EXPANDING POSSIBILITIES AT HOME AND ABROAD

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• EXPANDING POSSIBILITIES AT HOME AND ABROAD

• Vassel Stewart
• Caribbean Agricultural Marketing Information
  Database (CAMID)
• IICA-CABA-NAMDEVCO Seminar
• Food and Beverage Producers, Expand your
  Possibilities
• 27 October, 2004
• Trinidad

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Demand Composition size
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Trends Opportunities - Meats Prep. 15

• Chicken Growing demand dominates market ( avg.
  over 80 of consumption across region). Demand
  for wings outstripping supplies in some
  countries. Opportunity for domestic production or
  regional imports in the OECS countries. Movement
  towards convenience pre-seasoned and pre-cooked
  value-added
• Small ruminants Growing demand for fresh meat in
  all segments, with demand especially for goat
  meat, far outstripping supply. Rabbit continues
  to be extremely weak, but assessment for the
  hospitality sector required.
• Beef generally stagnant or declining in all
  market segments. Opportunity for tertiary
  (precooked) valued added for domestic and export
  especially for HRI trade but major NTB for both
  regional and extra-regional trade.
• Pork Increasing demand in many countries,
  particularly major increases for Christmas. Same
  opportunities as beef and better opportunity to
  increase demand through promotion and fresh value
  added.

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Trends Opportunities- Dairy Eggs 6 market
share

• Dairy products demand generally stagnant in
  most countries with declining trend in the More
  Developed Countries especially for cheese based
  products. Opportunities lie in
• --- Caribbean spiced and herbal goat cheese for
  export
• --- milk based tonic punches for domestic and
  regional markets.
• Egg products Small but steady growth in the
  demand. Opportunities in
• -- the promotion as a component of the growing
  fresh salad market
• -- greater distribution in the rural areas

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Trends Opportunities- Fish prep 7 market
share

• A growth in all segments of the market with
  demand in the fast food and export segments for
  fillets exceeding supply. Opportunities lies in
• --Tilapia and catfish fillet production for
  export and fast food markets
• -- Salted fish production for from marine
  species for domestic and regional markets

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Trends Opportunities- Cereals and Snacks 20
market Share

• Significant growth led by population growth, but
  stronger growth in the breakfast cereals,
  soyabean based products for the vegetarian and
  health segments and in the spicy and high fibre
  snacks segments. Opportunities lie in
• -- Dried fruits as components of the snacks
• -- Breakfast cereals from plantains, bananas,
  cassava and sweet potatoes.
• --- Snacks flavored with Caribbean herbs and
  spices especially hot pepper, cinnamon, nutmeg
  and shadow beni

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Trends Opportunities- -- Fruit Veg. Staple
16 market share

• Major growth area for fruits and vegetables
  driven by health consciousness. Growth greatest
  in the fruit segment where demand greatly
  outstrip supply for all tropical products,
  including ripe banana in the regional markets.
  Demand being increasingly filled by imports. Main
  areas of opportunity
• -- Paw-paw for fresh fruit fresh juices in
  all markets.
• -- Golden apple for fresh market and for
  agro-processing into juices, nectars,
  confectionaries for all markets
• -- West Indian Cherries and sorrel for juice
  production for all markets
• -- Seasoning pepper as a major vegetable for all
  markets
• --Hot pepper, fine-thyme, and shadow beni
  (cilantro) for fresh and dried ground seasoning
  for all markets

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Trends Opportunities- -- Fruit Veg.
Staple16 market share

• Specialty vegetables for the regional tourism
  market and for the local green-salad market
• Topi-tambu (Caribbean Water Chest-nut) for
  agro-processing into canned and frozen products
  for the green-salad and Chinese foods for all
  markets
• Frozen dasheen, cassava, eddoe, yams, plantain,
  sweet potato and green bananas for the
  international health food and regional tourism
  markets. (The Caribbean power pack)
• Sweet potato and plantain French fries for the
  regional fast food market.
• Dasheen, cassava, eddoe, plantain, sweet potato
  and green bananas for processing into snacks
  (chips)
• Roasted breadfruit for the regional tourism
  market, the Caribbean ethnic overseas market and
  for high-end overseas restaurants.

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Trends Opportunities- Sugars confectionaries
8 market share

• Declining per capita demand in all markets and
  segments except in the lower income levels.
  Opportunities lie in
• -- Environmentally friendly sugar production
  targeted at the high end international hotel,
  restaurant chains and health food stores
• -- Low sugar confectionaries
• -- Caribbean branded desserts and
  confectionaries
• -- Production of chewing cane for the
  international health food and snack market

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Trends Opportunities- Beverages 19 Market
Share

• Growth in both alcoholic and non-alcoholic
  industries. Greatest potential lies in
• -- fresh and single strength juice market for
  all markets
• -- coconut water
• -- branded rums for export market
• -- spice and herb based rums for all markets
• -- fruit based alcoholic drinks for all markets
• -- nutraceutical drinks for all markets
• -- bottled spring water for regional markets
• -- organic cocoa and coffee drinks

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Opportunities in the export market

• The home meal replacement market, estimated that
  only 55 of American meals has a home made
  component.
• E-commerce market, over 35 of USA population on
  line
• Tremendous growth in ethnic cuisine market and
  strong position of Caribbean cuisine especially
  in USA Canada
• The massive growth in supermarket own label
  market segment estimated at 20 of the
  supermarket trade in the USA and is growing
  rapidly in EU and Canada
• Growth in the nutraceuticals (plants with
  distinctive disease preventative or health
  enhancement capacity) market segment in USA 7
  per annum.
• The 15-20 growth in the organic and natural food
  sector and the absence of major preferred brands
  in this segment in all markets.
• The continued strong growth in the specialty food
  market

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Opportunities in the export market

• The 15-20 growth in the organic and natural food
  sector and the absence of major preferred brands
  in this segment in all markets.
• The continued strong growth in the specialty food
  market
• The strong growth in the snack food, juices,
  cheese, fish and desserts market, particularly in
  the EU
• The fact that price is the third most important
  factor after quality and freshness for European
  consumers.
• The bio-terrorism requirements
• The opportunity to access major USA retail chains
  through their subsidiaries and affiliates in the
  region (e.g Price Smart, IGA)

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STRENGTHS

• National agri-business development programmes, as
  well as the Jagdeo Initiative.
• Diversified primary production
• Strong and positive international position in the
  cuisine industry particularly in spices.
• Caribbean owned overseas distribution companies
• Caribbean nationals in management positions in
  major overseas processing, distribution and
  retail companies

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STRENGTHS

• Direct shipping service to Europe
• Experience in supplying fresh produce to the
  major super market chains in the U.K.
• Major International Caribbean Brands (Sandals,
  Angostura, Grace)
• Unutilized low cost air-cargo capacity to Europe
• Opportunity to link our food with our
  unparalleled achievements in sports.
• Our domination of growing market for
  international Carnival events
• Our outstanding position in the international
  music industry
• Our position as the cruise ship capital of the
  world
• The size and durability of the regional tourism
  industry
• The commitment to upgrade information systems

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Areas For Investment

• Fruit orchards of between 500-1000 acres (Ackee,
  Golden apples/June plum, West Indian Cherries,
  breadfruit, coconut, pimento, paw-paw,)
• Multipurpose processing plants for frozen single
  strength juices, frozen root crops/staples,
  canned juices, nectars, punches.
• Integrated spinach production and processing
  (canned) operation\
• Integrated Caribbean fries operation (sweet
  potato/ plantain/ cassava)
• Integrated Aqua-culture (tilapia Shrimp)
  operation for frozen products and agro-tourism
  entertainment.
• Integrated rabbit operation for meat, fur and
  leather.
• Agro-tourism theme parks (Aqua-culture, Herbal
  gardens, fruit park, butterfly, floral gardens,
  animal farms)
• Integrated Sea Island Cotton production and
  garment Operation
• Caribbean Cultural restaurants based on Caribbean
  food products, music, art craft and culture

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Market Concentration

• Much of the food system is today vertically
  integrated. On the agri-business side, three
  large clusters of transnational companies
  Cargill/Monsanto, Novartis/ADM/IBP, and ConAgra,
  dominate the sector.
• These clusters link up biotechnology companies,
  grain trading and processing companies, and meat
  production and processing companies

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Market Concentration

• The food processing sector is dominated by three
  large global companies - Nestle, Unilever, and
  Philip Morris.
• At the food retailing end, four companies
  dominate global markets - Tesco (UK), Ahold
  (Netherlands), Carrefour (France), and Wal-Mart
  (USA).

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Market Concentration

• Relationships among companies are complex. It is
  not simply a case of a few firms competing with
  each other. Rather, relationships are built
  through mergers, acquisitions, joint ventures,
  partnerships, contracts, and less formal
  agreements.
• For example, in the USA, the largest food
  retailer, Kroger, has an agreement with Cargill
  (Excel) to supply beef. Ahold-USA (Stop and Shop)
  has a supply agreement for dairy products with
  Suiza foods, and Wal-Mart has agreements with
  IBP, Farmland and Smithfield to supply several
  types of meats