Barbados’ big appetite for imported agricultural commodities is channelling millions of dollars into the hands of United States (US) food producers.
Last year alone, the island imported $251.3 million in American agricultural products, new information from the United States Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) shows.
It continues a pattern of growth, as Barbados’ imports of these products from the US were $223.6 in 2023, $218.8 in 2022, and $183.9 in 2021.
Most of the money – $23.2 million – was spent buying fresh fruit from the US.
This was followed by dairy products ($17 million), nonalcoholic beverages, excluding juices ($15.4 million), baked goods ($14.7 million), beef and beef products ($14.6 million), food preparations ($13.8 million), soybeans ($12.8 million), eggs and egg products ($12.2 million), corn ($11.4 million), and poultry meat and products, except eggs ($9.4 million).
In terms of quantities, corn topped the list in 2024 with a total volume of 27 515 metric tonnes.
Next in line were soybeans (13 269 metric tonnes), fresh fruit (5 624 metric tonnes), non-alcoholic beverages, excluding juices (3 210 metric tonnes), baked goods (2 282 metric tonnes), poultry meat and products, except eggs (1 516 metric tonnes), dairy products (1 366 metric tonnes), food preparations (983 metric tonnes), beef and beef products (776 metric tonnes), and 166 metric tonnes.
The USDA FAS says that Barbados’ importation of these top ten American agricultural products has grown significantly over the past ten years, led by fresh fruit (143 per cent) and food preparations (122 per cent). The only decline was for soybeans (40 per cent).
Overall, Barbados is ranked the 63rd largest buyer of agricultural items from the US.
This information from the American Government comes as CARICOM member states seek to collectively reduce their food import bill by 25 per cent by this year.
Increased sales value
US food exporters are being told the region is “an excellent market for them to explore” in an analysis is captured in recent Retail Foods Annual and Food Service – Hotel Restaurant Institutional Annual reports prepared by Karina Pimentel, agricultural marketing specialist in the USDA FAS Caribbean Basin Agricultural Trade Office. The reports cover 2023 data.
“In the Caribbean region, sales value in the retail grocery sector increased by three per cent in 2023. This is due in part to the rise in tourism in many markets, which is boosting economic growth,” Pimentel says in the Retails Foods Annual publication.
“The largest grocery retail markets are Trinidad and Tobago, Guadeloupe, and The Bahamas. As more high-income individuals move to some markets and invest in the region, more opportunities for US food and beverage products are being created.
“US agricultural exports of consumer-oriented products to the region were valued at US$1.5 billion last year (2023).”
In calling the Caribbean an excellent market for US exporters to explore, the report listed proximity, close commercial ties with the US, a large influx of tourists, and a trade-friendly regulatory environment as all contributing to the attractiveness of the region’s market.
“The majority of food must be imported on Caribbean islands, as domestic production is limited. Total imports of consumer-oriented agricultural products totalled US$3.1 billion in 2023, with the United States capturing 50 per cent of the market,” the report added.
The Caribbean’s retail sector was flagged as the major gateway for American agricultural products into the region.
“Total grocery retail sales – excluding sales tax – were estimated at US$10.3 billion in 2023. Approximately 81 per cent of imported foods and beverages are channelled through the retail sector. This sector includes traditional grocery stores as well as more modern, upscale supermarkets,” said Pimentel.
“The food processing sector is minimal in most countries, with total production estimated at just US$168 million last year. Tourism is a key factor in generating demand for US products in the food service sector.
“Sales reached US$2.19 billion in 2023, an increase
the Caribbean than competitors.
The US has a dominant market share in the vast majority of Caribbean islands – estimated at 50 per cent overall.
The regulatory environment at present is generally open to US products.
The local consumer values US quality and food safety. However, in an inflationary economy, consumers are more price conscious.
In terms of what the USDA FAS report saw as disadvantages, it listed the following: Caribbean nations heavily depend on foreign investment, which affects the region’s economic growth.
European influence is present in the market because of historical ties and economic dependencies established over time, making consumers prefer some products and brands from Europe.
Some products, particularly meat and poultry, may be restricted in certain markets due to European Union or island-specific regulations.
Caribbean buyers often prefer small quantities as they have limited resources and storage space, which can be challenging for some US suppliers.
Countries are increasingly interested in decreasing food imports, making a push instead for locally and regionally produced foods.
Big appetite for US food
The Food Service – Hotel Restaurant Institutional Annual also examined the Caribbean’s big appetite for American food and the opportunities for US agricultural product exporters.
The publication’s author Pimentel reported that with the US having exported US$1.5 billion (50 per cent) in consumeroriented products to the Caribbean in 2023, “the next closest competitor is the EU with US$609 million in exports (19.8 per cent), followed by Brazil with US$158 million (5.1 per cent), New Zealand with US$99 million (3.2 per cent), and the United Kingdom with US$97 million (3.1 per cent).
“Due to food inflation, some distributors increasingly favour European products and private labels. This preference stems from the perception that European products provide good quality at competitive prices and offer various gourmet options. Despite this, distributors continue to rely on US vendors and product quality,” the report noted.
In terms of products not present in the Caribbean market due to significant barriers, the report said this was a minimal list.
“Bermuda prohibits the importation of any of the following dairy products: raw milk, pasteurised milk, ultra-pasteurised milk, ultra-heat-treated milk, and manufactured milk,” it stated.
“A few governments may also prohibit the importation of select produce items for plant quarantine purposes – for example, citrus from Florida – or they may temporarily ban the importation of select produce items to protect local farmers during harvest time.
“Certain poultry products also face high import duties in Barbados, which effectively keeps them out of that market.” Pimentel also said that “given the Caribbean’s limited domestic production, the region relies heavily upon imports of all food and beverage products”.
“However, continuing economic challenges, including increased prices throughout most economies, are beginning to take their toll on retail grocery demand in the region and spurring a shift toward more value products and private labels,” she reported. (SC)
