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Investing in Food and Nutrition Security

Identifying Potential Investment Opportunities in the


Agriculture and Food Industries in CARICOM

0
Investing in Food and Nutrition Security
Identifying Potential Investment Opportunities in the Agriculture and Food Industries
in CARICOM

© Inter-American Institute for Cooperation on Agriculture (IICA) 2009

IICA and the CTA encourage the fair use of this document. Proper citation is requested.

This publication is also available in electronic (PDF) format from IICA’s Web site at
http://www.iica.int and at the CTA’s website at http://www.cta.int and CaRAPN website at
http://www.carapn.net

Editor: Diana Francis


Layout: Kathryn Duncan
Cover Design: Kathryn Duncan
Printed: Orange Printers

The views expressed herein and not necessarily those of IICA or the CTA. All errors and omissions
are the responsibility of the authors and editor.

Investing in Food and Nutrition Security - Identifying Potential


Investment Opportunities in the Agriculture and Food Industries in
CARICOM / Charles Carmichael, Andrew Jacque, Diana Francis – Port
of Spain: IICA, 2009.
p0 p.; 21.59 x 27.94

ISBN13: 978-92-9248-053-0

1. Food security 2. Nutrition 3. Nutrient improvement 4. Caribbean


5.CARICOM I. IICA II. Title

AGRIS DEWEY
E10 338.19

Port of Spain, Trinidad and Tobago


May 2009

The views expressed herein are not necessarily those of IICA or the CTA. All errors and omissions
are the responsibility of the authors and editor.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 1
in CARICOM
Foreword
This activity was initiated in late 2005, as part of the regional strategy to 'Alleviate nine (9)
Key Binding Constraints (KBC) for Agriculture' (commonly referred to as the 'Jagdeo
Initiative'). This paper, 'Investing in Food and Nutrition Security - Identifying Potential
Investment Opportunities in the Agriculture and Food Industries in CARICOM', was
undertaken as a key intervention in addressing KBC #1 - Inadequate Financing and
Investment in the Sector. It is intended to contribute to the dialogue and decision-making
of the Technical Management Advisory Committee (TMAC) responsible for this KBC with
respect to defining the search for a portfolio of investment projects and as well, to inform
the lending policy and regime of a proposed Agricultural Modernization Fund (AMF).

Explanation on the approach is necessary.

At the outset, it must be emphasized that this paper did not adopt a quantitative
approach. Its aim was to outline the critical issues that must guide a more focused empirical
analysis on all and inter-linked factors germane to making investment decisions, whether
public or private, on the basis of the nutritional imperative that must underlie the notion of
food security. This notwithstanding, effort was made to present relevant data, where
appropriate, to emphasize certain issues brought out in the discussion.

Firstly, the effort to obtain the relevant data was not without its challenges. This is reflected
by the use, in some instances of data from the FATSTAT. Recognizing that there are
concerns about the accuracy of that data set, the data used mainly to indicate the
diversity and relative capacity of food production in the various food groups, as defined by
the Caribbean Food and Nutrition Institute (CFNI), and not as a true representation of the
capacity of Member States to produce the foods in question. Hence the opinions
regarding this data should not cloud the main message - that being, most, if not all Member
States have the capacity to produce a diverse range of foods in all of the food groups to
meet a significant share of their food needs.

Secondly, and related to the first point, the data set used is 'old'. This also reflects the
general difficulties relating to availability and access to credible and updated agricultural
production and trade statistics.

Thirdly, and related to the second point, is that there is very little tradition or historical
experience in approaching a discussion on agricultural development for food security in
according to nutritional guidelines defined by the Food Groups. Further, international trade
classification (Harmonized System) is not based on food groups, but rather according to
industrial activity and by scale of transformation, i.e., primary, semi-processed, finished
consumer goods, and categories in between. Hence 'pulling out' the individual items from
import data, to obtain a true matching to a food group basket, requires a substantial level
of effort and collaboration with the CFNI.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 2
in CARICOM
'High regional food import bill' and 'high regional food import dependency' are generally
conclusions used to substantiate the deteriorating performance of agriculture, and thus are
also used as a first point of reference in the process of identifying opportunities and
channeling investments in import-re/dis-placement industries in CARICOM. While this
approach may have worked in the past, given the serious concerns over diet-related
chronic non-communicable diseases (CNCDs) and the association with high consumption
of such imported foods, the time has come to approach analysis of import data from a
different perspective - by food groups and the value chain approach - from farm to table.

This paper takes the food group approach, in contribution to a second stage analysis -
developing competitive value chains for meeting food nutrition needs. However,
extracting the import data to match the food groups presented challenges. This is because
trade data is classified by industrial activity and not by food needs. However a first stage
attempt was made to illustrate the importance of such analysis.

Limitations, notwithstanding, it is believed that the discussion provides a good base to


define clear actions for addressing the food and nutrition security challenge.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 3
in CARICOM
Acknowledgements

From January 2003, the Technical Centre for Agricultural and Rural Co-operation
(CTA) and the Inter-American Institute for Cooperation on Agriculture (IICA) have
developed joint activities in the Caribbean. The purpose of such activities is to
contribute to the development of an enabling environment for agricultural
repositioning and quality of rural life in the Caribbean. In this process, the
participation of stakeholders at all levels has been fully encouraged.

The contributions of the CTA, through this paper on identification of potential


investment opportunities for the domestic food and agriculture industry included as
part of the 2005 work program, and other activities undertaken with IICA and its
other partners in the Caribbean Region, are acknowledged.

The direct contributions of Caribbean professionals to this effort are


acknowledged, specifically:

- Andrew Jacque, Ph.D for undertaking extensive analysis on the import data
and the patterns of industry requests to the CARICOM Secretariat for
derogation to the Common External Tariff (CET);

- Charles Carmichael for collating relevant aspects of research undertaken by


the Caribbean Food and Nutrition Institute (CFNI) on consumption patterns and
health-related impacts, food production and intra-regional distribution;

- Christine Bocage for the detailed review, additional information and


suggestions and editing of the final draft of the paper.

- The Trinidad and Tobago AgriBusiness Association (TTABA) for supporting the
efforts to prepare the import data in accordance with the food groups and in
using the approach taken in the paper to inform the definitions of actions and
national programs.

It is hoped that the approach taken will focus dialogue and encourage more
quantitative analysis on specific aspects of food and nutrition security. Further, it is
also hoped that the information provided will contribute to decision-making and
enhance the design of short-term and more critically, long-term policies for placing
the region in a more sustainable position with respect to food and nutrition security.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 4
in CARICOM
Table of Contents

Foreword...............................................................................................................................................2
Acknowledgements ............................................................................................................................4
Executive Summary .............................................................................................................................6

1. Context ...........................................................................................................................................11
1.1 Introduction 11

1.2 Background 12

2. Food Production and Nutrition Security Issues .......................................................................17


2.1 The Changing Context 17

2.2 The CARICOM Consumer 21

2.3 Consequences of CARICOM's Food Choices 23

2.4 Linking Consumption to Nutrition 29

3. Meeting Regional Food Needs.....................................................................................................33


3.1. Producing Nutrition Needs 33

3.2 Supplementing Food Needs: the Regional Food 'Basket' 41

3.3 Importing Food Needs: relying on Extra-Regional sources 43

4. Investing in Nutrition ..............................................................................................................51


4.1 Opportunities for Food and Nutrition Security- by Food Group 53

4.2 Potential Areas for Investing in Food and Nutrition Security 54

4.3 Investment Climate for Capacity Building in Food Nutrition Security 61

Conclusion..........................................................................................................................................64

Annex 1: ................................................................................................................................................. i
Nutritional and Health Benefits of Food from Plants by Food Groups .......................................... ii

Annex 2: ............................................................................................................................................... iv
CARICOM: Value of Imports at 6-digit Tariff line level and Top 3 Suppliers by Rank and
Percent Supply of tariff line and Intra-Regional Supply ................................................................. iv

Acronyms and Abbreviations .........................................................................................................xvii


References........................................................................................................................................xviii

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 5
in CARICOM
Executive Summary
Food and nutrition security, while always an area of priority for CARICOM countries, is
currently receiving much more attention. This renewed attention is in response to the
growing vulnerability of CARICOM nations to periodic trade disruptions and global food
shortages and as well as, to the high incidence of diet-related diseases. The food crisis that
escalated towards the latter half of 2007, brought on by sharp increases in a range of food
products, has prompted a renewed interest in issues of self-sufficiency, import displacement,
domestic food production and health.

This paper approaches the discussion on food and nutrition security based on the nutritional
guidelines for a healthy daily diet recommended by the Caribbean Food and Nutrition
Institute (CFNI). These guidelines point to an undisputable fact: that staples - the source of
carbohydrates (energy food), and legumes and nuts - the source of protein (growth and
repair food), among other nutrients, together should account for over half (67%) of the
body’s daily nutrient intake. Vegetables and fruits together, comprise the third most
important food need (21%), followed by food from animals (8%). Fats and oils constitute the
lowest share of nutrient needs.

Ironically, the CFNI surveys reveal that the foods which are the least needed for a healthy
diet are those that are the most consumed. Surveys in CARICOM, revealed that
consumption of fats and oils, increasingly is almost twice the recommended consumption. A
similar result was obtained for sugars and sweeteners, which also and ironically, do not form
part of the CFNI’s food and nutritional guidelines. The conclusion was that CARICOM is
generally over-fed on empty calories. The consequences of such food choices are being
revealed in the increasing incidences of chronic non-communicable diseases (CNCDs).
CNCDs, such as, diabetes, obesity, high blood pressure, stroke, heart diseases and cancer,
have replaced malnutrition and infectious diseases as major public health problems. In
2001, the combined economic burden of diabetes and high blood pressure for CARICOM
was extremely high. Measured in health care, such costs approximated US$89.4 million in
Barbados, US$419.3 million in Jamaica, and US$496.7 million in Trinidad & Tobago, while the
corresponding burden to the Bahamas in 2002 was an estimated US$58.4 million. Research
has linked the rising obesity rates to corresponding increases in consumption of fatty foods,
snacks, soft drinks and high-energy foods and drinks.

This paper provides the context and issues that should be more seriously considered in a
determination of potential investment opportunities in the agriculture and food industries in
CARICOM. It begins with a brief discussion on the features of CARICOM as they relate
directly to the subject matter. It discusses the key elements of the food and nutrition security
debate in the context of CARICOM’s geo-political and socio-economic landscape. The
main point of emphasis is that the combined resources of CARICOM – physical, human and
financial - are capable of providing for a much greater level of food and nutrition security
than currently obtains.

A ‘profile’ of CARICOM’s consumer, what drives such consumption choices and the health
and welfare consequences of same, follows. Why are these issues included in a discussion
on identifying investment opportunities in the agriculture and food industry? Globally, the
agriculture and food industry is big business, exhibiting rapid growth and generating billions
of dollars in wealth for multinational corporations. Part of that wealth derives from the
substantial share of developing countries’ agriculture and food markets, including

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 6
in CARICOM
CARICOM. It is the contention of many in the region, that should adequate investments be
injected into domestic/regional agriculture and food industries, then some of this wealth
‘leakage’ could be retained and indirect costs of financing high and rising curative health
care services could be reduced. This has become more critical in the context of the
CARICOM Single Market and Economy (CSME). The key message from this discussion is that
while CARICOM’s consumer has evolved and embraced Western lifestyles, CARICOM’s
agriculture and food production has not. Agriculture in the region has to ‘catch-up’ in an
environment where perishable food products from extra-regional sources are much more
accessible than similar products produced locally.

Given the serious health concerns over food choices based on imported highly-refined
empty caloric ‘foods’, the region may now have a good opportunity to base the
development of the agriculture and food system on the food needs of the region, as
opposed to the traditional objective of satisfying export markets. Hence the opportunity
now exists to more closely match agriculture’s investment needs to food and nutrition needs
for a healthy and productive CARICOM population.

These ‘food needs’ are defined by the CFNI’s ‘Caribbean Food Groups- A Guide to Meal
Planning for Healthy Eating’, which specify six food groups that, in relative proportions, are
important to a healthy daily diet. Discussing food needs and agricultural development
based on CFNI’s guidelines marks a critical point of departure from other similar discussions.
The issue of agriculture and food production capacity is addressed from the perspective of
satisfying the recommended nutritional guidelines and not from the usual market-led
approach.

This shift in perspective is important to help make a determination as to whether, and how
far the region can substantially meet its recommended food needs from its combined
production capacity. Integrating this approach in agricultural development policies and
strategies will enable the region to adopt a ‘preventive’ health care system rather than
bear the burdens of costly long-term curative health care. This has direct and long-term
implications for how the region’s capacity to supply foods should be developed, not only in
terms of assuring health, but also, in terms of reducing wealth ‘leaked’ through high import
bills. This also has direct bearings on tourism and industrial development strategies, which
currently have weak linkages to agriculture. These sectors have also been major sources of
the wealth ‘leakages’ due to their heavy dependence on both imported foods and raw
materials and the high health burdens in terms of the rise in chronic, but avoidable, diet-
related illnesses. The main message from this aspect of the discussion is that the foods that
should be most consumed are those that are the least consumed, leading to problems, not
only for maintaining a dynamic agriculture and food system, but also for the nutritional
status and hence health of the population.

While the foods needed for a healthy daily diet are well defined, what remains a grey area
in CARICOM is the capacity of the supply side to fill these needs. Since the mid-1970s,
numerous projects have been implemented with national resources and significant donor
funds to deal with this capacity limitation. In 2009, it remains a key binding constraint to
agricultural development, regardless of whether it is to meet domestic food needs, fuel
agro-industry or generate high export earnings. This part of the discussion addresses the
issue of availability in terms of supply capacity, that is, physical production status and
capacity in the region and intra-regional distribution of food from regional sources
according to each of the CFNI food group. This approach represents yet another point of

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 7
in CARICOM
departure from similar regional discussions with respect to ‘what commodity or groups of
commodities’ should receive priority for development resources. This discussion reinforces
the point made above, that the combined resources of CARICOM are indeed capable of
providing for a much greater level of food and nutrition security, once investments are
made in enhancing both the physical supplies and distribution within and among countries
of the region.

This logically extends into a discussion on the status of the region’s agriculture and food
import reliance. Ironically, the foods that rank highest in the region’s ‘food’ import bill are
those that are least needed for a healthy diet – food from animals, fats and oils, and sugars
and sweeteners. The question then becomes, why the strong preference for imported
foods, produced with significant support from developed country governments that
enables them to export competitively to developing countries, such as in CARICOM? The
CARICOM Secretariat (2005) estimated that between 2000 and 2004, only about 16% of the
Region’s total food imports were sourced from within the region. These comprised mainly
processed cereal-based bakery products and sugar-based beverages (soft drinks) from
Trinidad & Tobago. The extensive imports of such raw materials and ingredients to feed
agro-industry in Trinidad & Tobago contribute, in a large part, to the high and rising food
import bill in CARICOM.

Food import data, combined with consumption trends beg the question of whether the
recommended foods are simply not readily available, due to low production, poor quality,
inadequate distribution, or whether they are simply not accessible by a large part of the
population. This answer will influence the types of actions and interventions designed and
implemented to efficiently address the objective of food and nutrition security. In terms of
redressing the food trade and food nutrition imbalances, the CFNI food and nutrition
guidelines provide definitive answers to the question of what should be consumed. It is on
this basis that the discussion argues for the identification of potential investment
opportunities in the agriculture and food system in CARICOM that link nutrition to food
production decisions.

The ultimate part of the discussion, on identifying investment opportunities, acknowledges


that the food and nutrition crisis has given the Region a reason for pause and stock-taking in
terms of its priorities and approach to agricultural development. It focuses on issues related
to identifying potential investment opportunities that can stimulate growth in the agriculture
and food industries and foster inter-sectoral linkages to curtail both the volume and rate of
wealth leakages and provide a firm platform for growth and sustainable development. It
contends that the current food crisis is a symptom of a crisis of agriculture that has been
allowed to escalate and a crisis of rapidly urbanizing societies in a lagging development
process. It also contends that the response by virtually all CARICOM Heads of State to
implement short-term measures to mitigate the impact of rising food prices and improve
access, needs to be backed up by adequate and well targeted investments to place the
region in a much better position to manage future food crisis situations.

The discussion reiterates the conclusions of many in the region, that serious investment is
needed across the board in enhancing crop and animal production to secure a
reasonable proportion of the region’s food needs and to supply raw material for agro-
industries. In terms of potential areas for such investments driven by the food and nutrition
security objective, the paper argues for prioritizing the staples and legumes/nuts food
groups since they meet over half of daily food needs for a healthy diet. This

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in CARICOM
recommendation is not only justified from a nutritional perspective, but also from a
production capacity perspective. The combined resources and traditional experience in
the region are capable of producing a substantial part of these particular food groups. This
provides sufficient justification for prioritizing these food groups in agricultural development
policies and projects. Concerns over national security should also be a key consideration in
increasing investments to enhance supply capacity in these two food groups.

The reason is brought into stark focus by Dr. Chelston Brathwaite, Director General of IICA,
when he stated noted that "if we were to look at the bases of our human rights or the rights
enshrined in our constitutions, we see health, in health we provide hospitals, we provide
doctors, we provide nurses, we provide clinics. In Education, we provide universities, we
provide schools, we provide kindergartens, and we provide teachers. In the area of
personal security we provide policemen, we provide lawyers, we provide courts, and we
provide prisons. In the area of food, what do we provide? Food as a basic right of the
population, where is the food and nutrition policy that is central to development? ... The
region does not risk its health services, education and security to others. Hence, why should
it continue to risk its food and nutrition security – the basis of the existence of its peoples - to
others?. ..the critical thing which we have to ask ourselves today, 'are we going to continue
to depend on others to feed us or are we going to try to feed ourselves'?'.. (Brathwaite,
2008)

It is clear that adequate investments must also be made in developing the vegetable and
fruit sub-sectors for the same reasons advanced above, and also for the fact that from the
late 1970s, CARICOM countries made significant investments in these industries for export
markets. However for the remaining food groups, the issue of investment needs is not as
clear cut.

In terms of food from animals, the relatively low requirement for a healthy daily diet should
provide some measure of caution and rethinking. While foods from animals, mainly poultry,
rank extremely high on the consumer preference chart, high consumption cannot be
considered as synonymous with good nutrition. This notwithstanding, the fact that the CFNI
recommends a lower intake of food from animals does not preclude development of the
animal products industry. Spending limited investment resources in developing new
livestock industries that may not be in a position to survive in the absence of continued
government support is also a decision that needs to be revisited. In the context of nutritional
guidelines, such investment cannot be strongly justified on a food and nutrition security
basis. The region does not have a comparative advantage in animal products, particularly
those from large livestock. The decisions regarding small ruminants, pigs other small stock
and fisheries products, will obviously have different considerations. Among the other critical
considerations is the role of cultural eating patterns and food preferences of the CARICOM
consumer.

Fish, in particular, holds potential for investment along the entire value chain, from
infrastructure to the scientific applications, technology, research and preservation and the
services industry. Investment decisions should also explore production of fishing tackles, cold
storage and transportation, development of fish ponds in coastal areas, swamps, where
they exist, aquaculture, fish canning and packaging, boat construction and out-board
engines assembly and manufacture, trawling and ancillary facilities and services. With an
emerging health consciousness in CARICOM and growing demand for fishery products that
are high in protein, low in fat and high in vitamins, minerals and other essential nutrients,

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 9
in CARICOM
CARICOM would be well served to focus investments towards increasing current regional
capacity to supply protein needs from fish and fish products.

It is well understood, that investment incentives are an important component of the


domestic policy measures needed to support the farm and agro-processing sectors in
CARICOM. There is sufficient scope for Governments of the region to provide incentives, of
one form or another, to the agricultural production and/or processing sector under the
facilities and mechanisms of the World Trade Organisation (WTO) Agriculture Agreement
defined in the “green box”. This notwithstanding, the national and regional environments for
competitive business are still not sufficiently conducive to attracting greater levels of
investment in agriculture.

The discussion concludes by emphasizing the need for CARICOM, as a region and as
sovereign states, to secure the food and nutrition objectives by investing in the
development of its ‘food system’. The term "food system" is a phrase used to link elements of
food production (agriculture), food distribution (trade) nutrition, health and rural/community
development. The food system is described as including all processes involved in keeping
people fed and must address, in an equal manner, the four key components of food and
nutrition security, namely, availability, household access, nutritional adequacy and stability
of the three components. Agriculture is inextricably tied to the issue of availability. Using the
CFNI’s food groups, the combined resources of CARICOM can reasonably supply a
significant share of the most important food needs for a healthy daily diet – staples,
legumes/nuts, fruits and vegetables. Therefore, for CARICOM, investment decisions that tip
the scales in favour of domestic/regional production and distribution will go a long way in
reducing import reliance and enhancing regional food and nutrition security.

National measures that promote and facilitate household food and nutrition security also
complement efforts to expand availability. Other access-enhancing measures include
farmers’ markets that seek to ensure better national distribution of locally produced foods,
government programmes to enhance income earning opportunities so vulnerable
households can meet food needs and safety nets, such as, food stamps. Attention to food
safety along the chain, but particularly from planting to farm gate, will also have some
implications for the quality of the food product in terms its nutritional adequacy. Such efforts
at the national level should be supported and reinforced by regional mechanisms that both
strengthen the regional environment for investment and ensure a more efficacious
distribution of investment resources into areas that secure the wealth of member states
through the health of their populations. Increasing investment in agriculture for food and
nutrition security is a stated goal of the community agricultural policy framework in the
Revised Treaty establishing the Caribbean Community, including the CSME.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 10
in CARICOM
1. Context
1.1 Introduction

Investment, in any sector or industry, is an essential vehicle


for technology transfer, growth and development. Such
investments speak to public and private sector injections
of capital into public goods and private enterprise that
create the national/regional environment for building
competitive and integrated value chains. The lack of such
value-chain development in CARICOM has been cited as
the single most important factor limiting the growth and
development of agriculture, and hence placing the
region in this highly undesirable and unsustainable food-
import dependence situation.

The agricultural development process has been fairly


similar in all CARICOM countries. The process can best be
described as a series of ‘shifts’ accompanied by
challenging adjustments, rather than seamless
development in response to market signals. These cyclical
shifts were almost always in response to externally driven
changes in the preferential marketing arrangements for
the major export crop industries. Since the early 1980s,
several attempts have been made to diversify the
production base and expand value adding for fuelling
exports. However, the structure of agriculture has
remained virtually unchanged and is still largely described
as a producer and exporter of bulk, raw materials for food
and beverage value-adding industries in developed
countries.

The export trade data provide ample evidence of this


structure. The development of domestic/regional value-
added capacity has proceeded at a relatively slow
pace, with an emphasis on food and beverage
manufacturing, built largely on imported raw materials
and ingredients. The import trade data also provide
ample evidence of this dependence, as well as the
growing dependence on imports as a source of food and
other agricultural materials and inputs. This extends to all
types of processing and packaging, agro-chemicals,
equipment and machinery and research, technology and
development. The emergence of non-food agro-
industries, such as, fertiliser and other agro-chemicals, has
been also limited to a few companies in a few CARICOM
countries, notably, Trinidad & Tobago. The only notable
exception of this dependence is labour. However, within
the last ten years, the challenges in obtaining labour for

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 11
in CARICOM
farms and processing plants have been worsening, and the need to explore migrant labour
for agriculture now forms part of the regional agricultural development dialogue.

The results of this agri-structure has been an industry – both primary and value-adding – that
is now heavily dependent on external sources for the majority of its inputs and a regional
society that is also heavily dependent on external sources for food supplies. With the rising
prices phenomenon over the last five years, the cost of such dependency, particularly the
impact on food and nutrition security, has raised alarm bells and is now a major cause of
concern at all levels of industry, civil society and the political directorate. As a
consequence, agriculture is back on centre stage, with expectations of assuring adequate
supplies of wholesome and nutritious food, providing raw material for industrial
development and generating an alternative and renewable source of affordable and
clean fuel. While each of these areas offers potential opportunities for investments in
developing agriculture and its linked industries in CARICOM, the focus of this paper will be
on investment in building food production capacities. The reasons are obvious. As
CARICOM countries pursue economic development strategies, there are real concerns that
agriculture is ‘losing ground’ to other activities, ‘losing position on the national development
agenda’, and ‘losing currency’ in the public and private sector investment portfolios. The
combined outcomes of such losses have significant current and future implications for the
food and nutrition security and health status of the region’s populations and the sustainable
development of CARICOM nations.

While agriculture offers investment opportunities beyond the area of food production, the
unfolding global situation with respect to rising levels of hunger and malnutrition,
environmental challenges (including climate change) and the impacts on assuring food
and nutrition security, makes it imperative to maintain a focus on food production.

1.2 Background

The CARICOM region, collectively, has moved from a food-surplus to a food-deficit


situation, with a growing reliance on food imports for the welfare of its people. While
weakened performance of major agricultural export industries contributed to this shift, the
growing preference for imported foods and rapidly expanding tourism, are by far, the major
drivers of import growth. Over the last five years, the food deficit situation has worsened as
prices of basic food items escalated and costs of transactions increased. The situation now
borders on a crisis. A crisis measured, more often than not, in financial terms, that is, by the
capacity to pay for imports and purchase food. Unfortunately, a major and often hidden
aspect of this crisis is the impact on health of a significant number of the region’s
population. This ‘hidden’ impact is being revealed through a significant increase in the
number of CARICOM nationals afflicted by health-threatening, diet-related illnesses and
diseases.

The current search for solutions to avert and mitigate a threatening food and health crisis
has brought the role and future of agriculture back on the CARICOM development
agenda. Since the mid-1990s, agriculture’s measured contribution to the gross domestic
product (GDP), foreign exchange earnings and job creation in several CARICOM countries
has declined. This situation has not always been so, which provides fuel to the debates that
the current predicament could be reversed and CARICOM returned to a food-surplus
region if adequate investments were injected into agricultural development.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 12
in CARICOM
This was the conclusion of the Heads of Government in 2004, when President Bharrat
Jagdeo, Lead Head for Agriculture in CARICOM, led a regional effort to re-activate the
sector. This CARICOM Alleviation of Key Binding Constraints (KBC) Initiative is focused on
nine (9) issues (Box 1). It is instructive, that even while these nine KBCs are not listed in any
particular order of priority, the one related to ‘Limited Financing and New Investments’
emerged on top. It is the general conclusion that many previous efforts at agricultural
development at national and regional levels have been frustrated by inadequate financial
and investment resources, particularly in establishing the infrastructure necessary to
stimulate, enable and sustain productive and competitive business.

Box 1:
CARICOM Alleviation of Key Binding Constraints (KBCs) Initiative
1. Limited financing and inadequate levels of new investments
2. Outdated/inefficient agricultural health and food safety systems
3. Inadequate research and development
4. Fragmented and disorganised private sector
5. Weak land and water distribution and management measures
6. Deficient and uncoordinated risk management measures
7. Inadequate transportation systems, particularly for perishables
8. Weak and non-integrated information and intelligence systems and weak linkages and
participation in growth market segments
9. Lack of skilled and quality human resources.

The CARICOM region is fortunate in terms of its geography and climate that enables year-
round agricultural production. It has a rich biodiversity and sufficient arable land distributed
across islands and mainland states that endow the region with the capability to undertake
the successful cultivation of a wide range of crops. Water resources, while not as evenly
distributed across member states, are generally available, fed by high levels of rainfall, river-
systems and under-ground water reservoirs. There is a base of agricultural raw material on
which agro-industry can be developed. Also, it is often said that Ministries of Agriculture
have a higher number of ‘degreed’ personnel compared to other Ministries in member
states, which provides a pool of human capital, complemented by institutions of learning
and research, such as, the Universities of the West Indies (UWI), Guyana (UoG) and
Surname, and the Caribbean Agricultural Research and Development Institute (CARDI) that
have made commendable efforts in developing and adapting new production systems
and crop and animal varieties to enhance the productive base and provide the foundation
for growth and development in agriculture and its linked industries.

All these assets, however, have not always been harmoniously mobilized for optimal results.
Agricultural development in CARICOM has historically been organized and managed to
service extra-regional markets in developed countries, mainly in Europe. As a
consequence, the bulk of financing and investments in agricultural development were
almost always tied to developing and expanding capacity for exports of bulk primary
commodities. In a post- WTO era, when the European-CARICOM trade and economic
relationship was forced to incorporate the principles of free trade, CARICOM countries were
similarly forced to revisit their policy options with respect to the priorities for agricultural
development.

Priorities for agricultural development, as articulated in the Revised Treaty of Chaguaramas,


emphasizes, competitiveness, food security and sustainability in the use of natural resources.
Achieving these development objectives will require considerable financial and investment

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 13
in CARICOM
resources that go beyond the traditional dependence on public-sector budgets and donor
financing, and beyond objectives of export-led diversification and growth.

In the new context for agricultural development, with more intense demands on global
food production systems, greater uncertainty regarding security of food supplies, more
intense competition for physical and financial resources, and the deepening of regional
integration, it becomes even more imperative that the region engage in efforts to
continuously identify opportunities with good investment potential in agriculture and its
linked food and non-food products and services industries.

1.3 Features of CARICOM 's Landscape

The socio-economic and physical landscape of CARICOM countries is well documented.


For ease of reference, the key elements as they relate directly to the topic will be briefly
discussed in this section.

…tropical zones, taking the good with the bad


The Caribbean’s geography and tropical climate favour a diverse biodiversity that supports
wide ranging crop production, animal husbandry, forest and fisheries. In most CARICOM
territories, with the exception of the drier Leeward Islands and Barbados, surface and
ground water resources are also abundant. This resource capacity is an essential base for
supporting and sustaining the supply capacity of food, fuel, fiber and services associated
with agriculture and its linked industries. However, the location of the Caribbean region, in
the path of tropical weather systems, exposes fragile ecosystems and increases the physical
vulnerability of the region. As indicated in the previous section, disaster risk mitigation is
receiving priority attention.

…progress in human development, but challenges for households and agriculture


Changes in demographics have had a major impact on the region's emerging food and
nutrition landscape. The regional population moved from 15.1million in 2005, to 15.3 million
in 2005. Haiti, Jamaica and Trinidad &Tobago, in that order, accounted for over 85% of this
total. This growth resulted, in part, from enhanced life expectancy, which has also
contributed to a slow, but steady ageing of the population. This links directly to the oft-cited
limitation of an ageing farming population. There has also been a shift in terms of an
increasing number of women entering the work place and business sector. Importantly, this
includes running small and home-based enterprises, which account for a large share of
food processing establishments in rural and urban areas. Urbanisation and more women-in-
the-workplace have reduced the numbers of persons available for rural-based business and
farm labour, with consequences for efforts to fuel rural prosperity.

Expansion in urban populations has been more pronounced in a number of the small OECS
islands (St. Lucia, St. Vincent and the Grenadines and Grenada). This is associated largely
with the displacement of farmers and farm workers due to the decline in the banana and
sugar industries over the past two decades. The overall average urbanisation for CARICOM
increased from 40.7% to 54.7% for the period 1985-2005. Bahamas, whose urban population
has increased from 79.7% to 90% between 1985 and 2005, experienced the highest
concentration of population in urban areas. Rapid urbanisation has implications, not only
for the stagnation in rural areas and carrying capacity of urban-related services and
infrastructure, but importantly, for driving changes in consumption choices and habits, often
away from traditional foods and patterns. The impact in terms of demand for locally

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 14
in CARICOM
produced foods has been profound and detrimental to the sustainable development of
agriculture and resilience of the region to external shocks.

…rising GDP indicators, but falling output Figure 1: CARICOM—Real GDP Growth, 1997-2006 (2000 prices)
from agriculture Source: FAO/CFNI, 2007

CARICOM countries achieved relatively Caribbean: Real GDP Growth


strong real growth rates in GDP over the
years 2002-2006 (Fig.1). Trinidad & Tobago 8
and Antigua & Barbuda in particular, 7 Growth Rate
recorded the highest growth rates in 2006, 6

the former continuing a decade-long boom 5


4

%
driven by its energy production and the latter
3
reflecting strong demand for tourism and Trend Line
2
related services and investments in
1
construction related to the Cricket World
0
Cup. Haiti, Guyana and Jamaica showed 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
some growth improvement in 2006
compared to 2005. Such growth is being
supported mainly by services, with the goods sector still relatively concentrated in a narrow
range of industries, including food and beverage manufacturing (Table 1).

“The manufacturing sector, which caters largely to the protected sub-regional and United
States (US) markets, in the case of the free trade zones, has not, by and large, attained the
level of efficiency to compete successfully on international markets. It is still largely made of
offshore processing plants, producing mainly garments and electronics for export to the US,
import-substituting plants involved in assembly type operations, that is, appliances
essentially targeting the local markets and agro processing plants catering primarily for the
CARICOM market.” (FAO/Bynoe, 2007) However, the region’s diversity, both in resource
endowment and evolution of economic activity renders it difficult to compare growth
achievements. Thus, a 4% growth rate in the Bahamas is considered “unparalleled”
according to the Prime Minister; in Barbados it represents a slight reduction from the
previous two years; in St Vincent and the Grenadines it is only just above average, whereas
Jamaica’s estimated 2.5% growth in 2006 reflects the best performance in 15 years and
motivated the announcement that the economy is “out of the doldrums”; the same
performance in Belize is disappointing against several years of very high growth (FAO/CFNI,
2007).”1

In almost all growth scenarios, with the exception of Guyana and Suriname, agriculture's
growth trended in the opposite direction - downwards, or at best, stagnant. This has been
going on for a while and is cause for much concern given the region's high food import
dependence, rising costs of production and business transactions, and the impacts of
climate change. This outcome is often blamed on the trade liberalization from 1994 and the
eventual erosion of the value of preferential market access for leading agriculture export
industries. Notwithstanding its overall performance, agriculture remains vital to a number of
these economies in terms of supplying foods for domestic consumption, providing
employment and income for a number of poor rural households, and supporting agro-
processing industrial development by providing the raw materials to support these
industries. Against this backdrop, critical issues for agricultural development in CARICOM
centre on the securing adequate supplies of safe and wholesome food.

1 Extract from FAO/CFNI, 2007

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 15
in CARICOM
Table 1: Structure of Economies—CARIFORUM Countries
Countries 1980 1990 2000 2005 Countries 1980 1990 2000 20051
% of GDP % of GDP
Antigua/ Barbuda Haiti2
Agriculture 7.1 4.2 3.9 3.7 Agriculture na na na 28
Industry 18.1 20.1 19.8 22.9 Industry na na na 20
Services 74.8 75.7 76.3 73.4 Services na na na 52
Belize Jamaica
Agriculture 27.4 20.0 17.2 16.2 Agriculture 8.3 6.2 6.7 5.0
Industry 30.9 22.2 21.1 18.0 Industry 15.1 21.1 31.3 29.8
Services 41.7 57.8 61.7 65.8 Services 58.8 48.2 62.0 56.8
Barbados2 St. Kitts/Nevis
Agriculture 7.0 7.0 6.3 5.8 Agriculture 15.9 6.5 2.7 3.0
Industry 20.4 20.1 20.2 20.0 Industry 26.6 28.9 28.9 28.3
Services 72.6 72.9 73.5 74.2 Services 57.5 64.6 68.4 68.7
Dominica St. Lucia
Agriculture 30.7 25.0 18.1 18.7 Agriculture 14.4 14.5 7.4 5.4
Industry 20.9 18.6 23.4 23.0 Industry 23.6 18.1 19.6 18.0
Services 48.4 56.4 58.4 58.3 Services 62.0 67.3 73.0 76.6
Dominican Republic St. Vincent/ Grenadines
Agriculture 20.1 13.4 11.1 15.1 Agriculture 14.3 21.2 10.8 8.9
Industry 28.3 31.4 33.9 30.9 Industry 26.5 22.9 24.0 24.2
Services 51.6 55.2 54.6 69.2 Services 59.2 55.9 65.2 66.8
Grenada Suriname2
Agriculture 24.7 13.4 7.7 8.5 Agriculture 10.1 9.5 9.2 9.6
Industry 13.1 18.0 24.3 23.1 Industry 17.1 17.5 12.7 14.5
Services 62.2 68.6 68.0 68.4 Services 72.8 73.0 80.1 75.9
Guyana Trinidad/Tobago
Agriculture 23.4 38.1 31.1 26.0 Agriculture 3.0 2.3 0.9 0.8
Industry 35.8 24.9 29.0 23.0 Industry 43.9 45.0 48.0 46.0
Services 40.9 37.0 39.9 35.0 Services 53.1 52.7 51.1 53.2
Source: FAO/ CFNI, 2007

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 16
in CARICOM
2. Food Production and Nutrition Security Issues
2.1 The Changing Context

In 2005, the CARICOM Secretariat was driven to


emphasize that “food security is not only an important
issue because of the need to ensure that there are
sufficient food supplies to meet the consumption needs
of the population; it is critical also that the Region be in
a position to support its tourism industry with its food
requirements for the approximately five million visitors
each year who contribute in excess of US$3 billion to the
annual income.”

…the context of food production has changed


Since 2003 the rising fuel and food prices have been
cited as a major contributing factor to the escalating
costs of living and poverty in the region. The reasons for
same are well documented and discussed globally and
in the region.2 These include climate change, which has
disrupted global supply patterns, increased demand,
especially by the rapidly urbanizing and industrializing
China and India, a shift in agricultural commodities from
food to bio-fuels in the face of higher energy prices,
increased cost of business transactions and distribution
as a result of higher oil prices and the depreciation of
the US dollar against other major traded currencies. For
CARICOM, the national context for agricultural
production has also changed. The 1970s to 80s saw an
aggressive thrust towards agricultural diversification,
driven by the need to secure overseas markets and
earn foreign currency. However, progress towards this
objective has been particularly slow, yielding limited
and un-stainable results. By the 1990s, production
capacity had contracted as most CARICOM countries
favored expansion in services as the lead growth sector.
In the transition from an agrarian to services-led
economy, the capacity gap in food production
widened, with obvious consequences.

…the situation with food insecurity has worsened:


In the last five years and during the last 12 months of
2007 in particular, the data show rising prices of specific
food commodities, most of which are consumed by the
poor and vulnerable. “The data for Trinidad &Tobago
show the highest increases in food prices over the
period. A more detailed look at some recent data
published by the Central Bank of Trinidad & Tobago on

2 CARICOM Secretariat (2007): “The Escalating Cost of Living and Poverty in the Caribbean” Technical Report

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 17
in CARICOM
core and headline inflation, confirm that meat, vegetables, fruits and milk and cheese
continued to be areas of significant increase among food prices.” (CARICOM Secretariat
2007) A significant volume of such food supplies are imported, which explains a large part
of the food price inflation in the region. The poor are more likely to feel the effects of
changes in the price of food, as expenditures on food accounts for usually between 35 and
40% of household financial resources. As these financial resources decline, so too do
expenditures on food, and in particular, health foods.

…the impacts of food dependence are expanding


The high and rising food import bill, which at the end of 2007, approximated US$3 billion, is
evidence of the increasing and the growing reliance of the region on external food
supplies. Trade liberalization has resulted in easier access to a wider range of food products.
In the context of the projected continued instability in global geo-politics and more
frequent occurrences of severe natural events, there has been an increased anxiety
regarding the state of food and nutrition security within the region. This anxiety is even more
acute given the recent data regarding the high and rapidly rising levels of diet-related
illnesses and diseases among a wider cross-section of CARICOM’s populations. There has
been a rapid transition of the dominant health problems from under nutrition to the chronic
non-communicable diseases, such as, heart disease, diabetes, obesity and hypertension.

…the focus on food and nutrition security is sharpening


Consequently, the need to ensure food and nutrition security and even food sovereignty is
being strongly advocated by all the leaders in the region, not only from an import bill
reduction perspective, but more so, from a preventive health care and cost perspective.
This has placed the agri-food sector and its various industries under increasing pressure to
provide for and sustain an acceptable level of food production for the region. Achieving
this objective requires that the region collectively and urgently resolves some critical issues
that relate to the growth and development prospects for the agri-food sector. High among
these issues is the current and projected food production and consumption patterns. The
2006 World Food Summit defined the concept of food security as “all people at all times,
have physical, social and economic access to sufficient, safe and nutritious food which
meets their dietary needs and food preferences for an active and healthy life.” Embodied
in this definition is that food security is a continuous process of nutrition and health
development that depends on a mix of availability, household access, nutritional
adequacy (consumption/biological utilization and care practices) and stability of the three
components. Over the 2005 to 2006 period, through the implementation of the
FAO/CARICOM Food Security Project in the Caribbean, key issues related to the situation of
each of the above factors were identified.

- assuring availability:
With respect to availability, the main issues revolve around supplies and distribution,
specifically uncompetitive and declining primary agriculture and agro processing
sectors and high dependence on extra-regional imported commodities. These two
issues are inter-related and the severity of the deficiencies in the former, will determine
the extent of import reliance as indicated in the latter. The main limiting factors for an
uncompetitive agriculture and food processing sector are well documented and
include domestic deficiencies related to risk mitigation, financial resources, infrastructure
and institutions, production structure and systems and competition for physical
resources. The resulting weakness in domestic agriculture has given rise to conditions
that encouraged and eventually drove the rapid expansion in imports. These include a

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 18
in CARICOM
general perception of low quality of locally and regionally produced commodities,
limited promotion marketing information on locally/regionally produced products,
uneven application of common external tariff (CET) and inadequate intra-CARICOM
trade due, in part, to inefficient intra-regional transportation.

- facilitating access: In terms of factors affecting access, issues relating more to


purchasing power (wages and income) and unequal distribution of resources and assets
were major limiting factors. The minimum wage and tax burdens, as they reduce
disposable incomes, make it difficult for persons to afford, the often higher priced,
healthy foods. Figure 2 indicates that for Guyana, Jamaica and Grenada, for example,
about 31% of the minimum wage was required to purchase the food basket in 2004
compared to 41-57% in 1999.

The situation in 2004 indicated a Figure 2: % of Minimum Wage Required to Purchase a Low-Cost,
general trend towards increased Nutritionally Balanced Basket of Food (Selected Countries)
accessibility to food insofar as the Percentage of Minimum Wage Required to purchase well-balanced low cost diet 1999 and
2004

countries saw declines in the 60

percentage of the minimum wage


50

required to purchase the food


basket. Limiting incomes also impact 40

the incidence of poverty, which in 1999


percent

2004
30

turn, limits access to food. Despite


20

considerable economic progress in


post-independence CARICOM, 10

poverty and inequalities in income 0


Antigua Montserrat St. Kitts Nevis Grenada Jamaica Guyana

and access to resources are at


Source: CFNI.
unacceptably high levels, and
continue to be major challenges in
this region. An estimated 25% of the population of CARICOM is said to be living below
the poverty line. This means that these persons do not have adequate income to
purchase a standard basket of goods that meet daily dietary energy requirement. Food
consumption patterns among the poor are often characterized by the utilization of diets
that have a high proportion of the relatively more affordable processed carbohydrates
and limited quantities of fruits and vegetables and meat and dairy products. Soft drinks,
sweet biscuits, pastries and cakes are among the highly consumed products – often
described as ‘empty calories’. Inefficient and inequitable distribution networks due to
inadequate national and regional marketing, transportation infrastructure and
marketing information systems limit the flow of local foods internally and trade around
the region. Vulnerable segments of the population are the most severely affected.

- improving utilization
Apart from physical availability and capacity to access food, issues related to proper
utilization of food are sometimes as equally limiting on food and nutrition as lack of
availability. Among these are poor food choices due to lack of education on food
nutritional properties, dietary requirements, limited knowledge of preparation methods,
cultural and traditional practices and habits, and unacceptable food quality, resulting
from poor production, storage and distribution safety processes. It is often thought, that
access to nutritious and healthy foods is hindered by the fact that prices tend to be
higher than for foods of lower nutritional value. This has been shown to be the case in
several countries, as the more 'reasonably priced' empty caloric foods are more readily

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 19
in CARICOM
available, with variety size packs and hence more easily accessed compared to
healthy foods. The research shows that on average an estimated 10% of CARICOM’s
population is unable to meet daily dietary energy requirement. This has a direct impact
on the kinds of foods purchased and consumed by the more vulnerable groups.

- enhancing policy and institutional efficiencies


These limiting factors are all impacted by the inadequate institutional systems and policy
framework to deal with food and nutrition security related issues. This is especially so with
respect to the low levels of real linkages and connections between the agriculture, food
production, health and education sectors of the economy. This situation has been
blamed on the lack of effective and on-going mechanisms at the regional and national
levels to facilitate dialogue on critical issues related to food and nutrition security and
limited knowledge and awareness of the concepts, indicators and issues by decision
and policy makers.

Food and nutrition insecurity in CARICOM is a major challenge and governments and civil
society alike, are increasingly pressured to develop immediate and adequate responses.
Among the priority concerns is the need to develop an appropriate policy framework that
would address the major components, as discussed above, including opportunities for
household food production and sustainable livelihoods which can reduce the pressure on
national production systems and employment. An effective policy must go beyond the
traditional focus on expanding food production, to include providing efficient internal and
intra-regional distribution networks, promoting good nutrition and effective utilization and
providing safety nets for the most vulnerable.

When the region’s natural resources and biodiversity capacities are combined with the long
history of political-institutional ties, the region is well placed to satisfy a significant share of its
food and nutrition requirements from local sources. However, traditionally, the focus of
‘organized’ agricultural development in the region has been oriented towards satisfying
external demand for tropical products. Therefore the pattern that has developed has been
production and export of bulk raw material for value-adding, both through ripening and
processing, in industrialized countries and local consumption of what is referred to as ‘food
crops’, grown under largely small scale, low technology and disorganized conditions.

In the process of integrating with the rest of the world, cultures have assimilated and
societies have matured. Consumption patterns have also moved away from traditional
food crops and fresh commodities towards highly refined and processed food products.
However, agriculture’s production patterns and structure have remained largely
unchanged. As agricultural production capacity has failed to keep pace with changing
consumer demands and industry needs, the result has been a marked, rapid and growing
dependence on imports as a preferred source of food and raw material supplies. The
resulting situation where CARICOM countries, individually and as a region, have shifted from
net food exporters, to net food importers, has far reaching consequences for meeting the
challenges of food and nutrition security, with consequent impacts on human health and
welfare in the region. In 2008, several Heads of Government took the decision to reduce
and in some instances, remove the CET, to alleviate the price-based difficulties associated
with availability and access. However, another fundamental element of the food and
nutrition security issue in CARICOM remains largely un-addressed. This relates to the
widening gap between production capacity and consumption patterns and the
consequent and adverse impact on the nutritional and health status of the population.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 20
in CARICOM
2.2 The CARI COM Consumer

Agricultural production in CARICOM is often characterized as a dual system: the planned


and supported production to satisfy the needs of extra-regional export markets and the
‘free and disorganized’ production to feed local and regional consumers. It is often argued
that CARICOM, as a region, has not invested in the internal infrastructure or systems to
‘feed’ itself and hence this has been the cause of the shifting habits of the CARICOM
consumer and the origin of the region’s food import dependency. Who is the CARICOM
consumer and how has this consumer impacted the regional food and nutrition profile?

…ethnic melting pot and cultural diversity


A major aspect of CARICOM's socio-cultural landscape that has influenced the
development of agriculture and its linked industries is the ethnic composition of its
populations. CARICOM is often described as a multi-ethnic society, with the fusion of various
cultures arising from its colonial past, with the dominant ethnic groups made up of persons
of African and East Indian origin. The ethnic composition has influenced the type of
agriculture practices, particularly among small holders, and as well, food consumption
choices and patterns.

The Caribbean’s indigenous peoples ‘cultivated’ a range of root crops, mainly cassava,
‘gathered’ their food needs from fruit and other trees growing in the wild and hunted and
fished to satisfy needs for animal products. The major defining periods of the development
of CARICOM’s multi-ethnic society has been the infusion of African and East Indian cultures
during the different phases of colonialization. These cultural ‘introductions’ influenced the
prominence of certain foods in countries with largely Afro-based and Indo-based
populations and cultures. For example, in countries with a predominantly African culture,
domestic production and consumption of root crops and other staples, such as banana
and plantains, and poultry and small livestock (pigs, sheep and goats) rearing has been
common. In countries with a predominant East Indian culture, such as Suriname, Guyana
and Trinidad & Tobago, rice cultivation for domestic use evolved into a major export
industry. Also in these larger CARICOM territories, the movement of other ethnic groups,
from Asian and Pacific countries, also added new foods and flavor to CARICOM culture,
now evident in the diversity of the cuisine. Although various ethnic groups tend to maintain
specific cultural practices, over the years there has been an infusion of the cultures into the
CARICOM cuisine, also influenced by the growing exposure and access to a diverse range
of processed food and beverage products from industrialized countries.

CARICOM’s emigrants, and hence culture, have also found its way into the cities and
metropoles of developed and rapidly developing countries across the globe. These often-
referred to 'diaspora' are looked on to generate high demand and secure lucrative markets
for Caribbean foods and cuisine. The widening diaspora has been regarded by some
commentators as positive, in that it is creating niche market opportunities abroad for
Caribbean products and well as ‘showcasing’ CARICOM’s culture in North America and
Europe. Annual remittances from abroad are estimated at about US$4 billion, and are
considered a significant source of foreign currency into the region.

…growing populations feed growing demand


As population grows, food demand also grows. Population size is a basic driver of food
intake. As indicated previously, CARICOM’s population has been growing relatively slowly,
comprising mostly youth, with a relatively large percentage between the ages of 15 and 35.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 21
in CARICOM
Undoubtedly this has a significant impact on the kinds of food demanded and consumed.
Young people’s choice of food is also more easily influenced by the trends in ‘Western’
countries.

Available information shows that in Barbados for example, the consumption of fast foods
and the trend of eating away from home are entrenched among young people. This
largely explains the results of an anthropometric survey that shows the prevalence of
overweight and obesity of over 50% for the both men and women between the ages of 18
and 29 years.

Box 2 highlights the main results of that study. It is noted that these trends largely mirror that
in most other CARICOM countries as urbanization and ‘food retailing’ expands into what
was previously defined as ‘rural’ areas.

BOX 2:
Food Purchasing and Consumption Habits in Barbados
• 45.3% of men and 31% of women eat-out and consume ready-to-eat meals at least once or twice a
week. Fast-food outlets, followed by canteens and restaurants are the more popular sources.
• Young adults (<30 years) were more likely to eat out: more than 76% of young men and 66% of young
women ate out once or twice a week. Use of fast-food outlets was highest in this age group.
• 14% of respondents actually consumed the daily amount of fruits and vegetables recommended by
the World Health Organization (370 g).
• The percentage of calories derived from fat (close to 25%) was below the recommended WHO
maximum of 30%, but well above the recommended Caribbean maximum of 15 to 20%. Nearly one-
third of the respondents were consuming high-fat diets and exceeding the recommended WHO
maximum of 30%. A significantly higher proportion of younger (<50 years) than older (≥50 years)
Barbadians exceeded the WHO maximum, indicating a disturbing trend towards higher-fat diets.
• The contribution of carbohydrates to the calorie intake is acceptable, at about 59%.
• The consumption of sugar and high-sugar beverages are high: carbonated beverages are among
the six highest ranked sources of energy and carbohydrates. Such consumption by younger adults
(<30 years) –both men and women – exceeds by far their consumption by all other age groups.
Source: FAO, 2000

The rapidly ‘urbanizing’ CARICOM consumer has been driven by and is in turn driving the
rise of modern retailing, which has enabled the shifts in consumption patterns. It has been
observed in a number of these food retail outlets, the offerings of wheat, white potato and
rice based staples, to a large extent has replaced traditional staples of roots and tubers,
bananas and plantains. Consequently, food supplies, diets and body composition have all
changed (Ballayram et. al., 2002). There is also the observation that the capacity to access
these ‘fast food’ restaurants is becoming increasingly popular among many low-income
group since it provides the opportunity to ‘eat out’ as a family.

…development measured by social affluence or quality of life?


Economic theory and development experience show that the more affluent a society
becomes, the greater the demand for high value foods, leading to higher demand for
highly processed foods and especially those of animal origin. In the choice-preference
process, there could be a strong and steady movement away from choices based on the
‘nutritional’ content of food to that driven by the search for the ‘gourmet experience’,
taste, convenience and novelty, among others. This change in choices and preferences
has both driven and is driving food production, marketing and distribution globally.
CARICOM member states are not isolated from this global phenomenon, and as a result of
trade liberalization, access to ‘new’ food products has improved substantially. The result,

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 22
in CARICOM
food consumption in the Caribbean increasingly bears little or no resemblance to regional
food production capacities. Instead, Caribbean consumption patterns are often described
as one that simulates the lifestyle and habits of developed Western societies, with serious
consequences for the health status of the population.

2.3 Consequences of CARICOM's Food Choices

Survey information on food consumption patterns in the Caribbean is somewhat limited.


However based on the information available from the anthropometric and consumption
surveys conducted in selected Caribbean countries as well as the analysis of food import
data, some generalizations can be made. This discussion will proceed from the most to the
least consumed foods among CARICOM population.

CARICOM consumers obtain a substantial amount of their energy supplies from Fats and
Oils. (Figure 3) In fact, their consumption of oils and fats are increasingly well above the
recommended level. For the period 2000-2002 the supply of energy from fats was estimated
at 800 calories/per caput/day. This was twice what is recommended as the population
goal. “The Region consumed an estimated 130,000 tons of vegetable oils annually in
2000/02. The highest consumption was reported in Haiti at 61,000 tons, followed by Jamaica
33,000 tons and Trinidad & Tobago 17,000 tons.”3 (UWI, 2006) Vegetable oils are widely used
for cooking and in particular the preparation of fried foods (deep fried chicken, fried fish,
floats, French fries, etc), which has become extremely popular with CARICOM consumers.
Margarine, butter and shortening are important ingredients of cakes and pastries.
Margarine and butter are also used as spreads on bread.

Figure 3: CARIFORUM Energy Supply from Fats (per caput/day)


the Supply of Energy (per Caput per Day) from Fat:
The Cariforum Region
1961-2002

900

800

700

600
Calories/caput/day

500
Supply
Population goal
400

300

200

100

0
1961-1963 1971-1973 1981-1983 1991-1993 2000-2002

Source: CFNI

A similar situation was obtained with respect to sugars and sweeteners. Figure 4 shows that
the Caribbean population is consuming more than twice the amount of sweeteners that is
recommended level. This derives from a substantial consumption of an increasingly
widening variety of single strength, concentrate juices, nectars, drinks, flavored waters and
beverages, in particular, carbonated beverages. Such consumption is particularly high
among the young population. It is interesting to note that in a number of Caribbean

3 UWI, 2006: The Coconuts Industry in CARICOM: Global Market Intelligence Report, December 2006

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 23
in CARICOM
countries, beverage, confectionary and bakery products are major food processing
activity. The CFNI concluded that CARICOM is generally over-fed on empty calories. This is
evident in the relative choices made with respect to the various food groups, as discussed
below.

Figure 4: CARIFORUM Energy Supply from Sweeteners (per caput/day)


the Supply of Energy (per Caput per Day) from Sweeteners:
The Cariforum Region
1961-2002

450

400

350

300
Calories/caput/day

250
Local
Imported
Population goal
200

150

100

50

0
1961-1963 1971-1973 1981-1983 1991-1993 2000-2002

Source: CFNI

Energy supply from staples in CARICOM though relatively high, is still under the
recommended level (Figure 5). However, the fact that the bulk of staples consumed are
based on products from highly processed white-flour based wheat and rice products is
cause for concern. White rice, in particular, contains very little Vitamin B1 and Vitamin E.
Staple foods provide the bulk of dietary energy and were traditionally obtained from roots
and tubers, plantains and bananas.

Consumption surveys revealed that there was some difference between ethnic groups in
consumption patterns. In Guyana for example, Afro-Guyanese generally eat more white
bread, rice and ground provision, while the preferred foods of people of East Indian origin is
wheaten flour cooked as roti and eaten with a variety of vegetables and beans. The main
staple among the Amerindians in Guyana is cassava. In Jamaica the most commonly
consumed stapes are white rice, boiled yellow yams and boiled dumplings made from
white wheaten flour. In Dominica the main staples are green bananas and ground
provisions (especially tannia), bread and rice. Consumption patterns in Belize reflect the
influence of culture and class, with Maya and rural Mestizos consuming large amounts of
corn. The national dish however consists of rice and beans.

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Figure 5: CARIFORUM Energy Supply from Staples (per caput/day)
the Supply of Energy (per Caput per Day) from Staples:
The Cariforum Region
1961-2002

1200

1000

800
Calories/caput/day

Local
600 Imported
Population goal

400

200

0
1961-1963 1971-1973 1981-1983 1991-1993 2000-2002

Source: CFNI

The CFNI consumption research revealed that, while CARICOM countries produce a variety
of seasonal fruits and vegetables year round, consumption levels are far from desirable
(Figure 6). While the per caput daily supply of energy from fruit and vegetables in
CARIFORUM has increased significantly over the past four decades, several surveys have
revealed a general perception that they are consuming adequate quantities of fruit and
vegetables when in fact they are not. This underlines the need for appropriate education
on the nutritional value of various fruits and vegetables and the most effective method of
preparation in order for this food group to provide adequate nourishment.

Figure 6: CARIFORUM Energy Supply from Fruits and Vegetables (per caput/day)
the Supply of Energy (per Caput per Day) from Fruits and Vegetables:
The Cariforum Region
1961-2002

700

600

500
Grams/caput/day

400
Local
Imported
Population goal
300

200

100

0
1961-1963 1971-1973 1981-1983 1991-1993 2000-2002

Source: CFNI

There is no comparative data for consumption of the other food groups. However,
observations suggest that legumes are an important source of protein and fiber in the
CARICOM diet. Red beans, normally combined with rice (white) or prepared as a stew or
soup, are among the most popular legumes consumed. Other legumes commonly
consumed include black-eye peas, pigeon peas and lentils. Split peas, gungo
beans/channa (chick peas) are very popular in the East Indian cuisine. Consumption of

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fresh legumes, such as, bora/bodi, butterbeans and a large amount of dried beans and
peas is commonplace. However, use of canned beans is increasing.

Chicken, beef, fish, pork, mutton, goat and ‘wild’ meats are the main sources of food from
animals in CARICOM. The quantity and quality consumed, to a large extent, reflect the
income and purchasing power of households. Chicken is, by far, the most consumed meat,
accounting for an estimated 86% and averaging an estimated 40 kg per person annually. In
a number of urban areas across CARICOM, chicken products have become very common
in street vending and in the large fast foods chains. Beef and pork are generally less popular
in the Caribbean partly related to religious practices. ‘Wild meat’ such as labba, deer,
iguana and wild hog, is an important source of the protein in the diet of many rural and
hinterland households.

Ethnic, cultural and religious factors are observed as the main factors influencing
consumption patterns for goat and sheep meat in the region. Fresh goat and sheep meat
are consumed throughout the year with peaks associated with various celebrations and
religious events, such as, Christmas, Eid Ul Adha and Eid Ul Fitr. In Jamaica, the consumption
of goat meat is widespread in the local community and the product is being readily
introduced to the tourist trade as part of the local cuisine. CARICOM consumption of sheep
and goat meat in 2003/04 was about 2 kg per capita. Overall the per capita consumption
of sheep meat was approximately twice that of goat - 0.6 kg versus 1.4 kg per capita.”
(UWI, 2006) 4

Milk and dairy products are consumed throughout the region. In most countries the
imported product is either in its powdered form, evaporated and/or condensed.
Reconstituted pasteurized milk is also available in most countries and infant formula is very
widely used. Fish and other marine products are consumed by large segments of the
population. In recent years, the price of fish has increased significantly. This has had a
negative impact on consumption. Increasing prices are attributed to a decrease in supply,
due to smaller catches, and also to an increasing demand for fish by segments of the
population who have become more aware of the healthful benefits of fish in the diet.

…changing consumption patterns


Recently, the CFNI concluded that CARICOM countries are experiencing rapid
dietary/nutritional, epidemiological and demographical transitions. The dietary/nutritional
transition is observed in the shift from diets based on indigenous staples, local fruits,
vegetables, and legumes, to more varied energy-dense diets based on more processed
foods/beverages, imported items many of which may be genetically modified, more of
animal origin, more added sugar, fats and often more alcohol. This so-called “over-
nutrition” problem is associated with a rise in obesity and its co-obidities—nutrition-related
non-communicable diseases such as diabetes, high blood pressure, stroke, heart diseases
and cancer. (FAO/CFNI, 2007)

In addition to increasing urbanization, more women in the workforce and increasing


incomes, the supermarket phenomenon and its penetration into ‘poorer’ communities,
driving mass marketing of brands and huge investments in advertising targeting specific
consumer types has had a huge impact on consumption choices. In Latin America and the
Caribbean (LAC), growth in supermarkets moved from a 10-20% share in 1990 to 50-60% of
the retail sector in 2000, making, in one globalizing decade, the change which took the US

4 UWI, 2006: The Small Ruminant Meat Industry in CARICOM: Competitiveness & Industry Development Strategies, December 2006

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 26
in CARICOM
retail sector 50 years. The evidence also points to increased consumption of foods higher in
salt and concentrations of fat amongst the poorest segments of the population in some
developing countries. This has had a powerful effect on altering consumer tastes and
continues to drive changes in consumption towards Western diets.

In CARICOM, the aggressive thrust to expand tourism, and the associated practice to
import the tourism industry’s food needs, has also served to consolidate these shifts towards
Western diets. It is estimated that between 10 – 20% of tourist expenditure is on food, and
therefore countries with higher tourist arrivals and strong growth rates are likely to import
more food products and have more modern food markets. In absolute terms, the highest
arrivals are in the Bahamas (1.5 million), Jamaica (1.3 million), Barbados (498,000), and
Trinidad & Tobago (384,000) (ECLAC, 2007). The evidence with respect to modern retailing
bears out this conclusion.

Changes in consumption patterns have had an adverse effect on the health of the
Caribbean population. With respect to the epidemiological transition, nutrition-related
CNCDs, have replaced malnutrition and infectious diseases as major public health
problems. Unbalanced diets and sedentary lifestyles have increased the prevalence of
CNCDs even among the poor. For the past two and a half decades there has been an
increase in the prevalence of obesity throughout the region, principally in adults, but also to
some extent in adolescents and infants. The data show that the highest proportion of
obesity is among the three upper age groups. The two lower age groups (18-24 and 25-34),
those who are expected to be the most active, show obesity rates that range between 8-20
% (Figure 7). Associated with obesity is the concomitant increase in nutrition-related chronic
diseases. Further, the burden of disease, disability, and premature death has shifted from
young children to adults in the productive years of their life. Table 2 provides data on the
changes in the incidence of nutrition-related CNCDs in the Caribbean from 1980 to 2000.

Table 2: Main Causes of Death in the Caribbean, 1980, 2000


1980 % 2000 %
Heart Disease* 20 Heart Disease* 16
Cancer* 12 Cancer* 15
Stroke* 11 Stroke* 10
Injuries 8 Diabetes* 10
Hypertension* 6 Injuries & Violence 7
ARI 5 HIV/AIDS 6
Diabetes* 4 Hypertension* 6
*Nutrition Related =53% *Nutrition Related =53%
Source: Caribbean Epidemiology Center. www.carec.org

While global prevalence of overweight amongst preschool children is estimated at 3.3%,


regional data show higher rates such as 3.9% for Barbados and 6.0% for Jamaica (Henry,
2004). CFNI surveillance data on children and adolescents show that overweight and obese
children account for up to 15% of this group in various countries (CFNI, 2001). Moreover,
obesity has an inter-generational implication. Adult obesity is associated with child obesity
and this risk increases when the mother or father of the obese child are obese. The risk of
adult obesity is 2.0-2.6 times greater for obese pre-school children than non-obese pre-
school children.” (CFNI 2002)

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in CARICOM
Figure 7: Prevalence of Obesity (Body Mass Index > 30) by Age Group
(Selected Countries)
Obestiy (BMI>30) by age groups

50

40
30

20

10
0 St Kitts/Nevis Trinidad Belize Jamaica Guyana

18-24 yrs 25-34 yrs 35-44 yrs 45-54 yrs 55+ yrs
Source: CFNI (Most recent data)

The consequences of the epidemiological transition to the “Western diet” have meant
significantly higher costs to the healthcare systems than those of malnutrition, and the
burden has shifted towards the poor, in both developed and developing countries. Health
problems arising from over-nutrition and sedentary lifestyles coexist with malnutrition and
under-nutrition in a broader spectrum of food-related diseases. (Ford. D, 2003) The
CARICOM consumer is predominantly young, between 15 – 35 years in age. This is the age
that is most prone to external influences. In CARICOM, among these pervasive influences
has been exposure to developed countries’ lifestyles as a result of globalization, expanding
tourism and the meteoric rise, in just one decade, in the retailing phenomenon in LAC that
took the US retail sector 50 years. The result is that CARICOM countries are experiencing
rapid dietary, nutritional and epidemiological transitions, as indicated by the relative
consumption among the various foods that comprise CARICOM diet.

While addressing these issues, in the short-term, will emphasize curative measures built on
promoting lifestyle changes, the need to engender a preventive approach, with a re-
direction of agriculture and food production systems built on nutritional needs, must form
part of the long-term solution set. Hence the dialogue and decision-making with respect to
increasing financing and new investments in agriculture must take into consideration issues
related to building capacity to meet the nutritional needs of CARICOM population from the
foods produced in the region.

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in CARICOM
2.4 Linking Consumption to Nutrition

Quality of life that includes nutritious food is a human right. Agriculture is the primary source
of nutritious foods. The issue of nutrition has been subject to much research over time,
increasingly so as the association between illness and diet choices is becoming more direct
and clear. In its simplest terms, nutrition is about eating healthily - consuming an adequate
and balanced supply of vitamins, proteins, carbohydrates, fiber, minerals, fats and water
daily.

…Vitamins: the word ‘vita’ means life. However, while the human body needs only small
amounts of vitamins, an inadequate supply leads to stunted growth, low resistance to
infection, nervous diseases, skin problems, anemia and weakened bones and teeth.

…Proteins: are needed for growth, to build and repair body tissue and to protect from
disease. They also supply heat and energy. Good sources of protein are from animal
products, vegetable fats, rice, nuts, legumes and other pulses.

…Carbohydrates: provide heat and energy and in some foods, also supply roughage, or
fiber, which supports healthy digestion. Most foods, except meat, fish, poultry and cheese,
contain some carbohydrates in the form of either starch or sugar.

…Minerals: such as calcium, phosphorus, iron, sodium, potassium, iodine, magnesium, zinc,
copper and selenium are found in most foods and are essential to a healthy diet.

…Fats: are essential to the diet as it is the main source of energy and is one of the
components from which all body cells are made. It also helps carry vitamins through the
bloodstream. Of the three main types of fats – saturated (in butter, meat), mono-saturated
(in olive oil) and polyunsaturated (in avocado, nuts, fish) – saturated fats should be the least
consumed.

The concentration of their different nutrients contained form the basis for defining food
groups. Dietary guidelines, built on foods for healthy lifestyles, are increasingly being
promoted to influence consumption patterns. The US, in particular, has continuously revised
its dietary guidelines in response to the escalating diet-related illnesses and diseases
affecting all age and ethnic groups in its population. Fiber, though not a nutrient, is
important to a healthy daily diet. It helps the digestive system work properly and helps get
rid of body wastes. Fiber is found in beans, nuts, root crops, fruit and vegetables and whole-
meal bread. The Caribbean region has also issued its own dietary guidelines based on the
research of the CFNI (Figure 8). These guidelines are based on the production capacity of
the region and foods that have traditionally been consumed. The CFNI categorizes the
‘food needs’ into six (6) groups and specifies the relative proportions of each based on the
nutritional content of a healthy daily diet. These categories are Staples, Foods from Animals,
Legumes, Vegetables, Fruits and Fats and Oils. A brief discussion on each group, starting
with those most important in the diet, is provided for information and as well as a basis for
discussing the production capacity of the region to supply same.

The nutritional properties of foods contained in each group are discussed in Annex 1.

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in CARICOM
Figure 8: CFNI’s Caribbean Food Groups-
A Guide to Meal Planning for Healthy Eating

Staples: The role of tropical starchy staples as an inexpensive source of cheap food for
the socio-economically disadvantaged is well established. The consumption of complex
carbohydrates has been recommended as a preventive measure against coronary
heart disease and non-insulin-dependent diabetes. The CFNI recommends that
approximately 45% of the daily diet should comprise staples, such as, starchy fruits, roots,
tubers/ground provisions (green banana, plantain, breadfruit, yam, potato, dasheen,
coco/ eddo, cassava, corn, etc). They provide complex carbohydrates, an important
source of energy. Processed staples are cereals and bread (from whole grain or
enriched flour), wheat flour, corn-meal, dried cereals, macaroni, spaghetti, rice, cereal
porridges. Consumption patterns vary across the region with respect to the extent of use
of these crops. Staple foods are good examples of the Caribbean’s diversity. They are
the most affordable, easily available and the most widely used. But achieving and
maintaining good nutritional status and health requires eating more than staple foods.

Legumes and Nuts: The CFNI recommends this as the second most important food group
that should make up about 22% of the daily diet. ‘Legumes’ is the term used to identify
plants that grow as a vine or bush bearing pods with one or more edible seeds.
Legumes and nuts are classified as beans (Phaseolus), peas/edible seeds and lentils
(Lens). This grouping may also include peanuts (Arachis) and soy beans. Legumes are
the best source of concentrated protein in the plant kingdom and are close to animal
meat in quality when combined with a cereal staple. Legumes have traditionally been

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 30
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identified as meat extenders primarily because of their contribution to overall dietary
protein. At a small fraction of the cost of meat protein, one cup of cooked beans
provides 17% to 31% protein averaging about 25% of daily requirement for amino acids.
Nuts are just as widespread. Legumes and nuts consumed in CARICOM include kidney
beans, black-eye beans, pigeon peas, cashew nut, sesame seeds and pumpkin seeds.
Legumes are an important source of non-animal protein. Beans are very rich in soluble
fiber, which helps to prevent constipation and lower blood cholesterol levels. Beans are
ideal for those with high blood pressure because they are low in sodium and high in
potassium. In countries like Guyana where more than 40% of the population lives below
the poverty line, legumes/pulses, whether grown locally or imported, represents a
valuable source of proteins and other vital nutrients. For a large majority of the
population living in an impoverished situation and unable to purchase meat and dairy
products, the daily consumption of a bowl of split peas dhall or a plate of black-eye
peas cook-up rice may be the primary protein source.

“In the Caribbean, fruits and vegetables are the names of two of the Caribbean Six
Food Groups. Foods included in these groups are primarily because of their nutritional
contribution. Caribbean fruits and vegetables are special. They provide more than eye
appeal to the plate and the palate. They are endowed with a range of vitamins and
minerals and are also important protective foods for maintaining health and preventing
many diseases that continue to affect our populations”. (CFNI Cajanus, Vol. 39. N0. 1,
2006)

Vegetables: the CFNI recommends that vegetables should comprise about 12% of the
daily diet. These should include: dark green leafy and yellow vegetables, such as,
callaloo/spinach, dasheen leaves, cabbage bush, pakchoi, string beans, pumpkin and
carrot, squash, cho-cho, (christophene, chayote), cucumber, tomato and
melongene/eggplant.

Fruits: the CFNI recommends that fruits should account for approximately 9% of the daily
diet. This includes all tropical fruits grown in CARICOM countries, such as, mango, guava,
citrus (orange, grapefruit, limes, tangerine), pineapple, West Indian cherry,
pawpaw/papaya, golden apple/Jew/June plum, and sugar apple/sweet sop which
have excellent nutritive values and processing qualities. From a health perspective
ensuring adequate supplies of fruits and vegetable at an affordable price is important.
This is so particularly in the context of the rising incidence of CNCDs and the emerging
link between the consumption of tropical fruits and the treatment of diabetes.

Foods from Animal: the CFNI recommends that meat, eggs and dairy products should
comprise about 8% of the daily diet. A number of animal and fish products are
consumed in CARICOM, including meat, poultry, fish (fresh, canned, dried, pickled),
milk, cheese, yoghurt, eggs, liver, kidney, tripe, trotters, feet.

Fats and Oil: The CFNI recommends that foods in this group should be least needed and
should contribute just about 4% of the daily diet. Coconut and Palms oils are the main
sources of fats and oils in the region. The nutritional properties indicate that the fatty
acids that make up coconut fat are saturated; these are a special fatty acid called
short and medium chain, which do not promote cholesterol production. Other largely
imported fats and oils include cooking and salad oil, butter, margarine, shortening,
ghee, coconut cream/milk, meat fat, nuts, avocado pears, and Jamaican ackee.

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in CARICOM
Of interest, is that the CFNI dietary guidelines define no specific food group for ‘Sugars and
Sweeteners’, although the previous discussion indicated that this category comprised a
large part of the CARICOM diet. Further, and ironically, sugars and sweeteners also form a
substantial part of the global agriculture and food trade – comprised largely of extracted
sugars and artificial sweeteners.

Also of interest, is the presentation of dietary guidelines as a pie-chart, proving clarity with
respect to the relative balance of each food group in a healthy diet. It is also instructive to
observe the relative hierarchy of the food groups and to especially note the relative low
positioning of foods from animals and fats and oils. This is also ironic since animal products
have accounted for the largest increase in global food production and share of global
agriculture and food trade.

An interesting exercise would be to contrast the nutritional positioning of these food groups
to past development strategies and current supply capacity of the agriculture and food
system in CARICOM.

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3. Meeting Regional Food Needs
3 .1 . Producing Nutrition Needs

The issue of the physical capacity to produce food in


CARICOM has been the subject of much assessment
and debate since the 1970s. The geography of
CARICOM is important to this discussion from the point of
view that, with the exception of three mainland
territories, the region comprises largely small islands
states, with varying land use patterns as it relates to
agricultural area (Table 3).

As shown in Table 3, the mainland states of Belize and


Guyana have relatively larger areas allocated for
agricultural production. In 2002, the total agricultural
land in Guyana was twice the sum of the total
agricultural land for all the other CARICOM countries
together, reiterating the fact that Guyana was once
referred to as the bread basket of the Caribbean. The
potential of agricultural production on the mainland
states of Guyana, Belize and Suriname is further
emphasized by the fact that in 2002 the average total
agricultural land accounted for an estimated 5.4% of
land area, while for the other CARICOM countries the
average total agricultural land accounted for an
estimated 32% of land area. Apart from land, water is
undisputedly, a critical resource for successfully assuring
availability of food supplies. Water supply and utilization
data indicate an abundance of water resources in
Guyana and Suriname and relatively limited water
supply on the islands of the Bahamas, Barbados and
Antigua & Barbuda. On these islands there is also
greater competition for the use of water by the
domestic and industrial sectors. CARICOM, particularly
the small islands states, is also in the category of highly
vulnerable to climate related events, mainly hurricanes,
which have wreaked havoc on agriculture. In addition
to the adverse effects of natural phenomenon,
agriculture is rapidly losing its natural resource base as a
result of the accelerated shift in land use over the last
five years, towards industrial use and construction,
blamed on expanding urbanization and its attendant
social/recreational facilities. In land-strapped island
countries, especially the smaller countries of the
Organization of Eastern Caribbean States (OECS),
transiting from agriculture towards services, led by
tourism, such loss of land has dire consequences for the
ability to successfully secure the base of food
production to assure availability.

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Table 3: Land Resources and Use (percentage of total land area) 2002
Land Area Total Agricultural Permanent Pasture Arable and Permanent
Country (Sq. km) Area Crop
Sq km % Sq km % Sq km %
Antigua & Barbuda 440 140 31.8 40 9.1 100 22.7
Bahamas 10,000 120 1.4 20 0.2 120 1.2
Barbados 430 190 44.2 20 4.7 127 29.5
Belize 22,810 1,369 6.7 502 2.2 1,026 4.5
Dominica 750 180 29.3 20 2.7 200 26.7
Grenada 340 120 38.2 10 2.9 120 35.3
Guyana 196,850 17,323 8.8 12,205 6.2 5,118 2.6
Jamaica 10,830 4,765 47.4 2,285 21.1 2,837 26.2
St Kitts & Nevis 360 100 27.8 20 5.6 80 22.2
St Lucia 610 200 32.8 20 3.3 180 29.5
St. Vincent & Grenadines 390 160 41.0 20 5.1 140 35.9
Suriname 15,600 94 0.6 16 0.1 62 0.4
Trinidad & Tobago 5,130 1,329 25.9 108 2.1 1,221 23.8
Source: USAID,2006

The decline in arable land for food production coupled with generally low and declining
levels of productivity present challenges for assuring availability. The overall manifestation
of these challenges is summarized in the conclusion that availability problems in CARICOM
result from uncompetitive and declining primary agriculture and agro processing sectors.
The main limiting factors for this uncompetitive agriculture and food processing are well
documented and include domestic deficiencies related to risk mitigation, financial
resources, infrastructure and institutions, production structure and systems and competition
for physical resources. This underscores the challenge in the region, of assuring availability
and the urgent need to adopt modern technologies, including appropriate irrigation and
water management practices, to mitigate physical limitations and enhance efficiencies.
Challenges aside, the issue of ‘availability’ is discussed according to specific food group to
shed clarity on regional capacity to meeting recommended nutritional needs.

Staples:
Rice is the primary staple produced in the Caribbean, mainly by Guyana, Suriname and
Belize (Table 4). Some CARICOM countries have either lost or severely diminished their
productive capacity in rice production, such as, Haiti and Trinidad & Tobago.
Production data in 2005 indicated an estimated rice production in the region of 217,555
tons, led by Guyana (67%). Rice is the largest user of agricultural lands in Guyana with
an estimated 300,000 acres currently double cropped annually. Although rice
production is fairly well mechanized, the average cost of production in CARICOM is still
much higher than that of many major rice exporting countries.

While the degree of importance varies from country to country, virtually all CARICOM
countries produce a mix of staple products. Specifically, tropical root crops are known
to generate relatively large yields per unit area of land or labor input and to yield under
conditions where agricultural inputs are not used, where technological levels are low
and where land is marginal through low soil water levels (cassava) or swampy conditions
(wetland dasheen). Tropical staples, mainly root crops, (yam, dasheen, eddo, cassava,
tannia, coco-yams, eddo and sweet potato), banana and plantain, are well adapted
to the Caribbean environment. They offer good opportunities for satisfying a larger share
of carbohydrate requirements from local production. With the exception of bananas
and yam, production data for root crops and other staples are not as well documented.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 34
in CARICOM
The bulk of these non-banana/yam staples are consumed regionally, and are generally
available in-season.

Table 4: CARICOM Rice production, Imports, exports and net quantities (ton) 2005
Country Calculated milled rice Imports Total Exports Quantities for
production domestic use
Antigua and Barbuda - 650 650 - 650
Bahamas - 8620 8620 - 8620
Barbados - 6253 6253 - 6353
Belize 3500 502 4002 - 4002
Dominica - 604 604 - 604
Grenada - 2056 2056 - 2056
Guyana 147110 10778 157888 182175 -
Jamaica - 46358 46358 - 46358
St. Lucia - 9740 9740 - 9740
St. Kitts & Nevis - 498 498 - 498
St Vincent & Grenadines - 35508 35508 4575 30961
Suriname 64845 116 64961 35877 29084
Trinidad & Tobago 2100 36330 38430 1594 36836
Caribbean 217555 158013 375568 224221 175762
Source: FAO

However, there has been some reduction in the production of staples over the past
decade, particularly as the demand for wheat and wheat-based products has
increased. This trend has serious implications for availability of basic staples in the face
of both the rising prices of imported wheat and wheat based products and the cost
associated with importing same. In this context, the need to accelerate value-adding in
staples becomes critical. Table 5 presents information on a number of products
processed from starchy staples. In most cases, some of these products are in the
rudimentary stages of product development and are prepared primarily on small farms
and at the small scale cottage industry level.

Table 5: Current Status of Processing Starchy Staples in the Caribbean


Crop Products Made Processing Scale Markets
Bananas Chips, Flour, Punch, Dried/Baked Snacks, Wine, Small to Medium Domestic and limited
Vinegar, Liquor, Hot Sauce, Milk-based Banana Export
Drinks, Banana-Flavored Biscuits (Bulla Cakes), Jam,
Ketchup, Baby food with Bananas
Plantain Flour, Chips Small to Medium Domestic
Arrowroot Starch, Roots drink, Flour (Thickener in soups and Small to Medium Domestic and limited
sauces). Export
Breadfruit Flour, Chips, Roasted and vacuum packed, Canned, Small to Medium Domestic and Export
frozen
Breadnut Wines, flour for baking, Small Domestic
Yams Flour, Frozen pieces, Small Domestic
Cassava Bread, Farine, Starch, Casareep, Flour, Bammy, Cassava Medium to Large Domestic
pone Export
Dasheen Chips, Frozen dasheen Small Domestic
Source: Extract from FAO, 2001

Legumes and Nuts:


A variety of fresh legumes is grown on small acreages and sold on the local markets in a
number of CARICOM countries (Table 6). These include string beans, bora/bodi, snow
peas, saim, red kidney beans and pigeon peas. Belize is one of the few countries that
produce significant quantities of dried legumes for domestic consumption as well as for
export. In 2002s for example, Belize exported over US$2 million in red kidney beans and

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 35
in CARICOM
black eye beans. During the 1970s large quantities of black-eye beans were produced
in Guyana (in the Intermediate savannas) and the potential still exists to produce large
quantities of red beans, minica, black-eye beans, soya beans and peanuts.

Table 6: Production of Selected Legumes in CARICOM (2000-2002 avg.)


FAO Code Product Quantity (MT) **Per Capita Production (kg)
176 Beans, Dry 38,283 2.5
195 Cow Peas, Dry 37,291 2.5
414 Beans, Green 8,371 0.6
197 Pigeon Peas 6,390 0.4
242 Groundnuts in Shell 27,626 1.8
187 Peas, Dry 5,279 0.3
423 String Beans 5,768 0.4
Source: FAOSTAT; * Consultant’s calculation

The production of legumes and in particular dried pulses is particularly low in the
region. FAO estimates of per capita consumption of dried pulses for CARICOM is
approximately 11 kg. That gap between consumption and local production is met by
imports. CFNI notes that tree nuts such as almonds, brazils, cashews, hazelnuts,
macadamias, pecans, pistachios and walnuts are included in many ethnic and
cultural cuisines. They provide rich flavors that complement many herbs, spices, fruits,
vegetables, cheese or meat. Though somewhat seasonal, all nuts are available in
CARICOM.

Fruits:
The regional landscape has traditionally been dotted with a variety of tropical fruits. In
the late 70s and 80s, significant amounts of external financing under diversification
projects supported expansion of what was then termed ‘exotic’ fruits for niche export
markets and for expanding value adding of juices, jams, jellies and preserves. This
enabled several countries to expand production of citrus, mango, avocado and
papaya among others, and to experiment with commercial production of West Indian
cherry, passion fruit, soursop, sapodilla, golden apple and guava. There have been
reasonable success stories, such as, golden apple in Grenada, papaya in Trinidad &
Tobago and mango (Julie) in St. Lucia. However, production remains small with limited
commercial operations.

Citrus is by far the largest non-traditional fruit crop produced, in terms of acreage and
output. (Table 7)

Table 7: Production of Selected Fruits in CARICOM (2000-2002 Avg.)


FAO Code Product Quantity (MT)
490 Oranges 398,228
571 Mangoes 305,172
507 Grapefruit and Pomelos 141,280
497 Lemons and Limes 60,762
572 Avocados 51,542
574 Pineapples 33,797
567 Watermelons 19,733
600 Papayas 16,118
568 Cantaloupes & other Melons 3,864
Source: FAOSTAT

Production is dominated by Belize, Jamaica and Trinidad & Tobago. Belize is one of the
few CARICOM countries that have shown positive trends in the production and export of

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 36
in CARICOM
fruits. Citrus now ranks among the top four exported commodities. Trinidad & Tobago,
once a significant producer of citrus and locally canned juices, today imports the bulk
of concentrates for processing. Further, as citrus orchards in the region continue to be
affected by pest and disease, in particular the citrus tristeza virus, the volumes available
for use are contracting.

Vegetables:
All CARICOM countries produce a wide range of vegetables, mostly for local
consumption (Table 8). Over the last fifteen years, the range of production has
expanded due to influences from the growing tourism industry and greater demand
from the hospitality services for fresh vegetables. Such an experience is well
documented in Nevis with the linkage of vegetable farmers supplying the Four Seasons
Hotel, a movement which has expanded in the rest of CARICOM, both in terms of
number of vegetables produced and the number of major participating hotels. In the
OECS, expansion of vegetable varieties was also enabled through bi-lateral technical
cooperation projects, for example, with Taiwan (Republic of China) and the Chinese
government. Some CARICOM countries have invested in expanding production of
selected and high demand vegetables, such as carrots in Barbados. Vegetable
production has also increased in order to capture the export market for ‘winter
vegetables’.

Table 8: Production of Selected Vegetables in CARICOM (2000-2002 Avg.)


FAO Code Product Quantity (MT)
388 Tomatoes 38,011
358 Cabbages 35,946
397 Cucumbers and Gherkins 29,919
426 Carrots 21,721
373 Spinach 13,189
401 Chillies & Peppers, Green 10,779
399 Eggplants 6,800
430 Okra 6,584
372 Lettuce 5,979
393 Cauliflower 1,844
402 Onions & Shallots, Green 402
Source: FAOSTAT

Foods from Animals:


With the exception of the mainland countries of Belize, Guyana and Suriname,
expansive livestock production has been relatively limited in CARICOM. By far, the most
produced and consumed meat in the region is poultry. The Caribbean Poultry
Association (CPA) concludes that while ‘several CARICOM countries may be less self-
sufficient in poultry than is often appreciated, over the past decade poultry production
experienced remarkable growth, particularly in Trinidad & Tobago, Jamaica, Barbados
and Guyana. Over the past five years production capacity in Guyana has expanded
to the level of meeting domestic requirements, and to supply other CARICOM
countries.” The CPA estimated that “in 2004 the industry produced 130,000,000 broilers
valued at US$410 million in ex-factory sales which makes it the largest agro industry in
CARICOM. In 2000 the contribution to manufacturing and agricultural GDP has
estimated to be US$135 million. Moreover, unlike many other agro-industries the poultry
sector has grown by over 30% in the last 10 years.” The rapid expansion of poultry
production, relative to other animal meats is associated with the expansion of the ‘fast
food’ culture and the popularity of poultry in these food service establishments. The CPA
estimated that some 265,000 MT of chicken meat is consumed in the Caribbean

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 37
in CARICOM
annually, of which 65% is met from regional production. This is enabled by the fact that
poultry operations are relatively well integrated, with the regional industry estimated to
comprise 3,000 commercial poultry farms and some 12,000 small scale chicken farms.

Guyana, Belize and to a lesser extent Jamaica are fairly self-sufficient in cattle
production and have developed their beef cattle industries more so than other
CARICOM countries. Guyana in particular has vast areas of land in the Intermediate
and Rupununi Savannas that is suitable for extensive cattle production. For a number of
years during the 70s and 80s the Livestock Development Company (LIDCO) operated a
number of large cattle ranches in these areas. This made a significant contribution to
Guyana being fairly self–sufficient in beef production. However, the industry is still
relatively weak in terms of high yielding varieties, technological and marketing platforms
and business practices. This has affected their capacity to supply neighboring CARICOM
countries and particularly to satisfy port health certification requirements. Other
CARICOM countries have taken steps to develop a beef industry, such as the
‘buffalypso’ in Trinidad & Tobago, but results and growth have not been sustained.
Consequently production of beef products falls far short of domestic demands. Almost
all countries have traditionally had small scale and scatted production of small
ruminants reared to augment incomes, satisfy household and culturally-related demand
for goat, sheep and pig products. However, the current supply capacity is far below
demand and quite apart from sanitary and health port requirements, incapable of
driving a vibrant intra-regional trade in meat products.

CARICOM countries have, in the past, established dairy operations for the production of
fresh cow’s milk. However, these operations were highly subsidized based on a food and
nutrition security policy objective. During the 1980s and 1990s IICA, in collaboration
several governments in the region (Guyana, Suriname, Trinidad & Tobago) worked on
developing models for small and medium scale dairy production system. Guyana is
among the largest domestic producers of milk in the region, producing about 60% of the
national requirement for milk. The success in Guyana was one of the major achievements
of research efforts which led to the introduction in 1985, of the dairy production system at
the St. Stanislaus College Farm. This was an attempt to improve dairy production on the
existing farm and at the same time to provide a model system for the then declining dairy
sector in Guyana. After three decades the dairy unit at the St. Stanislaus College Farm is
still being run as an economically viable enterprise. In 2003-2004 with the assistance of a
CARTF grant, a small-scale dairy processing unit was established on the farm, utilizing
equipment and technology out of Costa Rica. The unit is still in operation today, processing
soft cheese, yogurt, and flavored milk.

However, as land for pastures became less and less available, and imported milk, in
both liquid and powder form, became more readily available and accessible, domestic
dairy cattle operations contracted and many small-scale operations have terminated.
For example, several commercial diary producing areas in Trinidad have been
significantly down-sized. Consequently, the region is heavily dependent on foreign
multinational corporations, particularly Nestlé, for meeting their dairy products
requirements and on extra regional imports of other dairy products including cheese
from as far as New Zealand. Other forms of milk imported include evaporated,
condensed and UHT.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 38
in CARICOM
Fish: Fishing is common in coastal rural communities and contributes to the food and
nutrition security status in CARICOM. Marine fisheries dominate, with limited commercial
aquaculture and inland operations, concentrating on tilapia. Jamaica is the leading
CARICOM producer and exporter of tilapia. The Caribbean Fisheries Mechanism
indicates a regional capacity in marine fish production of roughly 117 thousand MT, with
Guyana producing almost half of that volume (Table 9).

Fats and Oils


As, indicated in the guidelines, fats and oils should occupy a relatively small share in a
healthy daily diet. Up until the late 1980s, several Caribbean countries had a thriving oil
industry based on coconuts and palms. The CARICOM Secretariat estimated that over
the 1999-2002 period, the region produced, on average, 301 thousand tons of coconut
annually, led by Jamaica, followed by Guyana, Trinidad & Tobago and Dominica.
Guyana is one of the few CARICOM countries that produce refined coconut oil on a
commercial basis. It should however be noted that a relatively small proportion of
coconuts in CARICOM are processed commercially into edible oil. The reason for this
may lie in the unfounded, but nevertheless heavily promoted association between
coconut oil and high cholesterol levels. This single action discouraged use of coconut oil
and encouraged consumption of relatively cheaper and more readily available edible
oils, from soya bean, corn, canola and others.

Table 9: CARICOM – Analysis of Trade Balance in Fish and Fish Products (1998)
Country Production (MT) Imports (MT) Exports (MT)
Antigua & Barbuda 500 394 105
Bahamas 10,127 1,239 2,641
Barbados 3,594 1,808 263
Belize 2,584 289 1932
Dominica 1,212 603 -
Grenada 1,713 392 450
Guyana 56,459 201 7,611
Haiti 4,769 12,016 1,215
Jamaica 6,140 13,199 2,453
Montserrat 50 - -
St. Kitts & Nevis 285 170 1
St. Lucia 1,314 1,173 8
St. Vincent & Grenadines 1,283 207 2,333
Suriname 12,760 325 5,400
Trinidad & Tobago 14,500 3,552 6,989
Total 117290 35568 31401
Source: Caribbean Regional Fisheries Mechanism

It is widely accepted that value-adding is a pre-requisite for agricultural development,


particularly given the changing consumption preferences towards convenience. The usual
justifications are based on the assessment that “vibrant agro-industrial activities can expand
the markets for primary agricultural products, add value by vertically integrating primary
production and food processing systems and minimize post harvest losses. In addition such
activities would reduce seasonality of consumption of a range processed foods, increase
the viability, profitability and sustainability of production systems through their impact on
increasing farm incomes, rural employment and foreign exchange earnings, while reducing
marketing risks. However, with few exceptions, the agro-industrial sector remains
rudimentary, underdeveloped and largely without significant institutional, technical and

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 39
in CARICOM
financial support.”5 Notwithstanding the well documented capacity constraints to
agriculture value-added in CARICOM (Lambert, 2001)6 expanding the food and beverage
industry has been a policy objective in all CARICOM member states. Information on staples,
provided above provides the range of value added that can be undertaken in the region.
Table 10 provides similar information on value-adding in the other food groups. As was the
case with staples, these are produced by processors that span the range from cottage to
large.

Table 10: Types of Value added products and Businesses in CARICOM countries
Food Group Product
Staples  Banana, plantain, cassava & sweet potato chips; Flour; Pancake and porridge
mixes (mainly from cassava and arrowroot)
Legumes  Canned, dried, frozen beans; Nut packs and confectionaries
Vegetables  Canned, dried, frozen vegetables and salad packs; Juices and carbonated
beverages; Teas ; Soups and sauces
Fruits  Dried and dehydrated mixed fruit snacks ; Jams, jellies, cheeses, candies,
chutneys, chocolates; Juices, carbonated beverages, wines and liqueur; Teas
Food from  Seasoned cuts and packs; Hams, sausages, salami, deli cuts etc.; Sea foods;
Animals Bakery products - meat and fish patties, etc; Milk, cheese, ice-creams and
yoghurts,
Fats & Oils  Coconut oil, dissected coconut; Cooking oils, butter and margarines;
 Coconut milk powder; Soaps; Animal feeds
Compiled by authors

A number of these products are based on locally produced raw materials, particularly for
the small scale processors. Simple processing such as drying, washing and packaging for
retail can produce an enormous amount of value added. Dressed or marinated meat
fetches far more than the raw product. Graded, washed and trimmed vegetables can also
command a premium price. Imported raw material accounts for significant raw material
content of the larger industries. This is particularly so for the multinational companies such as
Nestlé, Unilever, Coca Cola, etc and also the large local companies such as, Carib Brewery
Limited, Bermudez Biscuit Company Limited, National Canners Limited, Holiday Snacks
Limited, Grace Kennedy, Pine Hill Marketing Company Ltd, West India Biscuit Co. (Wibisco),
Goddard Enterprise Limited, Matouk’s and others.

Basing this discussion on CFNI’s Nutritional Food Groups, as opposed to the traditional
categories, has excluded a relatively large industry in CARICOM - sugar and confectionary.
The percentage of fruit juice in several of such beverages is often quite low and their high
caloric content has a serious drawback: they are ‘empty’. This means that vitamins and
minerals do not accompany them. Because of this, they can foster obesity. (IADPA, 2002)
The aggressive promotion of various brands on the mass media has made soft drinks more
affordable and readily available in most retail outlets, offering consumers convenient
choices and serving sizes. The soft-drink industry has virtually replaced what used to be
common practice in most homes a few decades ago, that of making fruit beverages or
‘drinks’ from fresh fruits. If fact, in most urban centers in the region (except perhaps Guyana
and Belize) it difficult to obtain traditional fruits such as West Indian cherry, carambola,
tamarind, and sour-sop.

5 Extracts form “Problems and Constraints to the Development of the Agro-Processing Sector”- Dr Ian Lambert
6 Lambert, I. 2001. “Problems and constraints to the development of the agro-processing sector.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 40
in CARICOM
As the previous discussion implies, in the rapid development of the processed food and
beverage industry, nutrition has been severely sacrificed. This situation is also evident in the
major food processing industries in CARICOM. Hence, with the thrust to expand value-
adding in the agriculture and food industry, the choices made in terms of food and
beverage processing have also compromised the health and well-being of CARICOM
populations. It is well known, that globally, making nutrition integral to food and beverage
processing presents a humongous challenge, one that pits the small and politically weaker
group against large and politically-influential mega transnational corporations. This
challenge also applies to efforts to link nutrition more integrally in the food and beverage
processing industries in CARICOM.

3.2 Suppl ementing Food Needs: the Regional Food 'Basket'

As noted earlier, the combined physical resources in CARICOM, if effectively managed, are
capable of meeting a substantial share of the most important categories of food needs in
the region. Historical trade patterns confirm vibrant flows of at least three major food
groups - roots and tubers, fruits and vegetables – within CARICOM. Such trade, while ad
hoc and unregulated, is largely responsible for the distribution and hence availability of
local, fresh agricultural products within the region.

As documented by a CRNM study (Best, 2007), the regional fresh produce trade, is
dominated by over 200 individual Hucksters or Traffickers, mostly from Dominica, St. Vincent
and the Grenadines, Grenada, St. Lucia, and Guyana and to a far lesser extent, Jamaica
and Haiti. Those from the OECS and Guyana purchase a wide range of produce particularly
fruits and root crops directly from farmers, clean and package the products, usually at
home, and then ship the products by the several small boats that provide intra-regional
transport service. They then travel, usually by plane and occasionally by the boats, to the
market destinations where they or their agents clear the products through Customs. The
traders then take the products to the major retail and wholesale markets in the cities where
they and their agents carry out wholesale actives over a one or two day period. The major
regional markets for the OECS traders are Trinidad & Tobago, Barbados, Antigua, St. Kitts-
Nevis, St. Maarten, Guadeloupe and Martinique. In the case of Jamaica and Haiti, there
are a few dozen such persons.

Distribution systems for fresh agricultural produce within CARICOM remain relatively under-
developed. The formal wholesale domestic sub-sector, comprising registered companies
including wholesalers, importers, and exporters, is relatively well developed. However, these
fresh produce wholesaling systems tend to focus mainly on the import and distribution of
selected temperate fruits, such as, apples, grapes and pears, and mainstream vegetables,
such as tomatoes, cabbage, carrots, lettuce and beet roots, and white potato.

A previous section noted the importance of the ‘supermarket phenomenon’ in driving


changes in consumption habits. This also underscores the importance of supermarkets in
providing an effective distribution outlet for local/regional agricultural produce. As
indicated below (Table 11), regional/local agricultural foods account for a relatively low
share of the stock of foods retailed in the leading supermarkets in several CARICOM
countries.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 41
in CARICOM
Table 11: Source of Food Sold in Leading Supermarkets in Selected CARICOM States
CARICOM Country Lead Super-markets Food sales Share (%)of Source of Food Retailed
(%) Extra Regional CARICOM Local
Antigua & Barbuda Epicuren 85 90 5 5
Bahamas City Markets - 90 5 5
Suriname Combo Market 90 75 15 10
St. Vincent & Grenadines CK Greaves - 65 30 5
St. Lucia Super Js 85 65 15 20
Belize Super Foods 90 60 20 20
Barbados Super Centre 90 50 5 45
Guyana Fogarty’s 90 50 10 40
Trinidad & Tobago Hi Lo 85 50 10 40
Grenada Food Land - 45 50 5
Jamaica Hi Lo 85 35 15 50
Source: CRNM, 2006

A notable exception is Jamaica, where regional/local food products together account for
65% of total food stock in the leading supermarket, Hi Lo. Apart from the relatively vibrant
domestic food production sector, the fact that Jamaica is categorized as among the
CARICOM countries with transitional or emerging food retail sectors, may also explain this
outcome. The relatively high share of local food products retailed in leading supermarkets
in Barbados and Trinidad & Tobago is evidence of the national efforts taken to increase
consumption of locally produced foods. Tourism-dependent Antigua & Barbuda and the
Bahamas are among those countries having more modern food retail sectors, which largely
explains the relatively higher presence of extra-regional foods retailed in these countries’
leading supermarkets.

While the data presented for Grenada is understandable in terms of the relatively high
share of CARICOM-origin foods retailed in its lead supermarket, the data for St. Vincent and
the Grenadines are subject to further scrutiny. This suggests that while St. Vincent and the
Grenadines is a major producer of roots, tubers, fruit and vegetables, much of this output
either finds its way to other CARICOM markets, such as Grenada and Trinidad & Tobago, or
is mainly distributed by vendors in community and municipal markets. This may indeed be
the situation since St. Vincent and the Grenadines is also categorized among the CARICOM
countries with transitional or emerging food retail sectors, with the established supermarkets
more dependent on imports as a source of agricultural and food products.

One possible explanation of the relatively low share of CARICOM-originating foods


distributed in leading and established supermarkets within countries of the region is the intra-
regional transportation system for trade in goods. Stewart & Forgenie (2006) noted that the
inadequacy of transportation services for the movement of agricultural and other products
has been a major concern expressed by individual entrepreneurs and firms involved in the
marketing of these products in the Community. In fact, the lack of transportation has been
identified as one of the major Key Binding Constraints for alleviation. Other areas of
concerns relate to the unavailability of adequate or suitable facilities for handling
perishable products at some sea and airport terminals as well as the high cost of shipping
and related costs, such as, handling, storage and security charges. Opinions with respect
to the seriousness of the transportation issues differ. There are some who believe that the
situation is grossly overstated. This belief is based on an observation that where transport
services are unavailable for movement of goods, it is a reflection that the level of demand
for such services is inadequate to make the provision of the services financially viable. There
are others who believe that if adequate transportation services are available at affordable

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 42
in CARICOM
costs, then trade in agricultural and other products would be stimulated and would
eventually develop to a level that makes the provision of such services viable.

Stewart & Forgenie (2006) concluded based on available information on perishable


products traded within the region, current volumes are unlikely to sustain a viable air or sea
cargo service. This is especially where it involves several CARICOM countries, some with very
small volumes of products for exports or imports. The cost of the ship or plane servicing some
countries will therefore be highly uneconomical.

Whether for fresh consumption, or as raw material for food and beverage processing
industries, or both, the evidence point to the situation that CARICOM, as individual countries
and as a region, has not developed its agricultural production capacity to substantially
meet the food needs of its growing population, fuel agro-industrial development, or provide
the basis for developing viable intra-regional trade. This capacity short-fall is more acute in
those food groups of higher consumption, particularly food from animal, than in those of
lower consumption, such as staples, fruits and vegetables, hence a growing dependence
on extra-regional imports

3.3 Im porting Food Needs: relying on Extra-Regional sources

The CARICOM Secretariat admits that there has been a steady increase in food imports into
the region. The data for 2000-2004 indicated that expenditures on food imports increased
from approximately US$1.3 billion in 2000 to US$1.5 billion in 2004; an annual increase of
approximately 3.0% over the five year period. The data also revealed that for CARICOM as
a group, the importation of food was approximately 12.0% of the total import bill,
accounting for approximately 11% of total imports of More Developed CARICOM countries,
compared to just about 17% for the Less Developed CARICOM countries. Of course, these
figures varied for individual Member States, and in the case of St. Lucia and St. Vincent and
the Grenadines, almost one fifth of their total imports were food items. (CARICOM
Secretariat, 2005)

An indication of the extent of reliance of the region on extra-regional imports can be


gleaned from the trend in agriculture and food imports. An attempt was made to 'group'
trade classifications by CFNI food group (Table 12). This was challenging since there is very
little tradition or historical experience in approaching a discussion on agricultural
development for food security in accordance with the Food Groups. Further, international
trade classification (Harmonized System) is not done according to food groups, but rather
according to industrial activity and by scale of transformation, i.e., primary, semi-processed,
finished consumer goods and categories in between. Hence 'pulling out' the individual
items that belong to a food group basket will require a substantial level of effort and liaising
with the CFNI. The time has come to approach analysis of import data from a different
perspective - by food groups and the value chain approach - from farm to table.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 43
in CARICOM
Table 12: CARICOM Food Import by Food Groups
US$'000 2001 2000 1999
All Agriculture Imports 1,750,244 1,753,287 1,735,610
Food Agriculture - Finished products Exc. Fish (03) 1,577,208 1,581,774 1,579,176
CFNI Food % Food in total Agriculture imports 90.11 90.22 90.99
Groups Food less cereals & beverages (chpts.10 & 22) 1,276,612 1,297,077 1,295,717
HS Major Food Groups (less beverages Chp. 22) 1,380,591 1,390,338 1,408,472
Food from 02 Food from Animals - Meat & Edible offal 176,605 193,637 189,002
Animals 04 Food from Animals - Dairy, Eggs, honey 213,863 201,839 194,942
16 Meat, fish, seafood preparations 81,868 90,829 91,397
Staples 07 Edible Vegetables, certain Roots & Tubers 30,205 30,044 32,601
10 Cereals 103,979 93,261 112,755
11 Milling products 60,160 62,049 76,361
Vegetables 07 Edible Vegetables, certain Roots & Tubers 45,986 47,486 43,779
Fruits* 08 Edible Fruits, nuts, peel of citrus etc 17,149 20,772 20,647
Legumes & Nuts 08 Edible Fruits, Legumes & Nuts, peel of citrus etc 22,241 24,118 24,911
Other undifferentiated products that add to the Staples, Vegetables and Fruit Food Groups
19 Cereal, flour, starch, milk prep/products 134,987 131,602 127,725
20 Vegetable fruit, nut, food preparations 116,285 113,626 107,213
21 Miscellaneous edible prep 156,583 162,619 142,704
Fats & Oils 15 Animal & vegetable fats & oils 68,925 76,935 88,985
Others 18 Cocoa & preparations 25,328 23,002 21,428
09 Coffee, teas, mate, spices 20,405 20,712 18,580
17 Sugars & sugar confectionary 106,022 97,807 115,442
Source: extracted from 6-digit data obtained from CARICOM Secretariat; See Annex 2 for detailed 6-digit imports:
* no specific information on apples or grapes could be identified in the import data. However these are major imported
fruits in CARICOM. See Annex 2.

This preliminary matching between food groups and HS classification attempted in Table 12
is not intended to represent an accurate reflection of the pattern of imports and
consumption. It is presented to illustrate and to reinforce two points: one - that the results of
the CFNI survey that CARICOM consumers consume and hence rely more on imports of a
relatively higher amount of 'foods from animals' and 'sugars and sweeteners'; and two -
trade data, which are often times used to identify opportunities and make decisions on
investments, though necessary, are by no means a sufficient basis for such decision-making.

'High regional food import bill' and 'high regional food import dependency' are generally
used to substantiate the deteriorating performance of agriculture, and thus are also used as
a first point of reference in the process of justifying investments in import-re/dis-placement
industries in CARICOM. While this approach may have worked in the past, consideration of
the nutritional element built-into food import data needs to feature more prominently. This is
even more critical given serious concerns over diet-related chronic non-communicable
diseases (CNCDs) and the association with high consumption of such imported foods.
Implicit in such consideration is that the structure, role and development process of the
agriculture and food industry in CARICOM has not been positioned to influence eating
habits or to counteract the growing ‘westernization’ of CARICOM diets. Further, in
recognizing the transition of diets, the agriculture and food industry in CARICOM was also
not positioned to even satisfy the demands for such ‘western-type' foods through adding
value to local produce.

Staples
On average, cereals (mainly wheat, corn and rice) and derived products (maize, oats,
bran, breakfast cereals, pastry, pasta, malt of barley, pot barley, millet, etc.,) account

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 44
in CARICOM
for roughly one quarter of all foods imported into CARICOM. The level of cereal
production is zero or miniscule in all but three Caribbean countries. In a volatile global
agricultural market, the issue of dependency on cereal imports can assume serious
proportions given that cereal demand is high and relatively inelastic. (FAO, 2007) Wheat
is by far the most popular cereal consumed in CARICOM. Corn is important both for
human consumption and for the manufacture of animal feeds. Rice is generally
imported as a final good for consumption. However, increasing quantities of husked
brown rice, and broken rice are being imported by some countries as an intermediate
input for agro-industry (poultry feed). In terms of monetary value, Jamaica, Trinidad and
Tobago and the Bahamas had the highest level of imports of staples, dominated by
corn, rice and wheat and wheat-based products. However per capita value of imports
was relatively high for Antigua and Barbuda, Bahamas and Barbados, St. Lucia and St.
Kitts and Nevis. These are all countries that have little or no domestic production of
cereals and therefore are almost entirely dependent on imports.

Table 13 provides an indication of the import data on select roots and tubers produced
within CARICOM for the 2001 to 2004 period. The data indicate that Trinidad and
Tobago, by far, dominates imports of these staples, led by imports of sweet potato and
yam. These roots and tubers, described in the trade classification system as having high
starch content, were sourced mainly from St. Vincent and the Grenadines and to a
lesser extent, Dominica.

Table 13: Value of Imports of Staples (total for banana, yam, sweet potato, cassava) US$
Selected CARICOM Countries 2000 2001 2002 2003 2004
Jamaica 61,753 63,593 548,463 515,784 400,606
Trinidad and Tobago 689,468 427,752 362,435 514,897 839,703
Barbados 25,578 60,069 25,441 51,892 98,557
Guyana 484 1,968 na 16 na
St. Lucia 1,136 996 3,139 2,237 1,852
Belize 549 252 704 35 513
Grenada 1,035 1,975 4,750 2,209 na
St. Vincent & Grenadines 419 109 57 142 1,791
Antigua & Barbuda 184,508 na na na na
Dominica 603 228 48 na na
St. Kitts & Nevis 13,706 7,568 8,607 12,294 15,072
Montserrat 22,526 14,379 14,232 19,607 16,416
CARICOM 1,001,767 578,890 967,877 1,119,114 1,374,511
na: not available
Source: Compiled by TTABA with data provided by the CARICOM Secretariat

Data obtained from the 6-digit import data (Annex 2), indicate that on average, imports
of white potato (fresh, chilled and frozen) mainly from the US and Canada, account for
over 90% of such imports, of US$27 million per annum, far surpassing extra-regional
imports of major staples. Though significantly less than cereal imports, this outcome is
reveals the general substitution in CARICOM consumption habits, in terms of variety and
nutritional value offered by local products (cassava, yam, sweet potato and other roots
and tubers) in favor of a single product - white potato. Also interesting is that
consumption of such foods has traditionally been higher in Trinidad and Tobago and
Jamaica, explained by their relatively more developed hotel and restaurant sector and
with extensive and very well advanced fast food retailing. The data also suggest an
increasing trend in Barbados and the smaller OECS countries of St. Vincent and the
Grenadines and St. Kitts and Nevis. This dominance is largely associated with white
potato consumption in its ‘French fries' form, a pattern closely associated with the rise in

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 45
in CARICOM
CNCDs. Data from the CARICOM Secretariat (Table 12) also indicated that cereal
imports (HS.10) as part of the staple food group dominated that category, which also
includes some products in HS.07- edible vegetables, certain roots and tubers and HS.11-
milling (eg. bakery products) classifications. Together, these staple imports averaged
roughly US$200 million per annum over the 1999-2001period.

Legumes and Nuts


The data in Table 12 above indicate an average of US$ 23 million worth of imports of
legumes and nuts in CARICOM per annum between 1999 and 2001. Among the
relatively high import items are cashew nuts and almonds and a variety of beans and
leguminous vegetables in their fresh form (HS.8). However, a considerable volume of
these products are imported for further processing and/or packaging for retail under
HS.20 - Vegetable fruit and nut preparations, including nuts and seeds and their mixtures,
preserved ground nuts (peanuts), and canned and other peas and beans. Apart from
Belize, most of CARICOM countries are dependent on imports to meet domestic
demand of pulses (beans and peas) and nuts both for final consumption and agro-
processing, the latter particular in Trinidad & Tobago and Jamaica. Trinidad and Tobago
is considered the largest importer of cashew nut, for further processing and packaging.
In fact imports of this nut accounted for about 28% of the imports of legumes and nuts
into Trinidad and Tobago during between 2001 and 2002. Generally, import data
suggest that except for fruits, the value of imports of legumes and nuts was substantially
lower than the other food groups, underscoring the fact that legumes are a relatively
good but relatively affordable source of proteins and other valuable nutrients.

Vegetables
It is estimated that the region supplies approximately 75% of its vegetable needs, with
the balance met from imports. As indicated in Table 14, the more developed and
tourism-based CARICOM countries import the larger share of vegetables.

Table 14: Imports of Vegetables, US$


Selected CARICOM Countries 2000 2001 2002 2003 2004
Jamaica 3,487,517 3,016,811 3,163,911 3,077,822 3,171,369
Trinidad and Tobago 2,064,706 2,160,753 1,816,724 2,305,132 3,342,663
Barbados 2,900,551 2,470,854 2,530,882 2,490,847 3,077,735
Guyana 1,009,525 882,956 1,328,951 893,610 980,249
St. Lucia 1,059,031 980,094 975,092 1,061,843 1,484,101
Belize 673,056 818,253 780,144 840,308 839,327
Grenada 415,957 474,059 487,976 471,152 na
St. Vincent & Grenadines 459,288 454,481 476,967 502,208 545,860
Antigua & Barbuda 1,641,365 na na na na
Dominica 356,985 244,910 282,807 283,756 331,086
St. Kitts & Nevis 987,250 776,567 650,159 625,890 737,008
Montserrat 78,388 56,497 76,904 68,402 58,825
CARICOM 15,133,618 12,336,236 12,570,518 12,620,968 14,568,224
na: not available
Source: Compiled by TTABA with data provided by the CARICOM Secretariat

Onions, shallots, garlic, carrots, tomatoes, cauliflowers and headed broccoli, lettuce,
and vegetable mixes, in that order, accounted for the higher relative share of fresh and
chilled vegetable imports between 2000 and 2004. The high imports of vegetables
suggest that its share in the diet is fairly high. However, when contrasted with the CFNI
consumption data, the actual level of vegetables consumed falls below the daily
recommended levels. Therefore a more plausible explanation of relatively high imports

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 46
in CARICOM
of vegetables is that this is associated more with the high demand in food service
establishments, particularly in the more developed CARICOM countries.

Fruits
The import data suggest that a similarly high expenditure on imports of fruits products,
dominated by their derived form, i.e., juice, jams and other preserves. Such expenditures
were particularly high products into CARICOM between 2001 and 2002, particularly in
Jamaica and the Bahamas (Table 15). It is often assumed that, with the exception of
countries like the Bahamas, Barbados and St. Kitts and Nevis, which cater for a large
tourist market, the region is less reliant on imports for its supply of fruits.

Table 15: Imports of Fruits, US$


Selected CARICOM Countries 2000 2001 2002 2003 2004
Jamaica 1,120,523 2,987,165 3,763,824 5,691,384 3,512,818
Trinidad and Tobago 214,963 182,404 368,789 1,192,839 3,622,077
Barbados 2,335,249 1,472,282 2,198,680 1,718,262 1,976,184
Guyana 505,965 1,085,750 805,655 858,607 580,149
St. Lucia 695,893 288,691 241,868 207,263 202,492
Belize 76,636 84,672 13,845 14,001 13,428
Grenada 448,307 446,603 512,339 548,903 NA
St. Vincent & Grenadines 922,743 867,557 892,301 985,063 433,946
Antigua & Barbuda 1,131,572 NA NA NA NA
Dominica 168,272 147,296 97,131 122,200 150,883
St. Kitts & Nevis 536,025 395,716 346,474 376,491 383,299
Montserrat 84,468 82,160 71,287 92,222 49,623
CARICOM 8,240,617 8,040,297 9,312,193 11,807,234 10,924,899
na: not available
Source: Compiled by TTABA with data provided by the CARICOM Secretariat

While this may be the situation, it can also be interpreted in the context of the CFNI
consumption survey that revealed that consumption of fruits, as was the case with
vegetables, appears to be below the recommended daily requirement. Hence the
current fruit production capacity appears sufficient to satisfy the existing moderate
consumption demands. However, fruit juices, dried fruits and fruit preparations
accounted for the majority of these imports.

The CFNI consumption data also indicated that between 2000 and 2002 an estimated 75%
of fruits and vegetables consumed in CARICOM were obtained from local produce. It is also
to be noted that as consumption increased, the importance of imported sources in the
supply of fruits and vegetables became more significant.

Food from Animals


The CARICOM region has traditionally been a net-importer of animal and their derived
products, led by meat and dairy. This category accounts for the highest share of
expenditures on foods imported into the Region, reflecting the situation that the region
as a whole, falls well short of being self-sufficient in the production of meat products. This
is borne out in Table 12 (above) and in the 6-digit level import data provided in Annex 2.
Guyana and to some extent, Belize, are among the very few Caribbean countries that
produce most of their meat requirements. The import data indicate that the Bahamas,
Jamaica and Trinidad & Tobago are the largest importers of meat and dairy products in
CARICOM.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 47
in CARICOM
Sheep and goat meat is also quite popular in some Caribbean countries. As observed in
a UWI study, ‘consumption of sheep and goat meat in CARICOM is highly dependent on
imports from New Zealand and Australia. Overall, the region imports approximately 75%
of its consumption requirements of both meats. In 2004, imports were valued at US$23.3
million with over 88% being sheep meat. The main import product into the region was
sheep cuts, bone in- frozen (HS 020442) representing 72% of imports in value terms.
Jamaica is the largest importer in the Region, followed by Trinidad and Tobago.
Jamaica, as do other relatively large importers (The Bahamas, Barbados), imports mostly
meat of sheep while Trinidad and Tobago’s imports are mixed - about 65% sheep meat
and 35% goat.” (UWI, 2006 a) A summary of imports of Sheep and Goat Meats into
various CARICOM countries for 2004 is shown in Table 16.

Table 16: Summary of Sheep and Goat Meat Imports in Various CARICOM Countries in 2004
CARICOM Countries; US$’000 Meat of Sheep Meat of Goat
Antigua 229 14
Bahamas 3,415 -
Barbados 3,024 -
Belize 32 -
Dominica 43 20
Grenada 151 -
Guyana 5 -
Jamaica 8,448 279
St. Kitts/ Nevis 299 -
St. Lucia 957 17
St. Vincent 27 -
Suriname - -
Trinidad & Tobago 4,006 2,272
Total Imports 20,636 2,603
Source: UWI, 2006(a)

Fats and Oils


According to UWI, CARICOM countries imported an estimated 72,306 tons of vegetable oil
valued at USD 46.3 million in 2003 (Table 17).

Table 17: Total Vegetable Oil Imports, 2003


(Intra and Extra-regionally), including Oilseed and Copra Equivalent
CARICOM Country Import Value (US$ mill.) Net Weight (Tonnes)
Antigua & Barbuda 0.5 519
Bahamas 2.6 2,642
Barbados 3.1 4,897
Belize 0.06 59
Dominica 0.9 1,697
Grenada 0.7 565
Guyana 1.8 2,690
Jamaica 15.1 25,275
St. Kitts & Nevis 0.2 191
St. Lucia 0.2 140
St. Vincent & Grenadines 0.6 533
Suriname 5.9 7,846
Trinidad & Tobago 14.7 25,254
Total Imports 46.3 72,306
Source: UWI, 2006(b)

The largest importers during that year were Jamaica at 25,274 tons valued at US$15.1
million, followed by Trinidad and Tobago 25,254 tons valued at US$14.7 million. Suriname
recorded the next highest import levels 7,846 tons valued at US$5.9 million, followed by

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 48
in CARICOM
Barbados with 4,897 tons valued at US$ 3.1 million. Except for The Bahamas and
Guyana, imports into the other CARICOM countries were of volumes less than 1,000 tons,
and valued at less than US$1.0 million. Data for Trinidad and Tobago and Barbados
includes volumes produced from imported soybean oil seed.” (UWI, 2006 b)

The above discussion on imports by food group provide further evidence to support the
CFNI's results of relatively high consumption levels of foods that do not rank as important in a
healthy daily diet. Recall that while sugars and sweeteners are considered neither as a food
group nor nutrients, roughly half of the relatively high levels of sugar and sweeteners
consumed in CARICOM are imported from extra-regional sources. These are primarily
processed and refined sugars used in the food and beverage industry. Up until the mid-
1980s, CARICOM was generally able to finance food imports from earnings derived from
traditional crop exports. However, with declining merchandise export volumes, including
agricultural products and escalation in food prices, the ability to finance food imports, from
agriculture and food export earnings was significantly eroded from the early 2000s, as
indicated by the food import capacity indicator (Table 18).

Table 18: Food Imports as a Ratio of Total Exports


Country 1990/92 1993/95 1996/98 1999/01 2003/04
Haiti 1.68 2.60 2.13 1.18 1.09
St. Vincent & Grenadines 0.23 0.35 0.52 0.48 1.10
St. Lucia 0.33 0.46 0.83 1.45 0.99
Suriname 0.14 0.15 0.27 0.17 0.90
Grenada 0.74 1.04 1.11 0.42 0.81
St. Kitts & Nevis 0.48 0.56 0.64 1.06 0.69
Trinidad & Tobago 0.16 0.15 0.14 0.09 0.60
Antigua & Barbuda 0.92 0.71 0.97 0.37 0.60
Dominica 0.34 0.43 0.54 0.50 0.55
Barbados 0.44 0.48 0.37 0.47 0.48
Bahamas 0.12 0.13 0.10 0.11 0.40
Jamaica 0.37 0.33 0.29 0.35 0.25
Belize 0.22 0.23 0.23 0.27 0.20
Guyana 0.22 0.10 0.12 0.15 0.13
Source: FAO/CFNI, 2007

The data indicate that the food import bill for several countries accounted for a substantial
proportion of the total value of export earnings from goods. As expected in Haiti, the value
of food imports has been steadily greater than exports of goods. However, with efforts at
revitalizing agricultural production and exports, the situation showed signs of improvement
from 1999. For St Vincent and the Grenadines, the situation worsened considerably from
2003, associated in part with the decline in banana production and exports. This was also
the experience for St. Lucia, whose severe contraction in their export earnings could not
offset the increase in food imports.

The data thus suggest that with the exception of Guyana and Belize, the capacity of most
CARICOM countries to import food from export earnings was much reduced in 2003/2004,
compared to 1990/92. By 2003/2004, for most, CARICOM countries, expenditures on food
imports absorbed an increasing share of their export earnings, with the situation dire in more
than half of CARICOM states. As the world laments the end of the era of ‘cheap food’,
CARICOM countries will expect to feel the immediate effects, which may represent a
worsening of their capacity to satisfy their growing food needs from import, irrespective of
the sources of supply.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 49
in CARICOM
It is well known that the United States (US) is the dominant source of food imports into
CARICOM as a region, and to individual Member States, except Suriname, whose main
supplier is the Netherlands. Comtrade data indicate that over the 1999 to 2001 period, a
little more than half of the region’s food needs (i.e. 51.87%) were sourced from the US. The
supply dominance of the US ranged from as high as 93.1% of food imports in the Bahamas
to a low of 30.1% in Suriname. The situation has not changed substantially in the current
period. The other main, but by far, less important supplier of food supplies into CARICOM
were Trinidad and Tobago, the United Kingdom (UK) and Canada, with a market share of
7.6%, 5% and 4.7%, respectively over the same period. In spite of the proximity to Latin
America, supplies of food products from countries in that region was relatively low,
averaging less than 3%, although CARICOM has several bi-lateral trade agreements with
several Latin American countries.

The CARICOM Secretariat (2005) estimated that between 2000 and 2004, only about 16% of
the Region’s total food imports were sourced from within the region. Though fluctuating
over the period, the absolute value of intra-regional imports of food declined from
approximately US$234.5 million in 2000 to US$231.3 million in 2004. Trinidad and Tobago had
the second largest import market share in nine of the 14 Member States, ranging from a
high of 25.2% in Guyana to a low of 1.1% in Belize. As expected from the dominance of
exports from Trinidad and Tobago, intra-regional trade in agricultural and food products is
similarly dominated by bakery products (sweet biscuits and breakfast cereals) and
beverages (soft drinks, beer and concentrated orange juice). In general, it is the OECS
member countries, Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines which
acquire in excess of one-fifth of their total food requirements from the regional market.

A significant part of the food and agriculture imports feeds directly into manufacturing firms.
Evidence of the dependence of large manufacturing firms on imported raw material is seen
in the annual requests considered by the CARICOM Secretariat for rate suspensions of the
Common External Tariff (CET) which by its very design, was intended to ensure that
local/regional raw material was provided with first option. It also served another important
purpose - a mechanism of revenue collection on imports. Such suspensions are provided for
under Paragraph 3 of Article 83 of The Revised Treaty Establishing the Caribbean
Community including the CARICOM Single Market and Economy (CSME).

Over the 2002-2005 period the main products which have triggered repeated requests for
the suspension of CET rates have been primary and more frequently, processed agricultural
products, including products from the fats and oils food group. For many of these products,
the applicable CET rates are competing input rates intended to influence their sourcing by
CARICOM producers/processors from within the Region. The chief products are vegetables,
fruit, nuts, spices, rice, certain animal and vegetable fats and oils, sugar, fruit pulp and fruit
tidbits, citrus and other fruit juice concentrates, and essential oils. The principal petitioning
Member States in terms of the number and frequency of the requests have been Trinidad
and Tobago and Jamaica. The products concerned have been mainly inputs for further
processing in the food and beverage sectors. Ironically, for several of these products,
CARICOM was deemed to have supply capacity.

The trend in CET rate suspensions continued unabated over the 2002 to 2005 period as
shown in Table 19. The petitions have not been limited to questions of the availability of the
named products, but have involved considerations of price, quality and technical
specifications of the products concerned. Apart from an increasing number of suspensions

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 50
in CARICOM
granted between 2002 and 2004, the fact that roughly 90% of all applications were from
only four industry clusters – oil-bearing crops, other fruits and derived products, spices and
condiments, and miscellaneous animal and vegetable products – provides an indication of
the preference, or concentration of agro-industry in the region. As expected, Trinidad and
Tobago, the major agro-industrial CARICOM country, and Jamaica, dominated such
applications, each accounting for roughly 45% over 2002-2004. The fact that in CARICOM,
the main source of raw material and intermediate supplies for larger agro-processing firms is
imports from extra-regional sources suggests a weakness in the primary link of agriculture’s
value chain. Using import data as an indicator, it would appear that efforts to develop the
value chain by fostering linkages between farm agriculture and up-stream food and
beverage manufacturing have not materialized as expected.

Table 19: CET Rate Suspension on Products of the Agricultural Sector


Commodity Groups (2002 to Sept. 2005) Applications: Total # Applications: % Distribution
2002 2004 2005 2002 2004 2005
Oil-bearing Crops & Derived Products 77 142 60 29.06 30.60 19.74
Spices & Condiments 62 125 49 23.40 26.94 16.12
Miscel. Animal & Vegetable Products 43 99 115 16.23 21.34 37.83
Other Fruits & Derived Products 41 57 31 15.47 12.28 10.20
Pulses & Derived Products 18 8 8 6.79 1.72 2.63
Rice & Rice Products 5 5 1 1.89 1.08 0.33
Large Ruminants & Products 4 4 3 1.51 0.86 0.99
Beverage Crops 4 8 12 1.51 1.72 3.95
Cereals & Derived Products 3 2 0 1.13 0.43 0.00
Citrus & Citrus Juices 3 4 3 1.13 0.86 0.99
Sugar Crops & Sweeteners & Derived 2 2 8 0.75 0.43 2.63
Vegetables & Derived Products 2 2 5 0.75 0.43 1.64
Nuts & Derived Products 1 2 2 0.38 0.43 0.66
Feed Stuffs 0 3 0 0.00 0.65 0.00
Roots & Tubers & Derived Products 0 1 1 0.00 0.22 0.33
Water & Ice & Beverages 0 0 5 0.00 0.00 1.64
Other Animals & Products 0 0 1 0.00 0.00 0.33
Total 265 464 304
Source: Compiled by Andrew Jacque with data provided by the CARICOM Secretariat

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 51
in CARICOM
The CARICOM ‘Food Problem’

For Caribbean countries, a ‘food problem’ has been deemed to exist since the late 1970s, as
recognized in the CARICOM 1981 Regional Food and Nutrition Strategy (RFNS). This food problem
manifested itself ‘in acute nutritional and health problems’. The RFNS also concluded then, that
the ‘nutrition problem in the Caribbean generally, is one of insufficient food rather than an
imbalanced diet’. In the 1970s, the food issue was largely linked to availability and access related
to incomes and deficiencies in the distribution system, as opposed to utilization/nutrition.
Agriculture was pressed to expand food production and manufacturers were encouraged to use
more local produce in food processing operations. While the issue of nutrition has generally been
an invisible aspect of agricultural development and trade (food import) decisions, CARICOM
countries have clear guidelines regarding nutritional needs. The CFNI, established in 1967 to
improve the food and nutrition situation in its member countries, has defined and continues to
develop nutritional guidelines and food baskets for a healthy and secure daily diet. However, CFNI
surveys have shown that consumption patterns in the Caribbean, generally, do not match these
recommendations. Unfortunately, the region has still not achieved optimum success in developing
the important linkages between food, nutrition, health and education and in recognizing the
important role of agriculture. This became clear as the food price crisis rapidly unfolded from
2007.

“In short, if the Caribbean’s food import bill was unsustainable before the global economic crisis,
the austerity budgets that governments now have to introduce to weather the recession are
making essential the development of a new Caribbean agricultural model. In response to the
2007/8 food price crisis the Caribbean held an emergency summit to try to find regional
solutions. All the signs are that food prices are again set to soar. Delivering rather than
discussing food security, for the people of the region, is an issue that will not go away”.
(SRC, 2009)7

7
‘The View From Europe: Caribbean Agriculture & Food Security’ 05 May 2009, http://www.shridathramphalcentre.org

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 52
in CARICOM
4. Investing in Nutrition
4.1 Opportunities for Food and Nutrition Security- by Food Group

The food and nutrition crisis has given the region a


reason for pause and stock-taking, in terms of its priorities
and approach to agricultural development, food
security and human health and wellness. Some key
points to be considered in this dialogue with respect to
the past and recent experiences are that:

1. agricultural development policies and programs can


no longer just respond to external market forces and
demand; they must define and pursue a national
development agenda in the context of regional
integration and international obligations;
2. marginalizing agriculture in the national
development agenda is neither a prudent nor viable
growth strategy; countries must balance
industrialization policies, incentives, investments and
infrastructure developments that encourage
expanded agricultural production and trade;
3. the unbridled access to imported foods, in the
absence of public education on nutrition, promotion
of, and enhanced access to locally produced foods,
has escalated the costs of food beyond just the
financial value of imports, to include the equally high
and rising financial and economic cost of health
care from CNCDs.

The current food crisis is a symptom of a crisis of


agriculture that has been allowed to escalate, and a
crisis of rapidly urbanizing societies in a lagging
development process. Member states have been
taking measures to encourage expanded production
and consumption of locally-produced agricultural
products. The response by virtually all CARICOM Heads
of State has been to implement short-term measures to
mitigate the impact of rising food prices and improve
access. The more common measures have been in the
areas of:
 adjustment to import tariffs
 food stamps and debit cards to the most vulnerable
 incentives to start and expand food production in
specific crops
 promotion of backyard gardening to enhance
household sufficiency
 development of ‘mega farms’ for mass production
of certain food products

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 53
in CARICOM
Such measures, as expected, will provide temporary relief as Governments seek to define a
‘bail-out’ package to stem any further adverse impact on rising prices. However, what is
needed is well-placed investment that would stimulate interest, develop capacity and
expand business activity in agriculture, from farm to table and sustain growth in the long
term. This is critical in securing the food and nutrition needs of a well defined and nutrition-
based basket of foods for a healthy daily diet.

Response at the regional level tended to focus on mobilizing resources to strengthen the
enabling environment for agricultural development and to attract greater investments. This
has been the rationale for the process of crafting programs and strategies to alleviate key
binding constraints to a competitive agriculture in CARICOM, led by President Bharrat
Jagdeo. This strategy visualizes a resuscitation of agriculture potential to contribute to
economic, social and environment development of the region by 2015. The agricultural
potential of the region has remained largely under-developed and barely tapped. Trade
data, supported by the food crisis, both reveal that demand for agricultural produce has
outstripped supply, both for direct consumption and as input into processing.

There is a view, that given the physical limitations with respect to agricultural production
capacity, CARICOM is not in a position, or rather, should not pursue policies to achieve food
self-sufficiency. Physical limitations notwithstanding, the combined resources in CARICOM
are capable of meeting the nutritional requirements of a number of food products in each
of the key food groups. To enable this, serious investment is needed across the board in
enhancing crop, livestock and fisheries production to secure a reasonable proportion of the
region’s food needs and to supply raw materials for agro-industries. Investment is also
required in distribution mechanisms, transportation and infrastructure to help stabilize prices
and markets. Agriculture inputs supplies and distribution; water resource development,
especially for flood control infra-structure and irrigation; development and fabrication of
appropriate small-scale mechanized technologies for on-farm processing and secondary
processing of agricultural produce, are also priority areas for investment.

4.2 Potential Areas for Investing in Food and Nutrition Security

Roughly thirty years ago, pre-feasibility and feasibility studies were undertaken to guide
decision-making in expanding the region’s production capacity in cereals and grains,
legumes, fruits and vegetables, livestock products and spices and essential oils. Some of the
opportunities identified were incorporated as part of the regional food and nutrition
strategy. In 2008, the region is once again or still engaged, in the same objective and
process, albeit in a vastly different environment. In the context of an emerging global food
crisis, the status of the region with respect to food security has taken on increased
significance on the policy making agendas.

There is an expectation that expanded local production and more efficient regional trade
and distributions mechanisms, could minimize the region’s vulnerability to food insecurity.

In the short-term and given the emerging global situation with respect to food security, the
priority objective for resuscitating agriculture’s potential is to produce adequate supplies of
wholesome foods to feed CARICOM’s populations. Meeting this objective provides
sufficient basis for identifying potential opportunities for investing in agriculture. Such an
identification take fully into consideration the recommended dietary guidelines of the CFNI,

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 54
in CARICOM
the urgent need to arrest further increase in CNCDs and the preference towards imports of
highly processed products for human consumption.

The following discussion seeks to identify potential opportunities for investment by Food
Group, starting with the most important for a healthy daily diet.

4.2.1 Priority Investment Areas - Staples (Roots, Tubers, Grains)

Why staples?
Unquestionably, staples as the most important food source, must be central in any
investment plan to boost agriculture for food and nutrition security, in both the primary and
processed segments.

From a nutritional standpoint, the CFNI’s daily dietary requirement guidelines indicate that
staples, such as, starchy fruits, roots, tubers/ground provisions form the base of the daily
diet; that is 45%! They are a good and affordable source of dietary energy, that is,
carbohydrates and dietary fiber. While they have only small amounts in most other
nutrients, roots and tubers, such as, cassava, sweet potato, potato and yam, also
contain some vitamin C and yellow varieties of sweet potato, yam and cassava contain
beta-carotene or provitamin A.

From a production standpoint, most, if not all CARICOM countries produce relatively large
amounts of a range of roots and tubers, albeit on scattered small-holder unit. Farmers
are well versed in the production technologies and there have been some
technological upgrades in certain varieties that have boosted yields, reduced
susceptibility to pest and disease (eg. control of tannia root rot disease) and improved
quality (eg. the CARDI improved rice cultivar "CARDI 70" in Belize) and in terms of use as
a fresh product and for processing.

From a national security standpoint, roots and tubers have a relatively short production
cycle and the fact that they grow under-ground, makes them a ‘super-crop’ in a region
plagued by extreme weather events (eg. hurricanes). Food shortages in the aftermath
of hurricanes pose serious social and political threats to CARICOM countries. The ability
to quickly revitalize food production capacity, through roots and tubers – energy foods –
features high in post-hurricane recovery plans. However, while staples have become a
‘staple’ in the agricultural production landscape, their development process has been
stymied. This, despite emphasis placed on these two food groups in previous agricultural
development plans and strategies since the mid-1970s and to present time. The major
source of CARICOM’s carbohydrate nutritional requirements comes from wheat and its
derived products, and white (Irish) potato. The CFNI indicates that three substitutes for
flour products which can be easily grown and are readily available, are the breadfruit,
green banana and cassava.

From an economic standpoint, past assessments have indicated that ‘staples’ have well-
established and excellent market potential, in both fresh and value-added products.
Investments in improving production and introducing appropriate processing will be
required to develop farming and processing operations and viable value chains. Trade
data indicate processed staples, mainly cereals and bread (from whole grain or
enriched flour), wheat flour, corn-meal, dried cereals, macaroni, spaghetti, rice, cereal
porridges, are a significant component of the region food import bill. With the recent

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 55
in CARICOM
food crisis, there has been a renewed interest in developing the base of food security
that follows a nutritional, as opposed to economic determination of value. Interest in
roots and tubers industry, with cassava and sweet potato leading the pack, has
resurfaced in CARICOM.

From a socio-economic standpoint, the farm base in CARICOM is dominated by small


producers of roots and tubers and there has been a growing movement towards
organization has been an increase in the number of farmers groups organizing these
commodities in the last five years. There is also evidence of an increase in the number
of small establishments engaged in adding value to roots and tubers and nuts. These
value added products include the familiar flours, chips and fries, and as well, more
recent efforts to produce porridge, soups, pancakes, mixed nuts and other mixes. The
growth in value-adding of roost and tubers indicate that some progress has been made
in addressing limiting factors, such as, unavailability of suitable small-scale equipment to
reduce the drudgery of manual labor and the cost and availability of appropriate
packaging material. This can only auger well for a concerted and well-conceptualized
investment effort to expand and secure regional capacity to produce the bulk of its
energy, protein and fiber requirements from crops. The following Table 20 provides
indicative areas where investments could be channeled for development of a range of
staple products.

Table 20: Technological and Economic Considerations for Staples


Recommended Technological Economic Aspects Market potential
Product Requirement
Banana and Plantain
Plantain Chips Established technology Initial capital investment is Proven, well-established product.
available moderate. Major costs are Excellent potential for domestic, regional
equipment and packaging. and export markets.
Banana Chips Established technology Initial capital investment is Proven, well-established product.
available moderate. Major costs are Excellent potential for domestic, regional
equipment and packaging. and export markets.
Drinks/Juice Research needed-major Can be adapted easily to Excellent market potential provided that
Blends challenge is product processing operations for other the banana industry survives.
consistency because of juices.
quality variability in the
raw materials
Wines Research required Initial cost of investment is not Excellent potential for use in tourist
high if operations are small scale. industry and as souvenirs packaged in
small attractive bottles.
Cassava
Farine Mechanization of Initial cost of investment is not Excellent market potential
process for increased high if operations are small scale
level of production
Bread/bammy Mechanization of Initial cost of investment is not Excellent market potential
process for increased high if operations are small scale
level of production
Flour Mechanization of Initial cost of investment is not Unless process is mechanized, potential is
process for increased high if operations are small scale moderate due to competition from lower
level of production priced products.
Frozen cassava High energy input Initial cost of investment is not Market potential is moderate unless
high if operations are small scale process is mechanized because of
competition from products produced
more cheaply
Frozen grated High energy input Initial cost of investment is not Market potential is excellent
cassava high if operations are small scale
Quick-mix Specialized equipment Initial cost of investment is not Market potential is excellent especially
powdered, soup required high if operations are small scale if marketed as a specialty product
thickener

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 56
in CARICOM
Table 20: Technological and Economic Considerations for Staples
Recommended Technological Economic Aspects Market potential
Product Requirement
Breadfruit
Vacuum-packed Vacuum sealer and Initial cost of investment is Excellent market potential
baked/roasted appropriate packaging moderate for equipment cost and
breadfruit required packaging, raw material
availability may be a problem
Pre-cooked Vacuum sealer and Initial cost of investment is Excellent for single serve, convenience
microwaveable appropriate packaging moderate for equipment cost and item for the domestic, regional and
sections required packaging, raw material extra-regional ethnic markets
availability may be a problem
Chips Appropriate packaging raw material availability may be Excellent market potential
a problem
Sweet potato
Fries Research required for Relatively low initial capital Excellent market potential
variety selection investment
Flour Research required for Initial cost of investment is not Excellent market potential, if used for
variety selection high if operations are small scale the ingredient market

Yam
Extruded snack Extruder and research High initial investment for Market potential is moderate because
required extruder and packaging of competition from similar products
Flavoured chips Research required Initial cost of investment is not Good niche market for individuals
high if operations are small scale familiar with yams; excellent market
potential
Dasheen
Soup thickeners Specialized equipment Raw material availability may Excellent market potential
required be a problem
Flavored chips Extruder and research High initial investment for Market potential is moderate because
(extruded) required extruder and packaging of competition from similar products
Eddo
Flavoured chips Research required Initial cost of investment is not Market potential is moderate because
high if operations are small scale of competition from similar products
Tannia
Powdered soup Specialized equipment Raw material availability may Excellent potential especially if
mix required be a problem marketed as a specialty hypo-allergenic
product
Flavored chips Research required Raw material availability may Niche market with excellent potential for
be a problem domestic, regional and extra-regional
ethnic markets
Source: FAO, 2001

The socio-economic returns from such investments will be increased incomes to producers,
reduction in health care costs and greater food security in the aftermath of hurricanes and
other such adverse weather events. Given that production of these crops is dominated by
small holder operations, the production and processing of this food group also presents a
good opportunity for community agriculture and development in rural areas.

4.2.2 Priority Investment Areas – Legumes and Nuts

Why legumes and nuts?

From a nutritional standpoint, the CFNI’s guidelines indicate that legumes and nuts should
be the second largest food consumed as part of a healthy daily diet, 22%. They are a
good, important and affordable source of non-animal protein and soluble fibers.

From a production standpoint, most if not all CARICOM countries have the capacity to
produce a variety of legumes mainly for domestic consumption. Belize is a major
producer of red kidney beans; Guyana and Suriname produce large quantities of bora-

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 57
in CARICOM
bora; and Trinidad and Tobago has a fairly large production base of string beans, bodi,
pigeon peas and seim. Almost all CARICOM countries incorporate legume production in
crop-rotation systems. In fact the first mechanized harvester of commercial pigeon peas
was developed by the UWI faculty of Engineering in the 1960/70s. Nuts are less widely
cultivated that legumes and in most instances, are found in the wild.

From a national security standpoint, legumes and nuts also have a relatively short
production cycle and can also become a major part on post-disaster recovery efforts at
providing nutritious foods.

From an economic standpoint, trade data indicate a relatively high proportion of canned
and frozen legumes in the region’s food import bill. The bulk of such imports are to satisfy
canning industries mainly in Trinidad and Tobago, with significant imports from the
Dominican Republic. Measured in per unit of protein for the population, legumes are far
more economical than protein from animal sources in terms of direct costs if production,
plus the costs in terms of environmental impact.

From a socio-economic standpoint, they are well adapted to subsistence, small scale and
intensive production systems and can provide a major 'free' source of protein at level of
households.

From an environmental standpoint, legumes, in particular, are 'soil enhancers', improving soil
nutrition because of their capacity to 'fix nitrogen'. For example, pigeon peas are very
well adapted to growing conditions in CARICOM countries. However, their long-term soil
nutrition benefits are optimized when they are incorporated into a crop rotation cycle,
such as with root crops and vegetables, such as, corn, which are major 'demanders' of
nitrogen.

To reiterate: sixty-seven percent of the food needs for a healthy diet comes from two food
groups - roots and tubers and legumes and nuts. That is significant! Of even greater
significance is that the combined resources and traditional experience in the region are
capable of producing a substantial part of food needs from these two food groups. Roots
and tubers can be grown with some measure of comparative advantage in most
CARICOM countries, such as in St. Vincent, which has proven capacities for yams, eddoes,
tannia, sweet potatoes and cassava. If CARICOM were to achieve near self-sufficiency in
carbohydrates and dietary fiber through root crops, and non-animal protein, through
legumes and nuts, then significant resources will be released from the food import bill for
investment in other areas in agriculture that require comparable attention. This provides
more than sufficient justification for prioritizing crops in these food groups in developing
agriculture's capacity to meet the region’s food and nutrition security objective.

4.2.3 Priority Investment Areas –Vegetables and Fruits

Why vegetables and fruits?

From a nutritional standpoint, there has been a global shift towards increasing consumption
of vegetables and fruits, and especially in their raw and minimally processed form. This
shift is largely in response to the rapidly growing incidence of CNCDs, such as diabetes,
in adult and as well, youth and infants. Based on CFNI’s guidelines, vegetables and fruits

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 58
in CARICOM
should comprise about 12% and 9%, respectively, of a healthy daily diet. They are a
ready source of vitamins, fiber and minerals.

From a production standpoint, the agricultural landscape of all CARICOM countries,


whether small holdings, commercial establishments, greenhouse operations, or back-
yard gardeners, is dotted with a wide variety of vegetable and fruit production.
Vegetables have traditionally been grown for home and domestic consumption.
However, with the more aggressive promotion of the tourism and hospitality sector,
including agro-tourism, both the scale and selection of vegetables grown have
expanded. Some enterprising farmers in CARICOM have invested in the production of
specialty vegetables for hotels, and there is a growing interested in production of the
‘baby’ variety of many commonly used vegetables, such as tomatoes, and as well,
winter vegetables. Production of fruits of most tropical varieties has been a standard
feature of agricultural diversification programs in CARICOM countries. However, the bulk
of such products have been geared for the extra-regional market. Notwithstanding,
CARICOM has both the physical and technical capacity to improve and expand
vegetable and fruit production to supply a significant share of regional demands.

From an economic standpoint, fruit and vegetables have formed the base for exports and
several of the region’s agro-processing industries. The global market for tropical fruit and
vegetable products is relatively large, with strong growth in the organic market
segment. The global shift towards higher consumption of vegetables and fruits is
evidenced in the most unlikely of places – the fast food restaurant segment – the fastest
growing food service establishment. Vegetable and fruit-based products are
increasingly become part of the offerings of such establishments, and as well, of the
growing diet industry. There is also still significant scope for expanding export, regional
and domestic markets for vegetables and fruit.

4.2.4 Other Food Groups: Determining their Relative Priority

Should, and if so, to what extent of investment resources be


spent on further development of these industries?

Animal Products

What Foods from Animals?


Based on import data, growth in food services using products of animal origin and observed
consumption patterns, it is safe to conclude that the protein quotient of the average
CARICOM consumer is reasonably well satisfied. Unfortunately, with the exception of
poultry, and to some extent pork and beef products in a few countries, the region generally,
has and continues to be a net importer of food from animals. This situation has increased in
recent years as most livestock production in most CARICOM countries continues to fall far
below demand. Up to the 80s, there were several public sector projects to expand
production of sheep and goats, pigs, poultry and dairy and beef production in a few of the
larger Caribbean countries. Some private sector initiatives have also resulted in some
Caribbean countries significantly increasing their self-sufficiency in poultry and pork
products, with an enhanced capacity in a few others for beef production.

The potential for some category of livestock and fisheries production in CARICOM remains
under-developed. CFNI’s guidelines recommend that food from animals should constitute

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 59
in CARICOM
8% of the daily diet. The decision with respect to investment in livestock products should
take this into consideration, since livestock production in CARICOM is primarily geared
towards domestic/regional consumption. Import displacement is also a major driver in
developing capacity for livestock products. However, other critical issues that investment
decisions in livestock must also take into account is the import dependence of most of the
existing livestock industries on imports of the major inputs – improved breeding stock, feed
and veterinary medicines. In most CARICOM states, grazing lands are not in abundance,
nor are facilities for animal feed production. Hence the opportunity cost for growing crops
for food or animal feed is a major factor for consideration.

Fisheries products are being promoted as the ‘better’ protein. However, fishing, though
widely practiced, is yet to develop into a commercial industry in most CARICOM countries.
Investment decision in developing production capacity for food from animals, if based on
considerations of nutrition, reducing the food import bill and as well, stimulating
employment in rural areas, should take into consideration the relative cost-benefits of fishing
vis-a-vis livestock. This is not, however, to suggest an either/or situation. Rather, it is to
emphasize that perhaps, and pending economic analysis and environmental impact
assessments, most CARICOM countries have a relatively greater comparative advantage
for fish and fish products, including marine capture fishing and aquaculture, vis-a-vis some
components of the livestock sector that are currently being pursed. It suggests also, that
serious investment needs to be channeled into fisheries to enable its development to
contribute significantly to the food and nutrition security needs of the region.

Investment in fisheries development should span the entire industry, from infrastructure to
the scientific applications, technology, research and preservation and the services industry.
Fisheries suffer similar disincentive as food crops production as a result of wastage and
spoilage due to inadequate preservation, processing and transportation to major
consumption centers. Artisanal fishing has been crippled by rising costs of inputs - boats,
out-board engines, fuel, etc. There are investment opportunities in production of fishing
tackles, cold storage and transportation, development of fish ponds in coastal areas,
swamps, where they exist, aquaculture, fish canning and packaging, boat construction and
out-board engines assembly and manufacture, trawling and ancillary facilities and services.

The emerging health conscious lifestyle of many consumers has created an increase in the
worldwide demand for fishery products that are high in protein, low in fat and high in
vitamins, minerals and other essential nutrients such as omega fatty acids. Consequently,
the national and international demand for fish far exceeds the supply. Rising demand
coupled with slower growing production has resulted in an increase in the prices of most
fresh and frozen fish in relation to the prices of most animal-origin foods. The CARICOM
population can absorb an increase in the current protein supply from fish and fish products.

Fats and Oils


Recall the CFNI’s nutritional guidelines recommendation that this group of foods should
contribute just about 4% of the daily diet. The nutritional properties of coconut, which is the
mail oil-producing tree in CARICOM, show that the fatty acids that make up coconut fat are
saturated; these are a special fatty acid called short and medium chain, which do not
promote cholesterol production. In CARICOM, other available sources of fats and oils
include cooking and salad oil, butter, margarine, shortening, ghee, coconut cream/milk,
meat fat, nuts, avocado pears and Jamaican ackee.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 60
in CARICOM
This suggests that with the current production and consumption of oil-rich fruits, investment
to develop capacity for fats and oils, as part of a food and nutrition strategy may not
necessarily be considered a priority. This, however, does not exclude the development of
this aspect of agriculture to capture export markets provided that such export opportunities
are deemed to exist and that the CARICOM products is competitive enough to yield
sufficient returns to such investment. Of note, are the relatively high imports of fats and oils
into CARICOM for final consumption and as well for agro-processing.

4.3 Investment Climate for Capacity Building in Food Nutrition Security

A major part of the unfinished regional agenda has and continues to be limited financing
and investments. In this regard, an important aspect of the discussion must be on the
investment climate in the region generally and specifically, for agriculture. The 2003/2004,
the Alleviation of Key Binding Constraints (Jagdeo Initiative) reiterated past documented
conclusions, that lack of financing and the absence of new investments is a fundamental
constraint in agriculture. Mobilizing a regional agriculture development fund to provide the
much needed capital for critical public and private sector investments was proposed as a
major part of the solution.

The macro-economic situation plays a major role in the attractiveness of a country/region


to investment resources. CARICOM countries, generally, have had fairly stable, albeit
modest growth rates and a relatively stable and predictable policy environment. However,
for several countries, the sustainability of debt levels is a cause for concern. With the
exception of Jamaica, Guyana, Suriname and Trinidad and Tobago, exchange rates have
been stable. Politically, the region is also regarded as stable, with well defined governance
and institutional structures which provide some measure of accountability, transparency
and confidence, particularly for foreign investors. However, as far as the financial sector is
concerned, the CARICOM Secretariat concluded that the situation was not conducive to
the stimulation of regional investment. While the banking system remained sufficiently
sound within the last decade or so, there was some concern about excessive liquidity and
yet unavailability of loans to small and micro enterprises, a general reduction of lending for
productive, as against consumption type consumer purposes, and a very high, though
declining rate of interest.

It is obvious that agri-food investments have been less dynamic than investments in other
sectors, particularly services and manufacturing. The signals transmitted by contraction in
major agriculture industries and limited successes at agricultural diversification have
rendered agriculture as unattractive and/or risky. Domestic deficiencies that have limited
high and continuous investment in agriculture still exist. Among the main issues include
environmental, financial, market and institutional risks, lack of credit and financing,
especially for start-up, working capital and risk mitigation, inadequate economic and
technological infrastructure including demand-driven research, development and
innovation. The absence of “value chain presence” that takes effective advantage of the
‘improved market access opportunities negotiated through the trade agreements and to
‘associate or group’ to achieve economies of scale, attract resources and develop new
businesses has also been a major deterrent to investment in agriculture. Further, the
expectation that most economies in the region would become more service-oriented as a
strategic response to trade liberalization, that has adversely reduced competitiveness and

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 61
in CARICOM
‘squeezed out’ opportunities for manufactures, has implications for attracting investment
into agriculture.

All CARICOM countries have investment promotion agencies to aggressively seek


investments and facilitate the entry of investors. These focus on fiscal incentives, mainly
through tax holidays and duty exemptions, industrial modernization services to upgrade
facilities, and ‘free zones’ that promote export development and foreign investment
projects. While these investment promotions do not exclude include farming or agro-
processing, the visibility and share of agriculture in the overall portfolio have been relatively
low, compared to other manufacturing activities.

Incentives to encourage farming are generally provided for by Ministries of Agriculture. Most
countries offer a package of incentives to encourage investment in agriculture. It spans
Finance Credit; Tax Holidays; Reduced Customs Charges on Imported Inputs; Technical
Support through Research Institutions; Export Financing and Guarantee; Extension Services,
and for a limited number of commodities, Agricultural Insurance Schemes. There may also
be commodity specific incentives linked to major commodity development programs in
individual member states. However, a general reaction from stakeholders, that the process
for obtaining these incentives tends to be time consuming, explains in part the limited
success and impact of these facilities. While there have been incentives at the farm level,
these have not made any significant inroads into the critical limitations to investment, that is
reducing or at least, managing the level of risk faced, improving access to appropriate
credit, financing, infrastructure and other critical production factors. Hence the usual
problems of low productivity, non-competitiveness and instability continue to challenge
agriculture and the emergence of an enabling environment for investment.

It is well understood, that fiscal incentives are an important component of the domestic
policy measures to support the farm and agro-processing sectors in CARICOM. There is
sufficient scope for Governments of the region to provide incentives of one form or another,
for production and/or processing under the facilities and mechanisms of the WTO
Agriculture Agreement. Domestic support commitments are defined in the “green box”,
which allow Developing Countries to finance programs which relate to research and
development, including market research, once these measures do not distort, or at most
cause minimal distortion to trade. They have to be government-funded (not by charging
consumers higher prices) and must not involve price support. They tend to be programs that
are not targeted at particular products, and include direct income supports for farmers that
are not related to (or “decoupled” from) current production levels or prices. They also
include environmental protection and regional development programs. “Green box”
subsidies are therefore allowed without limits, provided they comply with the policy-specific
criteria set out in Annex 2 of the WTO Agriculture Agreement.

The CSME mechanisms are expected to encourage cross-border activities, particularly


capital flows, and to enhance international competitiveness of firms and small and medium
sized activities. However, in 2005, the CARICOM Secretariat concluded that the incidence
of cross-border (and also extra-regionally sourced) investment activity is conditioned by
broad environmental and endowment related factors, as well as entrepreneurship and
supply-side capabilities that would also determine the extent to which conditions are put to
good use, opportunities are seized and challenges overcome. However, the differing level
of need and capacity to offer fiscal incentives within Member States have raised concern

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 62
in CARICOM
over the level of commitments and obligations to co-ordination of policies across Member
States.

Increasing investment in agriculture for food and nutrition security is enshrined in the
regional agricultural policy framework in the Revised Treaty establishing the Caribbean
Community, including the CSME. The Revised Treaty provides an overall policy and planning
framework for balancing investment resources against the multiple objectives for
agriculture. The need to create the enabling environment for investments in agriculture has
never been greater. The imperative to diversify and expand production and value-added
through well targeted and productive investments is essential to achieve the goals of food
and nutrition security, poverty alleviation, and accelerated rural development. Meaningful
progress towards these goals will enable the region, collectively and as individual member
states, to adjust and function effectively in a global environment characterized by
competition for markets and resources.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 63
in CARICOM
Conclusion
In September 2007, CARICOM Heads of Governments signed the Port of
Spain Declaration Uniting to Stop the Epidemic of Chronic NCDs. Among
the policy issues advocated to tackle the problem included need for closer
regulation of foods, especially of the steadily increasing importation of
foods with high fat content, licensing laws to ensure that consumers know
the content of the foods they eat and for agricultural policies that ensure
that food security is pursued in the context of incentives or subsidies for local
production of the fruits, vegetables and whole grains required for a healthy
diet. While this was primarily in response to the burden of diet-related health
concerns, it is also, in a direct measure, targets the issue of the high food-
import dependency.

The issue of a ‘healthy diet’ is at the core of food and nutrition security,
which in turn, relates to a country’s or region’s food system. The term "food
system" is a phrase used to tie elements of food production (agriculture),
food distribution (trade) nutrition, health and rural/community
development. Henrickson (2001) describes the food system as including all
processes involved in keeping people fed: growing, harvesting, processing
(or transforming or changing), packaging, transporting, marketing,
consuming and disposing of food and food packages. It also includes the
inputs needed and outputs generated at each step. The food system
operates within and is influenced by social, political, economic and natural
environments. Each step is also dependent on human resources that
provide labor, research and education.

In responding to the need to secure the food and nutrition objectives,


CARICOM, as a region, and as individual member states, will need to invest
in the development of its ‘food system’. That food system must address, in
an equal manner, the four key components of food and nutrition security –
these being availability, household access, nutritional adequacy and
stability of the three components.

The issue of availability is of direct concern to agriculture. The CFNI’s food


groups guidelines does indicate that the combined resources of CARICOM
can reasonably supply a significant share of the most important food needs
for a healthy daily diet - staples and legumes/nuts. This notwithstanding, the
trade data suggest that such nutritional requirements are met largely from
foods cultivated and processed in extra-regional countries. Hence for
CARICOM, the availability component is very closely tied to the situation
with the trade sector. Any trade disruptions, regardless of how temporary,
are likely to have an immediate impact on the security of food supplies. For
CARICOM, therefore, investment decisions that tip the scales in favor of
domestic/regional production and distribution will go a long way in
enhancing food security in the region.

The CFNI constantly emphasizes that food and nutrition security is, at its
core, a household issue. Actions must be taken to ensure that ‘households’
have a secure access to available food supplies. While not directly an issue

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 64
in CARICOM
for agriculture, household access can be influenced by the type of agricultural and rural
development policies pursued. All CARICOM countries have rural development and/or
community development projects. All CARICOM countries also confront social problems
due to urban congestion and hence have social projects in urban areas. In recent times,
issues of household access and availability, through agriculture, have become inextricably
linked. Governments are increasingly promoting backyard gardening as a first step to
household food security. Hence agriculture and food production are no longer relegated
to farms in rural areas; they are being practiced by households in urban areas, in school
yards and in some instances, in office surroundings. National measures that complement
household access include farmers’ markets that seek to ensure better national distribution
of locally produced foods, government programs to enhance income earning opportunities
so that vulnerable households can purchase food needs, and safety nets, such as food
stamps.

The linkage of agriculture to nutritional adequacy or consumption (biological utilization and


care practices), is largely through the fact that food quality begins on the farm. Hence food
safety from planting to farm gate will have some implications for the quality of the product
in terms its nutritional adequacy at the point of consumption. The other elements of
adequacy relates to nutritional information, food handling, preparation and storage, which
combine to determine the rate of deterioration of the nutrients to the point of consumption
and as well, public education on the nutritional qualities of local produce specifically and
generally, of popular ‘foods’.

Hence from a purely ‘availability’ perspective, opportunities exist for potentially viable
investments along the primary to processed food agriculture chain that can enhance the
food and nutrition security status of the region. In keeping with the CFNI nutritional
guidelines, two major areas where investment can increase productivity levels in terms of
primary production and the competitiveness of processed products are in staples and
legumes/nuts. Such investments must, by necessity, adopt a value-chain approach to
enable growth and the sustained development of the industry beyond the initial
investment. There has been growth in the number of small enterprises engaged in
processing of root crops and other staples for local markets. Products include porridge
mixes, frozen root crops in various specialty cuts (e.g., cassava logs, fries, wedgies, grated).
It is recommended that member states invest in these existing enterprises by providing the
necessary support to strengthen agronomic practices and operations, improve
management skills, undertake product development, enhance product marketability and
strengthen market linkages. Success with this initial investment will engender greater interest
among would-be entrepreneurs, thus expanding output of these key food groups. There
are some emerging models in the region that could be emulated and/or adapted as needs
be, to achieve this goal, such as the National Agricultural Development Program (NAPD)
and the Trinidad and Tobago Agribusiness Association (TTABA).

Investment opportunities also exist in the vegetables and fruits food group. This is an area in
which CARICOM countries have prioritized for expansion through agricultural diversification
programs, however, with a focus on export markets. Globally, consumption of fruit and
vegetables is on the rise. A similar trend is observed in CARICOM countries, evidenced by
the increase in fruit and vegetable offerings in fast-food establishments. However, in many
instances, these fruit and vegetable products are imported. CARICOM countries have a
good opportunity to invest in the production of a few key vegetables that satisfy the needs
of both the export market, through the tourism and hospitality sector, and local consumers.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 65
in CARICOM
High among the choices should be green leafy vegetables, tomatoes, carrots, among
others. Such investment should also encourage value adding, such as, mixed veggie packs,
that is being done on a small scale and facilitate platforms for market linkages. The issue
with fruits is more one of availability; that is of flattening out the highly seasonal nature,
improving quality through better handling and presentation, and reducing the high level of
wastage due to non-use of second grade fruit.

The paper argues that in terms of foods from animals and fats and oils, investing in
expansion of livestock products needs to be carefully thought out. This decision-making
process must take its cue from the CFNI guidelines which place a low importance on food
from animals in a healthy diet, relative to crop-based products. A different type of
consideration could be given to the already established poultry and pork chains and the
small, but growing goat and sheep operations. Different considerations also apply to fish
and sea food products, in keeping with the global recognition that they offer the healthier
alternative source of animal protein. While there have been programs to develop the
fisheries industry in CARICOM, including through the CARICOM Regional Fisheries
Mechanism (CRFM), much more focused and sustained investment will be needed to bring
the fishing activities to a level where it provides an acceptable level of food and nutrition
security with respect to both availability and affordable access to animal protein.

Outside of the issues related to the development of agriculture itself, there is yet another
major issue that must be tackled to attract greater investments. This relates to the quality of
the national and regional environment for transparent, efficient and competitive business.
CARICOM countries all recognize the role of investment - private foreign direct, or domestic
- in stimulating business development and expansion. In this regard, they have ‘invested’ in
establishing investment agencies that woo prospective investors with generous incentive
packages. While agriculture is not discriminated against, the process generally, does not
appear to have attracted any significant investment in agricultural enterprises. Apart from
the established and diversified CARICOM corporations, most of the investment in
agriculture, and particularly for primary production, comes from loans obtained from
national development banks, such as, the Agricultural Development Bank of Trinidad and
Tobago, Credit Unions and small business development agencies present in all CARICOM
countries. Perhaps, in the absence of any significant success in mobilizing donor funds and
foreign private investments, serious consideration could be given to upgrading the financial
portfolio and fund management capacity of these existing financial institutions. This
upgrading would make these institutions that are already involved in agriculture, more
effective in satisfying the need for start-up funds, working capital for most entrepreneurs
wanting to enter agriculture and as well in providing mentoring and monitoring services to
improve the success rate of start-ups and ensure a more productive loan performance.
There are emerging models in the region, such as the Caribbean Business Enterprise Trust
(CBET) that could be used as a base for developing and managing innovative programs.

Of critical importance, is that any effort at the national level must be supported and
reinforced by regional mechanisms that both strengthen the regional environment for
business, trade and investment and ensure a more efficacious distribution of investment
resources in areas that secure the wealth of member states through the health of their
populations. Increasing investment in agriculture for food and nutrition security is enshrined
in the regional agricultural policy framework in the Revised Treaty establishing the
Caribbean Community, including the CSME. It is expected that the CSME integrating
mechanisms will encourage cross-border activities, particularly capital flows, and to

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 66
in CARICOM
enhance international competitiveness of firms and small and medium sized activities, this
providing a solid base for the food and nutrition security in the region.

Food for thought. . . .


The drivers and evidence of extremely rapid advances in the scientific and
technological frontier, in many instances, has pushed the envelope from what was
previously considered ‘science-fiction’ to reality. This was very recently brought into
sharp focus with the news out of Japan on the –“Future of Food”8.

In a perfectly controlled and totally sterile environment - uncontaminated by dirt,


insects or fresh air - Japanese scientists are developing a new way of growing
vegetables. Called plant factories, these anonymous looking warehouses have
sprung up across the country and can churn out immaculate looking lettuces and
green leaves 24 hours a day, seven days a week. Every part of the plant's
environment is controlled - from the lighting and
temperature, to the humidity and water. Even the
levels of carbon dioxide can be minutely altered.
Rather than the conventional scruffy clothes and
dirty fingernails of vegetable growers, the producers
wear gloves, surgical masks and sort of dust proof
protective suits normally seen in chemical plants.
The vegetables from plant factories - which include
green leaf, romaine lettuce and garland
chrysanthemum - are sold at a premium to
Japanese shoppers. No pesticides are used - and
there is no risk of contamination with food poisoning
bugs. Because the plants are grown in a clean
room, they can be eaten safely without washing.
Lettuce grown in the factories can be cropped up
to 20 times a year. Some factories are vast - and
can produce three million vegetables a year. The results are hygienic, but it's about as
far from real food as you can possibly get.9

The response in the electronic discussion on this article was varied, ranging from a
perspective that appreciated the value of research and commercialization of same,
to concerns over the impacts on the nutrition and the human form that could result
from consumption of food grown without sunlight - summed up in the phrase - you are
what you eat - and on the cost-benefit of investment in such highly capital- and
energy-intensive scientific and 'un-natural' 'food' production systems! Many countries,
especially those in the Caribbean, are a world away from this emerging reality.
However, in terms of securing the nutritional content of food, there are yet unexplored
frontiers of food production that may yield more productive results in terms of
investment resources for the Caribbean.

8 Is this the future of food? Japanese 'plant factory' churn out immaculate vegetables by David Derbyshire Last updated at 9:56
AM on 03rd June 2009, http://www.dailymail.co.uk/sciencetech/article-1190392/Is-future-food-Japanese-plant-factories-churn-
immaculate-vegetables-24-hours-day.html
9 Responses and opinions from contributors to circulation of this article on the e-forum at FAO-Carib-Agri@fao.org.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries 67
in CARICOM
ANNEXES

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries i
in CARICOM
Annex 1:
Nutritional and Health Benefits of Food from Plants by Food Groups
Food and their Nutritional and Health Benefits
Food Group/ Product Nutritional and Health Benefits
Staples
Banana Like the other starchy fruits, roots and tubers, its main nutrient is starch and, contrary to a widely
(a traditional export held belief, it provides very little protein or iron. It is also an important source of fiber.
crop industry)
Breadfruit Breadfruit’s most ample nutrient is starch, which makes up most of its carbohydrates and fiber.
(importance in the The fresh breadfruit’s pulp is approximately 70% water, but once dried its composition is similar
agricultural development to wheat flour. Wheat flour contains more protein, but less fat, minerals and vitamins than
strategy is growing) breadfruit. The case could be made for its use as a substitute for wheat flour in tropical regions
where there is a lack of bread-producing grain. It is also an important source of fiber. When
combined with other animal proteins, breadfruit is an important component of a balanced diet.
Cassava Except possibly for sugarcane, the cassava plant is the highest source of calories per cultivated
(a priority in most area per day among crop plants. They are also an important source of fiber. It is noted that
countries food security cassava can produce 250x103 calories/ha/day compared to 176x103 for rice, 110x103 for
plan) wheat, 200x103 for maize, and 114x103 for sorghum. The chemical composition of cassava
varies in different parts of the plant, and according to variety, location, age, method of analysis,
and environmental conditions.
 The root is very rich in carbohydrates, 64 to 72% of which is made up of starch, mainly in the
form of amylose and amylopectin. About 17% sucrose is found in sweet varieties, and small
quantities of fructose and dextrose have been reported. The lipid content of cassava is only
0.5%. However, the root is deficient in proteins (1-2%), fat, essential amino acids,
particularly lysine, methionine, and tryptophan and other minerals and vitamins. The peel of
cassava roots contains slightly more protein than is found in the edible portion. Therefore,
peeling results in loss of part of the valuable protein component. Large proportions of its
nutrients may be lost during processing. All of this should be taken into account in cassava-
processing in order to retain as much as possible of these nutrients.
 The leaves are a good source of protein if supplemented with the amino acid, methionine.
Because cassava is of lower nutritional value than are cereals, legumes, and even some other
root and tuber crops such as yams, it should be combined with foods from animals to make a
nutritionally balanced diet.
Sweet Potato A major source of carbohydrates (calories), approximately 21.3 % of its weight, in the form of
(a priority in most starch and sugars (primarily saccharose). Their fat, sodium and protein content are minimal, less
countries food security that white potato. It is however very rich in beta carotene (provitamin A), particularly in the more
plan and regional yellow varieties, which makes it very appropriate in case of arteriosclerosis. Regular sweet
development programs) potato consumption is recommended in cases of arteriosclerosis, lack of adequate blood flow
and hypertension. It is also an important source of fiber.
Yams Contains considerable energy (118 kcal/100g, and contains moderate amounts of B group
(interest has peaked in Vitamins, Vitamin C and Minerals among which potassium is significant (814 mg/100g). However,
the aftermath of the yam lacks provitamin A. With their low fat content and their richness in potassium makes yams
exploits of Jamaican very appropriate for cardiovascular disorders, particularly arteriosclerosis.
sprinter Usain Bolt)
Legumes and nuts
Legumes: Being of plant origin, legumes are cholesterol-free. Their soluble fiber (guar gum) content aids in reducing serum
cholesterol thus lowering one's risk of heart disease. Fiber also reduces one's risk of developing Type 2 diabetes and
affords some measure of blood sugar control because legumes are low glycemic index foods. Legumes are also
associated with reducing risk of some types of cancer specifically colon cancer. The presence of phytochemicals
(isoflavones) has been identified as the link between diabetes and cancer. Beans have been noted for their 'anti-aging'
properties due to antioxidants found in the seed coat. There are eight flavonoids in the outer bean layer, six of which
are particularly strong antioxidants. New research is suggesting that beans have a perfect nutrient base for people
interested in weight loss. CFNI strongly recommends combining legumes with grains to complement the amino acids that
are deficient in grains thus providing complete protein.
Nuts: are fairly nutritious. Raw nuts contain enzyme inhibitors which help to protect the seed, keep it from germinating too
early and dying off. These enzyme inhibitors can neutralize the enzymes the body uses to control inflammation and
aid in digestion. Eating nuts with these enzyme inhibitors can cause the pancreas to swell. Fortunately, there are two
ways to destroy these enzyme inhibitors, namely roasting, and sprouting. These processes keep the beneficial enzymes
intact. Nuts can be roasted either with or without added oil. Roasting destroys much of the Vitamin B, particularly
vitamin B1 (thiamine) content.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries ii
in CARICOM
Food and their Nutritional and Health Benefits
Food Group/ Product Nutritional and Health Benefits
Beans The protein content of beans varies according to variety between 21% and 24% which is equal
to or even greater than animal-based foods such as beef or chicken. Beans are very rich in rich
in folates, iron, potassium, Naicin and pantothenic acid and in vegetable fiber (15.2% content),
the latter helping to prevent constipation and lower blood cholesterol levels. The high iron content
of legumes combined with their nutritive properties, make beans highly suitable food for anemic
and the undernourished.
Peanuts Peanuts exceed meat and eggs in carbohydrates (particularly starch and maltose), fats
(constitute half of its weight, with balanced combination of polyunsaturated, monounsaturated,
and saturated fatty acids (the least abundant)), proteins (rather low in the amino acids
methionine, lysine and threonine), a certain amount of B complex vitamins (B1, B2, B3, B6) and
vitamin E. Peanuts reach a true record among foods in their niacin content, which is also known as
B3 acts as a coenzyme within the body that facilitates the numerous chemical reactions essential
to carbohydrate and fat metabolism. They are also superior in terms of minerals such as
calcium, magnesium and potassium. And all this without cholesterol or excess saturated fatty
acids.
They are highly recommended for heart patients, since they help lower cholesterol levels, thus
improving blood circulation of the coronary arteries and their low in sodium and high in
potassium content protects against hypertension and fluid retention in the tissues. Peanuts should
be eaten with other foods such as whole grains, or legumes to supply all necessary amino acids
required for a complete protein.
Cashew Cashew is rich in unsaturated fatty acids such as oleic and linoleic; in vitamins such as B1, B2 in
pantothenic acid; and in minerals such as magnesium (260mg/100g), potassium, iron and
phosphorous. Cashew is noted for its magnesium content, one of the highest in the vegetable
kingdom, surpassed only by sunflower seeds.
Vegetables
Tomato Scientists are finding out that it is the array of nutrients included in tomatoes, including, but not
(a standard part of limited to lycopene, that confers it with so much health value. Lycopene, a carotenoid found in
farming, home tomatoes (and everything made from them) has been extensively studied for its antioxidant and
gardening etc, in cancer-preventing properties. Tomatoes are an excellent source of vitamin C and vitamin A, a
CARICOM) very good source of fiber, a very good source of potassium and a good source of niacin, vitamin
B6, and folate. All of these nutrients work together to make tomatoes a truly heart-healthy food.
100g of tomatoes contains 18 calories. A cup of fresh tomato will provide 57.3% of the daily
value for vitamin C, plus 22.4% of the DV for vitamin A, and 7.9% of the DV for fiber.
Tomatoes are the most consumed vegetable in the world. Other than the largely available red,
tomatoes are also available in yellow, orange, pink, black, brown and purple colors. Nutritional
properties have the ability to help protect cells and other structures in the body from oxygen
damage, prevention of heart disease. Tomatoes have been shown to be helpful in reducing the
risk of prostate cancer, promoting colon and pancreatic health. Its antioxidants travel through the
body neutralizing dangerous free radicals that could otherwise damage cells and cell
membranes, escalating inflammation and the progression or severity of atherosclerosis, diabetic
complications, asthma, and colon cancer. In fact, high intakes of these antioxidants have been
shown to help reduce the risk or severity of all of these illnesses. Its fiber has been shown to
lower high cholesterol levels, keep blood sugar levels from getting too high, and help prevent
colon cancer.
Ochro Ochro is highly nutritious with numerous medicinal properties. It is notable for its protein content
(has a long tradition in (2%) which is quite high for a vegetable. It is also rich in provitamina A; B group vitamins
the region) particularly B1); vitamin C and Vitamin E. few vegetables surpass Ochro in magnesium and iron.
Ochro is particularly recommended for stomach ulcer, gastric and stomach disorders in general.

Cauliflower (cultivation The Cauliflower contains small amounts of carbohydrates and proteins and practically no fat. It
is expanding in several contains provitamin A (beta-carotene), vitamins B, C, and E of which C stands out with 46.4
countries) mg/100g. As for minerals, it is very rich in potassium and low in sodium. It contains significant
amounts of calcium, magnesium, phosphorous and iron. Cauliflower is rich in trace elements such
as chromium, zinc, manganese, copper, and selenium. All of these perform significant functions in
the body, and because it is highly digestible, it is excellent for vitalizing the digestive processes
from the stomach to the colon, with many of still being investigated. Boiled of steamed, it is the
perfect supper for those wishing to lose weight and diabetics due to their low carbohydrate
content. A virtual lack of fat make the cauliflower one of the most effective foods for those
suffering with disorders of the heart or circulatory system.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries iii
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Food and their Nutritional and Health Benefits
Food Group/ Product Nutritional and Health Benefits
Sweet peppers Peppers contain very little protein, carbohydrates and virtually no fat. Because of this they
(a standard part of contain only 27kcal/100g. They also contain small amounts of B group vitamins, vitamin E, and
farming, home all dietary minerals. However, two vitamins are particularly noteworthy: provitamin A (beta
gardening etc, in carotene), with and vitamin C. Red peppers provide almost four times as much vitamin C as
CARICOM) lemons or oranges. One hundred grams of red pepper contain more than triple the RDA.
Peppers are beneficial for those suffering with dyspepsia (indigestion) due to scanty digestive
juices. Peppers stimulate the gastric juices and reduce inflammation. Peppers are a mild laxative
and are anti-flatulent. Because they contain very few carbohydrates or calories, pepper are well
tolerated by diabetics and are suitable for the diet of the obese.
Spinach (bhaggi, high in Spinach is a green leafy vegetable with abundant vitamins - excellent levels of manganese,
demand in Trinidad) Vitamin K and Vitamin A are found in spinach. It also contains very good amounts of magnesium,
potassium, iron and calcium. Copper, phosphorous, zinc are all found in good amounts in spinach.
It is a very good source of Vitamin C and good amounts of Vitamin E, Vitamin B6 and Riboflavin.
It also contains traces of selenium, Thiamin and Niacin. 100g of spinach contains 23 calories. Its
health benefits include maintaining bone health (Vitamin K), lowering blood pressure due the
presence of magnesium, protects against heart disease and provides anti-inflammatory benefits
(Vitamin C). Flavoniods, a compound in spinach, has anti oxidant and anti cancer properties,
improved eyesight and brain function.
Sea weed/Sea moss Seaweed is one of the greatest health secrets - a true "super food" - good sources of iron (most
(an emerging area of fresh seaweeds provide between 2.5 and 3 mg of iron, equal to or greater than that of meat);
interest in several good source of calcium (some contain higher proportions than milk); provide magnesium and
CARICOM countries) iodine (considered the best source of iodine); contain vitamins B1, B2, E and abundant niacin and
folates. A handful of seaweed added to any dish more than satisfies the iodine needs of an
entire family and prevent the possibility of suffering goitre. The gums and mucilage also
absorbs gastric juices and act as a natural antacid, thus impeding the absorption of cholesterol in
the intestine. Therefore the regular consumption of seaweeds reduces the cholesterol in the blood.
Seaweeds increase metabolic rate and prevent obesity. Due to seaweed’s iodine content, it
promotes hormone production in the thyroid gland. These hormones accelerate combustion of
carbohydrates and fat.
Since three-fourth of our planet is covered with water, many scientists believe that seaweed
might be a solution to dietary needs of a large portion of humanity. In addition some types of
seaweeds lend themselves very well to controlled cultivation.
Fruits
Banana (Ripe) Bananas contain about 74% water, 23% carbohydrates, 1% proteins, 0.5% fat, and 2.6% fiber
(interest in developing (values vary between different banana cultivars, degree of ripeness and growing conditions).
banana ripening Bananas are high in B vitamins that help calm the nervous system. Compared to an apple, it has
facilities is growing in 4 times the protein, 2 times the carbohydrate, 3 times the phosphorus, 5 times the vitamin A and
some CARICOM iron, and 2 times more of the other vitamins and minerals. It is also rich in potassium and is one of
countries) the best value foods around. In the process of ripening the starches are converted to sugars; a
fully ripe banana has only 1-2% starch. Besides being a good source of energy, banana is a rich
source of potassium, and hence is highly recommended for patients suffering from high blood
pressure. Bananas contain three natural sugars - sucrose, fructose and glucose combined with
fiber.
It is claimed that bananas have beneficial effect in the treatment of intestinal disorders, including
diarrhea. Bananas are unusual in that they work for constipation too. They contain mucilaginous
bulking substances and are easy to digest. A banana gives an instant, sustained and substantial
boost of energy. Research has proven that just two bananas provide enough energy for a
strenuous 90-minute workout. It can also help overcome or prevent a substantial number of
illnesses and conditions, such as depression, PMS, morning sickness, heartburn, ulcers, etc, making
it a must to add to a daily diet.
Mango Mango has very high vitamin A content among fresh fruits. With 27.7 mg/100g, the mango is a
(part of all countries good source of Vitamin C. A medium size mango (300g) provides 138 % of the adult daily
diversification into non- requirement of this vitamin. A 300g mango provides 33% of the daily requirement for Vitamin E
traditional fruits for for an adult male. This is one of the richest fresh fruits in this vitamin. Mangoes are diuretic
export, there is also a (increase urine production). They are quite rich in potassium and low in sodium. This makes them
growing interest seen highly recommended in the case of high blood pressure since they aid in its control. Diabetics can
through 'mango benefit from eating mangos because this fruit’s positive effect on the arteries helps prevent the
festivals' in the region) circulatory complications associated with diabetes. Mangoes are of great benefit to the
circulatory system and should be included in the diet of all who experience poor blood
circulation to the extremities or in the coronary arteries.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries iv
in CARICOM
Food and their Nutritional and Health Benefits
Food Group/ Product Nutritional and Health Benefits
West Indian cherry The West Indian cherry was a little appreciated fruit until the 1950s when some investigators at
(cherry is an important the University of Puerto Rica analyzed its vitamin C content. They declared that they had
ingredient in the Juice discovered nature’s richest source of this vitamin (up to 2,520 mg/ 100g, according to the
processing industry in variety, in other words more than 50 times that of lemons. In addition to vitamin C, cherries also
Barbados and Guyana) contain a whole series of natural substances that accompany it and potentiate its action: organic
acids such as malic acid and flavonoids such as rutin and hesperidin.
West Indian cherry is highly recommended for all types of infectious diseases, particularly those
of viral origin (Flu, colds etc.) and as a complement to the prevention and treatment of cancer.
Guava Guava is low in proteins, fats and carbohydrates, but is important as a food source because of
(while wild guava is its supply of vitamin C. with 183mg /100g guava is among the richest fruits in this vitamin. The
common in most greatest concentration of vitamin C is in the pulp that surrounds the seeds just below the peel. The
countries, there has been guava is also rich in carotenoids. 100g of pulp will supply 8% of the daily needs of vitamin A.
very little concerted Guava also contains significant amounts of B group vitamins (except B12), and vitamin E, as well
development work to as calcium, phosphorous, magnesium and iron. Its most abundant mineral is potassium. It is also
expand commercial relatively rich in trace elements such as zinc, copper and manganese.
production) A study conducted in India and published in the American Journal of Cardiology found that
adding guava to the daily diet of 61 hypertensive volunteers lowered their systolic blood
pressure by 9mm/HG and the diastolic by 8mm/Hg. The equivalent of moving from
150/90mm/Hg to 141/82mm /Hg. These results were obtained over a three-month period of
regular consumption. The same experiment produced a 9.9% overall cholesterol reduction and
7.7% reduction in triglycerides in the blood. This hypolipidemic (lipid-reducing effect is due to
the guava’s rich content of soluble fiber (pectin), which “sweeps” the intestine and facilitates the
elimination of cholesterol and the biliary salts from which it is synthesized. Guava is an excellent
fruit for maintaining good arterial health. Its consumption prevents the risk factor that causes
arteriosclerosis.
Passion Fruits Passion Fruits contains a considerable amount of sugar (13%), constituted of equal parts of
(was an important part glucose, fructose and sacharose. With 2.2 % protein passion fruit is one of the most protein-rich
of agricultural non- fresh fruits. This is possibly the most iron rich fresh fruit. 1.6mg/100g. Even though this iron is non-
traditional haeme of vegetable origin, and is absorbed with greater difficulty than that of animal origin,
diversification and the simultaneous presence of vitamin C in the passion fruit significantly enhances the absorption
value-adding thrust in of this mineral. One hundred grams of passion fruit pulp provides 30 mg of vitamin C, half of the
mainly the OECS RDA. Passion fruit is quite rich in magnesium, calcium, phosphorous and potassium.
countries)
Papaya 100 g of pulp provides 103% of the RDA of vitamin C and 18% of vitamin A for an adult. The B
vitamin is also present in small amounts except for folates which with 38mg/100 g is as much as
the mango. Where minerals are concerned the papaya is rich in potassium and significant
amounts of calcium, magnesium, phosphorous and iron. The fruit is also a good source of
antioxidant, a group of vitamins, minerals and enzymes that protects the body from itself – its
own injured cells or particles of cells called free radicals. Contains high concentration of vitamin
C. Vitamin C is an anti-oxidant or free-radical scavenger. Papaya is also rich in proteolytic
enzymes. It contains the enzyme papain, which greatly aids in digestion. Aside from the famous
papain, it also contains arginine, known to be essential for male fertility. Carpain is also found in
papaya, which is thought to be good for the heart. It also contains fibrin, which forms part of the
blood clotting process.
Papaya is a famous health food most especially when it comes to digestion. Ripe papaya is
easily digested by the body and aids in constipation by helping to neutralize excess gastric acid.
Papaya is of value because of its effect on all digestive processes. The papaya’s emollient and
antiseptic effect on the digestive mucosa makes it useful in any type of case of gastroenteritis or
colitis: infectious, ulcerous, or spastic (irritable bowel). Papaya contains carotene which also helps
for the prevention and treatment of cancer. Regularly eating of papaya will help a person to
maintain vitality and good health.
Oranges In addition to vitamin C, oranges contain about 170 phytochemicals that potentiate and
complement the action of this vitamin. Oranges contain sugar in moderate amounts
(9.35g/100g), easily assimilated by the body and tolerated by diabetics in controlled amounts;
these are saccharose, dextrose and levulose. Oranges contain potassium, calcium and smaller but
significant amounts of iron and magnesium. In addition to vitamin C (45-60 g/100 g), oranges
contain carotenoids that are responsible for their typical colour (provitamin A), vitamin B1 and
Vitamin B2. Oranges also contain folic acid in an amount of 30-mg/100g. Vegetable fiber in the
form of pectin is the only component of the orange that is not present in orange juice. Oranges
contain Phytocehmicals which are substances found in very small amounts in foods but play very

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries v
in CARICOM
Food and their Nutritional and Health Benefits
Food Group/ Product Nutritional and Health Benefits
important roles within the body. A very important property of the phyto-chemicals, which are so
abundant in oranges and citrus fruits in general, is to potentiate the effect of certain vitamins
such as vitamin C. The two main groups of pyto-chemicals found in the orange are Flavonoids
and Limonoids. Flavonoids are powerful antioxidants, anti-inflammatory and anti-carcinogenic
glucosides.
It is recommended that oranges form part of the daily diet of anyone with an infectious disease.
Oranges have the following effect on infection: they
− increase the disease fighting capabilities of the white blood cells. They also increase their
number and longevity.
− slow, but do not completely halt the development of viruses within human cells.
− increase the production of interferon, an antiviral protein produced within the body itself.
Oranges help to make the blood more fluid and improve circulation. This effect is particularly
beneficial in Thrombosis, arteriosclerosis and cardiovascular disease.
Oranges can help in the cure of constipation and intestinal atony.
Fats & Oils
Avocado The avocado is among the richest fruits in fat (up to 20 % depending on the variety). The fats in
(a key crop in all avocados are of high biological value and are primarily unsaturated. They contain no
agricultural non- cholesterol, as is the case with all plant-based foods. Avocados are among the most protein –rich
traditional of fresh fruits, which depending on variety can reach 2% of their weight. They contain all the
diversification program) essential amino-acids, although their proportion is not optimal. Avocado is the richest fresh fruit
in Vitamin E. The avocado has the highest iron content of any fresh fruit (1.02mg/100g). With
5% or more of fiber, the avocado is the richest of any fruit in fiber.
Research has shown that eating avocado regularly is highly recommended for those with excess
cholesterol or triglycerides in the blood, as well as any type of hyperlipemia (increase in fats in
the blood). Avocado health benefits are becoming more recognized today throughout the world
as being good for health and nutrition, through the benefits from nearly 20 vitamins, minerals
and plant compounds.
Coconut The most abundant nutrient in the coconut is fat, which makes up a third of its mature weight.
(a long-standing part of Most (up to 94.3%) of the fatty acids that make up coconut fat are saturated. However, these
CARICOM agriculture are a special fatty acid called short and medium chain, which do not promote cholesterol
landscape) production.
A mature coconut also contains a fair proportion of carbohydrates (6.23%), protein (3.33% ),
and mineral salts, particularly magnesium, calcium and phosphorus
The dietary and therapeutic properties of the coconut depend on its mineral content, particularly
magnesium. Mature coconuts contain 32mg/100 g, and coconut water 25mg/100g. Most of the
body’s magnesium is found in the bones (60%) and the muscles (26%). It contributes to bone
hardness and health cartilage in joints. In addition to a certain amount of magnesium, coconuts
contain other minerals of great importance to the musculoskeletal system such as calcium and
phosphorus. A food such as the coconut that provides these minerals in proper proportion
contributes to healthy bones, joints, and muscles.
A little of coconut water contains about 300 mg of magnesium, which is the RDA of that mineral
for an adult.
Source: Compiled from CFNI information as well as from information from internet searches, including
http://www.whfoods.com; http://www.greenfootsteps.com/seaweed-health.html;
http://www.healthmad.com/Nutrition/Nutritional-Benefits-of-Papaya.

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries vi
in CARICOM
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iv
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
34 160413 Prepared or preserved 13,421 13,063 13,094 13,193 Canada 74.7 USA 8.9 Thailand 8.4 2.4
sardines, sar
35 220830 Whiskeys 12,218 14,735 11,552 12,835 UK 69.3 USA 15.3 Netherl'd 10.7 0.6
36 220890 Other spirituous beverages, 14,959 12,045 10,428 12,477 USA 32.8 UK 11.4 Trinidad 8.1 18.7
nes
37 220840 Rum and tafia 12,377 10,595 14,060 12,344 USA 57.4 Trinidad 22.4 Jamaica 4.9 34.5
38 40291 Concentrated milk and 12,843 13,185 10,928 12,319 Canada 43.3 USA 34.1 Netherl'd 9.0 0.8
cream, unswee
39 150710 Crude soya-bean oil 7,499 13,149 15,965 12,204 USA 75.3 Argentina 24.0 Trinidad 0.4 0.4
40 120100 Soya beans 21,446 5,601 9,441 12,163 USA 98.4 Trinidad 0.9 Brazil 0.3 0.9
41 200410 Potatoes, preserved other 13,694 11,907 10,487 12,029 Canada 46.9 USA 25.8 Netherl'd 20.1 0.2
than by v
42 180690 Chocolate, etc, containing 12,475 10,978 10,485 11,313 USA 49.8 Trinidad 20.7 UK 15.2 23.0
cocoa, n
43 40500 Butter and other fats and 10,819 10,966 11,240 11,008 N Z'land 28.4 USA 25.8 Australia 16.3 0.6
oils deri
44 190190 Other food preparations of 13,311 9,216 10,067 10,865 USA 26.7 UK 22.7 Jamaica 22.2 29.5
flour, e
45 210500 Ice cream and other edible 10,293 11,696 9,769 10,586 USA 59.5 Trinidad 8.2 Barbados 6.0 17.9
ice, whe
46 40630 Processed cheese, not 11,018 10,218 10,293 10,510 USA 30.8 N Z'land 21.6 Australia 13.2 6.2
grated or pow
47 230910 Dog or cat food, put up for 10,818 10,733 9,286 10,279 USA 94.7 Canada 3.4 Netherl'd 0.7 0.4
retail
48 60299 Other live plants, nes 7,191 14,080 9,502 10,258 USA 87.2 Israel 3.0 Honduras 2.9 0.1
49 151710 Margarine (excl. liquid) 9,853 10,383 10,221 10,152 Barbados 37.4 Trinidad 32.2 USA 22.4 72.0
50 151790 Edible preparations of fats 9,530 10,964 9,957 10,150 USA 76.4 Barbados 6.7 Trinidad 5.3 13.1
and oil
51 110710 Malt not roasted 12,311 9,799 8,192 10,101 UK 64.0 Canada 7.6 USA 7.5 0.0
52 240120 Tobacco, partly or wholly 7,247 8,577 13,784 9,869 Brazil 28.4 Colombia 14.9 USA 13.8 0.4
stem
53 200911 Frozen orange juice, 9,488 9,642 10,340 9,823 Belize 40.4 USA 27.6 Trinidad 18.6 68.5
unferment
54 40299 Sweetened milk and cream 12,687 9,886 6,847 9,806 Netherl'd 31.3 USA 14.5 Jamaica 12.6 18.2
(excl.
55 110313 Groats and meal of maize 6,809 9,433 12,759 9,667 USA 93.8 Barbados 1.6 Canada 1.5 1.7
(corn)
56 150790 Soya-bean oil (excl. crude) 8,635 8,210 11,993 9,613 Netherl'd 41.7 Trinidad 21.6 USA 20.3 29.1
and fra
57 210410 Soups and broths and 9,924 9,572 8,795 9,430 USA 58.9 Jamaica 11.6 Guatemala 7.0 16.5
preparation
58 190490 Prepared cereals in grain 8,942 8,921 10,149 9,337 Trinidad 45.7 USA 42.3 Mexico 4.5 46.9
form (exc
59 200970 Apple juice, unfermented, 8,482 11,179 8,142 9,268 USA 42.1 Trinidad 30.1 N Z'land 5.7 32.7
not conta
60 70310 Onions and shallots, fresh or 9,952 8,621 9,202 9,258 Netherl'd 59.3 USA 27.0 UK 5.1 0.5
chill
61 160415 Prepared or preserved 9,653 7,626 10,064 9,114 Thailand 45.9 Chile 32.6 Ireland 9.8 0.5
mackerel (
62 220710 Undenatured ethyl alcohol, 10,410 15,724 376 8,837 G’temala 61.8 USA 24.1 Singapore 6.6 7.3
of alcoh
63 220820 Spirits from distilled grape 8,763 9,004 7,430 8,399 France 44.9 USA 36.2 Trinidad 9.5 10.5
wine o
64 70320 Garlic, fresh or chilled 9,462 8,054 7,361 8,292 China 42.3 USA 33.4 Netherl'd 15.3 0.5
65 20329 Frozen swine meat, nes 8,586 8,432 6,473 7,830 USA 72.5 Canada 22.9 UK 3.4 0.5
66 220429 Wine (not sparkling); grape 6,036 8,051 9,371 7,819 USA 32.3 France 24.1 Chile 9.0 6.5
must
67 160414 Prepared or preserved tuna, 7,630 7,160 8,498 7,763 USA 52.6 Thailand 36.0 Ecuador 3.2 0.5
skipjac
68 210320 Tomato ketchup and other 7,462 8,276 7,413 7,717 USA 47.0 Trinidad 43.5 Jamaica 4.8 48.5
tomato
69 190219 Uncooked pasta, not 7,677 7,628 7,629 7,645 USA 47.9 Trinidad 21.2 Costa Rica 9.1 28.4
containing eggs
70 21019 Meat of swine, salted... or 7,819 8,329 6,701 7,616 Canada 56.2 USA 43.0 UK 0.2 0.3
smoked,
71 20442 Frozen unboned meat of 7,597 6,799 6,736 7,044 N Z'land 56.0 Australia 22.4 USA 20.2 0.0

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries v
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
sheep
72 20742 Frozen cuts and offal of 7,798 6,729 6,567 7,031 USA 77.7 Canada 17.4 UK 2.7 0.0
turkey (ex
73 190120 Mixes and doughs for 7,120 7,142 6,536 6,933 USA 88.6 Canada 5.4 France 2.4 0.7
preparation of
74 150200 Fats of bovine animals, 6,280 5,400 7,714 6,465 USA 97.6 Jamaica 1.0 Canada 0.8 1.1
sheep or go
75 20220 Frozen unboned bovine 6,022 7,218 5,997 6,412 USA 95.8 N Z'land 1.8 Australia 1.4 0.2
meat (excl. c
76 200919 Unfrozen orange juice, 5,878 5,853 7,213 6,314 USA 60.8 Trinidad 29.2 Canada 2.9 33.3
unfermented,
77 170310 Cane molasses resulting 8,004 4,915 5,955 6,291 Mexico 34.4 USA 22.0 Venezuela 13.7 14.2
from the
78 210110 Extracts, essences, 7,127 6,662 4,803 6,197 USA 37.3 Colombia 14.8 Brazil 14.4 10.3
concentrates an
79 220410 Champagne and sparkling 4,187 5,913 8,084 6,061 France 51.1 USA 30.6 Italy 6.2 0.8
wine
80 80300 Bananas, including plantains, 4,631 5,915 6,205 5,584 USA 44.5 St.Vincent 21.8 St. Lucia 17.5 55.1
fresh
81 200520 Potatoes, preserved other 5,591 5,013 5,935 5,513 USA 53.2 Trinidad 26.6 Barbados 5.5 32.1
than
82 230250 Brans, sharps and other 5,411 6,989 3,651 5,350 USA 51.8 Trinidad 47.2 Turkey 1.1 47.2
residues
83 71310 Dried peas, shelled 4,723 4,848 6,164 5,245 Canada 45.5 USA 27.1 Belize 13.1 13.5
84 200590 Vegetables preserved other 5,286 5,211 5,082 5,193 USA 54.8 Canada 32.9 Netherl'd 4.9 2.1
than by
85 71010 Potatoes, frozen 4,572 5,265 5,563 5,133 USA 79.1 Canada 13.9 Netherl'd 5.6 0.2
86 200819 Nuts and seeds including 5,420 5,397 4,326 5,048 USA 57.5 Trinidad 34.7 Canada 2.8 35.6
mixtures,
87 200811 Ground-nuts, preserved 5,400 4,755 4,785 4,980 Trinidad 67.9 USA 27.6 Barbados 2.7 70.7
88 151620 Vegetable fats and oils and 3,880 4,280 6,589 4,916 USA 33.2 Netherl'd 18.0 Norway 15.4 7.0
their f
89 220720 Ethyl alcohol and other 6,135 2,657 5,787 4,860 Spain 26.9 Brazil 22.3 USA 14.6 1.3
denatured s
90 180631 Chocolate, etc, containing 5,408 4,976 3,983 4,789 USA 59.3 UK 22.0 Jamaica 10.8 11.6
cocoa, i
91 120220 Shelled ground-nuts, not 4,870 4,847 4,513 4,743 USA 65.6 Argentina 20.2 China 11.5 0.9
roasted or
92 40120 Milk and cream of >1% but 4,718 5,104 4,265 4,696 USA 74.4 Trinidad 8.7 Canada 4.4 10.3
=<6% fat,
93 170390 Molasses resulting from the 2,921 1,727 9,246 4,631 Mexico 72.3 Guyana 9.2 Venezuela 6.4 12.7
extract
94 160239 Preparations of poultry 4,854 4,635 4,141 4,543 USA 94.9 Barbados 2.4 Canada 1.0 3.0
(excl. turk
95 70610 Carrots and turnips, fresh or 4,472 4,762 4,055 4,430 USA 83.5 Canada 12.6 Mexico 3.1 0.4
chill
96 200290 Tomatoes, preserved 4,108 4,273 4,428 4,269 USA 38.9 Chile 36.5 Turkey 6.8 0.6
otherwise than
97 200940 Pineapple juice, 3,885 3,670 4,810 4,122 USA 44.6 Thailand 26.8 Costa Rica 11.8 5.7
unfermented, not c
98 110610 Flour and meal of the dried 3,112 4,851 4,216 4,059 Belgium 93.8 UK 3.3 USA 2.7 0.0
legumin
99 21011 Unboned swine hams, 4,270 4,882 2,938 4,030 USA 95.8 Canada 3.7 Neth Antilles 0.4 0.0
shoulder
100 20322 Frozen unboned hams, 4,646 3,964 3,269 3,960 Canada 56.9 USA 41.9 UK 1.1 0.1
shoulders
101 170410 Chewing gum 4,266 4,188 3,410 3,955 USA 64.4 Trinidad 20.3 Netherl'd 4.2 20.4
102 210210 Active yeasts 4,077 3,769 3,810 3,885 Netherl'd 52.2 USA 18.1 Mexico 8.0 0.6
103 100640 Broken rice 2,994 5,345 3,039 3,793 USA 52.6 Guyana 42.0 Suriname 1.5 45.5
104 40110 Milk and cream of =<1% 2,376 3,988 4,459 3,608 USA 33.1 Trinidad 22.8 Canada 19.9 25.0
fat, not
105 200980 Juice of other single fruit, 3,559 4,112 3,132 3,601 USA 49.1 Trinidad 17.8 UK 8.4 19.5
unferm
106 71333 Dried kidney beans, incl. 3,179 3,445 3,890 3,505 Belize 49.1 USA 32.5 Canada 15.8 49.8
white pea
107 151590 Other fixed vegetable fats 3,084 3,483 3,921 3,496 USA 75.1 Trinidad 13.2 UK 3.7 15.0

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries vi
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
and frac
108 70200 Tomatoes, fresh or chilled 2,839 3,495 3,307 3,214 USA 95.9 Trinidad 2.9 Netherl'd 0.4 3.1
109 220190 Other unsweetened waters; 3,000 3,186 3,422 3,203 USA 51.5 Trinidad 14.1 France 13.6 19.2
ice a
110 20130 Fresh or chilled boneless 2,901 3,762 2,880 3,181 USA 94.3 N Z'land 1.9 Canada 1.2 1.1
bovine me
111 21020 Meat of bovine animals, 2,507 3,405 3,583 3,165 Canada 66.1 USA 33.3 Netherl'd 0.3 0.1
salted... o
112 20450 Fresh, chilled or frozen goat 3,339 3,025 2,761 3,042 Australia 77.7 USA 17.6 N Z'land 3.4 0.0
meat
113 20739 Fresh or chilled poultry cuts 2,549 3,454 3,027 3,010 USA 98.3 Canada 1.0 UK 0.4 0.2
and o
114 160249 Preparations of swine meat, 3,410 3,374 2,224 3,003 USA 33.6 Denmark 33.4 Trinidad 13.8 24.2
includi
115 40310 Yogurt 2,846 3,056 2,799 2,900 USA 76.1 Spain 8.1 France 6.8 4.5
116 200580 Sweetcorn, preserved other 3,052 2,812 2,755 2,873 USA 70.5 Canada 25.1 Thailand 1.7 0.1
than by
117 151610 Animal fats and oils and 1,923 2,439 4,135 2,832 Norway 85.3 USA 10.5 Peru 2.7 4.4
fractions,
118 40610 Fresh (unripened or uncured) 1,036 3,018 4,425 2,827 USA 41.6 N Z'land 28.0 Jamaica 8.6 8.6
cheese
119 110720 Roasted malt 1,865 2,284 4,011 2,720 UK 44.2 Netherl'd 26.9 France 18.2 0.0
120 200799 Other jams, fruit jellies, 2,728 2,664 2,621 2,671 USA 56.3 Brazil 6.1 Canada 5.4 8.3
marmalad
121 210610 Protein concentrates and 2,192 2,541 3,272 2,668 USA 76.2 Canada 6.1 Barbados 4.5 9.7
textured p
122 20430 Frozen lamb carcasses and 1,867 2,763 3,276 2,635 Australia 71.4 USA 17.9 N Z'land 9.5 0.0
half carc
123 71320 Dried chickpeas, shelled 2,705 2,715 2,346 2,589 Mexico 57.6 Canada 18.9 USA 13.5 0.0
124 170290 Artificial honey, caramel 2,626 2,280 2,856 2,587 USA 81.2 UK 7.4 Ireland 5.2 1.2
and other
125 80710 Melons and watermelons, 2,416 2,788 2,439 2,548 USA 94.0 Canada 2.1 Trinidad 1.5 3.7
fresh
126 20649 Frozen edible swine offal 2,574 2,687 2,348 2,536 Canada 42.8 UK 22.9 USA 22.2 0.0
(excl. li
127 80130 Cashew nuts, fresh or dried 2,659 2,376 2,520 2,518 India 73.2 USA 19.6 Trinidad 4.2 4.3
128 60310 Fresh cut flowers and buds 2,816 2,814 1,892 2,507 USA 78.8 Colombia 19.1 Netherl'd 0.7 0.5
129 160241 Preparations of swine, hams 2,324 2,657 2,478 2,487 USA 67.8 Denmark 13.1 Trinidad 10.3 11.5
and cut
130 20721 Frozen whole chickens 1,169 4,371 1,850 2,464 USA 94.3 Trinidad 2.4 Brazil 1.1 3.3
131 200960 Grape juice, (incl. must), 2,450 2,308 2,630 2,463 USA 51.8 UK 12.4 Argentina 10.8 1.8
unfermen
132 90240 Black tea (fermented) and 2,266 2,684 2,438 2,463 Sri Lanka 61.8 USA 15.5 UK 15.4 1.6
partly fe
133 110311 Groats and meal of wheat 2,779 2,160 2,437 2,458 Canada 35.5 USA 24.1 Venezuela 21.0 0.5
134 120991 Vegetable seed, of a kind 2,404 2,704 2,235 2,448 USA 75.0 Japan 6.3 France 2.8 0.2
used for
135 190230 Other pasta, nes 2,191 2,884 2,210 2,428 USA 66.4 Trinidad 9.2 Canada 4.5 13.5
136 170230 Glucose and glucose syrup, 2,244 2,251 2,787 2,427 USA 79.9 Netherl'd 7.7 Germany 4.2 0.0
containi
137 151529 Maize (corn) oil (excl. crude) 2,529 2,236 2,385 2,383 USA 89.8 UK 3.5 Trinidad 3.5 3.7
and
138 71090 Mixtures of vegetables, 2,121 2,457 2,508 2,362 USA 70.0 Canada 21.6 Belgium 5.4 0.0
frozen
139 160231 Preparations of turkey meat 2,527 2,486 1,978 2,330 USA 95.2 Canada 1.7 Trinidad 1.6 2.2
140 70990 Other vegetables, fresh or 1,978 2,619 2,364 2,320 USA 90.5 Trinidad 3.1 Dominica 2.6 7.1
chilled,
141 70960 Fruits of genus Capiscum or 1,990 2,594 2,369 2,318 USA 96.3 Canada 2.0 Trinidad 0.6 0.9
Pimenta
142 120810 Soya bean flour and meal 3,514 2,260 1,125 2,300 USA 89.5 Trinidad 8.0 Barbados 2.1 10.0
143 200899 Other fruit, etc, prepared or 2,492 2,205 2,183 2,293 USA 63.7 Netherl'd 8.5 China 7.1 5.1
prese
144 20441 Frozen sheep carcasses and 1,900 2,521 2,436 2,286 Australia 76.8 USA 11.7 N Z'land 10.1 0.0
half car
145 80510 Oranges, fresh or dried 1,834 2,148 2,844 2,275 USA 43.6 Jamaica 40.7 Dominica 6.2 51.1
146 20422 Fresh or chilled unboned 2,458 2,971 1,203 2,211 USA 77.2 Australia 10.9 N Z'land 10.3 0.0

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries vii
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
meat of sh
147 70410 Cauliflowers and headed 2,227 2,526 1,870 2,208 USA 96.9 Mexico 1.7 Canada 0.8 0.1
broccoli, f
148 220850 Gin and Geneva 2,155 2,256 2,161 2,191 UK 39.5 USA 33.3 Netherl'd 16.6 5.3
149 151800 Animal or vegetable fats 2,328 1,813 2,427 2,189 USA 86.6 Netherl'd 4.5 UK 3.8 0.3
and oils..
150 130219 Other vegetable saps and 2,115 2,038 2,239 2,131 USA 93.7 UK 1.7 Netherl'd 1.0 0.2
extracts,
151 220600 Other fermented beverages 1,949 2,158 2,270 2,126 USA 38.2 Jamaica 32.7 Guyana 6.9 51.6
(for exam
152 10511 Live fowls of species Gallus 2,359 1,851 1,957 2,055 USA 75.0 Barbados 20.1 Canada 1.2 20.9
domest
153 71339 Dried beans, shelled, nes 1,514 1,899 2,650 2,021 USA 67.9 Canada 14.2 Netherl'd 10.6 2.1
154 220110 Mineral waters and aerated 1,836 1,729 2,497 2,021 USA 25.6 France 17.1 Netherl'd 16.4 18.5
waters,
155 100610 Rice in the husk (paddy or 2,215 1,762 2,074 2,017 USA 65.8 Guyana 18.4 St.Vincent 14.7 33.2
rough)
156 110812 Maize (corn) starch 1,972 1,851 2,173 1,999 USA 65.3 Colombia 16.8 Brazil 6.8 0.3
157 200920 Grapefruit juice, 1,947 2,322 1,652 1,974 USA 56.5 Belize 18.3 Trinidad 13.0 37.8
unfermented, not
158 70519 Lettuce, fresh or chilled, 2,122 2,131 1,654 1,969 USA 97.8 Canada 1.3 Netherl'd 0.3 0.1
(excl. c
159 70511 Cabbage lettuce, fresh or 1,805 2,067 2,024 1,965 USA 92.1 Mexico 7.1 Canada 0.7 0.0
chilled
160 20319 Fresh or chilled swine meat, 1,540 2,394 1,940 1,958 USA 96.0 Canada 3.1 UK 0.8 0.1
nes (u
161 180500 Cocoa powder, not 2,220 1,814 1,821 1,952 Jamaica 25.3 USA 18.5 Spain 16.7 26.5
containing added
162 70490 White and red cabbages, 1,674 2,104 2,055 1,945 USA 79.4 Canada 11.1 Mexico 3.8 4.3
kohlrabi, k
163 90411 Dried pepper (excl. crushed 1,274 2,002 2,522 1,933 S’gapore 48.3 India 12.2 Brazil 9.0 0.1
or grou
164 160210 Homogenized preparations 1,590 1,616 2,525 1,910 USA 97.6 Unspecifie 0.0 Trinidad 0.8 0.9
of meat, m d
165 350510 Dextrins and other modified 2,034 1,880 1,700 1,871 USA 76.8 Canada 17.3 Netherl'd 1.6 0.4
starche
166 180632 Chocolate, etc, containing 2,109 1,744 1,642 1,832 UK 32.6 USA 32.3 Trinidad 22.6 25.2
cocoa in
167 20710 Fresh or chilled whole 1,718 1,488 2,217 1,808 USA 99.3 Trinidad 0.5 UK 0.1 0.5
poultry
168 200540 Peas, preserved other than 1,605 1,580 1,892 1,692 USA 47.3 Peru 17.4 Canada 8.5 7.4
by vineg
169 71340 Dried lentils, shelled 1,478 1,962 1,618 1,686 Canada 75.9 USA 19.9 Trinidad 3.4 3.4
170 90210 Green tea in immediate 1,907 2,065 1,000 1,657 USA 28.5 Sri Lanka 27.4 UK 16.9 2.3
packings
171 110630 Flour, meal and powder of 2,904 1,206 861 1,657 Thailand 32.5 Malaysia 24.6 Sri Lanka 19.5 1.9
products
172 90230 Black tea (fermented) and 1,579 2,259 1,120 1,653 USA 64.7 Sri Lanka 14.0 UK 7.4 5.2
partly fe
173 90121 Roasted coffee, not 1,159 1,504 2,269 1,644 USA 67.1 Brazil 15.3 Trinidad 8.9 11.5
decaffeinated
174 130190 Natural gums, resins, gum- 439 1,945 2,458 1,614 V’zuela 58.1 USA 12.0 Trinidad 11.5 11.5
resins an
175 10600 Other live animals, nes 2,486 2,072 183 1,580 Mexico 86.1 USA 6.8 UK 3.9 0.8
176 71490 Roots and tubers with high 1,161 1,853 1,673 1,562 St.Vincent 73.4 USA 12.8 Dominica 12.3 86.4
starch c
177 20722 Frozen whole turkeys 1,238 1,745 1,692 1,558 USA 98.9 Canada 0.8 Unspecified 0.2 0.0
178 71040 Sweet corn, frozen 1,333 1,761 1,545 1,547 USA 92.9 Canada 3.3 Belgium 1.1 0.1
179 110813 Potato starch 1,443 1,089 1,993 1,508 USA 79.6 Netherl'd 19.0 Ecuador 0.6 0.0
180 230690 Oil-cake and residues, of 1,426 1,759 1,335 1,506 USA 100.0 Unspecifie 0.0 Canada 0.0 0.0
other veg d
181 180620 Chocolate, etc, containing 1,317 1,587 1,508 1,471 USA 80.0 UK 11.2 Jamaica 3.2 4.5
cocoa, i
182 151920 Industrial fatty alcohols 1,186 1,703 1,444 1,444 USA 72.5 UK 4.7 Norway 4.2 4.0
183 40620 Grated or powdered cheese 1,347 1,530 1,423 1,433 USA 61.1 Canada 15.4 Denmark 8.6 0.5
184 200551 Shelled beans, preserved 1,480 1,445 1,239 1,388 USA 48.2 UK 21.0 Canada 16.9 8.3

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries viii
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
other than
185 90412 Pepper, crushed or ground 1,114 1,638 1,392 1,381 USA 60.6 Costa Rica 13.5 Singapore 5.0 3.2
186 20690 Frozen edible offal of 1,743 1,330 1,058 1,377 USA 75.9 Australia 4.7 Panama 4.2 1.1
sheep, goats
187 20622 Frozen bovine livers 1,382 1,385 1,319 1,362 USA 90.8 Canada 4.1 Argentina 1.9 0.0
188 151229 Cotton-seed oil (excl. crude) 1,091 1,219 1,679 1,330 USA 76.3 Brazil 23.2 Mexico 0.3 0.0
and f
189 180610 Cocoa powder, containing 1,313 1,371 1,283 1,322 USA 45.6 UK 21.3 Jamaica 11.9 21.0
added suga
190 110412 Rolled or flaked oat grains 1,434 1,235 1,148 1,272 USA 52.0 Canada 31.5 Costa Rica 8.2 0.4
191 90140 Coffee substitutes containing 3,532 165 112 1,270 USA 96.0 Brazil 1.5 Colombia 0.7 0.6
coffe
192 150420 Fish fats, oils and fractions 1,577 1,392 789 1,253 Norway 82.7 USA 13.2 Peru 3.5 0.0
(excl
193 90220 Green tea, nes 980 1,167 1,593 1,247 Netherl'd 26.7 Sri Lanka 21.3 USA 19.5 10.3
194 121190 Other plants or parts, of a 1,561 1,085 1,067 1,238 USA 38.9 India 13.3 Canada 12.9 2.1
kind us
195 170191 Cane or beet sugar, 2,045 759 902 1,235 UK 78.4 USA 18.1 Jamaica 1.1 2.1
containing adde
196 230120 Flours, meals and pellets of 1,899 1,235 569 1,234 USA 90.1 Panama 5.7 Thailand 3.1 0.5
fish,
197 210420 Homogenized composite 1,254 1,586 831 1,224 USA 93.5 Jamaica 1.8 Netherl'd 1.6 2.0
food preparat
198 151190 Palm oil (excl. crude) and 1,533 942 1,129 1,201 USA 54.7 Malaysia 26.7 Netherl'd 8.9 0.0
liquid f
199 200600 Fruit, nuts, fruit-peel and 1,054 1,245 1,273 1,191 USA 47.0 Canada 13.5 Barbados 8.5 15.4
other p
200 40390 Buttermilk, curdled milk and 1,118 1,194 1,199 1,171 USA 76.7 Ireland 9.3 Netherl'd 4.3 1.1
cream,
201 151519 Linseed oil (excl. crude) and 1,065 1,218 1,125 1,136 Netherl'd 92.8 UK 4.0 USA 2.2 0.8
fract
202 110220 Maize (corn) flour 1,249 1,199 949 1,132 USA 31.4 Venezuela 17.7 Guatemala 16.9 26.4
203 240210 Cigars, cheroots and 771 1,592 977 1,114 USA 33.4 Cuba 28.8 Netherl'd 16.7 1.4
cigarillos con
204 200820 Pineapples, prepared or 937 1,010 1,319 1,089 USA 52.3 Thailand 23.4 Phillipines 17.5 0.0
preserved (
205 220900 Vinegar and substitutes for 968 1,199 1,052 1,073 USA 62.3 Trinidad 24.8 Canada 7.6 25.5
vinegar
206 91099 Other spices, nes 1,035 1,116 1,066 1,072 USA 62.7 Canada 16.0 India 4.7 2.0
207 210230 Prepared baking powders 1,052 1,133 999 1,061 Trinidad 56.8 USA 35.9 Netherl'd 2.3 58.2
208 20443 Frozen boned meat of sheep 723 552 1,902 1,059 USA 34.2 N Z'land 33.3 Australia 29.2 0.0
209 151319 Coconut copra oil (excl. 939 1,169 999 1,036 Trinidad 61.2 USA 17.4 Guyana 15.2 79.2
crude) and
210 60220 Trees,shrubs,bushes,grafted 859 1,459 760 1,026 USA 98.4 Israel 0.8 Unspecified 0.0 0.0
or not,
211 20743 Frozen cuts and offal of 1,002 905 1,110 1,006 USA 96.8 France 2.1 UK 0.4 0.0
geese, duc
212 71290 Dried vegetables, nes 1,177 892 899 990 USA 69.7 China 8.5 Canada 6.4 0.4
213 150910 Virgin olive oil and fractions 980 986 947 971 USA 47.0 France 20.1 Spain 14.9 0.2
214 160411 Prepared or preserved 962 965 979 969 USA 63.1 Canada 26.8 UK 3.5 0.2
salmon (excl.
215 200559 Beans, unshelled, preserved 954 1,018 921 964 Netherl'd 52.2 USA 25.3 Neth Antilles 8.0 2.6
other t
216 70951 Mushrooms, fresh or chilled 908 1,008 951 956 USA 96.3 Netherl'd 1.2 Canada 1.2 0.5
217 120999 Other seeds, fruit and 1,009 606 1,217 944 USA 86.1 Japan 4.7 Netherl'd 1.8 0.8
spores, of a
218 210330 Mustard flour and meal, 922 1,044 858 941 USA 77.8 Trinidad 10.8 Canada 5.2 10.8
prepared mu
219 80290 Other nuts, fresh or dried, 732 980 1,096 936 USA 96.3 Netherl'd 0.9 Canada 0.9 0.3
nes
220 81320 Dried prunes 916 978 852 915 USA 58.8 Chile 22.4 Canada 5.2 0.0
221 110312 Groats and meal of oats 1,054 896 742 897 USA 47.0 Canada 39.9 Netherl'd 7.8 0.8
222 110290 Other cereal flour, nes 305 1,994 331 877 USA 77.5 Grenada 5.6 Venezuela 5.5 11.3
223 70110 Seed potatoes 796 929 901 875 Netherl'd 50.6 USA 24.5 Belgium 9.2 0.3
224 200930 Single citrus fruit juice, (excl. 784 916 795 831 USA 84.2 Dominica 3.4 Trinidad 3.3 7.6

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries ix
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
o
225 80530 Lemons and limes, fresh or 802 1,166 516 828 USA 89.5 Dominica 6.1 Guyana 2.9 10.0
dried
226 80940 Plums and sloes, fresh 817 838 821 825 USA 97.1 Chile 1.9 Canada 0.7 0.1
227 71420 Sweet potatoes, fresh or 625 964 881 823 St.Vincent 53.9 USA 41.0 Dominica 4.7 58.7
dried
228 20410 Fresh or chilled lamb 549 1,338 580 823 USA 96.1 Australia 3.5 Canada 0.1 0.0
carcasses and
229 150990 Olive oil and fractions (excl. 881 828 758 822 USA 75.4 Italy 9.2 UK 4.5 0.6
virg
230 100400 Oats 457 750 1,240 816 USA 57.2 Canada 36.8 Australia 5.2 0.0
231 20110 Fresh or chilled bovine 741 1,176 517 812 USA 98.2 Canada 1.2 Norway 0.5 0.0
carcasses a
232 80930 Peaches, including 837 768 790 798 USA 98.3 Chile 1.1 UK 0.4 0.0
nectarines, fres
233 70940 Celery, fresh or chilled 787 930 658 792 USA 95.4 Mexico 3.6 Canada 0.7 0.0
234 151311 Crude coconut (copra) oil 344 612 1,412 789 Guyana 76.8 St. Lucia 18.0 USA 4.6 95.3
and fract
235 120210 Ground-nuts in shell, not 722 823 791 779 USA 74.4 China 16.8 Canada 4.1 1.8
roasted o
236 160420 Other prepared or 619 604 1,108 777 USA 82.8 Canada 7.4 UK 4.5 1.0
preserved fish, n
237 200490 Other vegetables preserved 1,270 673 383 776 USA 57.8 Canada 19.6 Belgium 9.9 0.4
other th
238 50400 Guts, bladders and stomachs 837 876 599 771 Canada 80.4 USA 18.3 Netherl'd 0.5 0.0
of anim
239 151219 Sunflower-seed and 1,000 1,037 257 765 Argentina 34.5 Mexico 34.1 Netherl'd 15.5 1.0
safflower oil (e
240 200310 Mushrooms, preserved 686 831 764 760 USA 66.4 China 15.6 Thailand 5.2 0.0
otherwise than
241 40130 Milk and cream of >6% fat, 402 959 911 758 Trinidad 21.7 USA 20.9 Canada 13.6 25.4
not conc
242 200190 Other vegetables, fruits, etc, 661 862 717 746 USA 73.5 Mexico 5.0 Hong Kong 4.1 2.0
pres
243 210310 Soya sauce 725 795 693 737 USA 55.2 Hong Kong 22.9 China 10.9 4.3
244 200210 Tomatoes, whole or in 676 766 763 735 USA 86.1 Italy 4.4 Canada 3.8 0.8
pieces, prese
245 40410 Whey & modified whey, 913 642 649 735 USA 54.5 France 24.9 Belgium 17.1 0.4
concentrated
246 330119 Essential oils of citrus fruit 1,674 300 204 726 Barbados 59.2 USA 26.7 UK 7.2 60.2
(inc
247 170260 Other fructose and fructose 997 721 439 719 USA 99.6 Canada 0.3 Unspecified 0.1 0.0
syrup,
248 80110 Coconuts, fresh or dried 481 871 797 716 USA 49.8 St.Vincent 28.1 Dominica 11.0 42.1
249 330190 Concentrates of essential oils 620 731 777 709 USA 68.3 UK 10.0 Canada 7.8 2.9
in f
250 200892 Mixtures of fruit, prepared 849 741 526 705 USA 71.1 Canada 10.8 Spain 3.2 0.1
or pres
251 80520 Mandarins, clementines, 567 766 767 700 USA 73.1 Jamaica 24.7 Dominica 1.6 26.5
wilkings...
252 80430 Pineapples, fresh or dried 661 710 714 695 USA 75.4 Guyana 12.2 Canada 5.4 18.4
253 90111 Coffee, not roasted or 769 759 528 685 USA 65.4 Trinidad 21.7 Brazil 4.2 25.6
decaffeinate
254 71080 Vegetables, frozen, nes 585 857 609 684 USA 91.4 Canada 5.4 Belgium 1.5 0.0
255 160290 Preparations of meat 311 1,152 583 682 USA 86.5 Netherl'd 4.8 Trinidad 2.2 3.0
(incl.preparat
256 20120 Fresh or chilled unboned 450 668 916 678 USA 95.1 Australia 2.0 Jamaica 1.4 1.6
bovine mea
257 20210 Frozen bovine carcasses and 107 240 1,668 672 USA 96.8 Australia 2.4 N Z'land 0.8 0.0
half ca
258 330129 Essential oils (incl. concretes 660 725 596 660 USA 50.9 UK 22.9 Canada 10.1 5.3
and
259 20723 Frozen whole ducks, geese 710 674 586 657 USA 94.5 Canada 2.7 UK 1.4 0.0
and guine
260 90920 Seeds of coriander 590 671 707 656 Canada 18.8 India 16.5 Romania 15.2 0.0
261 20312 Fresh or chilled unboned 609 887 471 656 USA 93.2 Canada 6.1 UK 0.6 0.1

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries x
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
hams, shou
262 71350 Dried broad beans and 1,232 516 215 654 USA 99.7 Canada 0.2 Netherl'd 0.1 0.0
horse beans,
263 210130 Roasted coffee substitutes 313 732 892 645 USA 25.8 Brazil 21.5 Trinidad 20.2 22.7
(incl. c
264 150410 Fish-liver oils and their 318 575 1,022 639 Norway 62.0 UK 33.8 USA 2.6 1.0
fractions
265 200791 Jams, fruit jellies, 929 512 461 634 USA 36.3 Brazil 32.1 Colombia 5.1 2.6
marmalades, et
266 230240 Brans, sharps and other 203 994 700 632 Jamaica 60.0 USA 21.5 St.Vincent 12.9 72.9
residues of
267 10119 Live horses, other than for 466 758 618 614 USA 78.2 UK 7.6 Jamaica 4.5 8.8
pure-br
268 21012 Bellies and cuts thereof of 435 782 583 600 USA 87.4 UK 3.4 Canada 3.2 4.0
swine,
269 190220 Stuffed pasta 600 551 640 597 USA 77.8 Trinidad 6.7 Canada 5.5 9.7
270 71390 Dried leguminous 509 681 595 595 USA 92.0 Peru 4.8 Japan 1.1 0.0
vegetables, shelle
271 200870 Peaches, prepared or 530 765 477 591 USA 88.4 Canada 4.5 Panama 1.3 0.0
preserved (exc
272 110210 Rye flour 454 517 718 563 USA 90.8 Canada 7.9 Grenada 0.8 1.1
273 210220 Inactive yeasts; other single- 409 677 594 560 Netherl'd 29.1 Belgium 28.9 USA 17.9 1.4
cell
274 110900 Wheat gluten 635 507 532 558 USA 52.5 Netherl'd 38.5 France 4.9 0.1
275 81090 Other fruit, fresh, nes 453 582 608 547 USA 78.8 Dominica 10.6 St.Vincent 5.2 18.1
276 200710 Jams, fruit jellies, 551 577 510 546 USA 86.0 Netherl'd 6.6 Venezuela 3.3 0.0
marmalades, et
277 220810 Compound alcoholic 296 506 812 538 Trinidad 66.7 Ireland 10.8 Netherl'd 10.3 66.7
preparations for
278 110423 Other worked grains of 416 384 804 535 France 57.9 USA 40.7 Argentina 0.5 0.5
maize (corn)
279 90420 Fruits of genus Capiscum or 545 561 485 530 USA 49.5 Spain 22.1 Canada 9.8 0.7
Pimenta
280 230220 Brans, sharps and other 407 560 602 523 Guyana 91.7 St.Vincent 5.8 USA 1.7 97.5
residues of
281 90930 Seeds of cumin 706 437 425 522 India 35.0 Syria 34.6 Netherl'd 12.3 0.1
282 190211 Uncooked pasta containing 359 421 780 520 USA 52.7 Trinidad 22.8 St.Vincent 7.9 39.6
eggs not
283 20311 Fresh or chilled swine 388 416 745 516 USA 99.7 Trinidad 0.1 Unspecified 0.1 0.2
carcasses an
284 210120 Extracts, essences, 461 630 445 512 USA 80.9 UK 3.8 Brazil 3.3 3.2
concentrates an
285 200570 Olives, preserved other than 505 541 487 511 USA 82.4 Spain 5.2 Canada 4.9 0.1
by vin
286 110520 Potato flakes, granules and 591 464 473 509 USA 56.4 Spain 42.4 Canada 1.0 0.0
pellets
287 152010 Glycerol (glycerine), crude, 473 435 589 499 Dom Rep 39.6 USA 23.0 Netherl'd 11.0 3.3
glycer
288 240399 Other manufactured 1,330 99 50 493 Trinidad 85.2 USA 10.6 UK 2.5 85.2
tobacco, nes
289 150100 Lard, other pig fat and 572 813 89 491 USA 79.3 Canada 18.0 Guatemala 2.1 0.0
poultry fat
290 91010 Ginger 527 498 418 481 USA 45.9 St.Vincent 22.1 Canada 11.7 30.1
291 40900 Natural honey 411 524 473 469 USA 80.9 Canada 15.8 UK 1.6 0.0
292 380910 Finishing agents, etc, with 134 1,026 224 461 Mexico 46.6 USA 41.9 Guatemala 5.5 3.1
amylace
293 230230 Brans, sharps and other 288 448 638 458 St.Vcent 68.1 USA 10.9 Grenada 9.1 83.5
residues of
294 80212 Almonds without shells, fresh 437 549 358 448 USA 72.0 Canada 22.7 Netherl'd 3.0 0.0
or dr
295 81340 Other dried fruit, nes 357 460 514 444 Turkey 36.0 USA 34.8 UK 10.7 0.0
296 350520 Glues based on starches, 412 506 411 443 USA 75.5 Italy 5.1 Germany 4.0 3.3
dextrins o
297 151490 Rape, colza or mustard oil 607 440 265 437 USA 78.0 Canada 15.5 Netherl'd 4.3 1.2
(excl. c
298 90810 Nutmeg 369 665 259 431 Grenada 33.6 USA 28.8 France 20.9 37.1

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xi
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
299 91050 Curry 434 490 360 428 USA 27.5 Trinidad 24.8 India 16.0 33.9
300 71220 Dried onions 408 495 365 423 USA 65.5 Canada 24.9 China 2.6 2.2
301 60491 Fresh parts of plants, without 432 389 445 422 USA 70.1 Canada 29.8 Unspecified 0.1 0.1
flow
302 240290 Cigars, cigarillos, cigarettes, 268 460 532 420 USA 42.2 UK 24.3 Switzerland 23.1 1.2
etc
303 220590 Vermouth and other wine of 460 407 372 413 Jamaica 45.4 Chile 25.1 USA 12.8 49.1
fresh gr
304 160242 Preparations of swine, 536 546 155 412 Denmark 44.0 USA 43.4 Trinidad 8.8 9.7
shoulders an
305 20621 Frozen bovine tongues 313 456 467 412 USA 93.3 Australia 5.6 N Z'land 0.7 0.0
306 160510 Crab, prepared or 412 397 378 396 USA 94.1 Canada 3.2 UK 0.9 0.1
preserved
307 70690 Beetroot...radishes and other 318 412 456 395 USA 86.9 Canada 10.9 Mexico 1.0 0.1
simil
308 160520 Shrimps and prawns, 549 386 248 394 USA 79.1 Guyana 7.3 Canada 5.1 7.6
prepared or pre
309 80540 Grapefruit, fresh or dried 327 389 458 391 USA 73.1 Dominica 24.1 Jamaica 1.1 26.6
310 70920 Asparagus, fresh or chilled 389 432 340 387 USA 98.1 Peru 0.7 Canada 0.7 0.0
311 180400 Cocoa butter, fat and oil 197 421 537 385 V’zuela 38.2 Netherl'd 27.5 USA 17.4 0.7
312 121410 Lucerne (alfalfa) meal and 285 437 431 384 USA 89.9 Canada 10.0 Unspecified 0.1 0.0
pellets
313 91030 Turmeric (curcuma) 228 508 396 377 India 63.4 Canada 13.5 USA 10.2 0.4
314 71021 Shelled or unshelled peas, 290 399 416 368 USA 48.5 Canada 31.9 Peru 8.5 0.0
frozen
315 70810 Peas, fresh or chilled 335 395 359 363 USA 41.1 Belize 35.8 Peru 11.6 38.3
316 90112 Decaffeinated coffee, not 320 376 391 362 USA 68.8 Mexico 8.9 Brazil 8.7 8.4
roasted
317 121020 Hop cones, ground, 189 626 232 349 USA 92.0 Slovenia 5.5 Germany 2.4 0.0
powdered or in p
318 40899 Birds' eggs, not in shell (excl. 340 476 224 347 USA 82.2 Netherl'd 11.3 France 3.7 2.1
dr
319 80450 Guavas, mangoes and 360 433 244 345 USA 92.5 St.Vincent 2.6 Dominica 1.4 5.1
mangosteens, fr
320 90122 Roasted, decaffeinated 283 372 375 343 USA 78.3 Trinidad 8.3 Mexico 4.1 9.1
coffee
321 170210 Lactose and lactose syrup 377 272 375 341 USA 78.4 Netherl'd 6.9 UK 4.8 0.1
322 220510 Vermouth and other wine of 395 310 316 340 UK 30.2 Jamaica 21.8 USA 20.5 22.4
fresh gr
323 130213 Hop extract 587 182 247 338 USA 94.5 Germany 5.5 Unspecified 0.0 0.0
324 121299 Vegetable products used 287 360 351 333 Haiti 72.5 France 9.2 USA 7.2 75.9
primarily f
325 120300 Copra 67 282 642 330 Guyana 85.7 St. Lucia 12.6 USA 1.3 98.7
326 110819 Other starches, nes 251 390 350 330 USA 58.1 Canada 13.3 St.Vincent 11.5 12.6
327 130239 Mucilages and thickeners, 296 342 330 323 USA 79.6 Singapore 7.2 Netherl'd 4.1 1.8
derived f
328 200860 Cherries, prepared or 378 333 255 322 USA 77.8 Canada 14.0 UK 5.2 0.0
preserved (ex
329 240130 Tobacco refuse 425 216 312 318 Brazil 50.3 Colombia 16.6 USA 11.2 2.0
330 81350 Mixtures of dried fruit and 298 286 364 316 USA 76.5 UK 16.4 Canada 5.6 0.3
nuts, n
331 350190 Caseinates and other casein 153 363 407 308 USA 40.6 Netherl'd 31.3 St. Lucia 9.3 11.1
derivat
332 81110 Strawberries, frozen 278 390 223 297 USA 88.3 Mexico 6.0 Ecuador 1.9 0.0
333 10591 Live fowls of species Gallus 213 280 395 296 USA 97.4 Barbados 1.7 Netherl'd 0.4 1.9
domest
334 200950 Tomato juice, unfermented, 296 277 306 293 USA 81.1 Canada 12.7 UK 2.2 0.4
not cont
335 60210 Unrooted cuttings and slips 297 305 264 288 USA 92.8 Guyana 1.9 Thailand 1.0 2.5
336 200110 Cucumbers and gherkins, 292 310 256 286 USA 84.3 Netherl'd 9.4 Canada 2.1 0.1
preserved b
337 80440 Avocados, fresh or dried 191 300 359 283 USA 52.6 Dominica 34.6 St.Vincent 11.3 46.5
338 170240 Glucose and glucose syrup, 199 242 406 282 UK 39.0 Netherl'd 27.4 USA 22.1 0.2
containi
339 50290 Badger and other brush 130 270 424 275 USA 50.0 China 43.4 Canada 6.6 0.0

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xii
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
making hair
340 120929 Other seeds of forage 253 313 257 274 USA 62.8 Brazil 33.2 France 1.4 0.0
plants, of a
341 160419 Prepared or preserved fish 274 294 248 272 USA 73.6 Canada 8.4 Thailand 7.7 0.6
(excl. m
342 240110 Tobacco, not 251 277 285 271 USA 48.7 Canada 17.4 Brazil 13.7 0.0
stemmed/stripped
343 160300 Extracts and juices of meat, 153 245 383 260 V’zuela 77.0 Guatemala 12.4 USA 7.6 0.0
fish a
344 21090 Other meat, nes, salted... or 347 356 69 257 USA 84.8 Canada 13.3 Trinidad 0.6 0.6
smoke
345 110411 Rolled or flaked barley 412 125 233 257 Netherl'd 67.6 Germany 12.5 Neth Antilles 8.8 0.0
grains
346 530110 Flax, raw or retted 140 146 480 255 USA 94.2 Dom Rep 5.3 Dominica 0.4 0.4
347 40891 Dried birds' eggs, not in 275 212 276 254 France 96.6 USA 3.1 Unspecified 0.3 0.0
shell
348 190510 Crispbread 200 291 270 254 USA 53.5 Trinidad 16.5 UK 15.4 23.9
349 200510 Homogenized vegetable, 260 224 275 253 USA 62.2 Canada 9.3 Netherl'd 7.5 3.6
preserved ot
350 151930 UN Special Code 24 397 334 251 USA 79.9 Germany 8.5 Trinidad 2.4 6.0
351 350300 Gelatin and derivatives; 240 224 272 245 USA 41.1 UK 18.8 Ecuador 15.5 0.0
isinglass;
352 190540 Rusks, toasted bread and 239 299 173 237 USA 86.9 Trinidad 3.3 UK 2.4 4.1
similar to
353 130220 Pectic substances, pectinates 253 237 217 236 USA 62.3 Denmark 17.7 Brazil 7.1 0.0
and p
354 100700 Grain sorghum 279 296 126 234 USA 96.7 Guatemala 3.2 Unspecified 0.1 0.0
355 200830 Citrus fruit, prepared or 223 228 223 225 USA 89.0 Panama 5.2 UK 1.5 1.2
preserved
356 81210 Cherries, provisionally 200 158 302 220 Italy 59.6 USA 25.9 Canada 9.1 0.0
preserved,
357 230890 Other vegetable materials, 113 115 421 216 USA 79.5 Jamaica 15.5 UK 3.2 15.5
waste, r
358 60499 Parts of plants, without 236 195 215 216 USA 57.6 Canada 24.5 Dom Rep 13.0 0.2
flowers or
359 60390 Dried, dyed, bleached or 162 194 283 213 USA 80.5 Colombia 10.1 Canada 3.9 1.7
otherwise
360 200840 Pears, prepared or 227 222 184 211 USA 85.0 Canada 5.0 Panama 3.0 2.4
preserved (excl.
361 40811 Dried egg yolks 181 241 205 209 Canada 81.4 France 12.3 USA 6.1 0.0
362 10111 Live pure bred breeding 301 135 192 209 USA 88.7 Honduras 6.5 Ireland 2.4 0.0
horses
363 20890 Fresh, chilled or frozen meat 217 151 254 208 USA 96.0 UK 2.6 Canada 0.7 0.3
and e
364 20900 Pig and poultry fat, fresh, 201 151 268 207 Canada 75.5 USA 24.3 UK 0.2 0.0
chilled
365 71410 Manioc, fresh or dried 220 227 154 200 USA 86.7 Indonesia 9.1 Trinidad 3.2 4.0
366 120740 Sesamum seeds 211 180 202 198 USA 70.9 Belgium 14.4 India 6.0 0.0
367 160412 Prepared or preserved 169 195 223 196 Canada 59.8 Thailand 12.1 USA 11.5 0.8
herrings (exc
368 70700 Cucumbers and gherkins, 208 172 197 192 USA 91.9 Trinidad 3.4 Dominica 1.8 7.1
fresh or ch
369 180310 Cocoa paste, not defatted 289 111 169 190 Cd'Ivoire 75.5 USA 9.7 Venezuela 5.4 0.0
370 220430 Other grape must, nes 119 207 240 188 France 46.3 USA 19.2 UK 15.5 7.3
371 160590 Molluscs and other aquatic 181 212 151 181 USA 86.4 Unspecifie 1.3 Thailand 0.5 0.0
inverteb d
372 170112 Raw beet sugar, in solid 60 198 284 181 UK 54.2 Netherl'd 25.0 USA 13.5 3.9
form
373 110510 Potato flour and meal 46 222 273 181 Grenada 58.7 USA 23.3 Canada 9.7 61.2
374 91091 Spice mixtures 199 169 161 176 USA 67.8 Canada 12.9 UK 12.9 3.1
375 170220 Maple sugar and maple 194 170 160 175 USA 96.0 Canada 2.1 UK 0.9 0.0
syrup
376 71331 Dried beans, shelled 231 217 70 173 USA 73.8 Belize 23.7 Netherl'd 0.6 23.8
377 70970 Spinach, fresh or chilled 165 212 125 167 USA 99.3 Unspecifie 0.5 UK 0.2 0.0
d
378 70529 Chicory, fresh or chilled, 52 242 203 166 USA 97.8 Canada 1.4 Unspecified 0.6 0.0

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xiii
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
(excl. w
379 80232 Walnuts without shells, fresh 165 179 146 163 USA 93.8 Canada 5.4 Unspecified 0.8 0.0
or dr
380 70820 Beans, fresh or chilled 175 200 115 163 USA 93.0 Canada 3.9 Unspecified 1.2 0.7
381 110329 Pellets of other cereals (excl. 191 117 171 160 Netherl'd 44.0 USA 37.6 Malaysia 13.1 0.0
whe
382 51199 Animal products, nes; dead 176 143 155 158 USA 74.5 Canada 6.8 Uruguay 6.5 2.0
animals
383 110321 Wheat pellets 29 50 392 157 USA 79.3 UK 20.2 Unspecified 0.3 0.1
384 140190 Vegetable materials for 157 128 184 157 USA 68.2 Japan 14.2 Netherl'd 6.3 0.1
plaiting, (
385 520100 Cotton, not carded or 215 200 44 153 Pakistan 47.7 USA 23.6 China 13.8 3.2
combed
386 40490 Products consisting of natural 91 139 226 152 USA 35.8 UK 23.2 Belgium 21.0 0.0
milk
387 151511 Crude linseed oil 119 189 147 152 Netherl'd 48.4 UK 26.4 USA 19.2 0.0
388 330124 Essential oils of peppermint 150 160 145 151 UK 68.4 Germany 10.9 India 10.9 0.0
(incl.
389 80410 Dates, fresh or dried 125 172 154 150 USA 45.1 Netherl'd 14.4 Iran 12.0 0.0
390 200880 Strawberries, prepared or 160 156 126 147 USA 80.7 Canada 17.6 Unspecified 1.3 0.0
preserved
391 150600 Other animal fats and oils 128 93 218 146 USA 96.1 Netherl'd 2.3 Canada 0.7 0.6
and thei
392 120919 Beet seed, of a kind used 145 115 177 146 USA 53.8 Japan 24.6 France 9.0 1.6
for sowin
393 50100 Human hair and waste, 162 155 120 146 USA 86.0 Unspecifie 14.0 0.0 0.0
unworked d
394 80720 Papaws (papayas), fresh 116 177 141 145 USA 78.8 Dominica 16.3 Free Zones 2.4 17.9
395 70390 Leeks and other alliaceous 147 148 138 144 USA 96.2 Unspecifie 0.9 Canada 0.8 0.4
vegetabl d
396 230610 Oil-cake and other solid 62 146 222 143 USA 99.8 Netherl'd 0.2 0.0 0.0
residues o
397 160220 Preparations of animal liver 127 197 105 143 Netherl'd 78.3 USA 10.3 France 4.9 0.2
398 10519 Live ducks, geese, turkeys 90 144 194 143 USA 54.6 Israel 25.1 Barbados 13.9 14.7
and guin
399 80920 Cherries, fresh 149 121 155 141 USA 93.9 Netherl'd 3.3 UK 1.3 0.0
400 350110 Casein 141 133 145 140 Netherl'd 88.7 UKR 4.8 USA 4.1 0.9
401 110811 Wheat starch 35 119 261 138 USA 92.3 Grenada 3.5 UK 2.2 3.9
402 90620 Cinnamon and cinnamon- 130 147 138 138 USA 59.1 Grenada 12.9 Netherl'd 10.4 15.9
tree flowers,
403 90500 Vanilla 170 112 130 138 USA 74.7 China 9.3 France 6.7 0.9
404 81190 Other fruit and nuts, frozen, 139 106 167 137 USA 71.3 Canada 8.2 Grenada 6.9 13.1
nes
405 40819 Egg yolks (excl. dried) 64 127 218 136 USA 90.9 Canada 7.2 Belgium 0.9 0.8
406 230110 Flours, meats and pellets, of 156 144 106 135 USA 93.3 Free Zones 3.5 Trinidad 2.4 2.9
meat
407 130232 Mucilages and thickeners of 174 118 108 133 USA 73.6 Trinidad 19.9 Indonesia 5.6 19.9
locust
408 120600 Sunflower seeds 142 125 129 132 USA 40.3 Canada 36.9 Netherl'd 19.6 0.0
409 151550 Sesame oil and fractions 126 144 125 132 Hong 49.9 USA 35.4 China 6.9 0.0
Kong
410 60120 Bulbs, tubers... rhizomes in 71 124 198 131 USA 62.9 Thailand 16.0 Netherl'd 9.8 0.0
growth
411 230210 Brans, sharps and other 1 391 0 131 USA 99.1 Unspecifie 0.7 Trinidad 0.3 0.3
residues of d
412 382360 Sorbitol (excl. that of 126 121 140 129 France 87.3 Germany 8.0 UK 2.8 0.0
2905.44)
413 71030 Spinach, frozen 76 159 151 128 USA 93.0 Canada 3.3 Unspecified 1.9 0.0
414 100830 Canary seed 150 110 117 126 USA 43.9 Netherl'd 30.1 Canada 24.5 0.8
415 71022 Shelled or unshelled beans, 79 147 147 124 USA 85.7 Belgium 5.7 Canada 4.4 0.0
frozen
416 190300 Tapioca and substitutes 105 109 156 123 USA 61.3 Thailand 17.1 Netherl'd 14.2 0.0
prepared fr
417 71029 Leguminous vegetables, 100 165 102 122 USA 78.7 Canada 10.7 Belgium 5.8 0.6
shelled or u

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xiv
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
418 71190 Other vegetables and 181 128 55 121 USA 55.2 Unspecifie 2.0 Trinidad 1.0 1.0
mixture of ve d
419 240310 Smoking tobacco with or 101 209 52 121 Netherl'd 44.1 UK 35.2 USA 19.9 0.0
without tob
420 170250 Chemically pure fructose 193 82 85 120 USA 98.7 UK 0.6 Unspecified 0.3 0.3
421 160540 Crustaceans, nes, prepared 90 131 138 120 USA 73.0 Canada 17.9 UK 3.7 0.5
or prese
422 70930 Aubergines, fresh or chilled 85 158 117 120 USA 80.2 Dominica 18.3 Unspecified 1.3 18.5
423 120799 Other oil seeds and 146 89 109 114 USA 83.4 Cote 4.0 Canada 3.9 0.0
oleaginous frui d'Ivoire
424 20421 Fresh or chilled sheep 128 79 132 113 USA 72.3 Australia 16.2 Costa Rica 9.1 0.4
carcasses an
425 110422 Other worked grains of 124 116 95 112 Canada 51.7 USA 44.2 Venezuela 2.7 0.3
oats, nes
426 20610 Fresh or chilled edible 98 92 144 111 USA 94.2 Canada 5.4 Unspecified 0.4 0.0
bovine offa
427 520299 Cotton waste, nes 80 121 127 109 UK 65.0 USA 24.3 Germany 5.2 0.2
428 160416 Prepared or preserved 128 96 98 107 USA 74.3 Thailand 13.8 UK 5.0 0.3
anchovies (ex
429 160430 Caviar and caviar 94 124 103 107 USA 70.6 UK 15.8 Russia 8.5 0.0
substitutes
430 110429 Other worked grains of 87 112 120 106 USA 88.4 Canada 6.9 Trinidad 1.4 1.4
other cereal
431 121220 Seaweeds and other algae 127 109 82 106 USA 46.6 Phillipines 13.4 St. Lucia 13.0 34.5
used for h
432 110421 Other worked grains of 145 50 121 105 Netherl'd 45.0 USA 26.5 Canada 24.2 0.0
barley, nes
433 90700 Cloves (whole fruit, cloves 119 124 71 104 USA 41.4 Madagasc 25.5 Indonesia 7.4 5.6
and ste ar
434 91040 Thyme, bay leaves 78 118 113 103 USA 83.2 Unspecifie 3.4 Dominica 2.8 2.8
d
435 130120 Natural Gum Arabic 130 83 92 102 USA 71.8 Germany 25.0 UK 1.3 0.0
436 200560 Asparagus, preserved other 106 88 107 100 USA 97.3 Unspecifie 1.5 Canada 0.7 0.0
than by d
437 10420 Live goats 99 145 53 99 USA 36.6 Canada 33.5 UK 22.1 7.4
438 110419 Rolled or flaked grains of 61 123 99 94 USA 89.2 UK 4.7 Canada 3.5 0.0
other ce
439 110430 Cereal germ, whole, rolled, 86 81 117 94 USA 52.1 Canada 23.5 Netherl'd 16.2 5.3
flaked
440 230320 Beet pulp, bagasse and 0 87 194 94 Jamaica 64.8 USA 34.0 Trinidad 0.7 65.6
other waste
441 71332 Dried adzuki beans, shelled 14 198 67 93 USA 79.1 Canada 20.2 Unspecified 0.4 0.3
442 20321 Frozen swine carcasses and 130 39 108 92 USA 96.8 UK 0.8 Canada 0.8 0.2
half car
443 121490 Other forage products, nes 152 61 63 92 USA 97.8 Canada 1.6 Unspecified 0.6 0.0
444 80250 Pistachio, fresh or dried 93 78 104 92 USA 69.4 China 16.5 Netherl'd 4.7 0.9
445 60110 Dormant bulbs, tubers... 115 71 88 91 USA 42.6 Netherl'd 26.8 Thailand 24.9 0.4
rhizomes
446 70910 Globe artichokes, fresh or 83 96 90 89 USA 59.9 Dominica 21.3 Canada 11.6 24.0
chilled
447 151911 Indus.monocarboxylic fatty 92 87 86 88 USA 49.6 Malaysia 16.3 UK 15.4 2.2
acids;ac
448 20423 Fresh or chilled boneless 142 59 63 88 USA 75.8 Australia 12.2 N Z'land 10.2 0.0
meat of s
449 200120 Onions, prepared or 73 87 102 87 USA 67.4 Netherl'd 12.9 Canada 9.4 0.6
preserved by vi
450 70890 Leguminous vegetables, 32 127 101 87 USA 49.5 Belize 42.5 Canada 6.0 42.5
fresh or chi
451 81290 Fruit and nuts, provisionally 81 118 51 83 Netherl'd 28.6 USA 25.5 Canada 14.0 13.3
prese
452 330112 Essential oils of orange (incl. 72 37 138 82 USA 46.8 Brazil 34.2 Canada 7.1 6.6
con
453 80420 Figs, fresh or dried 63 88 84 78 USA 91.8 Unspecifie 2.9 UK 2.1 0.2
d
454 190520 Gingerbread and the like 50 94 88 77 USA 61.6 Trinidad 15.8 Canada 9.9 24.7
455 81120 Raspberries, 76 74 74 74 USA 78.7 Greece 11.1 UK 4.9 0.0

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xv
in CARICOM
Imports ($000) Rank and % Share of Supplying Countries and CARICOM
No. HS Product Description 2001 2000 1999 Avg First % Second % Third % CARICOM
Code 99-01
blackberries...etc, fr
456 330113 Essential oils of lemon (incl. 49 71 90 70 USA 49.5 Canada 27.8 UK 20.5 0.0
conc
457 110230 Rice flour 70 65 73 69 USA 70.8 Thailand 15.1 Hong Kong 6.0 0.0
458 60410 Moses and lichens for 67 79 62 69 USA 97.8 Unspecifie 1.4 Antigua 0.5 0.5
ornamental pu d
459 81400 Peel of citrus fruit or melons, 51 83 73 69 USA 49.3 UK 22.9 Netherl'd 11.1 0.0
fre
460 520291 Garnetted stock of cotton 30 73 102 69 USA 99.8 Unspecifie 0.2 China 0.0 0.0
d
461 40640 Blue-veined cheese 50 73 82 68 USA 52.2 France 23.2 UK 8.8 0.0
462 140410 Raw vegetable materials 76 71 55 67 Ireland 58.2 Denmark 35.7 USA 3.8 0.0
primarily f
463 140120 Rattans 72 43 86 67 USA 53.0 Hong Kong 29.1 Japan 7.3 0.0
464 152110 Vegetable waxes (excl. 69 87 43 66 USA 98.3 Unspecifie 0.7 India 0.6 0.0
triglyceride d
465 151530 Castor oil and its fractions 59 55 79 64 USA 47.5 UK 35.7 Netherl'd 7.6 1.6
466 80231 Walnuts in shell, fresh or 53 62 78 64 USA 96.8 Netherl'd 1.4 Unspecified 1.1 0.0
dried
467 81310 Dried apricots 48 59 85 64 USA 51.8 Canada 23.5 UK 14.8 0.0
468 150590 Fatty substances of crude 64 84 41 63 USA 82.5 Netherl'd 10.4 Italy 3.0 0.4
wool grea
469 50800 Coral; shells of molluscs, 60 63 62 62 USA 92.8 Unspecifie 2.4 Barbados 2.1 2.4
crustace d
470 520300 Cotton, carded or combed 49 52 81 61 USA 48.8 China 19.4 UK 17.4 0.0
471 121300 Cereal straw and husks 109 49 19 59 USA 83.5 Venezuela 13.1 Guyana 1.9 1.9
472 71230 Dried mushrooms and 44 70 59 58 USA 57.6 China 15.6 Hong Kong 7.7 0.0
truffles
473 200850 Apricots, prepared or 50 49 74 58 USA 78.7 Haiti 14.1 Unspecified 3.3 14.1
preserved (ex
474 120911 Sugar beet seed, of a kind 7 9 154 57 Japan 41.4 Canada 35.5 USA 20.3 2.2
used for
475 200891 Palm hearts, prepared or 67 72 32 57 USA 97.6 Unspecifie 2.4 Trinidad 0.0 0.0
preserved d
476 110620 Flour and meal of sago, 61 76 34 57 Brazil 29.6 Canada 20.3 St.Vincent 18.2 24.5
roots or tu
477 70420 Brussels sprouts, fresh or 49 57 53 53 USA 96.6 Unspecifie 1.5 Belgium 0.9 0.0
chilled d
478 151913 Indus.monocarbox.fatty 68 28 61 53 USA 82.6 Israel 14.1 UK 2.8 0.0
acids;acid o
479 90950 Seeds of fennel; juniper 44 61 52 52 USA 19.5 India 19.0 Netherl'd 13.8 0.0
berries
480 60240 Roses 38 60 58 52 USA 81.2 UK 7.4 Netherl'd 6.8 0.0
481 10410 Live sheep 44 36 75 52 USA 48.0 Canada 35.1 Barbados 14.2 14.6
482 152190 Beeswax, other insect waxes 69 45 40 52 USA 68.0 Germany 11.6 UK 11.4 0.0
and spe
483 90610 Cinnamon and cinnamon- 48 44 59 50 USA 36.1 Indonesia 21.8 Netherl'd 10.7 3.9
tree flowers,
484 80222 Hazlenuts without shells, 48 47 55 50 USA 66.4 Canada 15.4 Turkey 14.6 0.0
fresh or

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xvi
in CARICOM
Acronyms and Abbreviations

ACP African, Caribbean and Pacific Group of States


CAFP Caribbean Agriculture and Fisheries Programme
CAREC Caribbean Epidemiology Center
CARDI Caribbean Agricultural Research and Development Institute
CARICOM Caribbean Community and Common Market
CARIFORUM Caribbean Forum
CARIRI Caribbean Industrial Research Institute
CARTF CARIFORUM Agribusiness Research and Training Fund
CET Common External Tariff
CFNI Caribbean Food and Nutrition Institute
CNCDs Chronic Non-Communicable Diseases
CFRAMP CARICOM Management Fisheries Resource Assessment and Programme
CRU Cocoa Research Unit
CTA Technical Centre for Agricultural and Rural Cooperation ACP-EU
ECLAC Economic Commission for Latin American and the Caribbean of the United Nations
DRC Domestic Resource Cost (coefficient)
EU European Union
FAO Food and Agriculture Organization of the United Nations
FAOSTAT FAO Statistics
GDP Gross Domestic Product
GMP Good Manufacturing Practices
GRDB Guyana Rice Development Board
HS Harmonised System
IADPA Inter-American Division Publishing Association
IAST Institute of Applied Science and Technology
IDB Inter-American Development Bank
IFPRI International Food Policy Research Institute
IICA Inter-American Institute for Cooperation on Agriculture
LDCs Least Developed Countries
MERCOSUR Mercado Común del Sur ( In English is Southern Common Market)
MDCs Most Developed Countries
NAFTA North America Free Trade Area
NDDP National Dairy Development Company
OECS Organisation of Eastern Caribbean States
SITC Standard International Trade Classification System
SPM Sanitary and Phytosanitary Measures
USAID United States Agency for International Development
UWI University of the West Indies
WTO World Trade Organization

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xvii
in CARICOM
References
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Brathwaite, Chelston, W.D (2008), commenting on topic Agriculture in Development Agendas as part of an
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CARICOM Secretariat, 2005: Caribbean Trade and Investment Report 2005: Corporate Integration and Cross-
Border Development
CARICOM Secretariat, 2007(a): The Escalating cost of living and Poverty in the Caribbean- Technical Report.
CARICOM Secretariat, 2007(b): “Strategic Approach to Realizing the Agriculture Contribution to CARICOM
Development”- CARICOM Agriculture Donor Conference, 2007
CFNI, Cajanus, Vol. 39. No.1, 2006, http://www.paho.org/English/CFNI/cfni-caj39No106-editorial.pdf
CFNI (2002), 'Towards the Nassau Declaration -Nutrition in Mental Health, Non-Communicable Diseases and
HIV/AIDS -The Evidence and the Challenge" Paper prepared by The Caribbean Food & Nutrition Institute
For Caucus of Ministers of Health, September 2002
CRFM, 2002: Strategic Plan for Caribbean Regional Fisheries Mechanism: CARICOM Fisheries Unit, 2002.
CRNM, 2006: An Assessment of the Agri-Food Distribution Services Industry in CARICOM.
ECLAC, 2007: Caribbean tourism and Agriculture: Linking to Enhance Development and Competitiveness.
FAO, 2005(a): Food and Agricultural Organization of the United Nations (FAO)- Nutrition Country Profiles.
FAO, 2005(b): Small Island Developing States Agricultural Production and Trade, Preferences and Policy
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issues, multilateral negotiations and competitiveness.
FAO/ Bynoe, 2007: First Draft Regional Food Security Strategy Paper.
FAO/CFNI, 2007: Overview- Vulnerability and Food and Nutrition Security in the Caribbean.
FAO/WHO 2003, “Diet, Nutrition and the Prevention of Chronic Diseases” Report of a Joint FAO/WHO Expert
Panel Consultation. WHO Technical Report Series 916, Geneva.
FAO, 2001: Small-Scale Processing of Starchy Staples in CARICOM Countries- by Dr. Wickham
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CARICOM countries. Rome.
FAO, 1994: Body Mass Index – A measure of Chronic Energy Deficiency in Adults, P. S. Shelty and W.P.T. James,
Rowett Research Institute, FAO Nutrition Paper No. 56, Rome.
FIAS 2004: Grenada: A Diagnostics Review of the Investment Climate -Foreign Investment Advisory Service (FIAS)
Ford, D, 2003: Towards a New Food Policy Strategy for the Caribbean: Food Security, Health and Surveillance-
Technical Paper.
Hendrickson. Mary, (2001) Discovering the Food System: A Primer on Community Food Systems: Linking Food,
Nutrition and Agriculture, University of Missouri, October 2001 http://foodsys.cce.cornell.edu/primer.html,
Fitzroy J. Henry, (2004) 'New Strategies Needed to Fight Obesity in the Caribbean' Cajanus, Vol. 37, No.1, 2004.
IADPA 2002: Inter-American Division Publishing Association Encyclopedia of Foods and their Healing Power, Volumes
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IICA, 2001: Study to Inform Changes in the CET for Agricultural products in CARICOM, Final Report, January 2001.
Jacque, A 2006: Preliminary Study to Identify Potential Investment Opportunities for the CARICOM Domestic
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Waugh & Nelson, 2003: Improving Environmental Performance in the Coffee Industry of Jamaica.

xviii
In September 2007, CARICOM Heads of Governments signed the Port of Spain Declaration Uniting to
Stop the Epidemic of Chronic Non Communicable Diseases (CNCDs). Among the policy solutions
included need for closer regulation of foods, especially of the steadily increasing importation of
foods with high fat content, licensing laws to ensure that consumers know the content of the foods
they eat and for agricultural policies that ensure that food security is pursued in the context of
incentives or subsidies for local production of the fruits, vegetables and whole grains required for a
healthy diet. The issue of a ‘healthy diet’ is at the core of food and nutrition security, which in turn,
relates to a country’s or region’s food system. The term "food system" is a phrase used to tie
elements of food production (agriculture), food distribution (trade) nutrition, health and
rural/community development, i.e., all processes involved in keeping people fed.

In CARICOM, consumption of fats and oils and sugars and sweeteners are more than twice of what is
recommended for food needs. These “food needs” are guided by the (CFNI) Caribbean Food and
Nutrition Institute’s ‘Caribbean Food Groups-A Guide to Meal Planning for Healthy Eating’ guidelines,
which specify five food groups, in relative proportions, are important to a healthy daily diet. Staples
(e.g., root crops) and legumes/nuts should comprise 67% of one’s daily nutritional intake.

This paper departs from the usual approach to discussing issues that should be considered in a
determination of food security-led agricultural development, including the methods by which
potential investment opportunities in the agriculture and food industry in CARICOM are determined.
The discussion takes the perspective of developing agriculture to satisfy the recommended
nutritional guidelines, based entirely on CFNI’s six food groups, and not from the usual need to satisfy
the export market. An important conclusion is that the combined resources of CARICOM –physical,
human and financial are capable of providing for a much greater level of food and nutrition security
than currently obtains, once investments are made in enhancing both the physical supplies and
distribution within and among countries of the region.

ISBN13: 978-92-9248-053-0. 2009

Investing in Food and Nutrition Security - Identifying Potential Investment Opportunities in the Agriculture and Food Industries xix
in CARICOM

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