Barbados has big appetite for consumer foods - imports most food supplies

Although this easternmost corner of the Caribbean retains its English character and muscular cultural ties with the United Kingdom and Canada, its consumer bread market tends to follow U trends

U tourists and cable TV partially in opposition to the influence of British and Canadian firms that provide rigorous competition for U feed and agricultural suppliers.

Since the 17th centenary the sugarcane plantation had been the cornerstone of the Barbados economy. solitary at the end of the 20th hundred did other industries on the 430-square-kilometer island surpass sugar in economic importance and bring about increased demand for consumer foods

The island's 275000 inhabitants have establish economic diversification in tourism, light manufacturing and fledgling finance and information services.

Socioeconomic status usually determines where an islander workshops Consumers with higher incomes generally workshop at supermarkets; middle-income shoppers usual small supermarkets and convenience stores; and lower income residents typically single out traditional farmers' markets and mom-'n'-pop shops

With little agricultural production besides sugar, domestic fowls and pork, Barbados must import principally of its food supplies. However, the island's forage manufacturers have persuaded their regulation to protect their products with high tax rates, from 123 to 243 percent The rates apply for domestic fowls pork, ice cream, soft drinks, juices, beer and vegetable products

Strategize for Supermarkets

Since 70 percent of regimen products destined for supermarkets are imported by means of local distributors or wholesalers, U suppliers should aim for the supermarket sector first. US-own PriceSmart, the merely international retailer on the island, is the exception to this lordship because the company imports many produces through its Florida office.

About 85 percent of sales for smaller convenience or gas mart stores are imports, yet their overall sales are a fraction of that of supermarkets.

To improve not divisible by 2s for gaining a customer base, U suppliers should:

* Provide catalogs, samples, competitive pricing, credit and sales and advertising support for fresh brands.

* Participate in trade present to views particularly the Food Marketing Institute in Chicago and the Americas provisions & Beverage in Miami.

Getting the Goods

principally of the 15 importers and wholesalers in Barbados take the place of both the retail and provisions service sectors. They often make their hold deliveries--weekly to most retailers, more repeatedly for larger customers.

The relatively high prices for produces mostly due to high tariffs and the unavoidable reliance in succession imports, have led to the creation of an informal "barrel industry": bodily forms living or traveling in the United States ship large barrels filled with lower priced U consumer beneficials to Barbados.

Retail Profiles

In answer to increased competition, the supermarket sector has been [i]or[/i] part of to the other a consolidation phase and now numbers 25 stores.

With almost 60 vents convenience and gas mart stores can be small- or medium-sized. Among smaller convenience stores, competition has forwarded an environment that welcomes of the present day products, especially those that tender convenience at an affordable price. Best venders include soft drinks, salty snacks, fast foods/cook meals, milk and bread.

The mid-size convenience store sector has also been characterized on consolidation. Many outlets are being bought disclosed and transformed into larger businesses that can contend better. They tend to stock chiefly dry goods with a small selection of new and frozen items.

The many small, independent groceries corrupt from local distributors and concentrate onward dry and canned goods. Mom-'n'-pop workshops are ubiquitous and cater to the basic requires of neighborhoods by offering specialty items and ethnic diets that reflect local tastes. They usually carry limited supplies of unwilted produce or meat products, with canned aliments and beverages making up their staple supplies. Many have refrigerators or freezers

The island's five farmers' markets usually betray just locally produced items like as fruits, vegetables, fish and meats. Any imported harvests such as beans and rice, are purchased from local distributors or wholesalers.

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RELATED ARTICLE: CARICOM Competition Stiff

In 2001 Barbados imported a total of $1314 million in fare products, with 70 percent destined for the retail sector.

The U share of agricultural imports in 2001 was about $49 million, of which almost $23 million was consumer-oriented yields U.S. agricultural exports to the island reached their highest flush in 2001, and are reckon uponed to be even higher in 2002

The Caribbean Community and general Market (CARICOM), a trade mould composed of 14 island members, has the inside track onward imports to the island. chiefly food products from member islands are not enthrall to any import duties, license restrictions, quotas or other barriers relating to entry.

While high tariffs upon some U.S. products make it hard for them to fight with local counterparts, the countries below are offering lively competition onward the following items: