British Territories

Export Guide to the Consumer Food Market

September 1997

Prepared for the U.S. Department of Agriculture

by Fintrac Inc.

This guide is one of ten individual guides available (not including a summary guide), covering the following countries and territories: Aruba and Curacao; the Bahamas; Barbados; British Territories, comprising Anguilla, the British Virgin Islands, the Cayman Islands, and the Turks and Caicos; the Dominican Republic; Guadeloupe and Martinique; Haiti; Jamaica; and the Organization of Eastern Caribbean States, comprising Antigua and Barbuda, Dominica, Grenada, St. Kitts-Nevis, and St. Vincent and the Grenadines.

For more information, contact USDA/FAS offices in the Dominican Republic and Miami:

.

.

Table of Contents

Basic Facts (Geography, Demographics, Infrastructure)

The British dependent territories in the Caribbean include Anguilla, British Virgin Islands, Cayman Islands, Montserrat, and Turks and Caicos Islands. For the purpose of this report, Montserrat has been omitted, as it is largely depopulated due to volcanic activity. Bermuda, another British territory located in the Atlantic is not included either: it is presented in a separate report.

The British territories in the Caribbean consist of several small islands whose economies are based on tourism and offshore banking and finance. The Cayman Islands are the most westerly. They are located south of Cuba, 460 miles south of Miami, and 180 miles northwest of Jamaica. The Turks and Caicos Islands lie to the Southeast of the Bahamas chain, 90 miles north of Haiti. The British Virgin Islands and Anguilla are contiguous. The British Virgin Islands are located 80 miles east of Puerto Rico and adjacent to the US Virgin Islands. Anguilla is further east of Puerto Rico and is the most northerly of the Leeward Islands.

Source: 1997 Caribbean Basin Profile, Caribbean Publishing Co. and Caribbean Latin American Action.

Anguilla

Anguilla consists of one major island and a dependent territory, Sombrero, which is located 30 miles to the north. Total population is 10,300, mostly of African descent. The Valley is the capital and is located in the center of the island. In addition to the local population, there are as many as 1,000 part-time residents from the US and Europe, especially during the high season of November-March. These visitors are important consumers of high-value products, as they tend to be wealthier than the average tourist or local resident. The currency used in Anguilla is the Eastern Caribbean dollar.

Anguilla has about 65 miles of roads, of which 40 are paved. The principal ports are located at Road Bay and Sandy Ground. There is a smaller port at Blowing Point. The airport is located one mile from the capital and has a 3,600-foot runway. Major shipping companies include Bernuth Lines, Crowley American Transport, P&O Container, and Tropical Shipping.

British Virgin Islands

The British Virgin Islands (BVI) consist of thirty-size islands, sixteen of which are inhabited. The principal islands are Tortola (21 square miles), Anegada (15 square miles), Virgin Gorda (8 square miles) and Jost Van Dyke (3.4 square miles) Total population is estimated at 18,300, over ninety percent of which are of African descent, the remainder being of European, American or Asian origin. The capital is Road Town, which is on Tortola. The currency used in the BVI is the US dollar.

There are 85 miles of paved roads in total. Port Purcell and West End on Tortola are the major ports. St. Thomas Bay (Virgin Gorda) and Great Harbor (Jost Van Dyke) are other principal locations. There are ferry services to the US Virgin Islands also. Beef Service International Airport is located 10 mi. from Road Town. There are two additional airports on Virgin Gorda and Anegada. Major shipping companies include Atlantic, Crowley American Transport, Saguenay Shipping, and Tropical Shipping Co. Air cargo includes American Airlines Air Cargo, Four Star Air Cargo, Rush It Inc., Atlantic Air BVI, and LIAT.

Cayman Islands

Three major islands compose the Cayman Islands: Grand Cayman, Little Cayman and Cayman Brac. Most of the 33,600 residents live on Grand Cayman. Cayman Brac has around 1,500 residents and Little Cayman has less than 100 inhabitants. Grand Cayman, the main island, is about 65 miles west of the smaller two. The capital and only important metropolitan area, George Town, is located there. The Cayman Islands' ethnic divisions include: African descent (20 percent), Caucasian descent (20 percent), mixed (40 percent), and expatriates of various ethnic groups (20 percent). GDP per capita is among the highest in the world. Besides tourism, offshore business and international finance are the major contributors to the economy. The currency used in the Cayman Islands is the Cayman Islands dollar.

In the Cayman Islands, the major international airport and the main commercial port are both located in George Town. Each of the two smaller islands also have airports and seaports but they are not used for international traffic. There are 110 miles of good quality roads on the island. Freight transportation is regular and efficient between the US and George Town. Thompson Shipping Co. offers two sailings out of Miami and one sailing out of Tampa every week. Kirk Line Ltd. also has a regular service out of Miami every week. American Airlines Cargo, Air Jamaica, Cayman Airways Cargo, Jamaica Air Freighters and Northwest Airlines provide air cargo service.

Turks and Caicos

Turks and Caicos consists of forty islands, of which only eight are inhabited. North Caicos, Middle Caicos, East Caicos and Providenciales are the largest islands. The capital, Cockburn Town, is located on Grand Turk, a smaller island. Total population of Turks and Caicos is estimated at 13,800, but non-residents living in the islands are not counted in this number. They represent an additional 10,000 people or more throughout the year. Providenciales is the main travel destination and the most populated area with 8,000 to 10,000 inhabitants. Grand Turk has a population of 3,500, while North Caicos and South Caicos have populations of 1,500 each. The economy is based on tourism, offshore financial services and fishing. The population is mostly of African descent with a few persons of Caucasian and mixed origins. The currency used in Turks and Caicos is the US dollar.

Turks and Caicos has a total of 75 miles of roads. There are ports in Grand Turks, South Caicos, Providenciales, and Salt Clay, and airports on Grand Turk, South Caicos, Middle Caicos, North Caicos, and Providenciales. Shipping lines include Tropical Shipping Co., Agency Vulcan Shipping Co., Caicos Caribbean Airways, and Continental Shipping Co. Air service includes American (twice daily), Bahamas Air (twice weekly), Canada 3000 and Air Canada (weekly), Inter-Island Air (local charter), Skyking (local charter), and Turks & Caicos Airways (local schedule). Within the islands, small plane service is the primary means of food transportation.

Consumer Trends and Attitude Towards Imports

People shop in supermarkets and grocery stores because there are very few of the village shops one finds on other Caribbean islands. Consumers are, by and large, willing and financially able to try new products, and very used to US products and culture because of a great influx of US visitors and the ubiquitousness of US cable television. Most people on these islands have refrigerators and microwaves.

Most people walk or drive to shop at the nearest store. In general, people go food shopping a couple of times a week, with the woman being the main decision-maker when it comes to purchasing food. In the BVI, migrant workers from other Caribbean islands (Eastern Caribbean, Trinidad, and Jamaica) reportedly go food shopping on an almost daily basis.

Local agricultural production is limited to small quantities of vegetables, fruits, and livestock, and almost all food is imported. The market has a particularly favorable attitude toward the United States, and US food products are generally preferred over most other origins. The US is currently the major food supplier to each of these territories. Imports from the UK are the closest competition to US imports.

The Wholesale Food Sector

Anguilla

Anguilla is a small island, so the wholesale operations are quite limited. All of the larger supermarkets also sell on a wholesale basis, but none of these companies offers delivery service. Anguilla wholesalers include Albert's, Ashley's and Sons, and the Fair Play Food Center. These companies import for their own supermarkets, and then also sell to the hotels and restaurants on the island. Most food products are imported through Miami. Wholesalers in St. Maarten supply some supermarkets in Anguilla.

British Virgin Islands

There are only a few food importer-distributors in the BVI, all located in Road Town on Tortola. Road Town Wholesale is by far the largest, followed by K-Marks, Supa-Value, and Bobby's. Road Town Wholesale are agents for a number of international companies, and report that they have never signed a non-competition agreement. When other companies on the island bring in a product that Road Town represents, they normally get a commission. Road Town has roughly 60,000 square feet of warehouse space, and operates a chain of four supermarkets on Tortola. Half of Road Town's imports are for their own supermarkets, with the other half going to hotels, other supermarkets, and boats. Yacht chandlery is reportedly big business in the BVI, reportedly accounting for more food sales than the hotel trade.

K-Mark's is a wholesaler with a chain of three supermarkets and a business evenly divided between wholesale and retail. They also act as manufacturers' agents. K-Marks offers a refrigerated truck delivery service to hotels, and sends product on freighter boats and ferries to the other islands.

There are a few other importers in the BVI, including Supa-Valu, Bobby's, and several of the independent groceries. Given that the market is quite small, no great changes are expected and the bulk of food imports will continue to be sourced out of the United States, mostly from Florida-based wholesalers.

Cayman Islands

Wholesalers and supermarkets are the major importers of food products to the Cayman Islands. Most wholesalers represent selected brand names under exclusive representation agreements. They buy the products directly from the manufacturers and receive a special price in addition to marketing and promotional support. Wholesale companies supply the grocery stores, the hotels and the restaurants, as well as the supermarkets for the products for which they are the exclusive importers. Some even assist the supermarkets in the merchandising of the products in-store.

The largest wholesalers in the Caymans import all kinds of food products, whether under exclusive representation agreements or not. Three of them dominate the market: Jacques Scott & Co and its subsidiary Cayman Wholesale, Cayman Distribution Co., and Kirkconnel Brothers Co. These companies supply all the supermarkets, the grocery stores and the HRI (hotel, restaurant, and institutional) trade throughout the islands. Supermarkets also import significant volumes from wholesalers overseas. Wholesalers in Miami are their major sources of supply. Products imported are of a large variety, ranging from fresh, to frozen, to dry products, to drinks and beverages. Imports of alcoholic beverages, however, require a license from the government and have their own specialized distribution system.

Cayman wholesale companies are well equipped, with extensive investments in the storage, handling and delivery of food products, including a computer-controlled inventory system. Most importers and wholesalers are located in George Town and have their warehouse in the proximity of the seaport and airport. They offer a delivery service to their customers throughout the islands. Established customers have an open account payable at the end of the month.

Turks and Caicos

Local production of food products is limited to subsistence farming in North Caicos. Turks and Caicos, therefore, has to rely entirely on imports for its food supply. About ten companies account for 95 percent of food imports. They include four wholesale companies, three supermarkets, and several convenience stores and hotels and restaurants. Major wholesalers such as T.C. Trading, Provo Hits, and Community Enterprises are located in Providenciales, the main tourist location. These firms primarily supply the hotels and restaurants. One company, Turks Islands Importers is the only wholesaler in Grand Turk; however, it makes more revenue on the retail market than the wholesale business. The three supermarkets, First Choice IGA, Island Pride Supermarket and Quality Supermarket are located in Providenciales, and they also sell wholesale to grocery stores throughout Turks and Caicos.

The volume of the food import market is quite small, so most wholesalers have only limited workspace and storage room. Their equipment is modern, however, and includes chilled and frozen rooms. They also undertake truck deliveries within their respective islands. Deliveries to other islands are by small planes, at the expense of the buyer.

Future of Wholesale Distribution

The wholesale distribution market is particularly stable in these islands. Competition is active but involves mostly well-established firms, and no major player has entered or exited the market in recent years.

The Retail Food Sector

Anguilla

There are about twenty supermarkets and superettes, or smaller grocery stores, on Anguilla. Albert's is one of the larger supermarkets, with eight aisles and three checkout stands. Ashley and Sons has nine aisles and four checkout stands. The Fair Play Food Center, an IGA franchisee, has five aisles and four checkout stands. There is also a smaller, gourmet grocery store called Vista, which caters mostly to the tourist and part-time resident trade.

The retail supermarkets import directly from manufacturers in the US, usually shipping through Miami, and also buy from wholesalers located in Florida and St. Maarten. Fair Play Food Center receives its products through Supervalu in Florida, which is the supplier for IGA in the Caribbean.

British Virgin Islands

There are about twenty supermarkets and grocery stores in the BVI, mostly located on Tortola. Road Town Wholesale operates four stores, K-Marks has three, and Bobby's has two. K-Marks reportedly has the largest single store, which has ten aisles and four checkout stands, and is equipped with scanners. K-Marks also has a five-aisle community superette and a seven-aisle outlet targeted toward boat provision.

Road Town Wholesale's four supermarkets are called Riteway. These stores are planning to install scanners. Two of the stores are reportedly bigger than the larger of the two Bobby's supermarkets, which is about 15,000 square feet. Bobby's imports mostly from various Miami wholesalers, and also buys from Road Town and K-Marks. There are a few other independent groceries who are supplied by a combination of local, Florida, and St. Maarten wholesalers.

Cayman Islands

Two major categories of operators participate in the retail food market: supermarkets and grocery stores. Supermarkets account for about 90 percent of food sales to the consumer. Foster's Food Fair is the largest food retailer and owns two supermarkets, one in George Town and another, the largest in the Caymans, in West Bay. Food Fair's competitors are the Kirk Supermarket (a division of the wholesale company Kirkconnel Brothers) Hurley's Supermarket (a division of the wholesale company Cayman Imports Ltd.), and Republix Supermarket. Kirk and Hurley are both located in George Town while Republix supermarket is in West Bay.

Foster's Food Fair's store in West Bay has an area of 50,000 square feet, and the one in George Town is 31,000 square feet. The Kirk and Hurley supermarkets both have an area of 25,000 square feet, while Republix Supermarket is of about half the size of these stores. Caymanian supermarkets are similar to those in the US in that they use bar codes, their checkout stands are equipped with scanners, and credit cards are accepted. Each store has different departments such as meat, produce, seafood, dairy products, dry goods, drinks and beverages or snacks, but they do not carry any alcoholic beverages. There are about fifteen licensed liquor stores in the Cayman Islands.

About one hundred smaller grocery stores also compete in the food retail market. Cayman Brac, the second island with a population of 1,500, has four grocery stores. Few of the grocery stores import from overseas, instead buying from local wholesalers. Grocery stores are usually of a size smaller than 3,000 square feet, and only the larger ones use bar codes and accept credit cards.

Turks and Caicos

There are three supermarkets, three medium size grocery stores and about one hundred small shops and convenience stores in Turks and Caicos. The supermarkets are located in Providenciales, while the grocery stores tend to be in Grand Turk. Each island also has a number of small stores that carry a wide variety of products. Supermarkets import most of their supplies from the US. They might also import from Europe, but imports from other sources are very small. Many of the small grocery stores also import food products and, at the same time, rely on the wholesalers and supermarkets for the supply of some low volume items and selected goods. Supermarkets tend to import on a weekly basis, with the smaller stores importing on a monthly basis.

First Choice IGA and Island Pride Supermarket each have store areas of about 10,000 square feet. The First Choice supermarket just opened two years ago and is the most modern grocery store in Turks and Caicos. The third supermarket, Quality Supermarket, is similar in design to the other two, but smaller at only 4,000 square feet. Convenience stores are quite small, generally between 100 to 500 square feet. They carry a limited variety of products and tend to concentrate on dry and canned goods.

Future of Retail Distribution

In Anguilla, with the exception of a few stores planning to install scanners and the IGA's plan to put in an in-store bakery and deli, no expansion is foreseen in the supermarket industry. At the moment, the main competition to BVI retail food sales is coming from the US Virgin Islands. St. Thomas is only a short ferry ride away and many BVI residents take advantage of lower prices at the Cost-U warehouse store and K-Mart there. Though no major changes or additions are planned to existing supermarkets in the BVI, some retailers said they were considering creating a warehouse-type store to compete with Cost-U. Road Town Wholesale already allows individuals to shop its warehouses, a practice which is quite popular.

In the Cayman Islands, the most recent change in the retail distribution market is the opening of the second supermarket by Foster's Food Fair. Considering the size of this new store, it is likely that competition will increase within the industry. In Turks and Caicos, the market is small, and not very dynamic. The owners of First Choice IGA are currently seeking a buyer for the store they just inaugurated two years ago.

Business Relationships/Choosing a Partner

Often in the Caribbean, one has the choice of exporting to a distributor or directly to retail outlets. Dealing with a distributor has the advantages of national coverage as well as marketing and promotion assistance, while dealing with retailers has the advantage of shortening the distribution chain and lowering costs. For most of the British territories in the Caribbean, the wholesalers and retailers are the same companies, so this choice doesn't present itself as often. When choosing agents in these islands, it is always advisable to deal with the established companies, as they have the capital and contacts necessary to effectively market the product. US-based wholesalers are another avenue of supplying the Caribbean. More information on these companies is available in "the Caribbean: A Summary Export Guide to the Consumer Food Market."

Most importers report receiving a credit from their traditional suppliers. Wholesalers, in turn, sell to established customers with a 30-day credit or less.

Laws and Regulations Concerning Imported Food

Food laws are quite relaxed in the British dependencies in the Caribbean. However, food from the United States is expected to conform to US regulations. Meat imports must be accompanied by a certificate of wholesomeness from USDA.

It is not necessary to register trademarks in these countries, but it is advisable to do so. Trademark registration may be done through the Registry of Companies in Anguilla and the General Registry in the Cayman Islands.

Permits are not required for most food imports. In the Cayman Islands and the BVI, fruit and vegetable importers are required to obtain a Plant Import License.

Tariffs and Other Taxes

See Appendix 1 for a list of representative tariff rates for the British territories.

Anguilla

Most imports of consumer foods are subject to a 5 to 15 percent duty rate, except for certain items which are duty-free, including the following poultry, dairy, and produce items: whole chickens, geese, turkey, duck, fresh or chilled poultry cuts, frozen boneless poultry cuts, powdered milk and cream, potatoes and sweet potatoes, bananas and plantains, dates, figs, pineapples, avocados, guavas, mangos, citrus fruit and various grains.

Duty-free rates are also applied to imports of baby food, pastries, some prepared vegetables, jams, jellies, and soup. Fruit juices and waters are also duty-free, while tariffs on alcoholic beverages range from 30 percent on wine and beer to $3.80 per gallon of stronger spirits.

BVI

Many food imports into the British Virgin Islands are subject to a 5 percent duty rate except for the following which are duty-free: poultry, fish, all vegetables, fresh or chilled (but not including potatoes of the solanum family, onions and garlic), all cereal grains (but not including sweet corn on the cob), sugar, water and ice.

Other items receive a higher rate of duty. Some are 10 percent: dried or frozen fruit, coffee and tea, cooking oils, and peanut butter. Other imported products are subject to a 15 percent duty rate: mollusks and crustaceans, butter, fresh nuts other than coconuts or peanuts, roasted or salted nuts, sugar confectionary, chocolate and chocolate confectionary, breakfast cereals and pastries, olives, potato chips, fruit preserved by sugar, fruit juices, ice cream, and aerated waters. Duties on alcoholic beverages range from $1.10 per gallon of beer to $3.00 per gallon of brandy or whiskey. Spirits such as gin, rum, and vodka receive a $2.30 per gallon duty.

Cayman Islands

Most imported food items attract a 15 percent to 20 percent duty, except the following duty-free items which may be of interest to US exporters: poultry, fish, milk and cream, cheese, peas and beans, coffee, grains, spaghetti products, margarine, flours, and breakfast cereals. Duties for alcoholic beverages vary depending on alcohol content, from $1.80 per liter for beer to $17.10 per liter for strong spirits.

Turks and Caicos

Tariffs on imported foods can reach up to 25 percent of the f.o.b. value, plus an additional 10 percent surcharge on the duty. All fruits and vegetables, whether fresh or frozen, are duty-free. The following is a brief list of the duties applied to other imported foods and beverages in the Turks and Caicos Islands: processed meats, 10 percent; lard and lard substitute, 12 percent; tea, 15 percent; sugar, 16 percent; all other assorted foodstuffs, 25 percent.

Alcoholic beverage imports are subject to duty-free rates ranging from $7.04 per gallon on beer to $17.93 per gallon on rum (other spirits receive a charge of $12.54), plus a 10 percent surcharge on the duty.

Contacts for Regulatory Information

Consumer Food Imports

Despite the dependency status of the four island groups included in this report, they all rely heavily on US suppliers for most of their consumer food import requirements. Combined consumer food imports are estimated in the range of $110 to $140 million per year: the Cayman Islands ($70 to $80 million), the BVI ($20 to $30 million), Anguilla ($10 to $15 million), and the Turks and Caicos Islands ($10 to $15 million).⁽¹⁾ Table 1 shows imports of consumer food products from three extra-regional and two regional suppliers.⁽²⁾

With the exception of Anguilla, supplies from the US dominate the markets. Overall, the US accounts for 68 percent of total imports from these suppliers. The EU, mostly the UK, accounts for nearly 29 percent of these imports, with the other countries accounting for only a combined 2 percent.

The last column in Table 1 shows estimates for total import market size of consumer food and beverage items, including understatement of exports by the US and EU, as well as estimated supplies from other countries. Other suppliers are thought to account for no more

1. Import statistics for these markets and export statistics for their suppliers are considered unreliable. While current data for the BVI and Anguilla are available, data from the Cayman Islands is over two years old and no statistics are unavailable from the Turks & Caicos. US export statistics are considered to be underestimated to all markets. Additionally, imports into the BVI and Anguilla are often transhipped through neighboring islands and will therefore not appear in US or EU export statistics. Because of the trade data inconsistencies, the total import market size of consumer food and beverage items has been estimated using both export data and import data (when available). In the cases where both market import and supplier export data is available, both are presented. Other countries are estimated to supply no more than 20 to 40 percent of total consumer food import requirements in each market (often less). The US dominates the market for most items and also supplies transhipped goods through Miami from other countries; these transhipments are not reported in US export statistics.

2. Consumer foods are defined for the purposes of this market study as the following two-digit Harmonized System categories: 02 (Meat, Fresh, Frozen and Dried), 03 (Fish And Seafood, Fresh, Frozen and Dried), 04 (Dairy and Eggs), 07 (Vegetables, Fresh, Frozen and Dried), 08 (Fruit And Nuts), 09 (Coffee, Tea, Mate And Spices), 16 (Preparations Of Meat and Fish), 17 (Sugars And Sugar Confectionary), 18 (Cocoa And Cocoa Preparations), 19 (Preparations Of Cereals), 20 (Preparations Of Vegetables and Fruits), 21 (Miscellaneous Edible Preparations), 22 (Beverages, Spirits And Vinegar).

than 20 to 40 percent of total food and beverage imports (often less). These other suppliers would include New Zealand, which supplies much of the Caribbean with large quantities of milk, cheese, and meat products. Other regional suppliers also supply these markets, mostly with beverages, fresh and processed horticultural items, and transhipments from the US and other countries. Jamaica supplies the Cayman Islands, while members of the Organization of Eastern Caribbean States, the US Virgin Islands, Puerto Rico, and St. Maarten export to the BVI and Anguilla. Turks & Caicos imports small volumes from Puerto Rico and the Bahamas.

Table 2 and Figure 1 show the general categories of food imports from the US, Canada, and the EU. Beverages and spirits account for the largest share of imports from these suppliers, followed by miscellaneous edible preparations, meat, processed fruits and vegetables, and dairy products. Best prospects for US suppliers include: wine, beer, and other alcoholic beverages; soft drinks, juices, and bottled water; fresh vegetables and fruits; fresh and frozen meat (including chicken, beef, pork); frozen fish; dairy products (mostly to the Cayman Islands); and various other processed food products (cereals, snack foods, canned and frozen fruits and vegetables, condiments, etc.). Because of its relative market size, exporters may be more willing to concentrate on the Cayman Islands' market directly, while using Miami and Puerto Rican wholesalers for the other much smaller markets. Additional details on food imports and best market prospects for each market are given below. Also see Table 10 at the end of this section for a summary by product and market of best prospects for US exporters.

Anguilla. With a consumer food import market estimated at under $15 million, Anguilla along with the Turks and Caicos Islands are the smallest markets covered in this report. Importers report that some product is not imported directly, but is transhipped through other Caribbean markets such as St. Maarten. Eggs are produced locally but are also imported, while milk and ice cream are imported from St. Thomas and Barbados. Butter and cheese are imported from both St. Croix and through Miami-based wholesalers. Most fish that is consumed is sourced locally or regionally. Fresh produce is imported from Florida, through companies such as B&B (Tampa), Diversified Foods (Pompano Beach) and Associated Grocers (Miami). The best and really only prospect for a US manufacturer to supply directly to this market is frozen chicken. All other consumer food item volume is so small that US suppliers should work with Miami-based consolidators or importers in neighboring islands such as St. Martin or the USVI to supply this market.

A breakdown of general food import categories is provided in Table 3 (based on key suppliers' export statistics) and Table 4 (based on Anguillan import statistics).

.

British Virgin Islands. Annual consumer food and beverage imports are estimated at around $20 to $30 million, nearly half of which is supplied directly by the US. Other US food products are imported through neighboring islands and more informally by BVI residents shopping at supermarkets in the USVI. Major US exports and continued best prospects include fresh vegetables, frozen chicken, soft drinks, beer, juices, wine, rum, as well as a variety of other processed food items (cereals, snack foods, canned soups, canned/frozen fruits and vegetables, etc.). Because of the relatively small volume of orders for individual items, US suppliers of all but the largest volume items should probably utilize Miami-based wholesalers who are already supplying many BVI importers.

A breakdown of general food import categories is provided in Table 5 (based on key suppliers' export statistics) and Table 6 (based on BVI import statistics).

.

Cayman Islands. Of the four markets studied here, the Cayman Islands offer the best prospect for direct shipments by US suppliers. However, the consumer food and beverage import market is still relatively small (under $80 million annually), and so Miami-based consolidators and wholesalers may offer the most economical means to ship to these islands -- particularly for smaller volume items. In fact, importers report that other supplying nations such as New Zealand and Australia often use Miami as a transhipment point for their exports to the Cayman Islands.

The high degree of the development of the tourism industry and the large number of US visitors are reflected in the broad range of US food and beverage items available locally. The Cayman Islands import large quantities of US items not normally imported in volume by other Caribbean markets. US milk exporters, which normally cannot compete with New Zealand in the rest of the Carribean, supply over $1 million annually to the Cayman Islands. Annual exports of US beer, wine, and soft drinks are also all over $1 million. US exports of corn chips and similar crispy snack foods exceeded $600 thousand in 1996.

According to US statistics, exports to the Cayman Islands of fresh fruits and vegetables are relatively weak, totaling less than $200 thousand annually. It is believed that US exports of these products (and others) are vastly underestimated by US Customs. One importer in the Cayman Islands reports receiving $60 thousand of fresh fruits and vegetables from the US per week. Therefore, while not appearing to be such from the available data, these items are actually a very good market prospect for US suppliers.

While most food and beverage items found in US supermarkets can be considered hot prospects for US exporters, the main high volume items will continue to be chicken, beef, frozen shrimp and lobster, milk, snack foods, breakfast cereals, beer, wine, rum, soft drinks and other flavored waters, fruit juices, and baked goods.

A breakdown of general food import categories is provided in Table 7 (based on key suppliers' export statistics) and Table 8 (based on more dated import statistics from the Cayman Islands).

Turks and Caicos. Total consumer food imports are estimated to not exceed $15 million annually. The US is by far the largest supplier, followed by the EU (chiefly the UK). Importers report that much lower volumes also enter from the Bahamas, Puerto Rico, and Trinidad. Most US product is shipped directly from the US; it is not transhipped from larger Caribbean markets. Because of the size of the market, US producers should use Miami based consolidators and wholesalers to enter this market. Higher volume items include chicken, beef, pork, frozen tuna, frozen vegetables, beer, soft drinks, canned foods, and fresh fruits and vegetables. Imports of each of these items, however, is generally below $400 each annually, often much lower.

A breakdown of general food import categories is provided in Table 9 (based on key suppliers' export statistics). Import statistics were not available from the Government of the Turks and Caicos.

Appendix 1

Representative Tariff Rates

Sources: Anguilla, BVI, and Caymans Customs Departments