Barbadian rum producers might still be suffering from a hangover caused by an unwanted taste of American subsidies, but they are defending their turf in a more than spirited manner.
A new analysis by the Barbados Private Sector Trade Team (BPSTT) showed that while exports have been falling and branded rum is out-performing the historically stronger bulk variety, overseas brands have not made any major inroads in this market.
“Between 2000 and 2014 Barbados exported more rum than it has imported, although there was variation in the consistency of imports and exports. Imports of rum fluctuated over the last 14 years with significant increases recorded in 2011, 2013 and 2014,” the document noted.
“In the first four years of the period under review (2000-2003), figures maintained a fairly consistent import rate between $216 000 and $333 000. However, a dramatic increase was documented in 2004 at a little more than $595 707. With this significant jump in imports in 2004, the trade balance also increased as the export value of rum also rose dramatically by $11 [million].”
BPSTT, which is a division of the Barbados Private Sector Association, also noted that “overall, exports of rum increased at a fairly steady rate over the 14-year period with only severe decline recorded in 2009 when exports declined by $8.7 million. A decline was also slightly visible in 2008. In the last year of analysis (2014), there was a noted decline in both imports and exports”.
Other information from the report showed that while between 2000 and 2010 bulk rum continued to be the main player, the trend shifted a year later when branded rums took the export lead.
“Exports of branded rum reached $37.1 [million] while bulk rum lagged at $33.7 [million]. By 2012, Barbados’ exports of bulked rum regained dominance, registering an export figure of $46.1 [million]. Exports of branded rum fell to $36.2 [million]. By 2013, bulk rum exports was again in decline below that of branded rum,” the report stated.
“Although branded rum exports increase in 2013, by 2014 both categories decreased. Nevertheless, branded rum remained the top export category between 2013 and 2014.”
In terms of rum imports, the analysis said “Barbados’ imports of branded rum have fluctuated within the 14-year period”, while “imports of bulk rum were more consistent”.
“Imports of bulk rum increased consistently between 2012 and 2013. Nevertheless, in 2013, and 2014 there were declines,” the report said.
As for the issue of markets, BPSTT said “over the aggregated 14-year period, the top export market was the United States of America, followed by Canada”, then the United Kingdom, France, Spain, The Netherlands, Bermuda, Germany, Guyana and Italy.
Despite the challenges from American subsidies and imported branded rums, the report said: “Barbados rum industry continues to be an important prop to the overall economy”.
