Required Report - Public distribution

**Date:** 3/9/2007

**GAIN Report Number:** C17001

C17001

**Caribbean Basin**

**HRI Food Service Sector**

**Eastern Caribbean Region Report**

**2007**

**Approved by:**

![](media/image1.wmf)Omar Gonzalez, Acting Director

Caribbean Basin ATO

**Prepared by:**

Kay Logan, Agricultural Marketing Assistant

**Report Highlights:**

This report is intended to aid U.S. exporters of food and beverage
products in profitably entering the hotel, restaurant, and institutional
(HRI) food service sector of the eastern Caribbean. This report
summarizes important market developments, presents a road map for market
entry, describes the overall competitive situation facing U.S.
suppliers, and highlights the best product prospects for this region\'s
food service market.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Miami ATO \[C11\]

\[C1\]

## SECTION I. MARKET SUMMARY

*For purposes of this report, the eastern Caribbean region refers to the
following island markets: Anguilla, Antigua and Barbuda, Barbados, The
British Virgin Islands (BVI), Dominica, Grenada, Montserrat, St. Kitts
and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and
Tobago.*

The economic mainstays of the eastern Caribbean region are tourism,
petroleum refining, offshore banking, and export-oriented manufacturing.
In 2006, Gross Domestic Product (GDP) Purchasing Power Parity (PPP) in
the eastern Caribbean ranged from \$29 million, in Montserrat, to
\$20.99 billion, in Trinidad and Tobago. GDP real growth rates for these
islands ranges from --1%, in Montserrat, to 10.2%, in Anguilla. Many of
the eastern Caribbean islands, such as St. Vincent and the Grenadines,
Dominica, St. Lucia, Grenada, and Montserrat, are small developing
nations with limited income levels ranging from \$2,900 to \$5,500. On
the other hand, countries such as the BVI, Trinidad and Tobago, and
Barbados possess some of the strongest economies in the entire Caribbean
region and enjoy some of the largest per capita incomes (PPP) (\$38,500,
\$19,700, and \$18,200 respectively).

To a large extent, tourism is the backbone of the economies of the
eastern Caribbean. In some of the islands, such as Antigua and Barbuda
and the BVI, tourism accounts for approximately half of the national
GDP. In 2006, more than 2.4 million (stay-over) tourists visited the
eastern Caribbean region, and tourist arrivals are expected to increase
by 2.5 to 3.5% annually over the next several years.

Overall, agriculture accounts for a very small percentage of the
national GDP's in the eastern Caribbean islands. While this region has a
total land area of 8,712.6 square kilometers, less than 15% of this land
is arable and even a smaller percentage is utilized. The agricultural
sector's contribution to GDP ranges from 0.7%, in Trinidad and Tobago,
to 18%, in Dominica. In most of the islands, agriculture's contribution
to GDP is between 1 to 5%. Dominica, St. Vincent and the Grenadines,
Grenada, and St. Lucia are involved in the production of agricultural
products such as bananas and other tropical fruits, vegetables, spices,
root crops, cocoa, coffee, aloe vera, and cut flowers; however, their
production of these products are highly vulnerable to weather conditions
and to global events affecting commodity prices.

With regards to food processing in the eastern Caribbean, micro-sized
and small-scale processors of pepper sauces, jams, jellies, fruit
nectars, rum, and other alcoholic-beverages are prevalent throughout the
entire region. However, almost all of the medium to large-scale food
processors are located on the islands of Trinidad and Barbados. These
include manufacturers of processed meat and fish, pasta products, bakery
products, confectionary products, dairy products, fruits and vegetables,
packaged and convenience foods, wheat flour, and edible oils and fats.

Due to an inconsistent and insufficient supply of local agricultural
products, as well as a limited supply of processed foods, the islands of
the eastern Caribbean rely on the importation of the majority of their
foodstuffs. According to Euromonitor International, the eastern
Caribbean's agricultural imports in 2005 (including food, live animals,
beverages, and tobacco) were valued at \$995 million, a 16% increase
from 2004. Of the total amount of food products imported into the
eastern Caribbean, approximately 30 to 40% is directed toward the hotel,
restaurant, and institutional (HRI) sector, while the remaining 60 to
70% is channeled toward the retail sector.

![](media/image2.wmf)

\*Includes imports of food, live animals, beverages, and tobacco

> Source: Euromonitor International

![](media/image3.wmf)

The HRI sector is a vibrant area of commerce in the eastern Caribbean
region, driven by a growing economy. Due to the increase of disposable
incomes in the region, and more women entering the workforce, nationals
are visiting consumer foodservice outlets more frequently. In addition,
growth in the offshore financial services sector, as well as the
offshore higher education sector, stimulates this area of commerce. It
is important to note that the eastern Caribbean islands are home to many
offshore financial centers, as well as offshore higher education
institutions, and expatriates account for a notable percentage of
transactions in the food service sector. Yet, tourism continues to be
the principal contributor to the development of the eastern Caribbean's
HRI sector. In 2006, an estimated 2.4 million (stay-over) tourists
visited the eastern Caribbean region, an approximate 2.6% percent
increase from 2005. European tourists accounted for the largest
percentage of visitors with an estimated 32% market share, followed
closely by the United States with a 31% market share. In 2005, total
tourist expenditures were estimated at \$2.7 billion dollars, a 6%
increase from the previous year.

![](media/image4.wmf)

\*Estimate

Source: Caribbean Tourism Organization

![](media/image5.wmf)

\*Estimate

Source: Caribbean Tourism Organization & World Tourism Organization

![](media/image6.wmf)

Source: Caribbean Tourism Organization

The hotel sub-sector makes up roughly 65% of the total HRI market,
followed by the restaurant sub-sector at 33%, and the institutional
sub-sector at 2%. There are approximately 1,184 tourist accommodation
establishments, including 348 hotels, in the eastern Caribbean.
Additionally, there are numerous restaurants located throughout the
islands of the eastern Caribbean. While there is no data available on
the value and growth of the individual HRI subs-sectors, according to
Euromonitor International, the eastern Caribbean's total consumer food
service sector was valued at \$727.5 million dollars in 2005, a 12%
growth from 2004. Independent foodservice establishments contributed
approximately 85% of the total value of sales, while chained
establishments contributed around 15%.

![](media/image7.wmf)

> \*Consumer foodservice includes cafés/bars, full-service restaurants,
>
> fast food, home delivery/takeaway, cafeterias, and street
> stalls/kiosks.
>
> Source: Euromonitor International

Trinidad and Tobago's food service sector accounted for the largest
percentage of food service sales in the eastern Caribbean, with a 62%
market share, followed by Barbados' sector, with a 15% market share.
Together, the food service sectors in the BVI, St. Lucia, St. Vincent
and the Grenadines, and Antigua and Barbuda accounted for approximately
17% of the total food service sales in the eastern Caribbean, while the
islands of Grenada, Dominica, St. Kitts and Nevis, Anguilla, and
Montserrat were responsible for the remaining 6%.

![](media/image8.wmf)

Source: Euromonitor International

+-----------------------------------+-----------------------------------+
| **Overview of the Market          |                                   |
| Advantages and Challenges         |                                   |
| Facing**                          |                                   |
|                                   |                                   |
| **U.S. Exporters in the Eastern   |                                   |
| Caribbean**                       |                                   |
+-----------------------------------+-----------------------------------+
| **Market Advantages**             | **Market Challenges**             |
+-----------------------------------+-----------------------------------+
| With a small amount of arable     | The islands of the eastern        |
| land and limited food production, | Caribbean are members of the      |
| the eastern Caribbean must import | Caribbean Community and Common    |
| the majority of its food needs.   | Market (CARICOM) trade agreement. |
|                                   | CARICOM offers the free movement  |
|                                   | of goods through all of its       |
|                                   | member states.                    |
+-----------------------------------+-----------------------------------+
| Over 2 million stay-over tourists | In most eastern Caribbean         |
| visit the eastern Caribbean       | islands, the volume of food       |
| annually, fueling an additional   | imports varies significantly      |
| demand for food products in the   | between high and low tourist      |
| food service sector.              | seasons.                          |
+-----------------------------------+-----------------------------------+
| Geographic proximity and ease of  | While the population of each      |
| shipping gives the United States  | island is relatively small,       |
| a competitive advantage.          | import orders tend to be small    |
|                                   | and favor mixed rather than full  |
|                                   | container loads.                  |
+-----------------------------------+-----------------------------------+
| Exposure to U.S. media, as well   | Many Chefs working in the Eastern |
| as close language, cultural, and  | Caribbean are European trained,   |
| commercial ties with the United   | and therefore have a strong       |
| States, contribute to the strong  | preference for European products. |
| consumer appeal for U.S. products | Additionally, in some instances   |
| in the eastern Caribbean.         | there are cheaper shipping rates  |
|                                   | from Europe than from the United  |
|                                   | States.                           |
+-----------------------------------+-----------------------------------+

## SECTION II: ROAD MAP FOR MARKET ENTRY

**A. ENTRY STRATEGY**

In general, wholesalers/distributors in the eastern Caribbean maintain
the bargaining power in the market and serve as the principal
intermediaries between suppliers and buyers. Therefore, U.S. suppliers
wishing to enter the HRI food service market in the eastern Caribbean
should start by contacting local wholesalers/distributors. Local
wholesalers/distributors have a wide access to the food and beverage
markets, possess relatively large warehouse facilities, and carry a
large inventory of products.

In the case of the large-scale hotels and resorts, imported products
represent approximately 90 to 95% of their total food and beverage
purchases, and in many cases, a very large percentage of these purchases
are made through the direct importation from foreign suppliers. However,
a significant share of products is also purchased through local
wholesalers/distributors. Therefore, it is recommended that U.S.
suppliers contact the food and beverage directors of these
establishments directly to ascertain purchasing channels.

U.S. food products represent the majority of the foreign products
imported by local wholesalers/distributors. Local
wholesalers/distributors hold U.S. products in high regard with respect
to quality and packaging and enjoy trading with U.S. exporters because
of the reliability of service.

**B. MARKET STRUCTURE**

HRI establishments in the eastern Caribbean buy approximately 70% of
their food and beverage products from local wholesalers/distributors
(imported products), while local farmers and processors supply 15% of
their food and beverage needs, 10% is obtained from local retail
outlets, and the remaining 5% of their needs are imported directly from
U.S. suppliers.

Local wholesalers/distributors typically import, wholesale, and
distribute their product to the various HRI outlets in the eastern
Caribbean islands. In addition, it is quite common for the
wholesalers/distributors to sell their product in their own retail
outlets. In many of the smaller eastern Caribbean islands, local
wholesalers/distributors have a circulating fleet of 'cash vans' that
sell to the food service establishments. It is important to note that
while the wholesalers/distributors in the larger markets such as
Trinidad and Tobago and Barbados typically import a full range of
products, the majority of the wholesalers/distributors in the smaller
islands of the eastern Caribbean focus on dry goods, while importing
only a small quantity of fresh and frozen products (there are
specialized importers within the majority of the smaller eastern
Caribbean islands, which focus specifically on fresh and frozen
products.)

In addition to the large-scale hotels and resorts, which import products
directly from U.S. suppliers, some of the larger independent restaurants
buy select food and beverage products directly from Miami-based
wholesalers (who also consolidate for the Caribbean importers).
Moreover, many of the larger independent restaurants in countries such
as St. Kitts, Anguilla, and Antigua and Barbuda, buy from
importers/wholesalers in St. Maarten and Puerto Rico, and in the case of
the BVI, from St. Thomas in the U.S. Virgin Islands. The geographic
proximity of these Caribbean islands to the smaller eastern Caribbean
islands, in addition to the duty-free status of St. Maarten, makes them
prime distribution hubs for food products originating from the United
States and elsewhere around the world. The following distribution
channel flow diagram illustrates how products are generally passed from
the U.S. exporter to the various food service sub-markets in the eastern
Caribbean:

####### 

### C. SUB-SECTOR PROFILES 

1.  **Hotels**

Accommodations in the eastern Caribbean include all-inclusive resorts,
luxury hotels, affordable family hotels, self-catering apartments and
villas, and intimate bed and breakfasts, guest houses, and plantation
inns. Overall, the eastern Caribbean boasts over 1,184 accommodation
establishments and nearly 27,000 rooms. Together, the countries of
Trinidad and Tobago, the BVI, St. Lucia, and Barbados possess
approximately 63% of the total number of tourist accommodation
establishments in the eastern Caribbean.

Within the last couple of years, new hotels have been constructed and
existing ones have been renovated and expanded, in preparation for the
2007 Cricket World Cup. This event, which is scheduled to take place in
the months of March and April in 9 separate venues throughout the
Caribbean, promises to bring an influx of more than 100,000
extra-regional visitors to the eastern Caribbean.

+------------------+---------+------------+--------+--------+--------+
| **Tourist        |         |            |        |        |        |
| Accommodation    |         |            |        |        |        |
| Establishments   |         |            |        |        |        |
| in**             |         |            |        |        |        |
|                  |         |            |        |        |        |
| **the Eastern    |         |            |        |        |        |
| Caribbean by     |         |            |        |        |        |
| Category: Units  |         |            |        |        |        |
| 2004**           |         |            |        |        |        |
+------------------+---------+------------+--------+--------+--------+
| ###              | **H     | **Ap       | *      | **O    | **T    |
| #### Destination | otels** | artments** | *Guest | ther** | otal** |
|                  |         |            | Ho     |        |        |
|                  |         |            | uses** |        |        |
+------------------+---------+------------+--------+--------+--------+
| **Anguilla**     | 8       | 34         | 8      | \-     | 50     |
+------------------+---------+------------+--------+--------+--------+
| **Antigua and    | 39      | 18         | 2      | \-     | 59     |
| Barbuda**        |         |            |        |        |        |
+------------------+---------+------------+--------+--------+--------+
| **Barbados**     | 40      | 47         | 28     | 33     | 148    |
+------------------+---------+------------+--------+--------+--------+
| **British Virgin | 47      | \-         | 124    | \-     | 171    |
| Islands**        |         |            |        |        |        |
+------------------+---------+------------+--------+--------+--------+
| **Dominica**     | 19      | 25         | 27     | \-     | 71     |
+------------------+---------+------------+--------+--------+--------+
| **Grenada**      | 25      | 26         | 25     | \-     | 76     |
+------------------+---------+------------+--------+--------+--------+
| **Montserrat**   | 2       | 11         | 6      | 8      | 27     |
+------------------+---------+------------+--------+--------+--------+
| **St. Kitts and  | 30      | \-         | 34     | \-     | 64     |
| Nevis**          |         |            |        |        |        |
+------------------+---------+------------+--------+--------+--------+
| **St. Lucia**    | 37      | 79         | 44     | \-     | 160    |
+------------------+---------+------------+--------+--------+--------+
| **St. Vincent    | 42      | 33         | 14     | 2      | 91     |
| and the          |         |            |        |        |        |
| Grenadines**     |         |            |        |        |        |
+------------------+---------+------------+--------+--------+--------+
| **Trinidad and   | 59      | 58         | 150    | \-     | 267    |
| Tobago**         |         |            |        |        |        |
+------------------+---------+------------+--------+--------+--------+
| **Total**        | 348     | 331        | 462    | 43     | 1,184  |
+------------------+---------+------------+--------+--------+--------+

Source: Caribbean Tourism Organization

+--------------+--------------+-------------+------------+-----------+
| **Rooms in   |              |             |            |           |
| Tourist      |              |             |            |           |
| Ac           |              |             |            |           |
| commodations |              |             |            |           |
| in**         |              |             |            |           |
|              |              |             |            |           |
| **the        |              |             |            |           |
| Eastern      |              |             |            |           |
| Caribbean:   |              |             |            |           |
| Units        |              |             |            |           |
| 2000-2004**  |              |             |            |           |
+--------------+--------------+-------------+------------+-----------+
| **2000**     | **2001**     | **2002**    | **2003**   | **2004**  |
+--------------+--------------+-------------+------------+-----------+
| 27,908       | 28,571       | 27,050      | 27,533     | 26,967    |
+--------------+--------------+-------------+------------+-----------+

Source: Caribbean Tourism Organization

Most accommodation establishments in the eastern Caribbean have at least
one restaurant on property, typically a fine dining restaurant, a casual
beach grill, and/or a family style breakfast or lunch eatery. It is not
unusual for the large-scale hotels and resorts to have as many as eight
restaurants on their properties, in addition to a number of lounges and
full catering and banquet services. In general, large-scale hotels and
resorts possess their own warehouses and typically import and receive
weekly shipments of food and beverage products from Florida-based
suppliers. However, these establishments also rely on local
wholesalers/distributors for some of their food and beverage needs. U.S.
products represent the majority of the total food and beverage purchases
made by the large-scale hotels and resorts. For example, U.S. products
represent 90 to 95% of the total food and beverage purchases made by the
Marriott Resort and the Royal Beach Casino located in St. Kitts, one of
the largest hotels in the eastern Caribbean.

The majority of the other accommodation establishments, including small
hotels, plantation inns, guest houses, and bed and breakfasts, purchase
a substantial amount of their food and beverage needs from local
farmers, and to some extent from local processors. However, when they do
use products from foreign suppliers, they typically rely on local
wholesalers and retail outlets for their purchases. The smaller
accommodation establishments find it difficult to work directly with
international suppliers for a variety of reasons, including the lack of
buying power and limited storage space. U.S. products represent between
40 to 60% of the total food and beverage purchases made by small hotels,
plantation inns, guesthouses, and bed and breakfasts.

(Note: While this report is regional in scope, it is impractical to
include a complete listing of, and company profiles for hotels in these
11 eastern Caribbean markets. Please see Section V for more information
on how to obtain contact information for hotels in the eastern
Caribbean.)

1.  **Restaurants**

According to Euromonitor International, in 2005, full-service
restaurants accounted for the largest percentage of consumer food
service sales in the eastern Caribbean with 74% of the market, followed
by fast food restaurants with 10%, cafes and bars with 9%, street
stalls/kiosks with 4%, and home delivery/takeaway with 3% of the market.
In 2005, the total value of full-service restaurants in the eastern
Caribbean was \$539.9 million dollars. Independently-run consumer food
service establishments account for the bulk of outlets and food service
sales in the eastern Caribbean. Chained food service establishments
dominate only in fast food and delivery/takeaway sub-sectors.

![](media/image9.wmf)

Source: Euromonitor International

[]{.mark}

In 2005, European full-service restaurants accounted for the largest
percentage of the market with a 24% share, followed by pizzerias with
13%, Caribbean/Latin American restaurants with 11%, and casual dining
restaurants with 7% of the market.

![](media/image10.wmf)

Source: Euromonitor International

The eastern Caribbean has a relatively large number of independent
restaurants. These restaurants, located outside of guest accommodations,
cater to both the local and tourist populations. All types of cuisines
are available in these restaurants. Within the fine dining
establishments most chefs are international, while in the casual
eateries chefs tend to be local. The majority of the independent
restaurants in the eastern Caribbean use local seafood, fruits,
vegetables, baked goods, and beverages when these products are readily
available. They also turn to local wholesalers/distributors and
retailers for some of their food and beverage purchases, as they do not
have enough purchasing power to buy imported goods directly from foreign
suppliers. U.S. products represent between 40 to 60% of the total food
and beverage purchases made by the independent restaurants in the
Eastern Caribbean.

Chained food service outlets present in the eastern Caribbean market
include full-service restaurants such as Ruby Tuesday's Tony Roma's, and
T.G.I. Friday's, and fast food chains such as Kentucky Fried Chicken,
Pizza Hut, and Subway. These outlets may import directly from
pre-established distribution companies in the United States, but they
also obtain a portion of their food needs from local
wholesalers/distributors.

(Note: While this report is regional in scope, it is impractical to
include a complete listing of, and company profiles for restaurants in
these 11 eastern Caribbean markets. Please see Section V for more
information on how to obtain contact information for hotels in the
eastern Caribbean.)

2.  **Institutions**

The institutional food service sub-sector accounts for less than 2% of
the total HRI food service sector in the eastern Caribbean. This
sub-sector includes the distribution of food and beverages to
institutions such as hospitals, schools, and prisons. The governments of
the respective eastern Caribbean islands are usually in charge of
awarding contracts for the food purchases made by these intuitions.
Generally speaking, local farmers and food processors supply this
sub-sector with most of its food and beverage needs as items can be
purchased less expensively and at lower quantities. To a lesser extent,
these institutions are supplied by local wholesalers/distributors within
the private sector who also act as importers.

In addition, this sub-sector includes institutional catering. While the
eastern Caribbean islands constitute some of the most popular yachting
destinations in the entire world, yacht provisioning is an attractive
market niche worth noting. It is estimated that food and beverage
purchases constitute approximately 15 to 20% of the total yacht
expenditures in the eastern Caribbean. The yacht community of the
eastern Caribbean, representing people from all over the globe
(approximately 40 to 50% U.S.), usually obtain their food provisions
from a supplier specializing in yacht provisioning and tend to prefer
imported brand name products. Many retailers in Antigua, Tortola (BVI),
and some of the other islands cater specifically to the yacht industry.

In addition, as Trinidad and Tobago is the largest producer of petroleum
products in the Caribbean region, catering for both land based and
offshore oil and natural gas operations demand a steady supply of a
variety of food products. Local catering businesses in Trinidad provide
a full range of services, which include buying food products and cooking
and preparing meals for the nationals and expatriates (usually of U.S.
or British origin) working on oil and natural gas operations. While the
majority of the catering companies purchase their products from local
importers, some of the larger companies have begun importing food and
beverage products directly from U.S. suppliers.

## SECTION III: COMPETITION

![](media/image11.wmf)

\* Note: This is the most complete, current data for the eastern
Caribbean

Source: FAS/ Global Agricultural Trade System using data from the

United Nations Statistical Office.

According to 2003 statistical data compiled by the United Nations (UN),
the United States is the region's main trading partner in terms of food
and agricultural products with an approximate 40% market share. In 2006,
the United States exported approximately \$304 million worth of food,
agricultural, and seafood products to the eastern Caribbean. Of this
amount, consumer-oriented agricultural products comprised roughly 52%,
bulk products comprised 27%, intermediate agricultural products
comprised 19%, and seafood products comprised 2%. U.S. trade statistics
illustrate that in 2006 the United States exported approximately \$160.3
million of consumer-oriented agricultural products and \$6.6 million
worth of edible fish and seafood products to the eastern Caribbean, a 9%
increase from the previous year, and a 47% increase from 2001.

![](media/image12.wmf)

Source: Department of Commerce, U.S. Census Bureau, Foreign Trade
Statistics

![](media/image13.wmf)

Source: Department of Commerce, U.S. Census Bureau, Foreign Trade
Statistics

With regards to consumer-oriented food products, U.S. products face
competition from local food processors, particularly those in Trinidad
and Tobago and Barbados, as well as those within other Caribbean nations
such as Jamaica. The governments of the eastern Caribbean typically
impose high tariffs on selected extra-regional agricultural and food
product imports which may be produced locally or regionally within the
Caribbean. As the eastern Caribbean islands are CARICOM member-states,
many of the local wholesalers import fresh fruits, ice cream, jams,
jellies, sauces, condiments, juices, snack foods, beverages, and fish
products from CARICOM countries since they are duty-free.

U.S. products also face competition from other foreign suppliers in
various product areas. Given the eastern Caribbean's historical ties,
and strong cultural, political, and economic similarities with the
United Kingdom, it is not surprising that products and brands from the
United Kingdom comprise approximately 7% of the food market.
Additionally, due to Canada's geographic proximity, Canadian products
have a strong presence in many eastern Caribbean island markets with
approximately a 7% market share.

+------------+--------+---------------+---------------+---------------+
| **Overview |        |               |               |               |
| of the     |        |               |               |               |
| C          |        |               |               |               |
| ompetitive |        |               |               |               |
| Situation  |        |               |               |               |
| Facing     |        |               |               |               |
| U.S.       |        |               |               |               |
| Products** |        |               |               |               |
|            |        |               |               |               |
| **in the   |        |               |               |               |
| Eastern    |        |               |               |               |
| Caribbean  |        |               |               |               |
| HRI        |        |               |               |               |
| Market**   |        |               |               |               |
+------------+--------+---------------+---------------+---------------+
| **Product  | **     | **Major       | **Strengths   | **Advantages  |
| Category** | Import | Supply        | of Major      | and           |
|            | V      | Sources and   | Supply        | Disadvantages |
|            | alue** | 2003\* Market | Sources**     | of Local      |
|            |        | Share         |               | Suppliers**   |
|            | **20   | Percentage**  |               |               |
|            | 03\*** |               |               |               |
|            |        |               |               |               |
|            | **(U   |               |               |               |
|            | S\$)** |               |               |               |
+------------+--------+---------------+---------------+---------------+
| Meat       | \$76.5 | 1\. United    | 1\. & 2.      | Limited       |
| Products   | m      | States - 45%  | Quality,      | supply of     |
|            | illion |               | value in      | local and     |
|            |        | 2\. Canada -  | terms of red  | regional      |
|            |        | 15%           | meats.        | sources.      |
|            |        |               |               |               |
|            |        | 3\. New       | 3\. Quality   | Poultry       |
|            |        | Zealand - 14% | in terms of   | suppliers     |
|            |        |               | lamb.         | exist in      |
|            |        |               |               | Barbados and  |
|            |        |               |               | Trinidad and  |
|            |        |               |               | Tobago.       |
+------------+--------+---------------+---------------+---------------+
| Fish and   | \$27   | 1\. Canada -  | 1\. Variety   | Supply        |
| Seafood    | m      | 26%           |               | limited to    |
| Products   | illion |               | 2\. Variety   | local catch.  |
|            |        | 2\. United    |               |               |
|            |        | States - 19%  |               |               |
|            |        |               |               |               |
|            |        | 3\. Norway -  |               |               |
|            |        | 8%            |               |               |
|            |        |               |               |               |
|            |        | (Trinidad and |               |               |
|            |        | Tobago also   |               |               |
|            |        | has           |               |               |
|            |        | approximately |               |               |
|            |        | an 8% market  |               |               |
|            |        | share).       |               |               |
+------------+--------+---------------+---------------+---------------+
| Processed  | \$28.5 | 1\. United    | 1\. & 2.      | Limited       |
| Meat,      | m      | States - 34%  | Quality,      | supply of     |
| Fish, and  | illion |               | variety,      | local and     |
| Seafood    |        | 2\. Canada -  | price         | regional      |
| Products   |        | 18%           |               | sources.      |
|            |        |               |               |               |
|            |        | 3\. Brazil -  |               |               |
|            |        | 11%           |               |               |
+------------+--------+---------------+---------------+---------------+
| Dairy      | \$91   | 1\. United    | 1\. Quality,  | Limited       |
| Products   | m      | States - 20%  | variety       | supply and    |
|            | illion |               |               | variety in    |
|            |        | 2\. New       | 2\. Quality,  | many islands. |
|            |        | Zealand - 18% | price         | However,      |
|            |        |               |               | Barbados has  |
|            |        | 3\. Ireland - |               | a strong      |
|            |        | 13%           |               | dairy sector, |
|            |        |               |               | in relative   |
|            |        |               |               | terms.        |
+------------+--------+---------------+---------------+---------------+
| Fresh      | \$44   | 1\. United    | 1\. Quality,  | Limited,      |
| Vegetables | m      | States - 38%  | variety,      | seasonal      |
|            | illion |               | price         | supply.       |
|            |        | 2\.           |               | Quality is    |
|            |        | Netherlands - |               | not always    |
|            |        | 24%           |               | sufficient to |
|            |        |               |               | meet HRI      |
|            |        | 3\. Canada -  |               | sector        |
|            |        | 20%           |               | standards.    |
+------------+--------+---------------+---------------+---------------+
| Fresh      | \$25   | 1\. United    | 1\. Quality,  | Local supply  |
| Fruit and  | m      | States - 58%  | variety,      | limited to    |
| Tree Nuts  | illion |               | price         | tropical      |
|            |        | 2\. St.       |               | fruits.       |
|            |        | Vincent and   |               |               |
|            |        | the           |               |               |
|            |        | Grenadines -  |               |               |
|            |        | 8%            |               |               |
|            |        |               |               |               |
|            |        | 3\.           |               |               |
|            |        | Dominica - 3% |               |               |
+------------+--------+---------------+---------------+---------------+
| Processed  | \$56   | 1\. United    | 1\. & 2.      | Limited       |
| Vegetable, | m      | States - 36%  | Quality,      | supply of     |
| Fruit, and | illion |               | variety,      | local and     |
| Tree Nut   |        | 2\. Canada -  | price         | regional      |
| Products   |        | 14%           |               | sources.      |
|            |        |               |               | However, many |
|            |        | 3\. Belize -  |               | local         |
|            |        | 10%           |               | products      |
|            |        |               |               | cater to      |
|            |        | (Trinidad and |               | regional      |
|            |        | Tobago has a  |               | taste         |
|            |        | 9% share)     |               | preferences   |
|            |        |               |               | (i.e. hot     |
|            |        |               |               | sauces, etc.) |
+------------+--------+---------------+---------------+---------------+
| Processed  | \$62   | 1\. United    | 1\. Quality,  | Supply is     |
| Cereal,    | m      | States - 35%  | variety,      | somewhat      |
| Flour,     | illion |               | price         | limited in    |
| Starch and |        | 2\. Trinidad  |               | several       |
| Milk       |        | and Tobago -  | 2\. & 3.      | islands.      |
| Products   |        | 23%           | Price,        |               |
|            |        |               | proximity     |               |
|            |        | 3\. Jamaica - |               |               |
|            |        | 6%            |               |               |
+------------+--------+---------------+---------------+---------------+
| Other      | \$71.5 | 1\. United    | 1\. Quality,  | Limited local |
| Processed  | m      | States - 51%  | variety,      | and regional  |
| Foods      | illion |               | price         | supply        |
|            |        | 2\. Costa     |               |               |
|            |        | Rica - 8%     |               |               |
|            |        |               |               |               |
|            |        | 3\. Trinidad  |               |               |
|            |        | and Tobago -  |               |               |
|            |        | 7%            |               |               |
+------------+--------+---------------+---------------+---------------+
| Non        | \$99   | 1\. United    | 1., 2., & 3.  | Limited local |
| -Alcoholic | m      | States - 15%  | Quality,      | and regional  |
| and        | illion |               | variety,      | supply        |
| Alcoholic  |        | 2\. Trinidad  | price         |               |
| Beverages  |        | and Tobago -  |               |               |
|            |        | 14%           |               |               |
|            |        |               |               |               |
|            |        | 3\. United    |               |               |
|            |        | Kingdom -13%  |               |               |
+------------+--------+---------------+---------------+---------------+
| Coffee,    | \$8.5  | 1\. United    | 1\. Quality,  | Limited local |
| Tea, and   | m      | States - 19%  | variety,      | and regional  |
| Spices     | illion |               | price         | supply        |
|            |        | 2\. Canada -  |               |               |
|            |        | 7%            |               |               |
|            |        |               |               |               |
|            |        | 3\. India -   |               |               |
|            |        | 7%            |               |               |
+------------+--------+---------------+---------------+---------------+
| Sugars and | \$47   | 1\. Guyana -  | 1\. Price     | Limited local |
| Sugar      | m      | 41%           |               | and regional  |
| Con        | illion |               |               | supply        |
| fectionery |        | 2\. United    |               |               |
|            |        | Kingdom -16%  |               |               |
|            |        |               |               |               |
|            |        | 3\. United    |               |               |
|            |        | States - 15%  |               |               |
+------------+--------+---------------+---------------+---------------+

\* Note: This is the most complete, up-to-date data for the eastern
Caribbean

Source: FAS\' Global Agricultural Trade System using data from the
United Nations Statistical Office

## SECTION IV: BEST PRODUCT PROSPECTS

As a whole, U.S. products stand to gain ground as tourism fuels the
overall demand for food and beverage products in the region.

+-------------+-----------+----------------+-------------------------+
| **Best      |           |                |                         |
| Product     |           |                |                         |
| Prospects   |           |                |                         |
| for the     |           |                |                         |
| Eastern     |           |                |                         |
| Caribbean   |           |                |                         |
| HRI         |           |                |                         |
| Market**    |           |                |                         |
+-------------+-----------+----------------+-------------------------+
| **Product   | **Export  | **5-Yr. Avg.   | **Key Constraints Over  |
| Category**  | Value**   | Annual Export  | Market Development**    |
|             |           | Growth**       |                         |
|             | **2006**  |                |                         |
|             |           |                |                         |
|             | **(US\$   |                |                         |
|             | tho       |                |                         |
|             | usands)** |                |                         |
+-------------+-----------+----------------+-------------------------+
| Snack Foods | 15,726    | 66%            | n/a                     |
+-------------+-----------+----------------+-------------------------+
| Red Meats   | 15,164    | 181%           | Some Bovine Spongiform  |
| (fresh,     |           |                | Encephalopathy (BSE)    |
| chilled,    |           |                | related restrictions in |
| and frozen) |           |                | selected markets.       |
+-------------+-----------+----------------+-------------------------+
| Fruit and   | 8,006     | 50%            | n/a                     |
| Vegetable   |           |                |                         |
| Juices      |           |                |                         |
+-------------+-----------+----------------+-------------------------+
| Dairy       | 14,241    | 144%           | High duties in select   |
| Products    |           |                | markets for cheese, ice |
|             |           |                | cream, etc.             |
+-------------+-----------+----------------+-------------------------+
| Fresh       | 10,896    | 45%            | Seasonal import         |
| Vegetables  |           |                | restrictions in select  |
|             |           |                | islands due to local    |
|             |           |                | production.             |
+-------------+-----------+----------------+-------------------------+
| Processed   | 8,042     | 12%            | n/a                     |
| Fruits and  |           |                |                         |
| Vegetables  |           |                |                         |
+-------------+-----------+----------------+-------------------------+
| Fresh Fruit | 9,631     | 40%            | n/a                     |
+-------------+-----------+----------------+-------------------------+
| Eggs and    | 7,981     | 29%            | n/a                     |
| Egg         |           |                |                         |
| Products    |           |                |                         |
+-------------+-----------+----------------+-------------------------+
| Wine and    | 5,337     | 127%           | n/a                     |
| Beer        |           |                |                         |
+-------------+-----------+----------------+-------------------------+
| Breakfast   | 4,464     | 39%            | Some local competition  |
| Cereals     |           |                |                         |
+-------------+-----------+----------------+-------------------------+
| Red Meats   | 2,609     | 15%            | Some Bovine Spongiform  |
| (processed  |           |                | Encephalopathy (BSE)    |
| and         |           |                | related restrictions in |
| preserved)  |           |                | selected markets.       |
+-------------+-----------+----------------+-------------------------+
| Tree Nuts   | 2,317     | 311%           | n/a                     |
+-------------+-----------+----------------+-------------------------+
| Other       | 25,154    | 41%            | n/a                     |
| Consumer    |           |                |                         |
| Oriented    |           |                |                         |
| Products    |           |                |                         |
+-------------+-----------+----------------+-------------------------+

Source: Department of Commerce, U.S. Census Bureau, Foreign Trade
Statistics

##  

## SECTION V. CONTACT INFORMATION

###### 

**A. For more information on the HRI sectors in the islands of the
eastern Caribbean, and for a list of importers for your U.S. product,
please contact:**

**Caribbean Basin Agricultural Trade Office**

**Foreign Agricultural Service**

**United States Department of Agriculture**

909 SE 1^st^ Ave., Suite 720

Miami, FL 33131

Phone: (305) 536-5300

Fax: (305) 536-7577

E-mail: cbato@cbato.net

Website: www.cbato.fas.usda.gov

Omar González, Acting Director

E-mail: omar@cbato.net

Graciella Juelle, Marketing Assistant

E-mail: grace@cbato.net

Kay Logan, Marketing Intern

E-mail: kay@cbato.net

Please visit our website (www.cbato.fas.usda.gov) to view selected
reports on the islands of the eastern Caribbean and other islands within
the Caribbean.

**B. For other sources of information on the HRI sectors in the islands
of the eastern Caribbean, you may contact:**

Anguilla Hotel & Tourism Association

Tel: (264) 497-2944

Fax: (264) 497-3091

E-mail: ahta@anguillanet.com

Website: www.ahta.ai

Antigua Hotels & Tourist Association

Tel: (268) 462-0374 / 462-3703

Fax: (268) 462-3702

E-mail: ahta@candw.ag

Website: www.antiguahotels.org

Barbados Hotel & Tourism Association

Tel: (246) 426-5041

Fax: (246) 429-2845

E-mail: info@bhta.org

Website: www.bhta.org

BVI Chamber of Commerce & Hotel Association

Tel: (284) 494-3514

E-mail: bviccha@surfbvi.com

Website: bvivacations.com

Dominica Hotel & Tourism Association

Tel: (767) 440-3430

Fax: (767) 440-3433

E-mail: dhta@cwdom.dm

Website: www.dhta.org

Grenada Hotel Association

Tel: (473) 444-1353

Fax: (473) 444-4847

E-mail: grenhota@caribsurf.com

Website: www.grenadahotelsinfo.com

Montserrat Tourism Association

Tel: (664) 491-2230/8730

Fax: (664) 491-7430

E-mail: vuepointe@candw.ag

Website: www.visitmontserrat.com

St. Kitts & Nevis Hotel & Tourism Association

Tel: (869) 465-5304

Fax: (869) 465-7746

E-mail: stkitnevhta@caribsurf.com

Website: www.stkittstourism.kn

St. Lucia Hotel & Tourism Association

E-mail: slhta@candw.lc

Website: www.stluciatravel.com

St. Vincent & The Grenadines Hotel & Tourism Association

E-mail: office@svghotels.com

Website: www.svghotels.net

Trinidad & Tobago Hotel, Restaurant & Tourism Association

Tel: (868) 634-1174/75

Fax: (868) 634-1176

E-mail: info@tnthotels.com (Trinidad Chapter) tthtatob@tstt.net.tt
(Tobago Chapter)

Website: www.tnthotels.com