Caribbean imports of ice cream approach $11 million per year (see Table 1). The US exported $5.0 million and the Europe Union exported $5.7 million in 1997, making them the primary extra-regional suppliers. Many islands also have domestic producers of ice cream and, for the most part, these account for the majority of domestic consumption. Because of the ever expanding Caribbean market, including high demand by tourists during the period November-May, quality ice cream makers have set up franchises on many islands that distribute directly to hotels, restaurants, large supermarkets and resorts.

The Dominican Republic is the largest import market ($2.5 million), followed by Martinique ($2.1 million), Guadeloupe ($1.6 million), the Netherlands Antilles ($1.3 million), Jamaica ($1.2 million), Bermuda ($0.7 million) and the Bahamas ($0.5 million). European exports to the region are concentrated to the Dutch and French territories as well as to the Dominican Republic.

US exports to the region have been increasing rapidly, from $2.9 million in 1993 to $3.8 million in 1996 and $5.0 million in 1997 (see Table 2). Jamaica, the Netherlands Antilles, and the Dominican Republic are particularly strong growth markets for US suppliers. These three markets accounted for 62 percent of US ice cream exports to the region in 1997.

The Caribbean import market for cheese is estimated to exceed $75 million. The United States is only the third largest supplier, supplying only 10 percent of total import demand (or $7.5 million in 1997), much less than that supplied by the EU (68 percent or $50.2 million) or New Zealand (19 percent or $13.9 million). Canada supplied roughly 3 percent (or $2.2 million) of import demand in 1997. See Table 3.

Eighty percent of US exports to the region are destined for the Dominican Republic, Bermuda, the Bahamas, and Jamaica. Of these countries, however, only in Bermuda does the US have the highest market share. While the US may have a low market share at present, US exports to the region have been growing rapidly (see Table 4). Exports in 1993 of $3.3 million grew to US$5.2 million in 1996 and US$7.5 million in 1997. In 1997, US cheese exports were comprised of $0.6 million of fresh cheese, $1.6 million of grated/powdered cheese, $2.7 million of processed cheese other than grated/powdered, and $2.6 million of other cheese. See Table 5.

Processed cheese in particular is popular with consumers. The US faces stiff competition in the cheese market because of subsidized cheese coming from Europe and New Zealand. However large cheese manufacturers in the US have been able to increase sales of their processed cheese products as they have a longer shelf life than anything coming from Europe. The Europeans tend to export fresh whole blocks of cheese like Gouda, Brie and Roquefort, and New Zealand exports cheese blocks made from cow’s milk. The New Zealanders have established partnerships in Jamaica now where their whole blocks of cheese get sliced, packaged and delivered by local distributors adding new competition to US processed cheese products.

Current Suppliers. The US dominates ice cream imports with a 97 percent import market share in 1998 (see Table 6). The only major competition comes from domestic producers. Jamaica imported $1.4 million worth of ice cream and edible ice in 1997. Premium or specialty brands of ice cream are the main type of import from the US.

Jamaica imported $13.7 million or 4,736 MTs of cheese in 1997 (see Table 7). New Zealand dominated the import market with an 85 percent import market share by volume, followed by the US (10 percent), and Canada (2 percent). The market has done very well for cheese in the past few years owing to the rise in popularity for snack foods such as cheese dips, cheese slices and other processed cheese products.

There are two common distribution channels for imported dairy products in Jamaica: distributors/importers and direct buying by retailers. Larger supermarkets and some hotels import their own products. This helps them to be more price competitive and has worked well where the purchasing is being done for a group. Individual supermarkets, hotels, restaurants and institutions purchase from the local importers/distributors.

Consumer Preferences. The most popular local ice cream is Cremo and is much cheaper than the premium ice creams that get imported (Haagen Dazs). Nevertheless, there has been a greater demand for foreign brands especially from the resorts. Local brands also do better because they appeal to lower end clients. One can purchase almost two liters of local ice cream for almost the same amount as half a liter of foreign ice cream.

According to retailers, most of the cheese sold in stores is processed. This includes not only recognized brands such as Kraft from the US, but also New Zealand brands of processed golden cheddar that are very popular with consumers. Some New Zealand cheddar is canned in Jamaica and is distributed with a local brand label (Tastee). Most cheese is sliced and pre-packaged for consumers. Deli style cheese counters are not generally available in shops in Jamaica. Some European cheese (Gouda and Roquefort) is sold but it is too expensive for most Jamaicans.

Regulatory Requirements. Products imported into Jamaica must meet the requirements of the Jamaican Bureau of Standards Act, Processed Food Act and Weights and Measures Act. These include requirements for labeling. Items sold in Jamaica must conform to recognized international quality specifications. Jamaica generally follows US standards. In recent years, the Bureau has become increasingly vigilant in terms of monitoring the quality of products sold on the local market.

Tariffs and Other Import Duties. As a member of the Caribbean Community, the Jamaican government applies CARICOM’s Common External Tariff (CET) to all goods and services imported into the country from non-CARICOM sources.

Standard tariff rate (see Table 9), which is levied against CIF value;

Stamp tax (see Table 9), applicable on certain products, which is levied against the sum of the CIF value and standard tariff amount;

General Consumption Tax (applicable on certain products) which is levied against the sum of the CIF value and the first two duties (see Table 9); and

Jamaican Customs "users fee" of J$100 (under US$3) on all import shipments.

The Netherlands Antilles imported nearly $7 million of cheese in 1997 (see Table 11). The Netherlands dominated the market with a 77 percent share, followed by New Zealand (12 percent) and the US (9 percent). Political ties between the islands and the mother country guaranteed a market share for the classic Gouda, but cheaper more generic brands of cheese from the Netherlands were also popular amongst consumers. The US primarily exported processed Kraft singles to the Netherlands Antilles.

Supermarkets account for an estimated 50 percent of retail food sales and there are over 100 small stores or "mini-markets" located throughout the island for convenience purchases. Price is the determinant factor behind the increase in the supermarket sector, as the small stores cannot compete with the low prices and product diversity offered by the supermarkets. Smaller businesses may survive by carrying a selected number of products for more niche markets, but the trend toward supermarket growth is expected to continue.

Import Requirements. Separate health regulations are being developed for ice cream and cheese, and will make up a new Food Act to be published in 1999. For more information please contact the Geneeskundige- en Gezondheidsdienst (Public Health Authority), Piscaderaweg 49 (Tel. 011-5999-625800).

At Customs, an importer is required to provide two invoices and, if registration is required, a third invoice is required for the Department of Economic Affairs. An invoice should state the value of the good (f.o.b. or c.i.f.) and other normal commercial information such as marks, numbers, consignee’s names, etc. Four copies of the bill of lading are required, showing the name of the shipper, name and address of consignee, port of destination, description of goods, listing of freight and other charges, number of bills of lading in the full set, and date and signature of the carrier’s official acknowledgement of receipt on board of the goods for shipment.

Tariffs and Duties. The Netherlands Antilles levies two different import duties: a standard duty rate against the c.i.f. value of a product and an "economic levy" which applies to products competing against locally produced goods. There is no import duty for cheese. The import duty for ice cream is 22 percent (calculated on the c.i.f. value). There is also an economic levy of NA Guilders 2.30 (about US$1.28)/liter of ice cream. In principal temporarily imported goods such as samples are exempt from customs duties. Customs clearance is however always required.

Current Suppliers. The US dominates the Bermudan market for ice cream, supplying over 99 percent of 1997 imports of $1.0 million (see Table 13). Much smaller amounts also enter from Canada and the UK.

Official Bermudan import statistics do not disaggregate cheese imports from dairy imports. However, based on export statistics from supplying countries, the Bermudan import market is estimated to exceed $2.0 million (see Table 3). The US supplies roughly 62 percent of import demand (by value), followed by the EU (20 percent), and New Zealand (18 percent).

Distribution Channels. Many of the supermarkets on Bermuda also function as wholesalers, selling on to other food stores, hotels and restaurants. Bermuda’s supermarkets include The Marketplace, Arnold’s, Lindo’s Family Foods, The Supermart, Garden Market, Harrington Hundreds and White’s. While a few independent importers operate on the island, most retailers are supplied by a handful of importer/distributors including Butterfield Vallis, BGA Group, A. C. Brewer Distributors and Viking Food Ltd. In addition to the retail sector, these groups also handle food distribution for hotels, restaurants and institutional food buyers.

Consumer Preferences. The only domestic producer of ice cream is the Bermuda Creamery. Until recently there was one other local competitor, Simmons, who produced high quality sorbet, but they were bought out by the Bermuda Creamery. One retailer estimated that Bermuda Creamery ice cream controls 90 percent of the market because of its good quality yet lower price. The majority of cheese imported is processed cheese like Kraft. Golden cheddar cheese from New Zealand is very popular with consumers at the moment; consumers refer to it as ‘rat cheese’. Cracker Barrel’s cheddar is actually considered of a higher quality and longer lasting than most other cheddar, but consumers prefer ‘rat cheese’ that is imported in large blocks and cut at the deli counter.

Import Requirements. Provided the ice cream or cheese to be imported into Bermuda conforms with the Pure Food or Drug Act of the country of origin, it is acceptable in Bermuda. There is no Bermuda regulation about labels; a label adequate in country of manufacture will be suitable. Labels need not show country of origin, although this must be shown on shipping papers.

Tariffs and Duties. . Ice cream and other edible ice are subject to a 22.25 percent import duty. There is zero duty on cheese. In addition, all imported goods are also assessed a "wharfage tax," that includes an additional charge of 1.01 percent of value for use of the dock or airport of entry. There are no VAT or stamp taxes for goods imported into Bermuda.

Regular importers can apply for Standing Deposit Entry or Deposit Entry status from the Civil Air Terminal, allowing the importer to pay a deposit up-front towards customs fees. This facilitates quick customs clearance and collection of goods.

Current Suppliers. The Bahamas imported nearly $2.0 million of ice cream and edible ice in 1997, an increase of 58 percent in value and by 68 percent in volume over 1996 levels (see Table 15). The US supplied virtually all imported product, although the US does face some competition from local producers.

According to Bahamas import statistics, 2.2 million kilograms of cheese was imported in 1997 with a total value of $6.7 million (see Table 16). This was an increase of 18 percent in volume and 13 percent in value from 1996 levels. The US had 90 percent of the total import market share according to Bahamian statistics, although since the Bahamas counts all product shipped from the US as US product (even if transshipped), this import market share is erroneous. Based on export figures of major suppliers (see Table 3), the US is estimated to have about 35 percent of the import market, with Canada holding 38 percent. Other major suppliers include the EU (20 percent) and New Zealand (6 percent).

Distribution Channels. The distribution structure in the Bahamas for ice cream and cheese reflects the relatively small size of the country. Exporters to the Bahamas will find that most importers are island-based supermarket owners. Otherwise these products are imported directly by the hotels and resorts. The three major grocery store chains are City Markets (owned by US-based Winn Dixie), Super Value, and John Chea and Sons. They are the major sellers of ice cream and cheese because of the necessity for an adequate cold chain that most smaller retail outlets cannot provide.

Consumer Preferences. Several importers and retailers have struck up agreements with large cheese and ice cream manufacturers in the US including Kraft, Borden’s and Haagen Dazs. Even local consumers prefer US brands of ice cream and are also willing to pay higher prices.

At least 90 percent of the cheese sold on the island is processed cheese. Cow’s milk cheese from New Zealand is gaining in popularity and a few air freight shipments have arrived in the past year. Also some exclusive resorts have insisted on buying European cheeses to please their clientele, although one importer stated that demand is too small to establish a regular import cycle. Some cheddar also comes from the UK, Ireland and Canada.

Import Requirements. Since most food imports are brought in from the US, local food restrictions in the Bahamas are not extensive and US quality standards are generally followed. For imports of ice cream and cheese into the Bahamas, no import permit is needed.