USMEF Strategic Market Profile

Caribbean

• Oil production is driving economic growth in Trinidad and creating a strong middle class.   Overall, a middle class is emerging throughout the Caribbean comprised of consumers looking for low-cost protein sources, which constitutes a good base for U.S. pork.
• The pork meat case in the retail sector is transitioning from frozen to fresh value-added pork products. There is an opportunity to demonstrate fresh value-added U.S. pork products to this segment as well as to foodservice. 
• Overall growth in the foodservice sector (more hotels, room additions, etc.) will drive pork demand for white table cloth cuts like pork prime rib, center cut chops, tenderloin and baby back ribs.
• Pork faces religious, health, and image issues in the islands, particularly compared to other proteins.

• Island pork production is for the most part stagnant due to animal and crop losses from hurricanes, increased prices for corn and grains due to ethanol production, and competition for land due to the booming hotel business. The only island where pork production is steady is Barbados.
• Island nationalism continues to grow, leading to loyalty and preference for local pork at the consumer level. The “buy local” movement is partially fueled by the perception that the U.S. lacks empathy for the Caribbean. 
• Better genetics are being sent to the Caribbean and to competitor nations in South America and Europe which has resulted in better local and imported pork availability. Even so, demand remains stronger than supply.
• Chinese companies have approached some island businesses with funds to set up processing plants in exchange for preferential treatment; this is both at the live and processing end.

• As pork is one of the primary proteins consumed by locals, U.S. pork is found in greatest volume at the retail level on most islands except Barbados, Jamaica and St. Lucia. At the HRI level, U.S. pork is present on menus in the form of bacon, sausage, ham and select loin chops.
• U.S. suppliers have opportunities to deepen their presence in the trade sector by cultivating branded product partnerships and/or supplying technology and product to processors. 
• The major processing islands are Barbados, Trinidad, Jamaica, and to a smaller extent, Aruba and St. Lucia. Much of the raw material is from Canada due to previous relationships and preference for Canadian product, but as the Canadian exchange rate becomes prohibitive and supply is a challenge, there are opportunities for smaller U.S. companies willing to meet the specifications.

Product/Industry Image

• In the Eastern Caribbean and on the high-end islands of Bermuda, Bahamas, Cayman Islands and Antigua, U.S. pork is known for its good quality. However, the Eastern Caribbean is more price sensitive. In the Dutch Islands, they prefer European pork.
• Buyers find it difficult to differentiate U.S. commodity pork from other local and imported pork in the market place other than by price. 
• Typically, pork is overcooked in the islands due to concern for trichinae. U.S. pork products, such as enhanced and pre-cooked pork, have the potential to be viewed as a solution to overcooking by positioning the products as safe, well-marbled and convenient.

Operating/Marketing Environment and Trade/Distribution Issues

• Importers are focused on moving product quickly and there is little interest in differentiating the various qualities of both processed and uncooked U.S. pork.
• Most of the Caribbean is a frozen pork market.   As importers move to fresh pork, they must develop standard operating procedures for cold chain management, purchasing for optimal shelf life and merchandising cuts other than the popular loin cuts. 

Access Conditions

• The continued ban on U.S. pork in Jamaica has seen some positive changes with recognition by the Jamaican veterinary group of the pseudorabies-free U.S. status. 
• Continued protectionism in Barbados and St. Lucia has kept U.S. pork from being competitive in those markets. 
• FTAs continue to come to the table between CARICOM and South and Central America which could have a major impact on U.S. exports.

Import and market share data is based on reported exports to Bahamas and Trinidad & Tobago (from GTA), and U.S. export data is from the U.S. Department of Commerce, Trade Census Bureau.

Long Term Strategy:

• Expand the range of U.S. pork cuts and products sold to targeted food service and retail outlets by working with those establishments, as well as with the importers and distributors that service them, to identify cuts that will add to the product mix and increase profitability along the whole supply chain. 
• Expand the presence of U.S. value-added pork products that can be incorporated profitably into the product mix at retail and food service establishments on targeted, high-income islands which make end-users more successful.

USMEF Export Forecasts: