Market Information
Latin America and Caribbean

Fresh Fruits and Vegetables
Market Overview Barbados

March 2003

Canadian High Commission in Barbados
Bishop's Court Hill
Bridgetown, St. Michael, Barbados
Contact: Richard Franklin, Business Development Officer
Tel.: (246) 429-3550
Fax: (246) 437-8474
E-mail: richard.franklin@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca

Market Overview

Barbados is located in the eastern Caribbean and has a population of 275 000 and a land area of 431 square kilometres. Although the island is not very large, it is one of the most stable and prosperous states in the Caribbean, with steady growth and low inflation. While Barbados' main agricultural crop is sugarcane, it also grows onions, carrots, tropical root crops, and other fruits and vegetables over 3600 hectares of land.

Tourism is the country's largest contributor to the economy. The estimated one million visitors annually stimulate demand for exotic fresh fruits and vegetables, both in restaurants and in stores. Production limitations of fruit and vegetables caused by Barbados' climate, topography and soil, coupled with the high-cost of production and small-sized farms, make it difficult for Barbadians to compete with foreign producers. Barbados imports fruits and vegetables from all over the world to supplement seasonal lows and to meet demand for other produce not grown locally.

Barbados imports 70 percent of its food products. In 2001, Barbados imported over $17.8 million⁽¹⁾ in fruit. Leading fruit imports in order of market size include apples, oranges, grapes, bananas, pineapples, cherries, pears, grapefruits, mandarins and peaches. Furthermore, the import vegetable market, valued at $25 million in 2001, was made up of potatoes, corn, onions, broccoli, cabbage, plantains, tomatoes, mushrooms, carrots, lettuce, sweet peppers and celery.

In order to protect its domestic economy, the Barbadian government has implemented some import restrictions and the Common External Tariff on fruits and vegetables. Trade policy seeks to protect domestic food production but at the same time recognizes that most domestic needs are best met by food imports. Importers pay between 40 percent and 229 percent duty on produce imported into the island. The average rate of duty for vegetables is approximately 150 percent. However, in preparation to meet its 2004 World Trade Organization (WTO) obligations, these rates are slowly being reduced as Barbados has implemented in-quota rates ranging between 5 percent and 25 percent lower than current bound rates.

High retail prices for fruits and vegetables result from the high tariff rates, high retail mark ups, and a heavy reliance on imported produce. Staple fruits and vegetables can cost more than double what they cost in Canada. For example, imported romaine lettuce sells for eight dollars a head and mushrooms can sell for eight dollars for a 16 oz package. Importers purchase smaller quantities more frequently to better manage the high price of wastage and their limited storage space. Regularly scheduled consolidated shipments of fresh produce from Miami is a popular means of importing produce into Barbados. Premium produce is also air lifted to supply high-end restaurants, hotels, gourmet shops and delis on the island.

In general, Barbadians are very loyal in conducting business. Emphasis is placed on building good long-term relationships. While price is always a consideration, buyers value consistent service and supply from their suppliers. Canadian exporters who cannot compete on price, can always compete on their strengths of quality and service.

Market Access Considerations

Labelling requirements are similar to those in Canada. Strict guidelines are imposed regarding the ingredients and production dates on prepared products. Bilingual labelling is permitted but not necessary. If the labels are bilingual, English must be the most evident.

Exporting companies must include phytosanitary certificates for the export of fresh fruit and vegetables with goods declaration documents (e.g. commercial invoice, bill of lading, packing list, insurance certificate or import licence). Importers must also obtain an import licence for the import of fruits and vegetables such as carrots, onions, tomatoes, cabbages, lettuce, cucumbers, sweet potatoes and melons.

Canadian exporters should note that customs clearance for most food products typically takes three to five days. Delays caused by a shortage of inspectors is not uncommon. Some companies may also experience problems collecting on accounts in a timely fashion. It is important to thoroughly research and investigate potential opportunities with local importers. It is also recommended that Canadian exporters consult with the High Commission in Barbados to determine whether their products will face entry difficulties into the market.

Establishing a new product in Barbados requires time and a minimal amount of advertising. Advertising costs are low compared to Canada. Once a product has become established in one island, it becomes relatively easy to expand to other Caribbean islands. The consumption habits are relatively similar throughout the region, and product acceptance in one market will likely lead to acceptance in other markets.

Opportunities

There are many factors that have stimulated opportunities in Barbados' fresh fruits and vegetables market. The high incidence of diabetes and obesity is creating a growing demand for fresh produce and healthy low fat and low sugar foods. Furthermore, demand for vegetables is currently not being met, in some cases not even with the imported produce. For example, although Barbados imports its onions, cabbage, and potatoes it is still unable to meet the island's total demand for these products.

Food items that have a high price will not have great success in the Barbadian market, especially if there are lower priced substitutes available. Exotic produce and niche market foods are less price sensitive but are ordered in smaller quantities. Organic foods are a small and growing niche. While there are currently no standards or testing for organic foods or genetically modified foods. these products are undergoing review.

Canadian exporters can benefit from a deepening relationship between Canada and Barbados. Canada is well known and respected in the region. Canadian government agencies and private businesses have provided assistance and technology to develop many of the island's basic infrastructures. There are many Canadian food companies who have established themselves in the marketplace. The positive brand image these products carry is transferrable to Canadian products as a whole.

Key Participants

As Barbados imports a large proportion of its food products, foreign suppliers play a key role in its fresh fruits and vegetables market. The United States is the country's largest supplier of food, including fruits and vegetables, supplying approximately 40% of all food imports. Furthermore, The Netherlands is a large supplier of vegetables while the United Kingdom is a significant provider of fruits. Other key participants in the fresh fruits and vegetables market include members of the Caribbean Community and Common Market (CARICOM⁽²⁾), especially Jamaica, and Trinidad and Tobago.

Canadian companies have also established themselves in the Barbadian marketplace. Canada exports approximately $25 000 worth of fruit a year to Barbados (including apples, pears, quinces and grapes). Moreover, Canadian fresh vegetable exports to Barbados (including potatoes, cabbages, cauliflower, carrots, turnips, other edible roots, lettuce, chicory, onions, shallots, garlic and leeks) reach approximately $775 000 annually.

Private-Sector Customers

Key purchasers for fresh fruits and vegetables in Barbados include distributors, hotels, resorts and restaurants. Seventy percent of food products bound for supermarkets are purchased by local distributors or wholesalers. Wholesalers mostly represent imported fresh produce, as local producers tend to by-pass wholesalers and sell directly to supermarkets, shops, and the numerous hotels and restaurants on the island.

Socioeconomic status usually determines where an islander shops. Consumers with higher incomes usually shop at full-scale stores that are comparable to any medium-size store in Canada; middle-income families will shop at smaller scale stores that stock more local merchandise, and convenience stores; and lower income families will typically choose outdoor food markets and small family run shops.

Distribution in Barbados has recently expanded to include warehouse shopping with the opening of a new store by American chain PriceSmart, which imports many of its products through its Florida office. On-line grocery shopping has also emerged with the introduction of supercentre.com (http://www.supercentre.com).

Although engaging the services of a local agent is not necessary, the practice is highly recommended to create long-term ties with local buyers. A strong local representative will have the knowledge and local contacts to distribute the Canadian product and generate sales that may otherwise be unattainable.

Barbadian Distributors Importing Fresh Fruits & Vegetables

French Trading Inc
Malls Alley, Roebuck Street
Bridgetown, Barbados
Contact: Reginald Sinclair, Managing Director
Tel.: (246) 429-9083
Fax: (246) 429-8220

Hanschell Inniss Ltd.
P.O. Box 143
Bridgetown, Barbados
Contact: Adrian Lovell, General Manager
Tel.: (246) 426-3544
Fax: (246) 427-6938
E-mail: hanschell@goddent.com

Hotel Food Supplies
Warrens Industrial Park
St Michael, Barbados
Contact: Tony Pickering, Managing Director
Tel.: (246) 424-7489
Fax: (246) 438-1298

LE Gibbs and Co Ltd.
7 Cheapside
Bridgetown, Barbados
Contact: Mr. Lorne Gibbs
Tel.: (246) 426-1250
Fax: (246) 436-6423

SBI Distribution Inc
Spring Garden Highway
P.O Box 1345 Bridgetown, Barbados
Contact: Charles Thorton, General Manager
Tel.: (246) 424-9950
Fax: (246) 424-9954

Key Contacts

Canadian Contacts

Canadian High Commission in Barbados
Bishop's Court Hill
Bridgetown, St. Michael, Barbados
Contact: Richard Franklin, Business Development Officer
Tel.: (246) 429-3550
Fax: (246) 437-8474
E-mail: richard.franklin@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca

Agriculture and Agri-Food Canada
930 Carling Avenue
Ottawa, Ontario K1A 0C5

Central America and the Caribbean
Contact: James Huget, Senior International Market Development Officer
Tel.: (613) 759-7753
Fax: (613) 759-7506
E-mail: hugetj@agr.gc.ca
Internet: http://www.agr.gc.ca

Department of Foreign Affairs and International Trade (DFAIT)
125 Sussex Dr.
Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca

Caribbean and Central America Division
Contact: Renée Plouffe, Desk Officer
Tel.: (613) 943-8807
Fax: (613) 944-0760
E-mail: renée.plouffe@dfait-maeci.gc.ca

Market Support Division (TCM)
Contact: Richard Philippe, Trade Commissioner
Tel.: (613) 995-1773
Fax: (613) 943-8820
E-mail: richard.philippe@dfait-maeci.gc.ca

Contact: Elizabeth Cahill, International Market Analyst
Tel.: (613) 996-5562
Fax: (613) 943-1103
E-mail: elizabeth.cahill@dfait-maeci.gc.ca

Tropical Shipping
100-A 560 Main Street
Saint John, N.B.
E2K 1J5, Canada
Contact: Jim Henderson
Tel.: (866) 767-6576
Fax: (866) 876-7742
E-mail: jhenderson@tropical.com

Barbados Contacts

Barbados High Commission
130 Albert St., Suite 1204
Ottawa, ON K1P 5G4
Contact: H.E. Victor Leroy Johnson, High Commissioner
Tel.: (613) 236-9517/8
Fax: (613) 230-4362
E-mail: ottawa@foreign.gov.bb
Internet: http://www.sunbeach.net/gov/foreign

Bank of Nova Scotia
P.O. Box 202, Broad Street
Bridgetown, Barbados, West Indies
Contact: Peter F. Van Schie,
Vice-President-Barbados, and
Manager-Bridgetown Branch
Tel.: (246) 431-3100
Fax: (246) 228-8574
E-mail: peter.vanschie@scotiabank.com

Barbados Customs Brokers Association
The Cottage, Codrington Road
St Michael, Barbados
Contact: Mr. Percy Murrell, President
Tel.: (246) 417-0096
Fax: (246) 438-0896
E-mail: bigp@sunbeach.net

Barbados Customs Department
Port Authority Building
Princess Alice Highway
Bridgetown, Barbados
Contact: Capt. Randolph Straughn, Comptroller
Tel.: (246) 430-2310
Fax: (246) 430-2370

FirstCaribbean International Bank (B'dos) Ltd.
CIBC Centre
PO Box 405
Warrens, St. Michael, Barbados
Contact: Mr. Horace Cobham, Managing Director
Tel.: (246) 367-2300
Fax: (246) 421-7178
E-mail: horace.cobham@firstcaribbean.com

Ministry of Agriculture and Rural Development
Permanent Secretary
Princess Alice Highway
Bridgetown, Barbados
Contact: Mr. Carston Simmons
Tel.: (246) 428-4150
Fax: (246) 420-8444
Email: fishbarbados@caribsurf.com

Royal Bank of Canada (RBC)
Building #1, Chelston Park
Collymore Rock, Culloden Road
Bridgetown, Barbados
Contact: Mr. Douglas Maloney, Managing Director (Regional Office, Barbados & OECS)
Tel.: (246) 431-6501
Fax: (246) 436-8287
Email: doug.maloney@rbc.com

Tropical Shipping
Goddards Shipping & Tours Ltd.
Goddards Complex, Fontabelle Road
St. Michael, Barbados
Contact: Mr. Harry Roberts
Tel. : (246) 426-9990
Fax : (246) 426-7750
E-mail: hroberts@tropical.com

Bibliography

Print

Ag Exporter. "Exporting to Barbados? Here's What You Need To Know," October 2002.

_____. "Barbados Has Big Appetite for consumer Foods," October 2002

Canada. Agriculture and Agri-Food Canada.Caribbean Community and Common Market (CARICOM): Agri-Food Regional Profile, Statistical Overview. March 2002

Economist Intelligence Unit. EIU Country Profile-Barbados 2001.

United States. Department of Agriculture (USDA). Global Agriculture Information Network. Barbados Food and Agriculture Import Regulations and Standards Country Report 2002.

Electronic

Canada. Department of Foreign Affairs and International Trade. "Agri-Food Sector Profile-Barbados," April 2001. Downloaded from http://www.infoexport.gc.ca/ie-en/DisplayDocument.jsp?did=5529 on November 19, 2002.

Canada. Statistics Canada. World Trade Atlas. "Canadian Exports to Barbados of Edible Fruit and Nuts [HS Code 08]," 2001.

_____. "Canadian Export to Barbados of Vegetables [HS Code 07]," 2001.

United States. Stat-USA-National Trade Data Bank. "Barbados Country Commercial Guide 2003." Downloaded from http://www.stat-usa.gov on November 13, 2002.

Useful Internet Sites

Agriculture and Agri-Food Canada Agri-Food Trade Service (ATS):
http://ats.agr.ca/general/home-e.htm

Canadian Trade Commissioner Office, Bridgetown:
http://www.infoexport.gc.ca/bb

Department of Foreign Affairs and International Trade:
http://www.dfait-maeci.gc.ca

ExportSource: http://exportsource.gc.ca

Fisheries Division, Ministry of Agriculture and Rural Development, Barbados:
http://www.cep.unep.org/barbados/fisheries/pages/fisheries.html

Stat-USA, Globus & NTDB:
http://www.stat-usa.gov/tradtest.nsf

United States Department of Agriculture Foreign Agricultural Service:
http://www.fas.usda.gov/

InfoExport: http://www.infoexport.gc.ca

^1. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD, Tradeline, October 2002.

^2. The members of CARICOM are Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago.