Slide1: 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
Demand Composition & size : Demand Composition & size
Trends & Opportunities - Meats & Prep. 15%: 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.
Trends & Opportunities- Dairy & Eggs 6% market share: 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
Trends & Opportunities- Fish & prep; 7% market share: 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
Trends & Opportunities-– Cereals and Snacks 20% market Share: 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
Trends & Opportunities- -- Fruit & Veg. Staple; 16% market share : 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;
Trends & Opportunities- -- Fruit & Veg. Staple 16% market share : Trends & Opportunities- -- Fruit & Veg. Staple 16% 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.
Trends & Opportunities- Sugars & confectionaries; 8% market share: 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
Trends & Opportunities- Beverages; 19% Market Share: 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
Opportunities in the export market: 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
Slide12: 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) Opportunities in the export market
STRENGTHS: 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
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 STRENGTHS
Areas For Investment: 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
Market Concentration: 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
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). Market Concentration
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 Market Concentration