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:

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Table of Contents

Basic Facts (Geography, Demographics, Infrastructure)

Jamaica is the largest English speaking country in the Caribbean, with an estimated population of almost 2.7 million people on 10,991 square kilometers (4,244 square miles). Kingston is the largest city, with a population of around 600 thousand. Montego Bay, at approximately 85 thousand, is a major resort destination and the second-largest city. Spanish Town is the third-largest city, with a population of around 83 thousand. Together these three cities account for almost one-third of the population of Jamaica.

Persons of African or Afro-European descent make up 92 percent of the population, while persons of East Indian and European percent account for just over 3 percent each. Persons of Chinese or other descent account for the remaining two percent.

Tourism is the largest earner of foreign exchange, generating almost US$965 million in earnings in 1995. That year, Jamaica was visited by 1.8 million tourists and non-resident Jamaicans. The US accounted for 70 percent of the stop-over visitors (those who stay for an extended period of time). The currency of Jamaica is the Jamaican dollar.

There are two major international seaports, Kingston and Montego Bay, which service the southeastern and northwestern coasts, respectively. The facilities are modern and efficient, and the island is serviced by over thirty international shipping lines, including Evergreen, Sea-Land, Zim, Columbus, and New Caribbean Service/Eurosal. Most dry products and some perishables are shipped by sea. Kingston Container Port has six container berths, two container freight stations, a million cubic feet of cold storage warehouses, 462 reefer plug-ins, Ro-Ro and breakbulk facilities.

Norman Manley Airport in Kingston and Sangster International in Montego Bay are the major airports. Most of the food products shipped by air are perishables, including fresh fruits and vegetables, meat and fish, and dairy products. Air Jamaica is the major carrier of cargo and accounts for approximately 75 percent of imports, while American Airlines accounts for another 20 percent. Customs service is available around the clock, but holding areas are very limited so the receiver of the goods needs to be present upon arrival.

Jamaica has over 9,000 miles of roads, but only 25 percent are paved, making domestic transportation of goods difficult. Maintaining a proper cold chain is particularly challenging, given the lack of trained handlers and adequate cold storage facilities.

Consumer Trends and Attitude Towards Imports

For the last ten years, the Jamaican government has been moving in the direction of greater liberalization of the economy and stricter financial controls. However, continued high tariffs remain the major barrier to imported goods. On the other hand, tight monetary policy to control inflation has led to extremely high interest rates, which have stifled growth in the domestic food industry and necessitated the buying of more imported foods.

Average income per capita is below US$2,000, and 28 percent of Jamaicans live below the poverty level. Still, the economic liberalization policies of the government are helping to create a larger middle class, which is the segment of society most likely to buy imported foodstuffs. Many Jamaicans are also the recipients of money from relatives who live abroad in the US, Europe, or South America. Decisions about food purchases are generally made by women, who make up 50.3 percent of the population.

Jamaican consumers generally have a positive view of imported food for several reasons. First of all, many Jamaicans have travelled abroad and there are many Jamaicans living outside of the island. These individuals who travel regularly between Jamaica and the US or Jamaica and Europe bring their acquired tastes for foreign foodstuffs home with them. In addition, US television is now widely available in Jamaica and advertisements for US food products have increased consumer familiarity with these items. Imported foods are sometimes quite expensive because of high duties, but this also makes them seem higher quality when compared with competing local or regional products.

At any given time in Jamaica, there are several thousand consumers of imported foods who are not Jamaican citizens. These are the tourists, and they are another major market for imported foodstuffs. Although most tourists don't shop at supermarkets and are more frequently taking advantage of all-inclusive travel packages which include all meals, hotel and resort suppliers still must meet their needs for familiar brand name food items.

The Wholesale Food Sector

Much of the Jamaican food distribution system is controlled by importer-distributors. A few large companies import most of the popular branded products and anyone who wants these products must buy from these companies. These companies include Grace Kennedy, T. Geddes Grant, Facey Commodity, Wisynco Trading, Charles E. Ramson, Musson, Amalgamated Distributors, MAPP Successors, and Hand Arnold.

These companies generally are the sole agents and distributors for specific brands of products, and their agency contracts generally forbid them from carrying competing merchandise. Thus, supermarkets who wish to stock a full line of imported items must deal with many different wholesalers, or import directly from wholesalers in the US Many smaller wholesalers and wholesale supermarkets buy from the large importer-distributors as well, and then they distribute to small shops, restaurants and individuals.

While the importers serving retailers are mostly located in Kingston, the companies importing food for the hotel trade are located around Montego Bay, the major resort area in Jamaica located on the northwest coast. Hotel, restaurant, and institutional (HRI) purchases account for about 5 percent of total food sales in Jamaica. Although many of the large distribution importer-distributors do have food service divisions, certain companies which specialize in importing for hotels and restaurants, like Nico and Caribbean Producers, have captured much of the market share in this area. For fresh produce, Exotic Foods is the company most often mentioned by hotel buyers. Some of the larger resort hotels import food directly, but most of the hotels rely on local distributors to supply them.

Informal commercial importers (ICI's) play an important role in Jamaica's food distribution system. ICI's are individuals who buy food products in small amounts, mostly from wholesalers in the US, and then bring products back to Jamaica on a plane or have them shipped back by boat. They then either distribute the products to stores who have placed orders with them, or simply sell them door-to-door. Because the ICI's overhead costs are much lower than those of the larger importer-distributors, they can often offer lower prices. Many smaller shops and supermarkets indicate that they buy regularly from ICI's and it is estimated that ten percent of consumer food imports are brought in by ICI's. ICI's previously received lower rates of duty than larger, formal importers but this is no longer the case. The expansion of ICI market share will be limited by their small volume sales, and the fact that they cannot offer favorable credit terms, as the larger wholesalers do.

All of the large importers have substantial warehouse space, but because of the high cost of capital there is a lack of proper cold storage facilities. Therefore, most warehouse space is designed for dry goods. Many importers keep their stock in more than one location, as again the high cost of capital has stifled plans to expand existing warehouses. Many warehouses have computerized inventory control, palletized rack systems, and motorized freight movement equipment.

In the area of Princess Street in Kingston, several smaller wholesalers operate cash and carry operations. Customers ranging from street vendors to small shops, restaurants, and retail consumers place their orders in a front room where products are displayed, and then receive merchandise through a security door.

The Retail Food Sector

There are about two hundred grocery stores and supermarkets in Jamaica. The largest chain of supermarkets in Hi-Lo, which is owned by importer-distributor Grace Kennedy and has seven outlets. The second-largest chain is Shopper's Fair, which is owned by Facey Commodity and has five outlets. Sovereign Markets operates two stores, including the largest supermarket in Jamaica, which is about 50,000 square feet. Retailers typically buy from a number of distributors.

The retail food distribution system has traditionally been distributor-driven, to the point that distributors even stock the shelves in the supermarkets. Partly because of this, management skills at the supermarket level have been lacking. Many stores have high inventory levels (as much as five times the available shelf space) and no proper inventory control. Instead, they rely on the distributors to keep them stocked. Shelf management is often haphazard, as is merchandising, because this has been left up to the myriad of distributors who are stocking the store. However, there are signs that this is changing. Some stores have hired their own merchandisers to display and organize products more effectively and some of the larger retailers are charging for end aisle and other in-store promotional locations.

Some supermarkets are now using scanning systems and the more widespread this practice becomes, the better able they will be to track inventory and product movement. This should allow the independent grocers to make more informed buying decisions, rather than simply relying on distributors to keep them stocked. In addition, it might allow them to reduce the space devoted to inventory, which can often be five to ten times the floor area of the store.

There are several types of retail food outlets in Jamaica, including upscale supermarkets, conventional large supermarkets, convenience supermarkets, local family markets, convenience stores, wholesale markets, as well as specialty and street vendors.

A typical upscale supermarket covers 40,000 to 50,000 square feet, possesses a great array of products, and puts an emphasis on service and quality. These supermarkets generally carry a good selection of imported food items. The Sovereign Markets and John Wong Supermarket are two examples of this type of store.

Conventional large supermarkets offer a more limited variety of products, but are more convenient and affordable for many Jamaicans than the upscale supermarkets. These stores generally range in area from 20,000 to 40,000 square feet. Hi-Lo Food Stores and Shopper's Fair are two examples of this type of store.

Convenience supermarkets of about 12,000 to 20,000 square feet also have a fairly limited selection of products, but they have the best perishable products. These stores are conveniently located and shopping in them is easy and quick. Some of the Hi-Lo Food Stores fit more in this category than that in the large supermarket category.

Local family markets are basically neighborhood groceries, and they get a lot of walk-in traffic. These stores are about 2,000 to 5,000 square feet in area and are usually family owned and operated. Because of the smaller size, the product variety is limited and so is the selection of perishable items. Many of these stores purchase from ICI's, either making orders or simply buying what the ICI happens to have available.

Convenience stores are just beginning to crop up in Jamaica. These stores, like their counterparts in the US, mostly carry items such as beverages and snack foods for immediate consumption. These stores are about 500 to 2,500 square feet in area. There are street vendors in Jamaica who primarily sell fresh produce, as well as some processed foods and clothing. They are grouped at special locations called Shopper's Arcades.

Business Relationships/Choosing a Partner

Jamaica is a country where optimal business results require personal relationships and a long-term commitment. Any company planning to export directly to Jamaica, whether to importer-distributors that service the retail or HRI trade or directly to supermarkets, needs to take the time to work with its customers. Companies willing to teach importers how to correctly handle their products, and those who get actively involved in the marketing of the products, will generate goodwill and be more likely to succeed than those who simply ship the product and forget about it. Participating in local trade shows is another important way of showing interest in the Jamaican market.

Another option some US food processors may want to consider is investment in, or joint ventures with, Jamaican agribusiness. The government is encouraging investment in Jamaica, and many products can be brought to the island at greatly reduced duties if they are being imported as ingredients for the food processing industry.

The advantage of selling to an importer-distributor is basically service and marketing muscle. Importer-distributors have established customer networks and employees who sell products to the supermarkets, as well as merchandisers who stock the product on the store shelves. Importer-distributors are accustomed to advertising and promoting products, although they will often require assistance in marketing when carrying a new item. The disadvantage of dealing with importer-distributors is that the retail cost of the goods may be somewhat high compared to other methods of distribution, because it includes the distributor's overhead costs. In Jamaica, however, some of the large distributors (Grace Kennedy, Facey Commodity) also own supermarket chains, which helps to streamline the distribution channel to the consumer and keep prices down.

The advantage of direct sales to supermarkets is primarily one of cost. This is a lower-cost option for the supermarket, which can then offer the product at a lower retail price. The disadvantages of this system are that the seller lacks in-country representation, which can be vital for marketing the product. In addition, many supermarkets lack the expertise to handle the export/import trade and are not used to merchandising product in their own stores, this being a traditional duty of the importer-distributor.

Another alternative is to sell products through US food wholesalers who specialize in servicing the Caribbean market. These companies, most of whom are based in South Florida, may not offer all of the marketing muscle of a local agent, but they are often quite competitive on price. Many Caribbean wholesalers and retailers buy from a combination of local and US wholesalers, depending on who offers better service and prices. More information on US food wholesalers servicing the Caribbean is provided in the summary guide to this series, which is entitled "The Caribbean: A Summary Export Guide to the Consumer Food Market".

Laws and Regulations Concerning Imported Food

The Jamaican Bureau of Standards administers the Standards Act, Processed Food Act and Weights and Measures Act. Product imported into Jamaica must meet the requirements of these Acts, which include requirements for labeling. Food products must be labeled according to the metric system.

Under the Food and Drug Act of 1964, foods to be used as inputs in locally processed foods must be approved for use by the government-designated authority in the country of origin. The Pharmaceutical Division of the Ministry of Health issues import permits based on such verification. Right now, no import permits are required under this regulation for finished products (i.e. consumer ready goods) however this is currently under review and may become a requirement in the future.

The Pesticide Control Authority regulates the importation, manufacture, sale and use of pesticides. However there is no regulation in place for the mandatory testing for pesticide residue on food products imported into Jamaica. The Food Storage and Prevention of Infestation Division (FSPID) is the agency responsible for ensuring the safety and wholeness of all foods for local and export markets, and has facilities to test for pesticide residue but does this on a small scale. The FSPID under The Food Storage and Prevention of Infestation Act of 1958, has the authority to inspect all ships and containers, fumigate and carry out other dis-infestation practices, where necessary. It is responsible for monitoring all facilities that produce, manufacture or store food or animal feed. Imports are inspected at the port of entry.

Import permits or licenses are required for the following food products: fresh fruits and vegetables; poultry, meat products, fish, seafood, and animal feed; raw and semi-processed sugar; coffee; and milk powder.

Required documents for customs include a tax compliance certificate for the importer, a Taxpayer Compliance Number, and a bill of lading or airway bill. In the case of meat imports, a phytosanitary certificate is required. Imports below US$1,000 do not require a formal entry certificate.

Tariffs and Other Taxes

Customs tariffs are one of the government's largest sources of revenue. Jamaica follows the CARICOM Common External Tariff (CET), under which the maximum duty is 35 percent, with a 5 percent surcharge for many agricultural items. CET rates are levied on declared CIF value.

All goods and services except for staples are subject to a 15 percent General Consumption Tax (GCT). Many agricultural products from outside of CARICOM, however, are subject to a stamp duty which can be quite high. In some cases the CET plus the stamp duty can be as high as 90 percent of the value of the goods.

A summary of the applicable customs duties, stamp duties, and other taxes follows:

Contacts for Regulatory Information

Consumer Food Imports

According to official Jamaican government statistics, imports of consumer foods and beverages stood at $279 million in 1996 (C.I.F. value). Over half of Jamaican imports of these items are comprised of meat, fish and seafood, and dairy/egg products (see Figure 1). Other major categories include sugar, miscellaneous processed food products (condiments, infant formula, margarine/lard, etc.), cereal preparations (breakfast cereals, snack foods, baking mixes, and biscuits), non-alcoholic beverages (e.g. soft drinks and bottled water), and alcoholic beverages (wine, beer, and spirits). Imports of most fresh fruits and vegetables are low due to domestic production, although the US has made inroads with some temperate fruits (mostly apples and grapes and, to a lesser extent, berries, stone fruit, and pears) and various vegetables (mostly potatoes, onion, garlic, lettuce, carrots, and cabbage).

The US is the largest single supplier of consumer foods and beverages to Jamaica. In 1996, its import market share was 40 percent, based on value (see Figure 2). Trinidad was the second largest supplier with a 12 percent share, followed by Canada (9 percent), New Zealand (6 percent), the UK (4 percent), Ireland (3 percent), the Netherlands (3 percent)

and other EU members (4 percent). Other Latin American countries accounted for 12 percent of total imports. The largest of these were Guatemala, Brazil, Puerto Rico, Barbados, Guyana, Suriname, and Argentina. All other suppliers (primarily Norway, Thailand, and Australia) held a combined 7 percent share.

Table 1 shows a detailed breakdown of major items imported in 1996, as well as market shares for the top three suppliers for each product. The items in the table account for more than 92 percent of total consumer food and beverage imports. The US already supplies many of the items listed in Table 1 and the following could be considered good prospects for continued or expanded sales by US exporters:

Unlike many Caribbean markets, exporters to Jamaica are faced not only with foreign competition, but also with a fairly strong local processed food and beverage industry. Jamaican exporters compete with US exporters in other Caribbean markets. In 1996, Jamaican food and beverage exports to all Caribbean markets (excluding Trinidad and Cuba) totaled $19 million. Table 2 breaks down major Jamaican exports by market to give an idea as to where Jamaican domestic production and competition for US exporters is strongest. These statistics show that Jamaica competes with the US primarily with the following products: chicken, cheese, biscuits, fresh citrus (primarily oranges), processed fruits, juices, confectionary (both with and without cocoa), cocoa powder, ketchup, soups/broths (both in liquid and solid form), instant powdered beverage mixes, beer, and rum (competing with Puerto Rico).

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