countries.

However, this can only be achieved if local production can become competitive with imports. The

commodity continues to decline in most Caribbean countries, especially Jamaica and St. Kitts and Nevis.

Peppers and pimentos: peppers represent the second most important herb and spice produced in the Caribbean. The subdivision of data into green and dried pepper production prevents an accurate

assessment of the total volume of peppers produced in the region, but if dried pepper production is

assessed on a green basis, Jamaica is clearly the main producer of chilli peppers with an estimated production of more than 50,000 metric tonnes.

20 Regional imports of chilli peppers (both dry and green in

terms of green pepper weight) total no more than 5,000 metric tonnes, while exports total approximately

12,000 metric tonnes of green pepper equivalent. On this basis, the region is a net exporter of peppers.

Production growth was recorded in Antigua and Barbuda, Barbados, Jamaica, St. Vincent and the

Grenadines, and Trinidad and Tobago. Of the green peppers produced, approximately 12 percent were

exported, mainly by Jamaica and Trinidad and Tobago. Several countries import mash pepper from Latin

America and from the Dominican Republic and re-export them after further processing and packaging. Jamaica does not export green chillies and peppers to any significant extent. Instead, it processes most of

its production and exports it either as hot pepper sauces or as dried peppers. This is a dynamic

manufacturing sub sector, which has been developed to a greater extent in Jamaica than in any other Caribbean country. Almost all the dried pepper production of the Caribbean takes place in Jamaica, while

the production of hot pepper sauces is so great that the sub sector cannot meet demand from local

production alone and is obliged to import chilli peppers, so that Jamaica is itself a net importer of hot peppers.

Ginger: is produced predominantly in Jamaica and Guyana. Small-scale growers on mixed farms produce

the crop. Although standards have been set for its production and export in a number of countries, it is

generally marketed informally; standards are only used for export purposes. It is retailed at market stalls and in larger supermarkets and normally without packaging, although supermarket produce may

sometimes be graded. Less than 10 percent of the domestic production is packaged for export. And most

of this is traded regionally, although small quantities are imported by the United Kingdom, Holland, the United States and Canada. Annual imports for the region are of the same magnitude as exports. There

continues to be growth in ginger exports in Jamaica, Trinidad and Tobago, and St. Vincent and the

Grenadines.

19 EU funded All ACP Agricultural Commodities Programme

20 Base on dry pepper moisture content of no more than 12 percent, and green pepper, no less than 90 percent. On this basis 5,500 metric tonnes of dried peppers would be equivalent to 48,400 metric tonnes of green peppers.

20


Box 7: Selected Herbs and Spices Export from Jamaica, 2006-2007


(%)

Pimento

Volume (kg) 466,483 453,043 -3

Value (US$’000) 2,335,822 1,996,843 -15

US$/kg $5.01 $4.41 -12

Pepper

Volume (kg) 195,445 124,434 -36

Value (US$’000) 596,964 381,692 -36

US$/kg $3.05 $3.07 0

Ginger

Volume (kg) 10,512 6,648 -37

Value (US$’000) 41,112 27,056 -34

US$/kg $3.91 $4.07 4

Source: Jamaica Ministry of Agriculture

Export volume and value of pimento, pepper and ginger commodities fell in 2007 as

production was affected by hurricane Dean in mid August.

Garlic: all of the garlic available for consumption is imported mainly from Asia (78%), Western Europe

(10%) and the United States (9%). CARICOM imported around 9,000 metric tonnes of garlic in 2006 with Jamaica, Guyana, and Trinidad and Tobago importing up to 2,000 metric tonnes each annually

(Table 8). Garlic is one of the main ingredients in the production of hot pepper sauce and given this

significance, it may have import substitution opportunities provided production is competitive.

Nutmeg and mace: the main producers of nutmeg in CARICOM are Grenada (77%), Trinidad and

Tobago (10%), St Vincent and the Grenadines (10%), St Lucia (2%) and Dominica (1%). Around 2,000

metric tonnes were available for regional consumption in 2006 (Table 8). Nutmeg exports from

CARICOM are almost completely dominated by Grenada with the main export markets of North America and Europe. Apart from dried nutmeg for export, there may be opportunities in value adding with the

production of nutmeg oil to Europe.

Others: Other significant herbs and spices include mixed spices, celery, cinnamon and cloves. Considerable quantities of dried packaged spices are imported into the region mainly by Trinidad and

Tobago, Jamaica and Guyana.

21



Although small by volume, herbs and spices are high value commodities that could provide opportunities

for growers in the region. The desk research pointed to several market opportunities based largely on market and supply volume gaps.

Herb and Spice commodities with potential market opportunities include:

Onions - import substitution of onions for the domestic market and potential for exports to intra

regional markets. Similarly, there may also be potential for processing of onion condiments for these markets as well.

Pepper and pimentos - exports of fresh, mash, dried and hot pepper sauce to intra and extra regional

markets.

Herbs and Spices Value Chains Identified by Field Work for Possible Promotion:

In addition to market opportunities, the main field work identified several herbs and spices value chains for possible promotion and development. These include:

Fresh pepper and hot pepper sauce - production of fresh pepper and agro-processing of hot pepper

sauce by BAPS Group/Belize Hot Pepper Association form Belize for intra and extra regional export.

Fresh and processed onion and condiments - import substitution of fresh onions and processing for

condiments in Antigua and Barbuda (CABA), and Barbados (Barbados Agricultural Society).

22


Pulses and Nuts Sub-Category

Pulses and nuts is the smallest of the all the sub-categories. Estimated CARICOM production in 2006 was

around 20,000 metric tonnes with available production is dominated by groundnuts (43%), string beans (26%), beans (22%), and cashew (9%) (Table 9). Domestic production represented 74 percent of total

availability. Jamaica and Guyana are the largest producers.

Table 9: CARICOM Production and Availability of Fresh Pulses and Nuts (MT), 2006


(%)

Groundnuts 6,045 6,000 - 12,045 43

String beans 7,255 - - 7,255 26

Beans 6,140 - - 6,140 22

Cashew 1,450 1,018 1 2,467 9

Almond - 280 - 280 1

Mixed nuts - 303 200 103 0

Other pulses and nuts - 355 357 -2 0

Total 20,890 7,956 558 28,288 100

Sources: FAOSTATS, CRNM/ UNCOMTRADE, national statistics and interviews with industry experts CARICOM excluding Haiti

Imports accounted for 28 percent of total availability and consist largely of groundnuts, which make up 75 percent of total imports with cashew nuts, the second major import making up 13 percent. Trinidad

and Tobago and Barbados are the largest importers of pulses and nuts. Most peas are imported in frozen retail ready packed and dried form.


In 2006 exports of processed pulses and nuts which are mainly dried or preserved amounted to around

7,000 metric tonnes, of which 82 percent were traded within the region. Exports were mainly of peas and

beans from Guyana and Trinidad and Tobago, and mixed nuts from Jamaica mainly to Canada and the United States. Small quantities of these products are traded within the region. The balance was exported

to the United States and Asia.

23


Imports of dried and canned pulses and nuts in 2006 amounted close to 44,000 metric tonnes and were

comprised mainly of peas and beans, mixed nuts and groundnuts products for sale to retail outlets and agro-processors. These were imported mainly from Canada, the United States and from within

CARICOM.

Box 8: Growing Cashew in Belize

A survey carried out in 2000 revealed that Belize had 2,320 acres under cashew in two rural areas where cultivation exhibited low productivity, high field losses and laborious practices. After several meetings the cashew producers

decided to organize themselves into one cooperative to transform backyard cashew operations into a business

enterprise for local and export markets. The cooperative developed a business plan and presented a proposal to

Government for assistance in the development of a processing facility, which was approved in 2002.

The Crooked Tree cashew project is overseen and assisted by the Small Farmers and Business Bank, the

International Institute of Cooperation on Agriculture (IICA), Agriculture Dept., Cooperative Department, Belize

Audubon Society, Beltraide and the Cashew Cooperative.

The processing plant is 2,400 square feet, constructed at a cost of $100,000. It will be able to process the roughly 1

million lbs of crude nuts working at full capacity for 208 days in the year. Initially the plant will process roasted nut

and dehydrated false fruit.

Other products such as wine, stew cashew, jams, cakes, ice cream etc. will continue to be processed by individuals

until the plant develops further and can accommodate other products. However, standards will be developed so that

these products are also marketed under the cashew cooperative label with guaranteed quality.


The desk research pointed to several market opportunities based largely on market and supply volume gaps, as well as opportunities identified by existing studies that were undertaken in the region.

Pulses and Nut commodities with potential market opportunities include:

Groundnuts: possible opportunities for import substitution and possibly to reduce the unmet demand

by the condiments industry in the region;

Beans: fresh cut beans and fresh shelled peas frozen for the supermarkets and food service sectors;

Peas: dried pigeon peas and red kidney beans for import substitution in local markets in the region

Pulses and Nut Value Chains Identified by Field Work for Possible Promotion

The main field work did not identify any pulses and nut commodity value chains for possible promotion and development by the project.

24


3. TRADE IN CARICOM FRESH PRODUCE PRODUCTS

Introduction

This chapter provides an overview of the CARICOM fresh-produce trade as a basis for locating the value

chains which might be short listed for selection for development and promotion.

The overview focuses on CARICOM member states and does not include Haiti and the Dominican

Republic, in order to understand the importance of fresh produce to smaller states.

The main source of information for the trade analysis is the Caribbean Regional Negotiating Machinery (CRNM)/UN COMTRADE database.

Throughout the analysis availability is used as a proxy for consumption, and is a representation of the

amount of a commodity available for consumption without adjustment for post harvest loss or shrinkage

in the distribution channel.

CARICOM Trade in Fresh and Processed Produce

The total volume of CARICOM exports (fresh and processed) from 2003 to 2006 declined 8 percent, while export value increased 4 percent which was buoyed by an increase in value of processed exports

over the same period (Table 10).

Table 10: Total Trade in Fresh and Processed Produce in CARICOM, 2003-2006

Category 2003 2004 2005 2006 Growth

(%)

EXPORTS

Fresh

Volume (mt) 398,170 286,697 229,328 267,455 -9

Value (US$) fob $141,077,051 $155,510,734 $129,980,118 $143,015,147 0

Processed

Volume (mt) 117,043 91,982 102,293 94,284 -5

Value (US$) fob $98,912,375 $106,795,011 $130,439,791 $140,397,494 9

Total Exports (mt) 515,212 378,680 331,621 361,738 -8

Total Exports (US$) $239,989,427 $262,305,745 $260,419,909 $283,412,641 4

IMPORTS

Fresh

Volume (mt) 203,651 213,254 197,168 175,773 -4

Value (US$) fob $82,560,238 $87,104,965 $125,267,783 $115,573,287 9

Processed

Volume (mt) 157,189 220,313 214,069 254,283 13

Value (US$) fob $161,887,468 $172,166,381 $211,723,787 $220,373,571 8

Total Imports (mt) 360,839 433,566 411,237 430,056 4

Total Imports (US$) $244,447,706 $259,271,346 $336,991,570 $335,946,858 8

Sources: CRNM/COMTRADE NB: Excluding trade from Haiti and Dominican Republic

25


Between 2003 and 2006, several parts of the CARICOM region were devastated by hurricanes that

affected agriculture production. Fresh produce exports declined 9 percent, falling from 398,170 metric tonnes in 2003 to 267,455 metric tonnes in 2006. The decline in export volume also affected export value,

which recorded no growth over the period as a result.

Similarly, the volume of processed produce exports also fell by 5 percent from 117,043 metric tonnes in 2003 to 94,284 metric tonnes in 2006. However, the value of these exports went up by 9 percent.

Overall volume of CARICOM imports during the same period went up 4 percent with an 8 percent

growth in value. The increase in imports was driven by the growing volume of processed imports which

went up 13 percent from 157,189 metric tonnes in 2003 to 254,283 metric tonnes in 2006. Similarly, the value of imports also went up by 8 percent.

Processed produce exports share of total produce exports declined significantly over the period accounted

to 26% in 2006. Conversely processed produce import share of total produce imports grew to 59% in the same year.

Market Opportunities and Prospects

The analysis suggest that the best opportunities for future growth are in value added and processed

produce products which is driven increased demand from consumers for greater convenience. This

category has shown the best performance in both imports and exports. Opportunities exist for reducing the disproportional increase in processed imports compared to processed exports by greater investment in

value added product to both meet local and regional requirements and to gain increased share of the

international export markets.

26


Intra-Regional Trade

Fresh Produce

Total intra-regional trade (imports and exports) of fresh produce in 2006 was estimated to be around

24,000 metric tonnes valued at US$13 million (Table 11). Fruit is the largest sub-category making up 59

percent, followed by roots and tubers (30%) and vegetables (11%) which accounted for most of the trade. Between 2003 and 2006, the volume of traded fresh produce declined by 1 percent while total value

increased 3 percent. Underlining this performance was the steady increase in volume and value of roots

and tubers and to a lesser extent herbs and spices, which was offset by decreases in exports of the other

categories.

Table 11: Intra Regional Trade of Fresh Produce in CARICOM, 2003-2006

Commodity 2003 2004 2005 2006 Growth

(%)

Sub Category

Share

(%)

Fruits 59

Volume (mt) 17,895 15,888 15,828 14,181 -5

Value (US$) fob $7,235,871 $8,559,614 $7,236,309 $6,836,962 -1

Roots and Tubers 30

Volume (mt) 4,264 4,929 6,486 7,221 17

Value (US$) fob $2,978,104 $3,413,758 $4,250,778 $4,497,492 13

Vegetables 11

Volume (mt) 3,141 2,887 3,831 2,626 -4

Value (US$) fob $952,503 $2,303,359 $2,588,491 $1,295,980 9

Herbs and Spices < 1

Volume (mt) 169 181 122 174 1

Value (US$) fob $415,684 $552,308 $421,380 $481,260 4

Pulses and Nuts < 1

Volume (mt) 96 77 80 19 -20

Value (US$) fob $51,787 $60,753 $57,753 $13,406 -19

Total Volume (mt) 25,565 23,962 26,346 24,221 -1

Total Value (US$) $11,633,949 $14,889,792 $14,554,712 $13,125,100 3

Sources: CRNM/COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

The decline trade in fruit, the largest sub-category in terms of volume (5%) and value (1%) was due to poor showing of coconuts (-21%), mangoes (-9%), avocadoes (-6%), pineapple (-4%) and the largest

commodity by volume, bananas (-1%). The fruits showing the strongest growth were papaya (39%),

melons (14%) and mixed fruits (13%). Of significance in the latter were increased intra regional trade was recorded for melons to Barbados, and Antigua and Barbuda, mixed fruits to Barbados, Trinidad and

Tobago and Grenada, and papaya to Barbados. Guyana (54%), Trinidad and Tobago (23%), St. Vincent

(14%) and Dominica (10%) were the largest suppliers of melons, mixed fruits and papaya. All of the other fresh fruits declined in trade.

Roots and tubers, the second largest sub-category, showed the strongest growth trend posting a 17 percent

increase in volume from around 4,000 metric tonnes in 2003 to 7,000 metric tonnes in 2006. Trade value

27


also went up 13 percent over the same period from US$2,978,104 to US$4,497,492. Of the major roots

and tubers produced, sweet potatoes showed the strongest growth in volume (32%), followed by mixed roots (yams, dasheen, tannia and eddoes) (16%) and ginger (14%). Other minor roots and tubers showing

increases were potatoes (48%) and tumeric (58%). Exports of carrots (-11%) and mixed vegetable roots

(-25%) declined. Cassava exports remained relatively stable.

The major exporter of roots and tubers to the region was St. Vincent and the Grenadines, which accounted

for 90 percent of exports and realized growth of 21 percent over the period. Other significant exporters

were Dominica (5% exports; -2% growth) and Guyana (4% exports; 12% growth). Trinidad and Tobago

was the major importer (79%) and growth market (21%) for roots and tubers. Other significant importers from within the region were Barbados (8%), Grenada (6%) and Antigua (5%)

The vegetable sub-category, for which trade is significantly smaller than fruit and roots, saw a 4 percent

decrease in export volume from 3,141 metric tonnes in 2003 to 2,626 metric tonnes in 2006. Similarly, the value of vegetable exports however increased 9 percent from US$952,503 to US$1,295,980 over the

same period. The main products showing growth during the period were tomatoes (17%), and mixed

vegetables (13%). Growth was also recorded in fresh peppers. Trinidad and Tobago and Guyana were the major exporter of mixed vegetables and tomatoes to the region with growth of 31 percent and 13

percent respectively. Barbados (16% growth) and Antigua (10% growth) were the main importers of

these vegetable items showing positive growth.

Herbs and spice exports within the region grew by 1 percent in volume and 4 percent in value between 2003 and 2006. The main products showing growth were exports of mixed spices (16%), nutmeg and

mace (9%). Onion exports fell by 23 percent. The main suppliers of the herbs and spices showing

growth were St. Vincent and the Grenadines and Grenada. The main importers from CARICOM of these herbs and spices were Trinidad and Tobago, Jamaica, Guyana, Barbados, Antigua and Dominica.

The volume of pulses and nuts traded over the same period declined 20 percent with value also dropping

by 190 percent. Pulses and nuts is a relatively small sub-sector with production grown mainly for

domestic consumption with some exports. Exports volume declined from 100 to 20 metric tonnes a year from 2003 to 2006. Export of peas and beans and mixed nuts which are the main commodities declined an

average of 21 and 13 percent annually. Guyana was the main exporter to the region and Barbados the

main importer from the region.

28


Processed Produce

Intra regional trade of processed produce was estimated at 44,527 metric tonnes with a valued of US$60

million in 2006 compared to the fresh produce trade which was 24,221 metric tonnes valued at US$13 million. The growth in intra regional trade of processed produce remains positive with the volume of

trade increasing 5 percent and value increasing 17 percent between 2003 and 2006 (Table 12).

Table 12: Intra Regional Trade of Processed Produce in CARICOM, 2003-2006


(%)

Fruits

Volume (mt) 24,108 26,136 22,796 30,715 7

Value (US$) fob $20,745,755 $27,154,228 $32,192,032 $39,837,728 23

Pulses and Nuts

Volume (mt) 7,759 4,832 7,689 6,242 -5

Value (US$) fob $6,176,848 $6,725,248 $9,347,017 $9,745,837 14

Vegetables

Volume (mt) 4,393 3,889 5,286 5,780 8

Value (US$) fob $4,544,930 $3,824,259 $5,250,783 $5,337,241 4

Herbs and Spices

Volume (mt) 879 798 1,107 1,390 15

Value (US$) fob $1,974,931 $1,708,857 $2,360,794 $2,450,731 6

Roots and Tubers

Volume (mt) 412 834 426 401 -1

Value (US$) fob $2,606,819 $2,668,543 $3,130,307 $3,162,193 5

Total Volume (mt) 37,551 36,489 37,304 44,527 5

Total Value (US$) $36,049,282 $42,081,136 $52,280,933 $60,533,729 17

Sources: CRNM/COMTRADE

NB: Excluding fresh produce from Haiti and Dominican Republic

Growth in volume was strongest in the vegetable category and in the fruit category in value. All

categories of processed produce realized growth in value. Decreases in the volume of processed produce

were recorded for pulses and nuts and roots and tubers.

Processed fruit products traded within the region increased by 7 percent and 23 percent respectively in

volume and value between 2003 and 2006. In 2006, trade in processed produce was 30,000 metric tonnes

valued at US$40 million. Average annual growth was most significant in mixed fruit and fruit and

vegetable products (over 100 percent), coconut products (86%) and pineapple products (8%). Juices accounted for over 50 percent of processed products and grew an average of 57 percent annually during

the period. It was not possible to determine the amount of processed fruit products that were generated

from semi-processed imports. Trinidad and Tobago was the largest supplier to the region and posted average growth of 52 percent during the period. Guyana also posted annual growth of 111 percent,

Barbados 13 percent and Jamaica 5 percent. Belize the other major supplier to the region recorded a 14

percent decline. Dominica (96%), St. Kitts (19%), St. Lucia (18%), Jamaica (14%), Guyana (13%) and

Antigua (12%) recorded the highest increase in import of processed fruit products from within the region.

29


Processed pulses and nuts were the second largest group of products traded within the region and between

2003 and 2006 the volume traded declined by an annual average of 5 percent in volume but increased by an average 14 percent in value. Positive annual growth in the volume of trade of processed preserved

groundnuts (42%), mixed nuts (21%) and peas and beans (30%), were offset by a 14 percent average

decline in exports of dried peas and beans which was the largest group of products. The main suppliers to the region were Belize and Trinidad and Tobago, with positive annual growth of 34 percent in Trinidad

and Tobago’s exports compared to an average decline of 14 percent in Belize exports. Whilst Jamaica

was the largest importer, the largest growth in imports from the region was in Antigua and Barbuda.

Intra CARICOM trade in processed vegetable products increased 8 percent and 4 percent in volume and value between 2003 and 2006. This growth was driven by an average annual 8 percent increase in

exports of prepared preserved tomato products and which accounted for more than 90 percent of the trade.

Trinidad and Tobago followed to a lesser extent by Jamaica and Barbados were the largest net exporters to the region. Barbados and Jamaica were the largest net importers.

There was also strong positive growth of 15 percent in volume and 6 percent in value of intra CARICOM

trade in processed herbs and spices between 2003 and 2006. This growth was led by an average 15 percent increase in the exports of preparations for sauces and prepared sauces, mixed condiments and

seasonings from Trinidad and Tobago mainly to Barbados, Grenada, Guyana and Suriname.

Trade in processed roots and tubers products was the smallest category and declined by 1 percent in

volume with an average increase of 5 percent in value. The trade was made up of the export of processed potato products from Trinidad and Tobago to Jamaica, Barbados and Guyana.


Preliminary examination of intra regional trade based on market and supply volume over the period 2003

to 2006 suggests that market opportunities exist for:

Fresh Produce

Papaya, melons and mixed fruits from Guyana, Trinidad and Tobago, St Vincent and the Grenadines

and Dominica to Barbados and Antigua and Barbuda.

Coconuts and coconut water from Guyana to Trinidad and Tobago

Roots and tubers from St Vincent and the Grenadines, Guyana and Dominica to Trinidad and Tobago,

Barbados, Grenada and Antigua

Tomatoes and mixed vegetables from Trinidad and Tobago and Guyana to Barbados and Antigua

Herbs and spices from St Vincent and Grenada to Trinidad and Tobago, Jamaica, Guyana, Barbados,

Antigua and Barbuda and Dominica.

Processed Produce

Pre-cut and packaging of roots and tubers such as dasheen and eddoes. These products, in particular

dasheen, are appearing on Supermarket shelves (i.e. Hi Lo in Trinidad and Tobago) indicating there is

potential demand driven by consumer convenience. Research work on value adding on cassava (i.e. cassava flour) is currently undertaken by CARDI in Trinidad and Tobago. This also offers a potential

market for farmers apart from selling fresh produce.

Agro-processing is a growing sub-sector in the region, in particular fruit juice production (i.e.

orange). More so is the production of hot pepper sauce and there is a huge demand for chilli peppers

to satisfy processing in Jamaica and Trinidad and Tobago. Additionally, there is potential in the primary processing of coconut water.

30


Extra Regional Trade

Overall trade between CARICOM and extra regional markets declined 4 percent, while the total value of

trade grew 6 percent from 2003 leading up to 2006 (Table 13). The direction of trade has been dominated

by the strong growth in imports of 5 percent in volume and 9 percent growth in value from extra regional markets. This surge in imports was driven by increased volume of processed products and high valued

fresh produce, which have grown steadily over the years. At the same time, CARICOM exports have

declined 9 percent, in particular processed products, while registering a 3 percent growth in value.

Table 13: Extra Regional Imports of Fresh and Processed Produce in CARICOM, 2003-2006

Category 2003 2004 2005 2006 Growth

(%)

EXPORTS

Fresh

Volume (mt) 340,691 219,793 184,715 234,616 -9

Value (US$) $112,214,022 $115,925,186 $100,027,211 $122,398,968 2

Processed

Volume (mt) 50,887 42,275 52,963 29,708 -13

Value (US$) $45,803,888 $48,046,197 $60,986,551 $52,158,914 3

Total Exports (mt) 391,577 262,068 237,678 264,324 -9

Total Exports (US$) $158,017,910 $163,971,384 $161,013,762 $174,557,882 3

IMPORTS

Fresh

Volume (mt) 96,605 116,797 88,838 72,611 -7

Value (US$) $39,758,183 $47,178,117 $73,575,825 $60,563,542 11

Processed

Volume (mt) 80,379 91,543 91,314 144,942 16

Value (US$) $82,848,324 $96,505,035 $108,939,233 $114,861,601 9

Total Imports (mt) 176,984 208,340 180,153 217,553 5

Total Imports (US$) $122,606,508 $143,683,152 $182,515,058 $175,425,143 9

Total Trade (mt) 568,561 470,408 417,831 481,877 -4

Total Trade (US$) $280,624,418 $307,654,536 $343,528,820 $349,983,025 6

Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

31


The United Kingdom is the largest market for CARICOM exports of fresh and processed products in 2006, accounting for 73 percent of total exports and 59 percent in value. This was followed by the United

Sates with 25 percent in export volume and 38 percent in value of total exports. Canada accounted for 1

percent of the volume and 3 percent of the value. In addition, the United States was also the largest market for processed produce products from CARICOM (Table 14).

Table 14: CARICOM Exports to Main Extra Regional Markets, 2006

Item Fresh Processed Total Percent

(%)

United Kingdom

Volume (mt) 174,868 1,548 176,417 73

Value (US$) $73,591,986 $5,182,306 $78,774,292 59

United States

Volume (mt) 38,089 22,664 60,752 25

Value (US$) $19,297,989 $30,964,135 $50,262,124 38

Canada

Volume (mt) 2,902 505 3,408 1

Value (US$) $2,105,269 $2,485,975 $4,591,243 3

Total Exports (mt) 215,859 24,717 240,577

Total Exports (US$) $94,995,244 $38,632,415 $133,627,659

Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

32


The European Union Market - United Kingdom

The main export market for fresh produce in the EU is the United Kingdom. Between 2003 and 2006, the

overall volume of exports to this market fell 10 percent with a modest growth of 2 percent in value (Table 15). In addition to the UK market, there is also export from Suriname going into other European markets

such as Amsterdam. Apart from CARICOM exports there are also exports from OECS21 to the EU,

however, these are not included in the analysis.

Fruit is the largest of the fresh produce exports to the UK and the main commodity is banana, which makes up around 80-90 percent of total fruit exports. Other commodities include citrus, mangoes, papaya

and avocados. Growth in export volume has declined 10 percent and the drop in volume is related to the

reduction of market preferences into the European market. In contrast, the value of exports had a modest growth of 2 percent. Trade in mixed tropical fruits increased 24 percent in volume and 11 percent in

value and mangoes by 9 percent and 6 percent respectively. The major export commodities of banana and

citrus declined 8 percent and 18 percent respectively. The main fruit exporters from CARICOM are

Belize, Jamaica, Dominica, Windward Islands and Suriname.

Table 15: CARICOM Exports of Fresh Produce to the United Kingdom, 2003-2006


(%)

Fruits

Volume (mt) 269,417 163,962 135,733 174,868 -10

Value (US$) fob 68,447,722 69,329,637 56,046,015 73,591,986 2

Roots and Tubers

Volume (mt) 2,526 3,037 2,016 2,703 2

Value (US$) fob 3,054,465 3,628,350 3,678,622 3,888,207 6

Vegetables

Volume (mt) 219 259 156 200 -2

Value (US$) fob 272,696 370,725 194,261 270,721 0

Herbs and Spices

Volume (mt) 79 48 48 33 -20

Value (US$) fob 333,965 146,025 213,251 89,304 -28

Pulses and Nuts

Volume (mt) 29 2 - - -66

Value (US$) fob 7,191 4,487 175 527 -48

Total Volume (mt) 272,271 167,307 137,953 177,804 -10

Total Value (US$) fob 72,116,039 73,479,225 60,132,324 77,840,746 2

Sources: CRNM/UN COMTRADE

NB: Excluding fresh produce from Haiti and Dominican Republic

Roots and tubers is the second largest fresh produce export to the UK. Export volumes from 2003 up to

2006 fluctuated between 2,000 and 3,000 metric tonnes with an estimated value of around US$3.5 million a year. Over the same period, the market for roots and tubers has grown both in volume and value of 2

percent and 6 percent respectively. This growth in the market appears to be driven by demand from

21 Organization of Eastern Caribbean States

33


specialised wholesale markets that cater for the ethnic population both with Caribbean and African

extraction. The main export commodities are yam and sweet potato which accounted for 90 percent of total exports with the remainder made up by other roots and tuber commodities such as eddoes. The main

exporters are Jamaica, St Vincent and the Grenadines, and Suriname.

Vegetable exports over the years have been largely limited to around 150 to 200 metric tonnes with an estimated value of around US$300,000 a year. Market growth for vegetables has declined 2 percent with

no growth in value. While the decline is modest, the volume of exports to this market is less significant to

the larger sub-categories of fruit and roots and tubers. The main commodity exported are mixed

vegetable, consisting mainly of carrots, beans, peas and cauliflower. The main exporters are Dominica, Jamaica, St Lucia and Suriname.

Exports of herbs and spices between 2003 and 2006 have had no market growth. Volume has been

declining over the years from a high of 79 metric tonnes in 2003 to 33 metric tonnes in 2006. A similar trend is also observed with export value, plummeting from US$333,965 in 2003 to US$89,304 in 2006.

The main export commodity is hot pepper and the main exporters are Grenada and Suriname. Other

exporters with relatively small volumes include St Lucia and Jamaica.

The export market for pulses and nut is quite limited and small. Trade figures indicate a shrinking market,

both in volume and value. The largest volume exported was 29 metric tonnes with an estimated value of

US$7,000 in 2003. Since then, export volume and value began to slide with by 66 percent and 48 percent

respectively. Green peas are the main export commodity with only a couple of exporters, namely Jamaica and Suriname.


Export opportunities in the UK will continue to revolve around fruits, and roots and tuber commodities.

While banana and citrus will remain the largest exports from the region, there may be opportunities to

further create value for other export commodities.

In the roots and tuber sub-category, some exporters believe that sweet potato and dasheen is a growing

market in the EU and that CARICOM could be price competitive due to low shipping costs created by

banana exports, particularly from Jamaica and the Windward Islands.

Industry commentators also believe that other market opportunities in the EU could include processed

products such as pickled gherkins and hot pepper sauce, which potentially be developed into a niche

market product. These products, while attractive, would require a thorough market analysis to determine their export viability and sustainability.

34


United States of America

The US is the second largest export market for CARICOM fresh produce. Between 2003 and 2006, the

region’s share of this market by volume fell 5 percent while overall value grew 3 percent (Table 16). Total volume of exports over the same period ranged between 40,000 to 60,000 metric tonnes with an

estimated value of around US$30-35 million a year. Exports to the US market are dominated by fruits and

roots and tubers.

Table 16: CARICOM Exports of Fresh Produce to the United States, 2003-2006


(%)

Fruits

Volume (mt) 43,479 30,006 31,902 38,089 -3

Value (US$) fob 13,661,501 15,502,735 16,626,661 19,297,989 9

Roots and Tubers

Volume (mt) 9,216 8,831 5,344 7,721 -4

Value (US$) fob 11,487,544 12,816,724 11,016,259 12,340,898 2

Vegetables

Volume (mt) 7,685 5,298 3,069 4,045 -15

Value (US$) fob 4,738,011 4,970,696 3,488,316 3,632,100 -6

Herbs and Spices

Volume (mt) 724 479 709 261 -23

Value (US$) fob 2,838,534 1,761,571 1,850,116 987,016 -23

Pulses and Nuts

Volume (mt) 332 271 253 197 -12

Value (US$) fob 492,471 340,686 467,647 426,783 -4

Total Volume (mt) 61,436 44,885 41,276 50,312 -5

Total Value (US$) fob 33,218,061 35,392,412 33,448,999 36,684,785 3

Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and the Dominican Republic

Fruit export volume fell 3 percent while value went up 9 percent between 2003 and 2006. The slowdown

in export volume in 2004 and 2005 was due to devastation caused by hurricane Ivan in 2004 that affected major fruit exporting countries such as Jamaica. The main export commodities are papaya (59%) citrus

(39%), banana (1%) and melon (1%). These volumes do not include other fruits that are exported as

processed or semi-processed. The main exporting countries from CARICOM are the Bahamas, Belize, Jamaica, Antigua and Barbuda and Dominica.

A similar trend for roots and tuber exports was recorded over the same period. Export volume declined 4

percent with value increased by 2 percent. The main export commodities are yams, cassava, and dasheen. Jamaica dominates the export market for roots and tubers with other exporters being Dominica, Grenada,

Guyana, Trinidad and Tobago, and St Vincent and the Grenadines.

Overall volume and value of vegetable exports to the US declined 15 and 6 percent respectively from

2003 to 2006. The market for fresh vegetables is relatively competitive with larger producers such as Mexico also supplying the same market. Major suppliers from CARICOM include Trinidad and Tobago

and Jamaica. Other supplier’s include Antigua and Barbuda, Grenada, Guyana, and St Lucia.

35


Export of herbs and spices have declined over the years from a high of 724 metric tonnes in 2003 to a low

of 261 metric tonnes in 2006, falling by some 23 percent. Similarly, export value has also followed the same pattern, falling by 23 percent. Hot pepper is the main export commodity with the main exporters

being Trinidad and Tobago, Belize and Jamaica.

A similar situation is happening with pulses and nuts. This sub-category is relatively small with export volumes varying between 100 and 300 metric tonnes a year. Between 2003 and 2006 the volume and

value of exports have declined by 12 and 4 percent with strong competition from major producers such

India, United Kingdom, United States and Mexico. Exports consist mainly of mixed nuts.


The improvement in quarantine treatment, packaging and freight technology (i.e. heat treatment of fruit to rid fruit fly) provides scope for cost effective exports to the US. Trade figure indicate growth in the

papaya market with the case of exports from CARICOM countries of Belize and Jamaica (Box 9). Apart

from these two major countries, other producers include Dominica, Guyana, and Trinidad and Tobago.

Box 9: Fresh Papaya Imports to the United States (MT), 2003-2007

2003 2004 2005 2006 2007 Growth

(%)

Belize

Volume (mt) 15,723 24,217 27,716 33,889 33,489 16

Value (US$’000) cif 7,722 11,180 12,907 15,649 13,640 12

Jamaica

Volume (mt) 1,494 996 1,033 1,319 992 -8

Value (US$’000) cif 2,487 1,687 1,734 2,289 1,915 -5

Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, 2009

Fresh papaya exports from Belize to the US have grown by 16 per cent in volume and 12 per cent in value from

2003 to 2007. Apart from Belize, exports from Jamaica have been affected both by hurricanes (i.e. Ivan in 2004)

and recently by disease*.

* Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries, 2008 p45

36


A recent study of value adding standards in the North American food market found a growing trend in the

demand for organic and certified fruit and vegetables. Potential commodities identified by the study include organic pineapple, mango and banana as well as the traditional commodities of coffee and cocoa.

The majority of CARICOM countries already export some of these commodities to the US and Canada,

however, there is real potential in pineapple and consideration to thoroughly explore the feasibility of this commodity as an organic export maybe worthwhile. An extract from the study is shown in Box 10 below.

Box 10: Market Prospects for Developing country of Certified Fruits and Vegetables

In terms of product categories, the best market opportunities are currently seen in organic tropical fruits due to the

current undersupply on the North American market. Supply appears to be particularly short for organic pineapples

and mangoes. Developing countries producing organic pineapples should take advantage of the rapidly growing US

market. With overall pineapple imports standing at over 660,000 metric tonnes, North America accounted for 40 per

cent of world imports in 2006. Pineapple imports have been rising steadily in the United States, increasing about

five-fold in the ten year period 1995-2005. Prices for conventional pineapples have contracted since 2003, as supply

has expanded faster than demand. The unit value of imports was US$460 per tonne in 2005, down from US$580 per tonne in 2003.

Source: Value-adding Standards in the North American Food Market – Trade Opportunities in Certified Products for

Developing Countries, FAO, 2008

37


Canada

Overall, CARICOM exports to Canada from 2003 to 2006 while comparatively small to the US market it

has been a growing market in value. Export volumes to Canada fluctuated between 5,000 and 7,500 metric tonnes with estimated value ranging from US$6-7.5 million a year (Table 17). Over the same

period, market growth declined in volume by 2 percent while value surged moderately by 3 percent.

Table 17: CARICOM Exports of Fresh produce to Canada, 2003-2006


(%)

Fruits

Volume (mt) 2,405 2,475 2,464 2,902 5

Value (US$ ) fob 1,560,123 1,585,223 1,361,957 2,105,269 8

Vegetables

Volume (mt) 1,680 2,801 1,155 1,419 -4

Value (US$ ) fob 1,480,604 1,535,450 1,223,417 1,555,499 1

Roots and Tubers

Volume (mt) 2,370 1,682 1,237 1,566 -10

Value (US$ ) fob 2,680,297 2,554,197 2,492,738 2,818,588 1

Herbs and Spices

Volume (mt) 257 288 290 294 3

Value (US$ ) fob 940,525 1,120,437 1,143,467 1,178,205 6

Pulses and Nuts

Volume (mt) 271 355 340 319 4

Value (US$ ) fob 218,374 258,238 224,311 215,876 0

Total Volume (mt) 6,983 7,601 5,486 6,500 -2

Total Value (US$ ) fob 6,879,922 7,053,545 6,445,888 7,873,437 3

Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and the Dominican Republic

The fruit sub-category is the largest of the fresh produce exported to Canada and is also the best performing, showing growth of 5 percent in volume and 8 percent in value. Fruit exports, including

papaya mainly from Belize and Jamaica is one of the main fruit commodities on the market.

Volume of vegetable exports during 2003 and 2006 declined 4 percent, although value went up by 1

percent. The vegetable sub-category in the Canadian market, like the US market is quite competitive with

exports from other more major vegetable producing countries such as Mexico dominate the market.

A similar trend is happening with roots and tubers. Export volumes have been fluctuating between 1,000

and 2,000 metric tonnes a year with value growing by 1 percent

Herbs and spices in addition to pulses and nuts exports are small in volume compared to what goes

through the US market. However, these two sub-categories are experiencing growth in volume of 3 percent for herbs and spices and 4 percent for pulses and nuts. Value of exports has also gone up for herbs

and spices while pulses and nuts remain the same with relatively no growth over the same period.

38



Although the Canadian market is relatively small in comparison to the other two main extra regional

markets, it nevertheless has potential for growth in the future, particularly in the fruit, herb and spices and pulses and nuts sub-categories. In Box 11, the value of imports from Guyana has enjoyed growth from

2004 to 2008 with the largest growth in the edible fruits and nuts category.

Box 11: Value of Imports of Fresh Produce from Guyana to Canada (US$'000) cif, 2004-2008

2004 2005 2006 2007 2008 Growth

(%)

Guyana

Edible fruits and nuts 127,638 212,846 218,096 307,721 259,549 15

Edible vegetables and certain roots and tubers

149,855 85,524 68,071 69,725 170,364 3

Sub Total 277,493 298,370 286,167 377,446 429,913 9

Source: Industry Canada, 2009. http://www.ic.gc.ca

Summary

Overall, the market opportunities for the extra regional markets will continue to rely on what is already being exported. In the UK market, sweet potato and dasheen is believed to have potential given the

demand for these exports. Others opportunities require the development of a niche market for products

such as pickled gherkins and hot pepper sauces targeting the large Caribbean population.


fruits and vegetables. Organic pineapple has good prospects given the growth of imports in the market

over the years.

Herbs and spices as well as pulses and nuts have good prospects for the Canadian market. These exports

have enjoyed growth over the years, although it represents a small amount of the total exports from

CARICOM into this market.

http://www.ic.gc.ca/

39


4. VALUE CHAIN ANALYSIS AND SELECTION

Introduction

Having explored the opportunities identified by reviewing the secondary data sources and existing

studies, the market opportunity consultants conducted interviews with food retailers, hotel operators,

agro-processors, exporter associations, agri-business associations, farmers’ organisations and government officials to develop profiles of several value chains for further development. Field interviews were

conducted in all CARICOM states except Haiti and St Kitts and Nevis. This chapter assembles the value

chains explored by the consultants in the field and for presentation to the regional value chain workshop for selection.

Profile of Value Chains Short listed for Selection.

The fourteen value chains short listed for further profiling are summarized in Table 18. For each of the

value chains a 4 to 6 page profile was prepared which included in many cases a description of the chain, a

value chain map, analysis of market opportunities, a comparison of price competitiveness, a value chain

margin build up, a gap analysis and some indication of interventions required. Summary profiles of the value chains are provided below.

Table 18: Shortlist of Value Chains

No Production

Country

Market

Country


1 Antigua and

Barbuda

Antigua and Barbuda Small Ruminants Antigua and Barbuda Livestock

Improvement and Cooperative Society

2 Antigua and

Barbuda

Antigua and Barbuda Onions and Carrots

Fresh


3 Barbados Barbados Onions Fresh/Processed

Condiments

Barbados Agricultural Society (BAS)

4 Belize Belize

USA

Hot Pepper

Fresh and Sauces

Belize Agro-Productive Sector Group

BAPS Group/Hot Pepper Association

5 Belize Belize

Pineapple

Fresh and Juiced

BAPS Group/Buenos Amigos

(Pineapple) Cooperative

6 Dominica

Dominica

Martinique

Pineapple

Organic Fresh

Nature Island Pineapple Producers

Association (NIPPA)

7 Grenada Grenada

Trinidad and Tobago

Sour Sop

Fruit and Pulp

Grenada Federation of Agricultural and

Fisher-folk Organisations (GFAFO)

8 Guyana Guyana/CARICOM

USA/Canada

Coconut Water

Bottled

Guyana Agribiz Association/Pomeroon

Women’s Agro Processors Association

9 Guyana Trinidad and Tobago Eddoes /Plantain

for Frozen Packs

GABA/Kuru Kukuru Framers

Association

40


No Production

Country

Market

Country


10 Jamaica Jamaica

UK/USA

Ackee

Canned/Tetra Packs


11 Jamaica Jamaica Carrots

Retail Packs/Exports

Christiana Potato Growers Farmers

Association

12 St Lucia St Lucia

Hotels

Salad Fruit/ Papaya/

Melon/Pineapples

Bellevue Farmers Cooperative Ltd

13 St Vincent

and the Grenadines

UK

Trinidad and Tobago

Roots/Sweet Potato/

Dasheen

Caribbean Farmers Network/ECTAD/

Agricultural Society of Trinidad and Tobago

14 Trinidad and

Tobago

CARICOM

USA/Canada

Papaya

Fresh

National Papaya Association

Source: Field Interviews

1. Antigua and Barbuda, A and B Livestock Improvement Cooperative Society: Mutton and

Chevron Meat for Domestic and Export Markets - The demand for small ruminant meat in Antigua and Barbuda is 303 metric tonnes per annum. Domestic production is 26 metric tonnes per

annum this translates into a shortfall of approximately 92 percent by volume for both sheep and goat

meat. The skins are not utilized as no tannery is available, reducing potential returns to producers. Imports of 277 metric tonnes come largely from Australia, New Zealand and the USA valued at US$

1,815,200 million

Imported frozen sheep carcasses from Australia sells for US$1.82 cif per kg compared to US$1.67 cif

per kg from New Zealand. The domestic product is positioned as a premium fresh product for the higher income consumers and for special/religious occasions by others. Local animals are butchered

by farmers and sold undifferentiated in fresh markets directly to consumers at a dressed carcass

average price of US$ 6.53per kg. Supermarkets sell the retail packed frozen imported cuts at a price of US$5.00per kg or 23 percent less than the fresh local meats. Even after the application of the

import tariff of 30 percent, plus a sales tax ABST = 15percent on imported mutton and chevron, they

are competitively priced compared to the local products. Industry interviews report a fresh meat wholesale price to the hotels at US$11.44 per kg for high quality differentiated cuts such as the loin

and leg which comprise of 33 percent of the carcass. Jamaicans residing in Antigua and Barbuda have

been providing a market for the goat heads edible offal’s and skins which improves the weighted

average price or can contribute to a more competitive meat price. Nonetheless, most of the 5th quarter and skins remain largely unutilized.

There is an untapped demand for fresh, high quality small ruminant meat in the hotel and supermarket

segments. The MOA as well as the Farmers Association estimates that market growth opportunity at least 10 percent per annum in the medium term for this market development initiative. Moreover it is

estimated by the MOA that the products from the tanners for handicraft can yield additional revenue

which altogether represent an increase of US$1.2 million per annum to the industry.

The value chain currently in place shows very little sophistication and development beyond the farm

gate. Generally there is a limited amount of product differentiation of local meats, which are not

often retailed packaged, while the quality of the local product is thought to be superior on basis of

freshness. The food safety status of local products is not always certified by veterinary public health and there are no systems of traceability. On the other hand imports are more competitive in terms of

41


availability, consistency, packaging, labelling, quality assurance, grading. These are all characteristics

required by the hospitality industry and leading up-market supermarkets.

Antigua and Barbuda and Bermuda have a small ruminant population of 55,000 heads22 most of

which are raised under extensive systems. Most animals are crosses of Barbados Black Belly, West

African and Virgin Island White. Quite often, animals grown using the intensive system have meat quality that is comparable to the imported high quality lamb cuts. Livestock specialists suggest that

improvements to volume will come though the introduction of better genetics; better husbandry

leading to more regular and larger lambing, lower mortalities, heavier slaughter weights; and better

butchering, cutting and packaging to realise higher prices.

Current cost of production ranges from US$3.49 per kg dressed23 weight for intensive to US$2.32 per

kg for semi-intensive and US$1.51 per kg for animals grown under the extensive system.

The Antigua and Barbuda Livestock Improvement Cooperative Society is not very active at this time but some key members are interested in reviving it. Improvement in marketing arrangements and

industry initiatives can easily result in increased membership. All farms are located in the rural areas.

An estimated 30 percent of farmers are female. Females benefit from increased household incomes. Many farms are considered as family operations. Small Ruminants are on the CARICOM short list

for priority action. Agro-tourism is a priority for the Antigua and Barbuda government. Assistance is

required for feedlot development. The intervention meets the objectives of the FAO food security

initiative.

Key interventions include training required in intensive and semi-intensive small ruminant

production, high quality forage production and conservation methods, feedlot management for high

quality meats, livestock management, butchering and cuts, and meat presentation, aging, GAP-certification, traceability, wholesomeness. In addition, institutional interventions are needed to assist

farmers’ organization in negotiation of market contracts and payment schemes with hotels, business

management and organizational dynamics. From a policy perspective there is a need to review

applied tariffs on imports of small ruminant meats and regulations for slaughter, traceability, grading, standardization and QA.

2. Antigua and Barbuda, Fresh Onions and Carrots for Domestic and Export Markets – Antigua

and Barbuda consume 1,760 metric tonnes of onions (940 mt) and carrots (820 mt) per annum and produces 1,025 metric tonnes (onions 450 mt and carrots 575 mt), a shortfall of 735 metric tonnes

(onions 490 mt and carrots 245 mt) which is met by imports. The onions and carrots are used mainly

for fresh consumption with small amounts (<5%) going to processing.

Surpluses occur during the peak production periods and are exported to neighbouring countries, such

as Montserrat. Government is currently negotiating for exports of onions to Guyana and carrots to

Dominica.

Local onions and carrots are competitively and profitably produced at an average production cost of US$0.42 and US$0.31 per kg respectively with wholesale prices of $0.81 and $0.61 per kg. These

prices are competitive with cif prices of US$1.25 per kg for onions from the Netherlands and $0.58

per kg for carrots from the United States. Agriculture accounts for about 4 percent of Antigua’s GDP. However the sector is of critical importance for food security and employment creation.

Post-harvest handling of both onions and carrots are done on the farm with very little grading or

sorting as no official standards are in place. Onions are dried and cured by windrowing in the field. Carrots are also cleaned and packaged on the farm. Farmers sell directly to the fresh market,

22 FAOStat

23 calculated for meat equivalent at a 50 percent dressing percentage

42


supermarkets, the food service and hotel sectors and the Central Marketing Corporation (CMC). The

Antiguan Government is proposing to construct a new controlled onion-drying plant and a carrot-washing and grading facility on the Government-owned Diamond Estate. This is expected to improve

drying, reduce waste, increase storage life of onions across the year, improve grading and value

addition (packaging), and, eventually allow for exports.

There are 100 farmers with average farm sizes of less than one acre producing onions and carrots with

drip irrigation using plastic mulch. This enables the farmers to produce over an extended period and

to do so at prices that are competitive with imports. It also creates opportunities for potential exports to CARICOM countries such as Guyana and Dominica. Additional lands are available and the

national food plan hopes to double production. Presently, there are no farmers’ organisation for

onions and carrots and the supply chain is managed individually by the farmers. The Caribbean Agribusiness Association (CABA- Antigua) and the Gilbert Agricultural and Rural Development

Centre (GARD) are assisting in the formation of such an organization.

The Central Marketing Corporation provides seed material. The Government has placed priority on both commodities for further development and plans to double production of these crops over the next

few years.

Key interventions proposed are in post-harvest handling, grading and sorting, drying, storage, new

product development and market development, and strengthening capacity of the farmers’ organisation, all of which fit well with the FAO programme. No other agency is providing support for

the value chain.

3. Barbados, Barbados Agricultural Society: Fresh/Processed Onions & Condiments for Domestic Markets for Domestic Markets – Barbados consume a total of 3,154 metric tonnes of fresh onions

valued at US$1.6 million annually. Domestic production accounts for 37 percent of total availability.

The Barbados Agricultural Development and Marketing Corporation (BADMC) imports and

distributes about 30 percent of the imported onions. Manufacturers of seasonings and pepper sauces are also granted licenses to import onions free of duty when local production is not available. These

manufacturers use about 10 percent of the total availability. Imported onions are sourced mainly

from The Netherlands (72%) and the United States (16%). Processed onion imports amounted to 58 metric tonnes or 3 percent of total supply, albeit not adjusted for processing yield. A tariff bound rate

of 210 percent is in place for extra-regional imports of onions. This is generally waived for the

BADMC and manufacturers.

Local average wholesale prices of US$0.99 per kg are competitive with the CIF imported prices of

US$2.15 per kg for onions from The Netherlands and US$ 1.59 for imports from the United States.

All post-harvest activities are done on the farm and drying of the onions is by windrowing in the field.

This makes the current production system highly susceptible to weather conditions with heavy losses if it rains during field drying. There are no established standards for grades and onions are typically

sold in bulk bags. GAP and traceability systems are not in place. The BADMC is currently exploring

an investment in setting up a drying and storage facility which will allow for self sufficiency and to extend availability throughout the year

Production of onions is mechanized and the crop is produced by 10 plantations on 49 acres and 200

small farmers with 38 acres under both rain fed (August to November) and irrigated systems (December through to March). The varieties grown are Granex, Grandstand, HA1367 and Arad

synthetic. Domestic production normally meets the local demand for three and one-half months of the

year. It is estimated that to make the island self sufficient it would require about 130 acres of onions

under production. The development of the onion industry is one of the priorities of the Government

43


of Barbados with the objective of attaining self sufficiency in the crop and to ensure the availability of

raw material for its pepper sauce and local seasonings.

The Barbados Ministry of Trade Industry and Commerce is considering strengthening the capacity of

the condiment industry by implementing a Condiment Sector Central Procurement Project to source

and procure input items in bulk for commercial and artesian processors of condiments (e.g. pepper sauce, syrups, jams) that are difficult to source. These items include packaging and raw

material/ingredients, such as onions, which may not be available locally and would benefit from

economies of scale in purchasing which is facilitated by the Ministry.

Key interventions proposed are competitiveness analysis of onion production; analysis of impact of centralized drying and curing on cost; improved varieties; improved post-harvest handling, drying,

storage, grading, GAPS, retail packing and new product development for the condiments processors;

production planning and farm and customer contract; all of which fit well with the FAO’s programmes. No other agency is providing support for the value chain.

4. Belize, BAPS Group/Belize Hot Pepper Association: Hot Pepper Fresh & Sauces for Domestic

and Black Markets

Belize is known internationally for its high quality hot peppers in color, size, shape, maturity and

pungency. In 2005, the total availability of Hot Peppers in Belize was 409 MT of which 320 MT was

produced locally for both processing and the fresh pepper market. Of the total supply, 32 MT (approx.

8%) were imported for processing and 57 MT (14%) were exported fresh. The main forms of export are fresh peppers (grade 1), crushed or ground pepper (grade 2 & 3) and processed pepper sauce and

pepper jellies. Grade 2 peppers are sold on the domestic market or used to make mash, hot sauce and

jellies, or sold as fresh peppers in the local markets. Fresh peppers can be found at any local supermarket as well as family-owned shops, or vendors at the commercial market.

Agro World Limited in the Corozal District is the only exporter of fresh peppers. Agro World

operates a pack house where a quarantine officer from Belize Agricultural Health Authority (BAHA)

inspects all produce verifying that all food safety and phytosanitary requirements are met, then issues a certificate and releases the authorization for export. The Belize Hot Peppers Growers Association

(BHPGA) operates largely in the north with domestic and export hot pepper production and supplies

Agro World Limited. Domestically, peppers sell for US$2/lb (US$4.4/kg) in the market while they are bought by all players (exporter, processor and local trader) at US$0.40/lb (US$0.88/kg). Agro

World exports the peppers at about US$2.2/kg, giving a reasonably competitive margin for the

exporter. Nevertheless, because the farmers have challenges meeting the stricter standards required for the export market and get about the same price for sale to MSFF and the domestic market as from

the exporter, this reduces the incentive to grow for export. Also, more value (a higher price) is

derived by the wholesaler from sale to the domestic market than for export, again reducing the

incentive to export the fresh product.

Marie Sharp Fine Foods (MSFF) is the major processor and main exporter of processed hot pepper

products from Belize. Marie Sharp’s products are mainly Habanero Pepper sauces of different heat

levels which use other vegetables as the base ingredients. Other pepper sauces are made using grapefruit and orange pulp cells, and green Habanero pulp. The company markets over thirty five

different processed products in Belize and in many states in the United States, in Mexico, Guatemala,

Honduras, Salvador; in Japan, it major market, from which the products are shipped to nine other countries - France, Italy, Australia, New Zealand, Guam, Taiwan, Russia, Korea and Vietnam, and

recently into Canada. On average, exports to Japan are 50,000 cases per annum. MSFF’s exported a

total of 48 containers (20 ft) in 2008, 15 of which were under co-pack arrangements. In 2009, MSFF

has orders for and expects to ship over 60 containers, an increase of 25% above 2008.

44


Marie Sharpe grows about 50,000lb (22.7 MT) per annum on its own 400-acre farm and last year

bought 250,000 lb (114 MT) from a group of 20 farmers planting on between 40 – 60 acres, with whom they work and Belize River Valley Farms Limited, from whom supply is 2.7 MT per week

during the growing season. The small farmers in the south with whom Marie Sharp works do not own

the land they farm and have working capital challenges. These farmers who produce peppers for processing are not active members of the BHPGA and produced 250,000 lb in 2008 and are targeting

450,000 lb in 2009 and 600,000 in 2010. The growth in projected demand for peppers locally is in

keeping with increasing demand for MSFF’s products world-wide and a global trend of rapid growth

in the demand for pepper sauces. Pepper seeds are supplied by the CARDI seed multiplication unit and the Ministry of Agriculture is collaborating to increase the production of not only hot peppers but

other vegetables and fruits used in her products such as carrots, onions, mangos, pineapple, guavas.

Total acreage under cultivation of peppers fluctuates annually between 75 to 100 acres as farmers are often discouraged and frustrated by several constraints. These include lack of security of tenure,

inadequate working and investment capital, high input costs (labor, irrigation), the greater care

required and more stringent standards for the fresh export market and delayed payments for their produce, among others. Based on the integrated nature of the industry and the potential for fairly

rapid expansion of domestic production for further processing and export, this sub-sector has

significant potential for impact in Belize, particularly if the farmers can get the organizational support

required.

Key interventions proposed include technical assistance with post harvest handling, grading (for

export), traceability, strengthening capacity of the existing farmers’ organization and creating a

functional linkage of both sets of farmers (BHPA and southern group) with the Belize Agro Productive Sector Association (BAPS) Group, implementation of GAPS and addressing policy issues

regarding financing and land tenure. All of these fall within the ambit of the FAO’s current

programmes.

5. Belize, BAPS Group/Buenos Amigos Cooperative: Fresh and Juiced Pineapple for Domestic

Markets.

Markets – Approximately 2,223 MT of pineapples are available per annum in Belize, 5% of which is

processed and 85% is sold fresh. Over 250 MT (12%) of pineapples are exported mainly as fresh fruit, concentrate and single strength juice each year, while 53 - 107 MT are imported, mainly as

processed pineapple products or concentrate. The main distribution channels for fresh fruit are fresh

markets and stalls (85%), supermarkets (2%), exporters (12%) and the hotels (1%) which are interested in fresh fruit for their customers.

Post Harvest – There is no major pack house to service the fresh market, with most wholesalers

buying directly from the farmers and delivering to market, hotels or the exporters directly. Currently,

all post harvest activities for sale both locally or for the limited amount of fresh pineapple exports are done by the farmers, prior to sale. There is very little or no grading done and the mix of varieties

planted (mainly Sugar Loaf and Sweet Cayenne) is geared towards local tastes and local

consumption, rather than to the requirements for processing or for export. Very little of the pineapples are produced under conditions which would comply with Good Agricultural Practices (GAP). The

farmers in Belize distribute their fruit directly to buyers who supply the fresh market, supermarkets,

food service and hotels. Many farmers also sell directly to CPBL.

Farming - In Belize, pineapples are produced by individual farmers and groups of farmers, many of

whom also produce citrus for Citrus Products of Belize Limited (CPBL) and for export. One such

major grouping of farmers is the Buenos Amigos Cooperative (BAC) in Trio, Toledo District, who

were brought together by the Ministry of Agriculture with the citrus processors to encourage pineapple production. The forty-five (45) members of the BAC are were fairly well organized and

began cultivating pineapples on about 100 acres of land but today, because of the challenges

45


encountered only 20 members of the group still farm pineapples, employing at total of about 40

persons, themselves included. Annual production is about 450 MT annum with a target in the medium term of 2,500 MT. It is estimated that about 400 farmers nationally are involved in the cultivation of

pineapples.

The farmers in Trio practice very basic agronomic practices in the production of pineapples (the

traditional milpa cultivation) and while the fields boast plenty of fruit, other producers in Belize have

been able to triple the yield per acre by the adoption of better field husbandry practices. The BAC

farmers mainly grow two varieties, the Sugar Loaf and Habanero (95%) varieties because they’re cheaper to grow and better suited to the fresh market, and the Smooth Cayenne (5%) which is grown

for processing because of quality of juice and juice yield. However the Smooth Cayenne less tolerant

to diseases and pests and requires more inputs, increasing production cost. Because seeds for the Cayenne were not available to farmers five years ago, CPBL agreed to start processing the Sugar Loaf

and Habanero pineapples but says it did so on the understanding that the farmers would gradually

gravitate toward the Cayenne. However, today only five percent of the pineapples produced in Belize are Smooth Cayenne.

The farmers have been working with CPBL, the Cooperative Department and the Ministry of

Agriculture which is also propagating seeds a hybrid variety of the Smooth Cayenne, the MD2, which

has been designed to tolerate the heat, stress, saturation and pests. As such, having characteristics of both types of pineapple, it could be used for both the local Belizean market and also for the

processing. Seeds of the MD2 became available this year, 2009.

In addition to the issue with yield and the price paid for the product, the farmers also have significant challenges with transportation to market and can benefit from significant increases in yields should

they be able to get appropriate technical assistance. Other challenges across the value chain include

the relatively low price paid to the farmers for the fresh product and by CPBL and the unwillingness

of farmers to plant more of the Smooth Cayenne variety that is much better suited to processing than the Sugar Loaf being predominantly planted at the moment.

Processing - CPBL has two citrus processing facilities, located about 2 miles apart from each other in

the Stann Creek District, in the Alta Vista Valley (Belize Food Products Ltd & Top Juice Ltd) and in the Pomona Valley (Citrus Company of Belize Ltd) producing juice processing for bulk distribution.

They also have a state-of-the-art value-added packaging line for their very own brand of concentrates,

single strength juices and juice blends and also bottle spring and flavoured waters. Pineapples are processed in a small facility which opens between mid May and early June, often at a time when no

citrus is being processed.

Price / Cost Competitiveness - The last five years the have been selling pineapples to Citrus Products

of Belize Limited for fifteen cents a pound. But this season, the producers demanded a ten cent (US$0.05) increase from the factory, citing rising costs in fuel and fertilizers. The farmers have an

issue with lower price paid for the fresh product by CPBL (US$0.17/kg for Sugar Loaf and

US$0.19/kg for Smooth Cayenne and MD2) as against the price paid by the fresh market (US$0.33/kg). The product is bought by hotels at US$0.73/kg, close to the price it is sold at on the

fresh market (US$0.75 – 0.89/kg). This is generally very competitive with imports which typically

cost US$0.89/kg. Fresh Pineapples are sold for US$1.14/kg (sold per pineapple, not by weight). Exports average out at US$1.96/kg, delivering a substantial margin for fresh pineapple exporters. In

general, despite the challenges experienced by the farmers, there is significant local and export

demand for the product and local production is fairly competitive in the export market.

Key Interventions - The key interventions proposed are in reduction in the cost of inputs by increased volume of supply, diversification of production and markets, production planning, improved post

46


harvest handling, grading (processing vs. fresh), maturity indexing, improved packaging for eventual

exports, and strengthening capacity of the farmers’ organisation.

6. Dominica, Nature Island Pineapple Producers Association: Organic Fresh Pineapple for

Domestic and Export Markets – Dominica produces about 120 metric tonnes of fresh pineapples

and exports about 90 percent of its total production as fresh fruit to Antigua and Barbuda (79%), St. Kitts and Nevis (16%), the French Dominions and Barbados. The French Dominions have also

shown strong interest in organic pineapples; 10 percent of the production is organic targeted mainly at

the domestic market. About 16 metric tonnes of processed pineapples are imported. Juices account

for about 70% of the processed product.

At an estimated production cost of US$0.65 per kg, pineapples can be competitively and profitably

produced in Dominica where the average wholesale price is US$0.81 per kg and rise to US$1.10 per

kg during the tourist season. The CIF imports from Dominica into Barbados were US$$1.33, compared to US$1.72 per kg from Guyana and US$0.83 from Trinidad and Tobago. The CIF imports

from Dominica to Antigua and Saint Lucia was also competitive with imports from Trinidad and

Tobago, and Guyana.

Agriculture is the main economic activity in Dominica and accounts for about 16 percent of GDP.

Although pineapples account for only about 0.15percent of non-banana production and 0.57 percent

of non-banana exports, it is one of the high value crops which can be competitively produced by

small farmers for sale on the local market and for export.

Post-harvest activities for export are done by the farmers using the Dexia Packaging Houses to

package their products although little grading and sorting is done for either the domestic or export

markets. All of DOAM’s24 productions are produced under GAP following organic production criteria. Organic production is consistent with the ‘Nature Island’ image of Dominica’ and the

Associations brand. In Dominica, producers distribute their products directly to the fresh market,

supermarkets, food service hotels and processors. While no local processing of pineapples is currently

done, NIPPA25 has been in discussions for a strategic partnership for fresh pineapple juice with the local agro-processing company Parry W. Bellots Co. Ltd (Bellots) and has purchased a processing

plant which is to be setup.

Pineapple production in Dominica is carried out by two organized groups of farmers – NIPPA with 22 members, which produce pineapples on about 50 acres and DOAM with 100 members, which

produce organic fruits and vegetables. All of the production is rain-fed with plastic mulch and

DOAM members have developed tech-packs for the production of their organic products.

Production and exports of pineapples from Dominica has increased an average of 35 percent annually

between 2002 and 2007 and current producers have the capacity to increase production of pineapples

to 750 metric tonnes annually. They plan to expand the current acreage planted from 50 acres to 100

acres in the next two years. Pineapples are considered a viable alternative to bananas in Dominica which is on the decline due to loss of international competitiveness.

A commodity cluster has been established to promote growth in organic pineapple, which includes

the Ministry of Agriculture, the Dominica Chamber of Agri-Business (DCAB), NIPPA, DOAM, the Hotel Association and Bellots Ltd. The USAID26 and the South East Tourism Committee have been

providing training support for organic production and technical support towards organic certification.

24 Dominica Organic Agriculture Movement 25 Nature Island Pineapple Producers Association 26 United States Agency for International Development

47


Key interventions proposed are in support of organic certification, production and business planning;

post-harvest handling, grading, maturity indexing, packaging, business development tours to understand buyer requirements in export markets; and strengthening capacity of the farmers’

organisation, all of which fit well with the FAO’s programmes.

7. Grenada, Grenada Federation of Agricultural and Fisher-folk Organisations (GFAFO): Soursop Fruit and Pulp for Domestic and Export Markets - Total availability of soursop in

Grenada is currently estimated at 700 metric tonnes valued at US$ 279,482, all of which is produced

domestically. Farmers sell fresh fruit directly to the fresh market, supermarkets and processors. The

export demand for soursop is largely unsatisfied. Presently, only about 10 percent of the fruits produced are exported due to strong domestic demand. The major markets are Trinidad and Tobago,

the UK, Canada and the US. The NMIB27 exports to the UK, USA and Canada in addition to retailing

domestically. Traffickers also export a significant quantity of the fruit mainly to Trinidad and Tobago. Current demand per annum is estimated at 250 metric tonnes in the USA, 240 metric tonnes

in the UK, 100 metric tonnes in Canada and 100 metric tonnes in Trinidad and Tobago.

At a cost of production of US$ 0.48 per kg, soursop can be profitably and competitively produced in Grenada. Local wholesale prices average US$0.70 per kg and the FOB export prices are US$1.10 per

kg to the UK, US$0.99 per kg to the UK, and US$0.80 per kg to the USA and Canada. The

agriculture sector accounts for about 6 percent of Grenada’s GDP and the Government has placed the

revitalization of agriculture with emphasis on export of non-traditional crops such as soursop and the development of value-added products among its priorities for the resuscitation of the economy. Sour

sop is grown mainly by small rural farmers.

Approximately 5 percent of the soursop produced is pulped by the local processing plant, Rainbow Products Ltd. and sold as frozen pulp for ice cream and nectar to food service outlets and restaurants.

Small quantities are exported to an ice cream company in Trinidad and Tobago and the UK. The

WIBDECO28 is currently negotiating an investment with the local agro-processing company, La

Sagesse Farms for the production of pulp through a joint venture with the UK-based company Hummingbird Fruit Ltd. for use in an ice cream-based product. La Sagesse Farms is equipped with

modern processing equipment but the company is currently closed.

Post-harvest activities are done at the NMIB packaging house where the fruits are washed, sorted and packaged in corrugated cartoons for export or local wholesaling/retailing. The NMIB also provides a

harvesting and transporting service for farmers using contracted harvesters and transport. No formal

grades, standards, maturity indices are in place.

There are about 1,500 farmers with plots of 0.25 acres totalling 200 acres. Production is projected to

increase significantly (30%) in the next two years in response to an aggressive ongoing replanting

programme that was started in 2006 after the recent hurricanes. ‘Burris’ is the main variety presently

propagated and distributed to farmers. This variety was selected because of its prolific bearing characteristics and uniform size fruit. The crop is highly susceptible to mealy-bug infestation and

fields must be properly managed to minimize infestation. The MNIB provides support to producers

by providing planting material and offering contracts at guaranteed prices.

Key interventions proposed are in improved production technology to increase yields under orchard

production, introduction of good agricultural practices (GAP), quality assurance programs and traceability protocols to enhance product acceptability in the export market, nutritional analysis,

27 National Marketing Import Board 28 Windward Islands Banana Development and Export Company

48


production planning, post-harvest handling (cleaning), grading, maturity indexing, packaging,

processing technology, developing HACCP29 and BRC30 standards for processed products, value added product development and the strengthening GFAFO’s capacity to organize and develop the

industry.

8. Guyana, GABA/Pomeroon Women’s Agro Processors Assoc: Bottled Coconut Water for Domestic and Export Markets. Coconut water is consumed but not produced in all Caribbean

countries. While some countries such as Jamaica, Trinidad and Tobago, St. Lucia, Grenada, St

Vincent and the Grenadines, and Barbados have coconut production and a coconut water industry in

varying stages of development, others have no coconut water industry and potential demand is primarily driven by a vibrant tourism industry. French Caribbean beverage companies have

expressed interest for bulk supplies of coconut water. It is estimated that the domestic demand for

coconut water in Guyana is 60,000 coconuts or 20 metric tonnes of coconut water per week which translates into 1,040 metric tonnes per year out of a total supply of 2,700 metric tonnes valued at

US$2.0 million.

The chilled coconut water market is growing in the USA and Canada particularly in cities where there are large Caribbean and Latin American expatriate communities, such as Miami (with 4 brands), New

York (with 3 brands) and Toronto. New York also has about 3 brands with the most competitive

brand originating in Brazil and the other 2 originating in Jamaica. The potential demand in the

Caribbean and North American markets for chilled coconut water is difficult to estimate but it is estimated that between the tourists, ethnic and mainstream markets in the Caribbean and North

America the annual demand could approximate to 100,000 metric tonnes valued at US$250 million.

The only known CARICOM country engaging in exports of coconut water is Jamaica, primarily to the North American markets. Coconut water exported from Guyana can be very competitive at the

current CIF price of US$2.55 per kg as in fact exports are currently being successfully made by a

Guyanese bottler into CARICOM markets. The CIF price of the Brazilian coconut water in New York

is US$3.00 per kg. The product originating from Jamaica has a CIF price approximately 17 percent higher than that of the Brazilian brand and this higher price is passed on through the chain to

consumers. Coconut water exported from Guyana can also be competitive in the North American

markets.

The Pomeroon area is characterized by approximately 150 small and medium sized coconut farms

and has the highest concentration of ‘3 yr’ coconuts which is more suitable for the coconut water

industry. Members of the Pomeroon Women’s Agro-Processing Association together with the farmers who supply them with raw material are producers of coconuts, have expressed an interest in

participating in the coconut water for export value chain. They estimate that they can source 35,000

coconuts (650mt/yr) a week and the Pomeroon output will continue to grow up to 5,000 metric tonnes

of coconut water.

The entire chain is characterized by rural SMEs, from the farmers to the processing plant which will

also be constructed in a rural area. The Coconut water chain has a higher profit level than coconut

milk which is more profitable than copra industry, and has the potential to offer farmers higher returns.

The coconut industry is a priority for CARICOM and Guyana. The Pomeroon Women’s Agro Processing Association (PWAPA), has a history of working with the Ministry of Agriculture, the

29 Hazard Analysis and Critical Control Points 30 British Retail Consortium

49


National Agricultural Research Institute (NARI) and IICA and is broadening its reach from the local

community into national markets and soon to regional markets.

PWAPA, Phoenix Enterprises, and the Trinidad and Tobago Agri Business Association are all very

open to the project. The PWAPA has demonstrated a capability and are well place to coordinate the

supply chain in the Pomeroon. However, innovative financing arrangements will be necessary for them to meaningfully participate in the processing plant investment. Agricultural Export

Diversification Programme (ADP) funded by the IDB, as well as the USAID funded GTIS project is

flexible enough to provide support to this initiative to develop the coconut water industry insofar that

it is export focused. FAO has done considerable work in the coconut industry particularly in the area of water extraction and filtration and is exploring further interventions in Guyana.

Proposed chain interventions include a program for control of Red Coconut Mite pest, sourcing

modern harvesting technology from the far east, technical support to Pomeroon Women’s Agro-Processors Association to allow them to provide value chain support services to coconut farmers;

technical support for the coconut water extraction process is also required; support to source

financing (USD$500,000) to construct a state-of-the-art coconut water processing, bottling and freezing facility, rehabilitate and replant coconut field, marketing and promotional activities in

selected markets.

9. Guyana, GABA/Kuru Kuru Farmers Association: Roots/Eddoes for Frozen Processing for

Domestic and Export Markets. In 2007, the availability of eddoes in Trinidad and Tobago was estimated to be 1,533 metric tonnes made up of domestic production of 867 metric tonnes and imports

of 674 metric tonnes. Three Metric tons of eddoes are exported from Trinidad and Tobago. Most

eddoes are sold fresh. Guyana on the other hand produced 5,000 metric tonnes of eddoes and exported no eddoes in 2006.

Wholesale prices for eddoes in Guyana are approximately 250 percent cheaper than the local eddoes

sold in Trinidad. The prices comparison in the two markets above indicates immediately that

imported eddoes are able to compete in the Trinidad and Tobago market. This suggests a shortfall in local supply and hence a marketing opportunity for imports.

The CIF Port of Spain price for Guyana eddoes is US$0.85per kg compared to US$1.24 for domestic

product. The cost structure in the value chain reinforces the position that eddoes imported from Guyana can be very competitive in the Trinidad market. Based on the above competitive analysis the

market potential for eddoes from the KFA in the Trinidad and Tobago processing market is positive.

Guyana cultivates a larger variety of eddoes than the familiar smaller Trinidadian variety. While consumer acceptance of the larger variety for fresh sales has not been tested, it is expected that

consumers will accept eddoes in the processed frozen roots and mixed roots soup packs.

The Trinidad and Tobago Agribusiness Association (TTABA) is currently the main processor of

frozen root crops for sale as single root packs, mixed root soup packs and preformed roots e.g. chips for frying. TTABA wants to add eddoes to their product mix and estimates that after the first 2 years

they can utilize up to 500 metric tonnes per year and represent real market contacts already existing in

the markets identified. Based on this it is expected that the export market is expected to grow at a rate of approximately 100 percent per annum.

In order to optimize the efficiencies required for exporting from Guyana and be in a position to

guarantee supplies to different markets, it is recommended that multiple products be part of the product mix, each procured from multiple locations. As a result, the Guyana Agribusiness

Association, GABA, is seen as a critical player in the value chain that can perform this procurement

coordination and marketing role. In addition to eddoes, TTABA would like to add plantain to its line

of processed products and it is proposed to use the eddoes plantain value chain, which shares the same value chain operators and supporters to develop plantain exports to TTABA. Wholesale prices

50


for plantains between Guyana and Trinidad and Tobago make them a viable complementary

commodity and will help to bring economies of scale to the eddoes operations.

The main production areas for eddoes in Guyana are Waini, the Mabaruma sub-district in the

Northwest, Parika and the Essequibo islands and the Mahaica/Demerara region. Kurukuru lies in the

Mahaica/Demerara region. The kurukuru area has a unique eco-system as a result of its geographic location which gives it advantages in eddoes production such as the (1) lack of need for replanting is

required after harvesting (2) the availability of chicken manure fertilizer from nearby poultry farms

are used as fertilizer which keeps the cost of production very competitive, and (3) there is a good road

network connecting the farm with the New GMC centralized packing house and the Georgetown port. The Kurukuru Farmers Association currently has 46 farmers in its membership who farm 1,000 acres

and have an average yield of 11 metric tonnes /acre. There are another 2000 acres and 500 additional

farmers available for eddoes production which will allow for expansion of production to meet the 500 mt projected by TTABA. If it assumed that other export markets are mobilized; the total annual

exports from this value chain can be estimated to be 1500 metric tonnes. At a border price of

US$850/metric tonnes this will approximate to US$1.27 million per annum.

While CARICOM has not identified eddoes as a priority crop, Trinidad and Tobago has identified it

as one of the products that can enhance its food security situation as a substitution product. The Kuru

kuru Farmers Association requires little assistance to become functional and current management has

the capacity and seriousness to facilitate success. The Agricultural Export Diversification Programme (ADP) funded by the IDB, as well as the USAID funded GTIS project is flexible enough to provide

support to this initiative insofar that it is export focused.

Key interventions include basic training in GAP and grading and field post harvest techniques; a production forecast system will also be required to assist in the management of the procurement

process; institutional support will be required by the Kuru Kuru Farmers Association to be able to

function effectively as a business and to encourage cooperation and build trust among its members;

and GABA will require an injection of financial and human resources to be able to function effectively as a player in the value chain. All of the constraints identified can be supported by FAO

interventions.

10. Jamaica, Jamaica Agricultural Society/Ackee Grower Group: Canned & Tetra Packs Ackee for Domestic and Export Markets – Between 2004 and 2006, some 26.77 million kilograms of

ackee, an average of 8.8 million kilograms per annum (Statistical Institute of Jamaica - STATIN)

were produced in Jamaica. Of this, over 80 per cent was consumed in Jamaica mainly by households harvesting the fruit from neighbourhood trees. Ackee is sold in fresh (84%), frozen (1.0%) and

canned forms (15%), the latter two being the forms exported. Ackees are a critical food crop for

Jamaica for many reasons. Not only is it a main part of the national dish and is widely consumed

daily across the island by all social classes, but it also forms the lynchpin of the a major part of the agro-processing sector that is largely rurally based, employs over 5,000 persons directly and

indirectly and provides the cash flow which is the life blood of the sector.

In 1973 exports of ackee to the US were banned because of concern about the natural toxin, hypoglycin, which is present in unripe fruit and the inability of the country to satisfactorily address

the concern. In 1999, the Jamaica Exporters Association (JEA), working closely with the US

Embassy and Technological Solutions Limited (TSL) a Jamaican private scientific research and testing organization, led a small group of processors and a national programme through a process of

re-organization of the industry and the regulatory apparatus. Collaborators included the United States

Department of Agriculture (USDA), the Ministries of Agriculture (MOA) and Industry and

Commerce (MIC), the Jamaica Bureau of Standards (JBS, now BSJ), the National Development Bank

51


(NDB, now DBJ31) and the Food Technology Institute (FTI). This was underpinned by a science-

based validation of quality control and production systems, including HACCP implementation and led to the re-opening of the US market for ackee exports in June 2000. A precursor group which

became the Jamaica Agro-Processors Association (JAPA) was also formed under the auspices of the

JEA from the group of processors involved. In 2005, the industry was again faced with challenges after problems with elevated hypoglycin content in export ackee in late 2005 led to the withdrawal of

export access for ackee by the US. JAPA collaborated with TSL, the MOA, the MIC and the JEA to

have the ban removed and to generally tighten standards in the industry. JAPA continues to work

with the JEA and the BSJ to implement an industry management programme. In 2006, when exports began to regularize again after the 2005 hiccough, 6.1 million kilogram’s, the equivalent of 5.4

million kg of fresh fruit, were exported mainly to 31 countries. These include the UK (70%), US

(18%), Canada (8%), which account for over 90% of exports, as well as France, Germany, Switzerland, Netherlands and CARICOM. Up to 2008 November, the last period for which figures

were available, 756,727.2 kg (757mt) of ackee were exported at a value of US$11.01per kg.

Currently there are 20 processors of which 832 are certified for export to the US by the FDA with a ninth, Double Deuce, pending final approval. All certified plants and most of the others are members

of the Jamaica Agro-Processors Association (JAPA) and can ackee for export (80%) and use by

hotels (10%) food service operators (5%) and a limited amount for supermarkets (5%). Several

contract pack for wholesaler distributor brands such as Grace Kennedy, which have a worldwide distribution system, Kingston Miami Trading (USA) and Warni’s (UK), while some canned product

is also sold in supermarkets (Hi Lo, Super Plus, Shoppers Fair, others).

In Jamaica, the farm gate price of ackee is US$3.93 per box of about 5 dozen fruit, while the processed, canned product retails for US$4.17 for a 20oz can contain 14 oz of fruit in supermarkets.

The product sells for US$120.00 per case of 24 x 20 oz cans (US$5.00 per can) for export to the US

and between US$95 and US$110 for sale to other markets. Ackee also grows in Nigeria and Ghana

but is not used for food. However, Haiti, Belize and the Ivory Coast are among countries where ackee is now being grown, canned and exported mainly to Canada and the UK by the latter two countries

and to the US by Haiti. Despite this, the demand for ackee far outstrips supply and new countries are

becoming interested in the product (e.g. Spain). Jamaican ackee remains in much higher demand than others and command a significant premium in the market place (US$3-5/can).

Ackee is generally harvested from the trees either ripe (opened) or fit and delivered to the processing

plants through one of several channels – directly by farmers, though direct or indirect agents of the processing plant, collected by the plants themselves or delivered though itinerant independent

“transporters”.

It is estimated that there are the equivalent of between 2,964 to 3,705 acres of ackee in Jamaica,

including about six (6) very productive, privately established commercial orchards of a total of about 450-600 acres. Most ackee is, however, grown in mixed stands on farms or in back yards by 2-3,000

small farmers who supply the bulk of the ackee produced in Jamaica. The Ministry of Agriculture

reports that ackee continues to be one of the main crops in the Ministry of Agriculture’s Commercial Fruit Tree Crop Project, noting that over the past five to seven years, some 1,482 new acres of ackee

have been established. The Ministry is considering expanding the program. Industry leaders report

that the commercial orchards established under the tree crop program have not realized the yields

31 DBJ – Development Bank of Jamaica

32 Certified Processors are West Best Foods, Ashman’s, Tijule, Canco, Central Foods Packers, Island Packers,

Southern Fruits and Food Processors, Stanmark Food Processors

52


achieved on the smaller holdings, the reason for which is still to be established, particularly since

privately established orchards have performed reasonably well.

The FAO had collaborated with the Ministry to implement a program to improve the varieties and

planting material available to the Tree Crop Project. JAPA, which remains an affiliate organization of

the JEA, is the driver of the ackee chain in Jamaica. Individual companies which are members of both JAPA and the JEA have also organized farmers groupings (such as the Clarendon-based Ackee

Farmers group) and have developed training and other programmes to strengthen these groups. Either

organization (JAPA or the JEA) are therefore well placed to be good counterpart organizations for

any FAO initiative.

Major gaps in the value chain include poor harvesting methods that reduce harvestable yields by as

much as over 30 percent per annum, poor tree management that reduce the percentage of fruit that

will ripe post harvest (and hence availability of saleable fruit) by a further 30-40 percent and poor post harvest handling. Other areas that need attention include:

Farmers – establishment, training and strengthening of farmers’ organizations, reducing post

harvest losses at farm gate,

Transporters – collection and transportation systems (training and management),

Development of packaging operation for Ready-to-Eat (RTE) ackee for supermarkets, hotels

and restaurants,

Training and upgrading of processing workers,

Development of value-added, RTE products (ackee and salt fish, TV dinners, new packaging

formats),

Development/application of yield improvement from fruits (use of pods, seeds, etc).

A structured programme that addresses these issues in a coherent manner involving specific farmers

groups (larger commercial farmers, small farmers group) tied to JAPA and/or the JEA as well as the

hotels will result in significant returns to the ackee processors, farmers, the industry as a whole and the agro-processing sector in Jamaica.

Key interventions include:

Increasing marketable yield through training/interventions in tree management, harvesting and

transporting the ackee,

Adoption of Good Agricultural Practices in selecting and handling the fruit (including on farm

ripening),

Strengthening the value chain by organizing farmers and improving linkages with processors,

Work on added value products and/or realizing greater value by increasing the utilization of all

parts of the fruit.

11. Jamaica, Christiana Potato Growers Association Carrot Value Chain for Domestic and Export

Markets.

In 2007, the availability of carrots in Jamaica was 19,600 MT, 98% of which was produced in

Jamaica and the remainder was imported from USA and Canada. The main distribution channels for

carrots was the fresh markets 10,840 (55%), hotels 4,700 MT (24%) processors 3,900 MT (20%), supermarkets 100 MT (0.5%) and restaurants 60 MT (<0.5%). Sixty five percent (65%) or 15,000 MT

of the 19,600 MT of the total local production comes from three parishes (Westmoreland, St.

Elizabeth, Manchester). Another 359 MT were imported into the country during 2006, mainly for

53


fresh consumption in the supermarkets, hospitality and food service sectors. Currently, little post

harvest handling is done after carrots are reaped and there are no major pack house operations that handle carrots. All are handled by the farmers in the fields.

Carrots produced in Jamaica are highly competitive locally on the basis of their wholesale price

during the period January to October and marginally competitive November to December. Supply typically fluctuates and is lowest in September and highest in December and imports are largely due

to inconsistency in supply rather than price. Carrots are produced for about US$0.38/kg and sold at

farmgate for about US$0.99/kg, depending on the time of year. In the municipal markets, the product

is sold for about US$1.98/kg and in supermarkets for US$2.2/kg. Production costs in Jamaica can range from J$52.00 – 194.00/kg (US$0.59 – US$2.19) depending on the time of the year compared to

US$0.62 to US$0.77/kg in Miami and New York, respectively. On average, Grade 1 carrots sell for

US$1.24 (J$110)/kg and Grade 3 for US$0.50 ($J44.0)/kg. As such, the Grade 3 which is acceptable for processing is very competitive with imports. The price for Grade 1 carrots, targeted at the local

fresh and hospitality markets is less competitive, again depending on the time of year.

In Jamaica carrots are processed exclusively into juices (canned and ready-to-drink) for which there is a high local and export demand. Several processors use the product to make ready-to-drink and

canned juices which are sold locally and exported. Demand for these products is high and has shown

growth over the last 3 years. Many processors continue to report challenges with getting sufficient

locally grown carrots, as needed throughout the year.

The hotel industry is another major market for carrots. This industry currently requires clean, well

trimmed large carrots as well as small baby carrots that are free from damage and cracks for use in

their food service operations. The larger carrots are used generally for a variety of dishes while the baby carrots are used daily in salads. The hotels need high quality carrots as low quality produce

result in higher labour cost and lower yields. These can be solved by varietal selection, agronomic

and post harvest interventions.

Supermarkets typically receive the product loose and sell them loose or pre-packaged. Key customer drivers were wholesomeness, cleanliness, safety and appearance (shape colour, freedom from

damage) and availability. Supermarkets also sells imported carrots that are typically better packaged

and more attractive than locally produced varieties, but typically lack the flavour sought by local consumers. Supermarkets buy the product on the basis of verbal contracts, preferably directly from

the farmers, because of better prices.

Christiana Potato Growers Association currently coordinates a large amount of production, serving over 4,000 farmers in Manchester, Clarendon, Trelawny, St. Elizabeth and St. Ann. While there is

capability for increasing production, opportunity for significant increases in volumes demanded will

come from margin compression and expansion of value added and processing, particularly supply to

processors and exports of puree or juices.

Existing gaps include low marketable yield (40% vs. typically 70%), and poor or inadequate

agronomic practices. Addressing these will lead to significant increases in yield and greater value

retention along the chain. Specific interventions include:

Improving agronomic and post harvest skills

Improving water supply for irrigation and post harvest handling

Production planning and storage for seasonal fluctuation and to improve consistency of supply

Training and implementation of better grading and GAP

Improved packaging

54


Training farmers in agribusiness skills

Establishing both backward and forward contracts

Improving transportation

Provision of better customer credit information

Provision of financing for farmers

If these are addressed, the potential contribution to Jamaica’s agro-business sector is likely to be

impactful.

12. Saint Lucia Bellevue Farmers Cooperative (BVFC): Salad Fruit (Melons, Pineapple and

Papaya), Melons for Food Retail and Hotel Segments – The local availability for melons (571mt

per annum) and local production (233mt) a short fall of 59 percent. The USA currently supplies the market with 77 percent of the imported melons, Canada 22 percent and Guyana 1 percent. Major

customers for these products are hotels (Sandals (3) and Bay Garden (2)) and Supermarkets (Super J

(8)) who account for 75 percent of domestic purchases. A tariff of 40 percent applies to imported

melons from outside the CARICOM region.

Production cost is estimated at US$0.40 per kg and melons can be profitably produced with wholesale

prices averaging US$1.60 per kg. The CIF imported melons averaged US$1.21 for the United States,

US$1.20 per kg for Canada and US$0.58 per kg for Guyana. Prices are not disaggregated for the different types of melons, such as watermelons honey dew melons, and cantaloupes. The latter two

products are generally premium priced compared to watermelons and are the main imports from the

US and Canada. Imports from Guyana are mainly of watermelons. Although the imported melons appear to be cheaper than the local melons, the hotels and supermarkets have a preference for the

local product which tends to have lower losses than the imported product which arrives in containers.

Post-harvest activities are carried out at Bellevue Cooperative Pack house and involve the cleaning of

fruits and packing them in crates for distribution to the various outlets. Generally, local products are fresher. However, there is significant variability in sizes and maturity indices which has negatively

affected their marketability. In addition, local supply tends to be inconsistent, unreliable and

insufficient supply (no grades, GAPS, tradability, packaging); however, Bellevue has established the ‘Farm Fresh’ Brand under which it currently markets its products. Improved packaging and grading

are among the factors currently being addressed. Some discussions have begun between the

Association and its major customers about the possibility of fresh-cut fruits, fresh juices and organic fruits including papaya.

Papaya is on the CARICOM shortlist for priority action and agro-tourism is a priority for the Saint

Lucia Government. The Ministry of Agriculture has been working with the farmers to introduce new

technology. The BVFC as described above, is well organised and has a good track record of working with the Ministry and with other donors, such as Oxfam International, Credit Union League and

CaFAN (Caribbean Farmers Network). It has a high level of participation of women farmers (55%)

and its activities are relevant from a food-security and poverty-reduction perspective.

Production of melons is carried out by more than 600 farmers on farms ranging in size from 0.2 acres

to 10 acres. These farmers produce under the umbrella of the Saint Lucia Farmers Association.

Bellevue farm has about 120 active members who produce and market their products collectively.

Irrigation is used by about 25% of the farmers. In addition to melons (honey dew, cantaloupes and watermelons), these farmers produce a variety of other salad fruits and vegetables, root crops and

herbs. The Bellevue Cooperative has recently started organic production of these crops in response to

increased demand from the hotel sector. Salad fruits and vegetables for the agro-tourism sector are supported by the Government as a viable alternative to bananas and to meet the requirement of the

55


country’s buoyant tourism industry. All production is carried our under environmentally friendly

conditions.

The main interventions required are in the selection of improved varieties, production planning,

improved production technologies (including organic production), support for organic certification,

development of technology packages, grades, GAPS, tradability, packaging technology for fresh cut fruits, fresh juices and organic fruits (including papaya), and development of marketing and market

planning skills.

13. St Vincent and the Grenadines CaFAN/ECTAD/ASTT: Roots and Tubers for Domestic and

Export Markets – Total supply of the selected roots and tubers (dasheen, eddoes, yams, sweet potatoes, cassava and tannia) in St. Vincent amounted to 11,529 metric tonnes valued at US$10.50

million. These crops account for 40 percent of non-banana production and 64 percent of non-banana

exports. Dasheen is the root crop produced in the largest quantity (34%) and exported (49%). Exports account for 61percent of the total availability, the local fresh market 23percent, supermarkets

12 percent and hotels 4 percent. Trinidad and Tobago was the major export market for root crops

from St. Vincent and the Grenadines accounting for 84 percent of exports with small quantities to the United States (4%) and the UK (3%).

Wholesale price in St. Vincent and the Grenadines was US$0.71 per kg and the export price to

Trinidad and Tobago, the United States and the UK US$0.61 per kg. At an estimated production cost

of US$0.25 per kg dasheen and other root crops can be profitably produced in St. Vincent. Agriculture account for about 8 percent of St. Vincent’s GDP and is a viable alternative to the

declining banana industry.

Post-harvest activities are dependent on the targeted market. Products for the Trinidad and Tobago, UK and local market, are harvested and packed in the field with some of the soil removed. The

dasheen treated with a fungicide is either packed in corrugated cartoons or in sacks. Little or no size

grading is done except for the UK market, which require a size range of 1-1.5 per kg. Products for

the UK are washed cleaned of all soil and roots at the packing house, treated with a fungicide, graded into sizes ranging from 1-1.5 per kg and packed in corrugated cartoons for export. Farmers sell their

products directly to buyers in the local market or through middlemen or collectively through

ECTAD33. Products for processing are exported in sacks to reduce marketing costs. Supermarkets also require clean fruits for merchandising in their stores.

While traditionally there has been little processing, more recently there have been a number of

initiatives to develop and market retail packed peeled, pre-cut frozen roots and tubers products, particularly dasheen. There are two such initiatives in St. Vincent and a third collaborative

arrangement with the Agricultural Society of Trinidad and Tobago where ECTAD supplies a

processor in Trinidad and Tobago, which does the processing. Preliminary feedback from the market

suggests strong interest in these products.

There are more than 2,000 farmers producing root crops on more than 1,500 acres of root crops an

farms ranging from 0.5 acres to 10 acres. The ECTAD has 800 members most of whom cultivate root

crops on farms of similar sizes. ECTAD currently accounts for about 20 percent of the dasheen market in St. Vincent. There is potential for the Organisation to expand its membership in St.

Vincent and/or to collaborate with other producers in St Vincent or across other CARICOM countries

to meet unmet demand.

The ECTAD in association with CaFAN has a strong history of collaboration with Oxfam

International, FAO, Ministry of Agriculture, Agricultural Society of Trinidad and Tobago and

33 Eastern Caribbean Trading and Development Organisation

56


NAMDEVCO34. They have recently been exploring new business opportunities to process roots for

export to the UK.

Key interventions required include improved varieties, improved post-harvest systems,

implementation of quality assurance systems, development of frozen root-processing technology,

automating the dasheen-peeling process, slicing and blast freezing of the peeled product, packaging, labelling and presentation, and branding and marketing of the processed product.

14. Trinidad and Tobago Papaya Farmers Association: Fresh Papaya for Export Markets –

Trinidad and Tobago currently (2008/2009 estimates) produces approximately 5,000 metric tonnes of

fresh papaya per year with a domestic availability of over 4,000 metric tonnes of which 2,400 metric tonnes (60%) is sold as fresh fruit and 1,600 metric tonnes (40%) sold green and ripe for processing

into sauces and fillers.

In 2007 the data indicates that 180 metric tonnes was exported, primarily to Barbados (132mt), which has been growing significantly over recent years, to the United Kingdom (19mt) and Canada (26mt).

Trinidad and Tobago with farm gate prices of US$0.74per kg has lower costs than other CARICOM

countries which import pawpaw such as Antigua and Barbuda, St Kitts and Nevis, Dominica ($1.13 / Kg) and St Lucia (US$2.39per kg) may provide opportunities for export growth.

There is a current processing outlet for products that do not attain export standards. Ripe papayas are

processed into frozen pulp for further downstream processing for use in sauces, beverages, etc, while

the green papayas are used as filler for pepper sauces and for candied products

The association has access to the NAMDEVCO packing house at the airport and collaborates with an

active fresh produce exporters association.

There are approximately 400 farmers in the Trinidad and Tobago Papaya Farmers Association. There is also a Papaya Industry Development Committee which has as its membership representatives from

all stages of the value chain. The president of the Papaya Farmers Association chairs this committee.

There is room for improvements in the operations of both of these organizations via resource

injections. Papaya is a priority product in the National Agribusiness Development Programme as well as at the Regional level.

Exports from TT have been constrained to date due to inconsistent and often poor product quality,

grading and field sanitation; disease (anthracnose) challenges, low levels of adoption of GAP which is a prerequisite for market entry ; low yields and production efficiencies affecting cost competitiveness;

underdeveloped relationships with buyers and the marketplace and supply reliability.

Key interventions include

Technical support at the production level to improve field sanitation, efficiencies, yields and to

counter pests and disease problems. Support is also needed to implement GAP on the farm

At the post harvest level, technical support is required to implement the hot water treatment process

which is required for export to the USA. Other post harvest handling support is also required.

Research and development work is required to facilitate the shipment of papayas by sea freight as is

done by Brazil.

Technical support will be required by the producer organization to be able to function effectively as a business and to encourage cooperation and build trust among its members. A production forecast

system or software will also be required to assist in the management of supplies.

34 National Agricultural Marketing and Development Corporation

57


The producer organizations, and to a lesser extent the commodity organizations will require an

injection of financial and human resources to be able to function effectively as a player in the value chain.

Export marketing/distribution channels require development, which points to the need for initial on-

the-ground leg work particularly in the extra regional markets and then putting in place market representatives that will protect the interest of exports from Trinidad and Tobago.

Conclusion: Value Chains Subsequently Selected at the Workshop

The 14 chains discussed in this chapter were presented to the Caribbean Agri-Food Value Chain “Kick-

Off” Workshop held on 5th – 8th May 2009 at The Cascadia Hotel and Conference Centre, Trinidad and

Tobago for selection of five chains. The following extract from the workshop report summarises the value

chain selections made by the workshop.

“Five (5) value chains were selected and endorsed by the workshop after a transparent selection process

which sought to build a portfolio of value chains with different products, value addition technologies, and

markets and chain drivers. These value chains are shown in Table 19 below:

Table 19: A list of Selected Value Chains for Promotion and Development

Country Value chain: commodity /

product

Market Agri-food organisation

Belize Hot pepper

fresh and sauces

Belize Tourist and

Extra regional Markets

BAPSGroup / Belize Hot

Pepper Association

Dominica Pineapple

organic fresh

Regional and DOMs Nature Island Pineapple Producers Association (NIPPA)

Jamaica Ackee

canned and tetra pack

Tourism and Extra regional Markets


St Lucia Papaya / melon / pineapple -

salad fruits

Domestic Hotels and

Supermarkets

Bellevue Farmers Cooperative

Ltd and Other Associations

St Vincent and Grenadines

Roots / sweet potato / dasheen fresh and processed

Regional and Extra regional

Caribbean Farmers Network / ECTAD

58


“An alternative list (Table 20), consisting of three (3) value chains was endorsed with priority to be given to onions should there be a need to change any of the List A chains. Should it be necessary to choose a

chain in Guyana, the choice will be made in consultation with relevant Guyanese stakeholders with

options being bottled coconut water or the frozen pack eddoes / plantain value chains. This condition is subject to consultations with appropriate stakeholders in Guyana.

Table 20: The Alternative list of Value Chains

Country Value chain: commodity

/ product

Markets Agri-food organisation

Grenada Sour sop

fresh and pulped

Regional and Extra

regional markets

GFAFO

Antigua and Barbuda Onion – fresh Domestic and regional markets


Guyana Bottled coconut water Regional and extra

regional markets

GABA/ Pomeroon Women’s

Agro Processors Association Processors Association

Guyana Eddoes / plantains

fresh for frozen packs

Regional markets via

Trinidad and Tobago

processor

GABA/ Kuru Kuru Farmers

Association

The alternative list which will be considered should any short comings arise with those in the A list. Further details on the selection process, the workshop outcomes and the next steps are included in the

workshop report.

.

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5. SUMMARY OF MAIN FINDINGS / RECOMMENDATIONS

Main findings:

The main market and distribution channels for fresh produce in CARICOM countries include the (1)

domestic market, which largely consist of the food retail and food service sectors; (2) hospitality sector made up of hotels and cruise ships; (3) agro-processing sector in the manufacturing of food and animal

feed products; and (4) export markets made up largely of Intra Regional trade between CARICOM

countries and international trade with other countries outside of the region.

The inconsistency and limitation of available datasets created major challenges for the study. Especially

data related to the hospitality and agro-processing sectors was very difficult to come by. It was therefore

hard to capture the levels of transformation and value added, thus it was not possible to quantify and

estimate size and value for these markets during the limited period available to complete the work.

The following sections summarize the main findings of the study and market opportunities in the

domestic, regional and export markets for fresh produce and (semi-)processed products.

Domestic market

The domestic markets of CARICOM countries supply both resident/visitor consumers through the

important sectors of food retail (i.e. supermarkets, fresh produce markets) and food services (i.e. hotels, restaurants, fast food, cafes, catering services).

Opportunities and prospects in the domestic markets

Domestic market opportunities in some CARICOM countries that have been identified during the course

of the study are listed below. The opportunities presented may not be applicable to all countries, given the

vast difference, diversity and complexities in agriculture development and economies amongst individual countries. Nevertheless, the listing may stimulate thinking and reflection on possible new opportunities.

The main fruit commodities identified with potential market opportunities include:

Freshly cut and packaged fruit salads (i.e. melon, papaya, pineapple) prepared for domestic market

(i.e. food retail, food services) and the hospitality industry (i.e. hotels);

Freshly cut and packaged vegetables for the domestic market and the hospitality industry;

Processing of fruits into tropical fruit juices, i.e. passion fruit, pineapple, Barbados cherry and

soursop;

Import substitution opportunities for selected tomatoes that are grown in green houses to take

advantage of the off-season when imports fill the shortfall in supply;

Import substitution of carrots, onions, cucumbers and brassicas;

Fresh cut and packaged vegetables for export to intra regional markets;

Roots and tubers for import substitution of white potato including frozen products such as French

fries by cassava, sweet potato, and domestically produced white potatoes;

Other new semi-processed/retail ready roots, tubers and stables which replace products currently only

cooked in households and restaurants, i.e. pre-cooked plantain, frozen pre-cut cassava, dasheen on

vegetables and eddoes packs for the domestic market. This also includes mixed frozen root soup packs targeting the domestic market;

60


Herbs and spices, including fresh pepper, ginger and processed sauces, jellies and jams for the

domestic and export markets;

Processed herbs and spices, including hot pepper sauce and onions and condiments.

Export markets

Intra Regional Trade

Intra regional fresh and processed produce export represents 20 percent of total exports from the region.

Exports of fresh produce with the exception of root crops and herbs and spices have declined in recent years while exports of processed products have shown strong growth for all categories of produce. The

main drivers behind the growth in intra regional trade are:

A growing demand from countries (i.e. Barbados, Antigua and Barbuda, St Kitts and Nevis) with well

developed tourism industries for fresh produce to bridge shortfalls in domestic food production,

A small but developing agro-processing sector (i.e. hot pepper sauce) that is importing raw material

due to domestic production unable to keep up with demand,

Growth in per capita income of several states in the region.

Overall, these factors have contributed to the growth of intra regional trade in selected fresh produce and

processed produce within CARICOM.

Opportunities and Prospects in Intra Regional Markets

While the trade of fresh produce to countries with well developed tourism industries continues to grow,

there is scope to deepen this trade through value adding. What is important to note here is that there is a growing regional demand for processed food created by increasing consumer desire for convenience

foods.

Potential market opportunities in the region include:

Fresh fruit for main intra regional markets, such as Barbados;

Pre-cut and packaged roots and tubers;

Processed cassava (i.e. cassava flour) (note: research work is currently undertaken by CARDI in

Trinidad and Tobago), i.e. market opportunities for processors but also for farmers with the potential

to increase cassava production;

Fruit juice production, i.e. citrus and pineapple;

Processing of hot pepper sauce and coconut water:

import substitution of chilli peppers from Latin America and Dominican Republic to satisfy demand

in hot pepper sauce processing industries in Jamaica and Trinidad and Tobago,

primary processing of coconut water in Guyana and Trinidad and Tobago.

61


Extra Regional Trade

The three main export markets for fresh produce from CARICOM are the United Kingdom, the United

States and Canada. Generally, the majority of fresh produce exported to North American markets are vegetables and root and tubers. For the European market, fruits and roots and tubers are the main

commodities.

United Kingdom

The main export market for fresh produce in the EU is the United Kingdom. Overall volume of exports

from 2003 to 2006 to the UK market declined by 10 percent with a modest growth of 2 percent in value.

Fruit is the largest category of the fresh produce exported to the UK. The significant commodity is

banana, which makes up around 80-90 percent of total fruit exports. Other commodities include citrus,

mangoes, papaya and avocados.

Roots and tubers is the second largest fresh produce category exported to the UK. Export volumes from

2003 up to 2006 fluctuated between 2,000 and 3,000 metric tonnes worth an estimated value of around

US$ 3.5 million a year.

Vegetable exports over the years have been largely limited to around 150 to 200 metric tonnes with an estimated value of around US$ 300,000 a year.

Exports of herbs and spices between 2003 and 2006 have had no sales growth. Volume has been declining

over the years from a high of 79 metric tonnes in 2003 to 33 metric tonnes in 2006.

The export market for pulses and nut is quite limited and small. Trade figures indicate a shrinking market,

both in volume and value.

United States

The US is the second largest export market for CARICOM fresh produce. Between 2003 and 2006, the region’s share of this market by volume fell 5 percent while overall value grew 3 percent.

Fruit export volume fell 3 percent while value went up 9 percent between 2003 and 2006. The slowdown

in export volume in 2004 and 2005 was due to devastation caused by hurricane Ivan in 2004 that affected

major fruit exporting countries such as Jamaica.

A similar trend for roots and tuber exports was recorded over the same period. Export volume declined 4

percent with value increasing by 2 percent. The main export commodities are yams, cassava, and dasheen.

Overall volume and value of vegetable exports to the US declined 15 and 6 percent respectively from 2003 to 2006. The market for fresh vegetables is relatively competitive with larger producers such as

Mexico also supplying the same market.

Export of herbs and spices have declined over the years from a high of 724 metric tonnes in 2003 to a low of 261 metric tonnes in 2006, falling by some 23 percent. Similarly, export value has also followed the

same pattern, falling by 23 percent.

A similar situation is happening with pulses and nuts. This sub-category is relatively small with export

volumes varying between 100 and 300 metric tonnes a year. Between 2003 and 2006 the volume and value of exports have declined by 12 and 4 percent. Exports consist mainly of mixed nuts.

62


Canada

Overall CARICOM exports to Canada from 2003 up to 2006, while comparatively small to the US

market, has been a growing market by value. Export volumes to Canada fluctuated between 5,000 and 7,500 metric tonnes with estimated value ranging from US$6-7.5 million a year. Over the same period,

market growth declined in volume by 2 percent while value surged moderately by 3 percent.

The fruit sub-category is the largest of the fresh produce exported to Canada and is also the best performing, showing growth of 5 percent in volume and 8 percent in value. Fruit exports, including

papaya mainly from Belize and Jamaica is one of the main fruit commodities on the market.

Volume of vegetable exports during 2003 and 2006 declined 4 percent, although value went up by 1

percent. The vegetable sub-category in the Canadian market, like the US market, is quite competitive with exports from other more major vegetable producing countries such as Mexico, the country which

dominates the market.

The herbs and spices in addition to pulses and nuts exports are small in volume compared to what goes through the US market. However, these two sub-categories, experienced growth in volume of 3 percent

for herbs and spices and 4 percent for pulses and nuts. The value of exports has also gone up for herbs and

spices while pulses and nuts remain the same with relatively little fluctuations over the same period.

Opportunities and prospects in extra-regional markets

Overall, the market opportunities for the extra regional markets will continue to rely on already established export links and market contacts.

In the UK market, sweet potato and dasheen are believed to have potential for growth, given the demand

for these exports and some favourable transport linkages. Others opportunities include a niche market for products such as pickled gherkins and hot pepper sauces targeting the large Caribbean population.


fruits and vegetables. Especially, organic pineapple and mangoes have good prospects given the growing

market demand and the growth of imports in the market over the years.

Herbs and spices as well as pulses and nuts have good prospects for the Canadian market. These exports

have enjoyed growth over the years, although it represents a small amount of the total exports from

CARICOM into this market.

Recommendations

Using the findings from and experiences made during the implementation of this study, the following recommendations are made to assist in the promotion and development of value chains:

1. There is a need to provide regular information on the market situation and outlook of fresh produce in

CARICOM. Better monitoring and collection of data (production and trade) at the regional level is required, which at the moment appears to be ad hoc and sporadic. Notwithstanding this, there are real

efforts in the industry to provide this information with regular reports provided by national marketing

agencies such NAMDEVCO. A possible intervention of the FAO-GTFS/CARICOM/CARIFORUM

Project is to facilitate such activity which could provide a better foundation for informed planning and for overall credible policy making.

2. Upcoming value chains promotional work needs to include economic appraisals of costs and margins

along the value chains as well as farm enterprise budgets. This would facilitate the monitoring of improvements in profitability, incomes and, if labour is included, effects on employment for all

relevant actors along the chain. In addition, there addition impacts on overall food security and the

enhancement of rural livelihoods may be monitored.

63


3. Based on the production and processing potential available, the project will make an attempt to

explore new markets in Europe and promote Caribbean produce and food, especially in Italy.

4. In general and to be successful and become a sustainable supplier to modern export markets, it is

important to target niche and speciality markets for i.e. fair traded and organically certified products

and work towards the establishment of a “Caribbean brand.” Such a brand should guarantee customers quality and safety with a Caribbean flair. Low volume, high value and non-perishable

products are seen to have an advantage over perishable fresh produce which, in addition, face

quarantine and phyto-sanitary as well as more stringent food safety barriers. The project will promote

niche and speciality marketing when the number of beneficiaries justifies this.

64

References

Food and Agriculture Organization, 2008, All ACP Agricultural Commodities Programme, Baseline

Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries.

Best, R. & Placide, L., West Indian Projects Ltd., 2006, CARICOM Agrifood Distribution Service Industry Study, Caribbean Regional Negotiating Machinery, Inter-American Development Bank

/Multilateral Investment Fund.

Byers, A. , Giovannucci, D. (for Chapter 3), & Liu, P. , 2008, Value-Adding standards in the North

American food market, Trade opportunities in certified products for developing countries, FAO

Commodities and Trade Technical Paper ,Food and Agriculture Organization no.11, Rome.

CARICOM Fresh & Processed Produce Trade Tariffs and Statistics, 2001-2007, Caribbean Regional

Negotiating Machinery.

CROSQ, Fresh and Processed Produce Standards, 2007, Caribbean Regional Organization for

Standards and Quality.

Harry, E., 2009, Barbados Fresh Produce Hospitality Sector Demand Study, IICA.

Harry, E., 2009, Trinidad & Tobago Hospitality Sector Fresh Produce Demand Study, IICA.

James, F., 2006, Agricultural Export Strategy, Ministry if Agriculture, Grenada.

James, F., 2006, Assistance to Improve Jamaica’s Fruit Crop Production, Report of the Food and Agriculture Organization Project TCP /JAM /3004 (A).

Piggott, A. A., 2008, Transformation Plan for The Agriculture Sector, “From Agri-culture to Agri-business”, Ministry of Agriculture, Land & Marine Resources, Trinidad & Tobago

Seepersad, G. (PhD), 2009. Analysis of the Jamaican Fresh Agricultural Produce Industry, Supply

Analysis, The Jamaican Social Investment Fund, Jamaica

Seepersad, G. (PhD), 2009.Analysis of the Jamaican Fresh Agricultural Produce Industry, Market

Analysis, The Jamaica Social Investment Fund, Jamaica.

Singh, R. H. (PhD), Seepersad, G. (PhD), Rankine, L. B. (PhD), 2006, Executive Summary, The

Global Market for Small Ruminant Meat, Sources of Supply and Competitiveness for the

CARICOM Industry. The CARICOM Regional Transformation Programme for Agriculture, CARICOM.

Singh, R. H (PhD), Seepersad, G. (PhD), Rankine, L. B. (PhD), 2007, Executive Summary, The Hot Pepper Industry in CARICOM, Competitiveness & Industry Development Strategies, The

CARICOM Regional Transformation Programme for Agriculture, CARICOM.

65

Singh, R. H. (PhD), Seepersad, G. (PhD), Rankine, L. B. (PhD), 2007, Executive Summary, The

Papaya Industry in CARICOM, Competitiveness & Industry Development Strategies, The CARICOM Regional Transformation Programme for Agriculture, CARICOM.

Singh, R. H. (PhD), Seepersad, G. (PhD), Rankine, L.B. (PhD), 2006, Executive Summary, The

Global Market for Sweet Potato, Sources of Supply and Competitive for the CARICOM Industry, The CARICOM Regional Transformation Programme for Agriculture, CARICOM.

Singh, R. H. (PhD), Seepersad, G. (PhD), Rankine, L.B. (PhD), 2006, Executive Summary, The Coconuts Industry in CARICOM, Global Market Intelligence Report, The CARICOM Regional

Transformation Programme for Agriculture, CARICOM.

Singh, R. H. (PhD), Rankine, L. B. (PhD), Seepersad, G (PhD), 2007, Competitiveness Study, Policy

Proposals: Enhancing International Competitiveness, The CARICOM Regional Transformation

Programme for Agriculture, CARICOM.

66

Appendix 1: Value Chain Maps

CaFAN / ECTAD: Roots and Tubers Value Chain

Barbados Agricultural Society: Condiments and Onion Value Chain

67

CaFAN / ECTAD ROOTS & TUBERS VALUE CHAIN (Lead Product – Dasheen / Sweet Potatoes) Jethro Greene: +784 453 1004

Bellevue STL

(160mt/yr)

Bellevue Variety & Seed Propagation Shop

NAMDEVCO Toll Processing

(000mt/yr) ECTAD - SVG

(000mt’yr)

Home Restaurants

(2) (00%)(000mt/yr)

SVG Fresh Market (00%)

(000mt/yr)

BDS Fresh Market (00%)

(000mt/yr)

CONSUMPTION

CHAIN OPERATORS

BASIC FUNCTIONS

Hi Lo Food Stores (00%) (000mt/yr)

Bellevue Variety & Seed Propagation

TT

SVG/GDA/STL

SVG/GDA/STL

TT

C SUPPLY CHAIN

HAIN

SVG/GDA/STL

TT/US/EU

UWI Variety & Seed Propagation

ASTT-TT (000mt/yr)

NEFA - GDA (50mt’yr)

ECTAD - SVG (2,500mt’yr)

Bellevue - STL (000mt’yr)

NEFA - GDA (000mt’yr)

Henry’s Farm

Products (000mt/yr)

CARDI Variety & Seed Propagation

Fresh Exports

UK (00%)(000mt/yr)

DO

ME

ST

C C

ON

SU

ME

RS

(000M

T/Y

R)

DISTRIBUTION PROCESSING WHOLESALER POST HARVEST PRODUCTION INPUT SUPPLY

Das(35%), Ed(25%), Yam(20%), SP(%), Cas(5%) (50mt/yr)

EX

PO

RT

CO

NS

UM

ER

S

(000M

T/Y

R)

68

BARBADOS AGRICULTURAL SOCIETY CONDIMENTS/ONION VALUE CHAIN - (Lead Product – Fresh Onion) James Paul: +246 436 6683

Barbados Agriculture Development & Marketing Cooperation Seed material procurement

Lottie’s Pepper Sauce (000mt/yr)

Barbados Women in Agro-processing Group (25) (000mt/yr)

Barbados Fruit & Vegetable Association

(00) (00%) (000mt/yr)

Super Centres and Supermarkets (000mt/yr)

Barbados

Barbados

Barbados

Barbados

Barbados

Cheffeettes Fast Food (000mt/yr)

Fresh Markets

(000mt/yr)

Goddards Catering (000mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST/PACKING PROCESSING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS

Barbados

DO

ME

ST

IC C

ON

SU

ME

RS

(000

mt/

yr)

Imports Processed condiments with onions (00%) (000mt/yr)

Imports Fresh onions (00%) (000mt/yr)

BADMC Pack house

(000mt/yr)

Exports (000mt/yr)

UK

/US

CO

NS

UM

ER

S

69

RUMINANT MEAT PRODUCTION VALUE CHAIN – (Lead Product – Fresh Sheep/Goat Meat)

Jamaica Sheep and Goat Association

(7% of total consumption)

HIPRO Farm Supply Store

Feed

Drugs

Breeding stock

Equipment

MayPen Municipality

Abattoir (15%)

On farm / home Slaughter (85%)

MoF Bodles Packhouse

Supermarkets (50%)

Hi Lo (12)

Super Plus (36)

Imports (93% of total consumption)

Australia (57%) New Zealand (43%)

Food Service (28%)

Small restaurants

Sandals Hotel Chains (3)

(15%)

Fresh Market Roadside Stalls

(7%)

20% 30%

10% 100% 30% 10%

MoH-VPH (Health)

CARDI MoA (Extension) MoA (Vet services) MoT

MoT-Tariffs

JBoS

JBoS

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION SLAUGHTER PROCESSING & PACKAGING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS

SHARE OF CONSUMER PRICE

CHAIN SUPPORTERS

DO

ME

ST

IC C

ON

SU

ME

RS

70

ORGANIC PINEAPPLE VALUE CHAIN – (Lead Product – Fresh Pineapple)

Nature Island Pineapple Producers Association, NIPPA (22) (750mt/yr) 50 acres and targeting a 100ac for 1,500mt/yr

4-D Limited

DOAM (000mt/yr)

DOAM (000mt’yr)

Jungle Bay Resort () (%) (000mt/yr)

Fort Young Hotel () (000mt/yr)

Fresh Market () (000mt/yr)

CONSUMPTION

CHAIN OPERATORS

Exports ()(%) (000mt/yr)

Ministry of Agriculture

Dominica

Dominica

Dominica Dominica

Dominica

Dominica/CARICOM

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PROCESSING DISTRIBUTION

DO

ME

ST

IC

CO

NS

UM

ER

S

Dominica Organic Agriculture Movement, DOAM, (100) (000mt/yr) Average of 3+ acres/member

NIPPA (000mt/yr)

Parry W Bellot Co. Ltd (Bellos) (000mt’yr)

CA

RIC

OM

CO

NS

UM

ER

S

71

GRENADA FEDERATION OF AGRICULTURE AND FISH ORGANISATIONS SOURSOP VALUE CHAIN:

(Lead Product – Fresh soursop)

GFOFD (00) (000mt/yr)

WI MB (000mt/yr)

North East Farmers Association (00)

(000mt’yr)

La Sagesse Farm Processing Plant

(000mt/yr)

Rainbow Product Processing Plant

(000mt/yr)

Planting Materials

Grenada

Grenada

Grenada

Grenada

C SUPPLY CHAIN

HAI

N

Grenada

Grenada

Humbird Fruit Ltd (000mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PACKING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS

DO

ME

ST

IC C

ON

SU

ME

RS

(000

mt/

yr)

EX

PO

RT

CO

NS

UM

ER

S

(000

mt/

yr)

72

STAN CREEK FARMER ASSOCIATION PROCESSED HOT PEPPER SAUCE VALUE CHAIN - (Lead Product – Hot Pepper Sauce) Marie Sharp: +501 520 2087

CARDI Seed Multiplication Unit

Marie Sharp Fresh Foods (000mt/yr)

Cowpen farmers (12)

Other farmers

Marie Sharp farm (00%) (0.25mt/yr)

Hospitality sector Hotels (000mt/yr)

Belize

Belize

Belize

Belize

Belize

Food service Fast food, cafes (000mt/yr)

Retail sector Supermarkets (000mt/yr)

Exports US, Japan, Others (000mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PROCESSING/PACKING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS

Belize/US/Japan/Others

DO

ME

ST

IC

CO

NS

UM

ER

S

(000

mt/

yr)

Other ingredients:

Condiments

Citrus pulp

Cactus

Carrots

Others

EX

PO

RT

CO

NS

UM

ER

S

(000

mt/

yr)

Imported packaging (bottles) - US

73

GABA EDDOES & PLANTAIN VALUE CHAIN – (Lead Product – Processed Eddoes)

Kuru kuru Farmers Association (75)

Eddoes (260mt/yr) GABA

Eddoes 30%

Plantains 70%

875 mt/yr

TTABA

Eddoes 30%

Plantains 70%

610 mt/yr

Plantain Farmers Association (00)

Plantains (615mt’yr)

Institutional Trade i.e. National School Nutrition Program

(000mt/yr)

Food Service Trade (000mt/yr)

Retail Trade (000mt/yr)

N/A

GAPS Food safety grading New product development standards

N/A N/A

Maturity grading index

Yield productivity

N/A

N/A N/A

Extension personnel

N/A

N/A Plantain association development

Tariffs N/A

N/A

Planting Materials

64%

100%

23%

3%

10%

NARI - Research CABA - Extension support

New GMC

CARDI

Ministry of Health

N/A

TT

Guyana

Guyana

TT

C SUPPLY CHAIN

HAI

N

Guyana

TT/US/CARICOM

Exports

US (000mt/yr)

Caribbean (000mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PROCESSING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS


CHAIN SUPPORTERS

TECHNICAL CONSTRAINTS

INSTITUTIONAL CONSTRAINTS

POLICY CONSTRAINTS

DO

ME

ST

IC C

ON

SU

ME

RS

(250

mt/

yr)

US

/CA

RIC

OM

C

ON

SU

ME

RS

(3

60m

t/yr

)

125mt/yr

74

GABA COCONUT WATER VALUE CHAIN: (Lead Product – Bottled Coconut Water)

Trotz Partnership Joint Venture (1000mt/yr)

TTABA (300mt/yr)

Pomeroon Women’s Agro-processing Association (00) (1000mt/yr)

Hi Lo Food Stores (18)

(000mt/yr)

?

Automated coconut water extraction process

N/A

N/A

Consumer Promotion N/A

Pest control – red mite

N/A

Quarantine N/A

Financing processing plant N/A

N/A

N/A

Extension services

N/A

N/A

N/A

N/A

30%

100%

30%

30%

10%

Ministry of Agriculture

FAO

FAO

N/A

N/A

N/A

Guyana/TT

Guyana/TT

Guyana

Guyana

Guyana

Royal Castles Restaurants (12)

(000mt/yr)

Hyatt Hotel (1) (000mt/yr)

Exports CARICOM (700mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION PROCESSING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS


CHAIN SUPPORTERS


INSTITUTIONAL CONSTRAINTS

POLICY CONSTRAINTS

Guyana/TT/CARICOM

DO

ME

ST

IC C

ON

SU

ME

RS

(300

mt/

yr)

WHOLESALE

CA

RIC

OM

C

ON

SU

ME

RS

(750

mt/

yr)

Guyana Market (000mt/yr)

Bottles #/yr

75

BELLEVUE AGRO-TOURISM / SALAD FRUIT VALUE CHAIN – (Lead Product – Fresh Papaya/Melon)

Bellevue Farmers Association (200)

(000mt/yr)

Bellevue Variety & Seed Propagation

Bellevue Packing Facility (000mt/yr)

Planned Bellevue Fruit Processing

Plant (000mt’yr)

Sandals Hotels (3) (20%) (000mt/yr)

Super J Supermarkets

(60%) (000mt/yr)

Fresh Market (10%)

(000mt/yr)

CONSUMPTION

CHAIN OPERATORS

KFC (8)(10%) (000mt/yr)

Planting

Materials??

St Lucia

St Lucia

St Lucia

St Lucia

C SUPPLY CHAIN

HAI

N

St Lucia

St Lucia

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PROCESSING DISTRIBUTION

DO

ME

ST

IC C

ON

SU

ME

RS

76

JAMAICA AGRO PROCESSORS ASSOCIATION/ACKEE GROWERS GROUP VALUE CHAIN

Jamaica Agroprocessors Assn./ Reg. Ackee Growers Association

2-3000 small farmers

6 commercial farms Estimated production (1,600mt/yr)

Jamaica Agro-processors Association (880mt/yr)

Canco

Central Packers

Ashman Food Processors

Tijule, Others

Exports (Processed) GraceKennedy, Warni’s, Canco, Others (820mt/yr)

Local Growers Pack House, Vendors (720mt/yr)

Juici Patties (50) (5%)

Hendrickson Hotel Group (5) (3%)

Fresh Market Stalls (35%)

0%

Hi Lo Supermarkets Fresh/canned

(12) (7%)

Planting Material Supplier

50.0%

100%

72.7%

2.3%

2.3%

Jamaica

Jamaica

Jamaica

Jamaica

C SUPPLY CHAIN

HAI

N

Jamaica a

JAM/UK/CDA/US


CHAIN OPERATORS


DO

ME

ST

IC

CO

NS

UM

ER

S

Buying/ Collecting

Agents (880mt/yr)

TRANSPORT

EX

PO

RT

US

/UK

/CA

N

CO

NS

UM

ER

S

Fresh 45%

Processed 55%

77

GABA FRUIT JUICE VALUE CHAIN – (Lead Product – Pulp Juice)

Caribbean Chemicals

Passionfruit Farmers

Association (00) (000mt/yr)

Quick Service Restaurants

(%)(000mt/yr)

Bounty Farm Meat Centres (%) (000mt/yr)

School Feeding Program (%)

(000mt/yr)

Guyana

Guyana

Guyana

Guyana

C SUPPLY CHAIN

HAI

N

Guyana

CARICOM

Cherry Farmers Association (00)

(000mt’yr)

GABA (000mt/yr)

Guyana

Continental 40% of domestic

market (000mt/yr) Juice/Pulp

(40%)

Tropical Orchards Company 5% of Domestic market (000mt/yr) Ambient/Pulp

Other processors Bottler, ice cream

(%)(000mt/yr)

CARICOM Exports

TT(000mt/yr),

Barbados (000MT/YR)

Suriname (000mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PROCESSING FREIGHT DISTRIBUTION CONSUMPTION

CHAIN OPERATORS

DO

ME

ST

IC /

EX

PO

RT

CO

NS

UM

ER

S

(000

MY

/YR

) Adventure Manufacturing 10% of Domestic market (000mt/yr) Juice/Pulp (10%)

78

NATIONAL PAPAYA FARMERS ASSOCIATION PAPAYA VALUE CHAIN: (Lead Product – Fresh Papaya)

National Papaya Farmers Association

(400) (000mt/yr)

TT Exporters Association (000mt/yr)

Domestic? (200mt/yr)

CARICOM (100mt/yr)

UK (000mt/yr)

US (000mt/yr)

N/A

GAPS Food safety grading New product development N/A N/A

Maturity grading index

Yield productivity

Seeds/seedlings

0%

100%

0%

0%

0%

NARI - research CABA - extension support

N/A

CARDI

Ministry of Health

N/A

TT

TT

TT

TT

C SUPPLY CHAIN

HAI

N

TT

TT/US/UK/CARICOM

Exports

US (000mt/yr)

Caribbean (000mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION WHOLESALE DISTRIBUTION CONSUMPTION

CHAIN OPERATORS


CHAIN SUPPORTERS


DO

ME

ST

IC

CO

NS

UM

ER

S

(200

mt/

yr)

UK

/US

/CA

RIC

OM

CO

NS

UM

ER

S

(200

0mt/

yr)

Processed

NAMDEVCO (000mt/yr)

Fresh

Fresh

79

BELIZE AGRO PRODUCTIVE SECTOR GROUP / BUENOS AMIGOS COOPERATIVE PINEAPPLE FRESH / PROCESSED VALUE CHAIN

Fresh

Juice

Planting Material Source: Min Ag

Belize Citrus Growers Investment Company

Limited (111.2mt/yr)

Buenos Amigos Cooperative (BAC) (40) (450mt/yr)

Fresh Market (5) (1,780mt/yr)

0% 12.9%

100%

76.5%

6.6%

0%

Belize

Belize

Belize

Belize

Belize

Belize Biltmore Plaza Hotel (1) (0.2mt/yr)

Brodies Supermarkets (3) (3.27mt/yr)

CARICOM, Other Countries Exports (275mt/yr)

BASIC FUNCTIONS INPUT SUPPLY PRODUCTION POST HARVEST PROCESSING/PACKING DISTRIBUTION CONSUMPTION

CHAIN OPERATORS


Belize / CARICOM/

USA

DO

ME

ST

IC

CO

NS

UM

ER

S

(1,8

00m

t/yr)

Other ingredients:

Condiments

Citrus pulp

Cactus

Carrots

Other

2%

85%

US

A/O

the

r

CO

NS

UM

ER

S

(275m

t/yr)

BAC Packing and Shipping

(450mt/yr)

85%

80

CHRISTIANA POTATO GROWERS ASSOCIATION CARROT VALUE CHAIN

Christiana Potato Growers Assn,

4000 small farmers Estimated total production (19,600 MT/yr)

Processors (3,900mt/yr)

Grace Food Processors

Southern Fruits & Foods

Tradewinds

Citrus Growers Ltd.

others

Exports (Processed) GraceKennedy, Tradewinds, others

Local Growers Vendors (720mt/yr)

Juici Patties (50) (0.5%)

Sandals Hotel Group (7) (24%)

Fresh Market Stalls (55%)

0%

Hi Lo Supermarkets Fresh; Juice (12) (<0.5%)

Planting Material Supplier

90%

100%

45%

17%

Jamaica

Jamaica

Canada

Jamaica

C SUPPLY CHAIN

HAI

N

Jamaica a

JAM/UK/CDA/US


CHAIN OPERATORS


DO

ME

ST

IC

CO

NS

UM

ER

S

Buying/ Collecting

Agents (3,900mt/

yr)

TRANSPORT

EX

PO

RT

US

/UK

/CA

N

CO

NS

UM

ER

S

Fresh 80%

Processed 20%

81

Documents

CARICOM/CARIFORUM FRESH AND PROCESSED PRODUCE …