**10.0 Conclusion**

Major findings from investigations of six major markets for US products
are provided below, together with recommendations for pursuing
opportunities in the Caribbean.

**10.1 Summary of Findings**

The Caribbean market for US processed / value-added meats is a healthy
one. The value of US processed meat exports to the Caribbean have
increased significantly in recent years, from US\$8.5 million in 1996 to
US\$13.0 million in 2000. Opportunities continue to grow in many markets
for certain value-added products, while demand for most traditional
items remain strong.

**10.1a Major Markets**

Markets with major consumption and imports of US processed meats include
the Bahamas, the Dominican Republic, the Netherlands Antilles, Aruba,
Trinidad, and Jamaica. The Bahamas and the Dominican Republic both
showed import growth through 2000, the latest year for which statistics
were available. However, distributors note Dominican imports declined
significantly in 2001 due to the imposition of trade barriers. Despite
significant consumer demand, Jamaican imports actually decreased over
the period, a result of poor economic growth and government-imposed
measures aimed at protecting local livestock producers.

Trade barriers continue to hinder exports to the region, albeit in
varying degrees depending on the country. The Netherlands Antilles and
Aruba, which have no local livestock industry, maintain relatively
liberal import regimes and few requirements. Trinidad has lowered tariff
rates affecting processed meats in recent years. Jamaica and the
Dominican Republic, on the other hand, maintain the highest tariff rates
allowable under WTO rules. In addition, both countries impose frequent
import quotas and other non-tariff barriers such as import licensing
requirements that make it difficult for distributors to bring product in
from the US. Although the Bahamas also imposes some protectionist
measures, these are not a severe as in Jamaica and the Dominican
Republic, and the market remains fairly open.

Despite these obstacles, US products continue to show strongly in the
Caribbean market for value-added meats, and were in strong evidence in
the major supermarkets of each of the countries visited. This includes
products in canned, chilled and frozen form, which were present even in
Jamaica and the Dominican Republic. Jamaica carries fewer US brands of
processed meats than in any of the other markets. The Dominican Republic
and Trinidad likewise carried relatively fewer US products than domestic
brands. Supermarkets in Aruba and Bahamas, by contrast, carried the
greatest number of US processed meats.

**10.1b Products in Demand**

The major growth area in value-added meat consumption is **poultry**,
especially turkey-based products. Conversations with importers and
retailers reveal growing popularity of "lean" meats, especially turkey
ham, sausages, deli slices and similar items from Louis Rich and Healthy
Choice. Turkey production and processing is minimal in the Caribbean and
virtually all turkey-based products are imported. Popular canned meats
include Spam and Vienna sausages made with chicken or turkey. The demand
for poultry products is partly driven by the importance of poultry as
the cornerstone of the Caribbean diet. Chicken, a more affordable
alternative to beef and pork, has long served as a main staple in the
Caribbean diet. Given the insufficient level of local poultry
production, US chicken and turkey products find a natural market in the
Caribbean. Imports are further driven by growing demand for healthier
meats among wealthier Caribbean consumers and tourists, including lower
fat and cholesterol cuts. Turkey-based products like ham, salami,
bologna and franks cater directly to this niche.

**Pork** products, including processed meats like salami, bologna, and
hams, enjoy widespread popularity in the Caribbean, especially among
middle and lower-income consumers. Many pork products are produced
locally in markets with local meat industries such as the Dominican
Republic and Jamaica, although non-tariff import barriers in these
countries leave many consumers wanting more. Retailers in both markets
comment that they would gladly carry additional US imports of sausages,
salamis, etc., if trade barriers were removed.

While the majority of consumers in the Caribbean do not purchase as much
**beef** as they do poultry, there remains demand for processed /
value-added beef products, especially more affordable canned meats like
Libby's corned beef. Canned corned beef is imported in large quantities,
usually from Brazil, Argentina and the US. Other canned meats, as well
as beef, pork and poultry mixtures such as bologna, salami, sausages and
franks, are also carried by Caribbean retailers in significant volume.

Special note should also be made regarding **hot and spicy** varieties
of US canned meats like Vienna sausages, since use of spicy ingredients
like hot sauces is common in many Caribbean countries -- albeit in
varying degrees -- including Jamaica (popular) and Trinidad and the
Dominican Republic (less popular than Jamaica, but still in demand). As
the trend towards consumption of spicier foods in the US continues to
grows, due in large part to the influence of Mexican cuisine, many US
"hot and spicy" consumer food products will be well-accepted among
Caribbean consumers.

**10.1c Distribution**

The structure of the Caribbean market as a whole can be described as
fragmented, and should not be thought of as similar to the EU or NAFTA.
Integration of the CARICOM members into a single market does not appear
imminent and many barriers remain between member nations. As a result,
food distribution is fragmented, with little inter-island trade between
distributors or leading meat processors in countries like the Dominican
Republic and Trinidad.

As a result of the lack of inter-island food distribution, efforts to
target the Caribbean market *directly* need to be made on a
country-by-country basis. While this approach is certainly possible, one
major problem is that local turnaround is relatively small, and
importers cannot easily purchase and move full product container loads.

For this reason, many products are shipped to Caribbean distributors
through the use of Florida-based consolidators. These companies are able
to market product lines to the Caribbean as a single market through
combining LCL orders of a variety of products into full container loads.
Many large Caribbean importer-distributors make use of both methods,
employing direct shipments from manufacturers when demand is sufficient
to merit full container orders, as well as mixed orders from Florida
consolidators for small-volume products.

**10.1d Deli Sections**

Most of the modern supermarket chains in the countries visited that
cater to middle- and upper-income shoppers feature service-oriented deli
departments. This was true in virtually all of the up-scale supermarkets
visited in the countries surveyed. These supermarkets generally
following the set-up of US deli departments, with a deli counter serving
individual customers, and using modern equipment such as curved glass
merchandiser units that nicely display the products offered.

The amount of space allocated to supermarket deli sections tends to vary
by the age of the store. That is, deli sections that have been
introduced to existing supermarkets tend to be less spacious than those
envisioned and built as a part of newer stores. The vast majority of the
deli counters seen have chilled glass-covered displays where meats and
cheeses are showcased. Attendants are busy either providing ticket
service at these counters or else slicing meats for store pre-packs,
which are offered in low-temperature merchandising bins located in or
near the deli section. Another merchandising trend that seems to have
been inspired by US supermarkets is the offering of lunchtime meals,
from sandwiches to self-serve buffets to hot meals offered in or near
the deli areas. This trend appears to gaining momentum in the new and
larger supermarkets operating in urban areas, including Solomon's Super
Center in Nassau and Cuesta and Pola in Santo Domingo. Many of these
supermarkets also offer sit--down areas for busy lunchtime consumers.

Over the past 10--15 years, there has been significant growth in the
establishment of deli sections in the major chain stores and
supermarkets in the **Bahamas**. This trend is now slowing due to
limited expansion in the Bahamian retail sector. Some of these major
chains like City Markets/Winn Dixie and Solomon's maintain elaborate
deli sections in all of their stores, while others like Super Value have
established deli sections only in those stores catering to middle- to
upper-income shoppers. Another chain, John Chea and Sons, does not
maintain separate deli sections in its stores although they do serve
sliced deli products at their regular meat counters. This chain is
currently looking at introducing deli counters in some of their stores
in the near future. ![](media/image1.png){width="3.0027777777777778in"
height="2.2131944444444445in"}

The use of deli counters is also fairly common in the **Dominican
Republic**, where new, modern supermarket chains such as Pola, Cuesta
and Bravo all feature deli counter service and store packed meats, in
addition to sit down service and lunchtime food bars. La Cadena features
more modest deli sections, smaller in size although still offering both
with counter service and pre-packed slices.

The deli counter trend has not really yet taken off in **Jamaica**, as
only a few upscale supermarkets like Hi Lo and Super Plus have opened
deli sections with modern, glass-covered displays. However, this is not
due to lack of demand, as retailers indicate that customers are
constantly asking for a wider selection of deli meats, but a result of
the import restrictions on US pork products (not hermetically sealed).
It is likely that, were this ban to be removed, more higher-end
supermarkets would establish deli counters. (Note: In spite of the ban,
imported US hams, salami and bologna were observed in some deli
sections).![](media/image2.png){width="3.129861111111111in"
height="2.088888888888889in"}

![](media/image3.png){width="3.0006944444444446in"
height="2.147222222222222in"}

Supermarkets in **Aruba** and **Curaçao** all had some type of deli
counter, although the higher-end stores (notably Kong Hing Supercenter,
but also Certified, and Centrum) had nicer displays and more modern
equipment than others, including curved glass door counters. While these
stores put a strong emphasis on the quality of their displays, Esperamos
was relatively antiquated and the deli products poorly displayed. Deli
managers also noted that the US-style system of taking a ticket and
waiting to be served has not gained universal acceptance with consumers,
hence the frequent presence (as in many other supermarkets visited) of
an adjacent section where pre-packed slices are offered in various
sizes. This is an added convenience for "grab and go" shoppers without
the time or desire to wait in line to be served.

All the stores visited in **Trinidad** had some type of deli meat
displays. Higher-end stores like Hi Lo and JTA boast modern equipment
including low temperature bins for chilled meats and double glass
counters. Meats are not pre-cut or "shaved" in advance behind deli
counters; rather, whole meats are in display and sliced according to
customer request. 

**10.2 Recommendations**

The following recommendations are made for US meat processors wishing to
target the Caribbean market:

► Despite the challenges of marketing processed and value-added meat
products in the Caribbean, US processed meat manufacturers should
nevertheless consider the opportunities present and develop a strategy
based on both direct and indirect marketing methods;

► One advantage of direct marketing is the local support received,
including representation and promotion services from large
importer-distributors to companies for brands they are handling
exclusively. A disadvantage of this approach is that relationships need
to be cultivated with many different buyers in the region, as most
distributors supply only their own internal markets;

► In addition to direct marketing, US manufacturers also have the option
of supplying Caribbean buyers indirectly through Florida-based
consolidators. These companies offer the logistical convenience of wider
product exposure by supplying most markets in the Caribbean via their
Florida operations. This includes smaller markets where volumes are
insufficient to merit full container loads. US manufacturers are thus
able to increase product exposure in smaller markets where direct
marketing is not feasible;

► Companies wishing to introduce a brand or increase their exposure over
a wider area should consider the use of consolidators. By the same
token, US brands such as Oscar Mayer and Louis Rich that are already
present in the market and enjoy popularity might benefit from direct
shipments to larger markets such as the Bahamas while using Florida
consolidators for smaller markets such as St. Lucia;

► Attending and exhibiting at the major food trade shows servicing the
Caribbean region will help introduce new products to buyers in the
region. Many Caribbean distributors handle a variety of consumer foods
in addition to processed meats, and attend trade shows such as the
Americas Food and Beverage Show in Miami and the FMI and NRA shows in
Chicago to meet with prospective suppliers of all food products;

► Those companies wishing to supply distributors directly in larger
Caribbean markets like the Bahamas and Netherlands Antilles will find it
easier to do so by combining shipments of processed meats with other
consumer foods (cheeses, condiments, other processed foods) in order to
increase the feasibility of sending full container loads. Manufacturers
providing a limited line of processed meats will have a more difficult
time supplying Caribbean distributors directly, due to relatively slower
product turnover than in the US;

► US manufacturers supplying product direct through exclusive agreements
with Caribbean distributors should be prepared to provide financial
support for local marketing and promotional activities as a way to
accelerate product acceptance. Competition between supermarkets is
fierce, and local product advertisements are carried out via newspaper,
radio and television. Major distributors and retailers often belong to
the same holding group and share these costs accordingly with financial
support from manufacturers (as well as advertising and promotional
materials);

► US manufacturers should also note which of their products are
appropriate for different consumer segments and ensure they are marketed
appropriately. For example, canned corned beef is popular in the mass
markets of most islands, while items like value-added turkey patties and
low-fat deli slices will be strong sellers in up-scale neighborhood
supermarkets;

► Importer-distributors who expressed interest in sourcing meat products
from new suppliers have been noted in the respective country chapters.
Interested suppliers should follow up directly with these companies at
the coordinates provided.