Trinidad and Tobago Market Study
Trinidad and Tobago Market Study
January 9, 2015
The Promotion of Regional Opportunities for Produce through Enterprises and Linkages (PROPEL) project is implemented by the Canadian Hunger
Foundation (CHF) with funding support from the Government of Canada through the Department of Foreign Affairs, Trade and Development
(DFATD).
Table of Contents
1 Introduction ........................................................................................................................1
2 Research Methodology ......................................................................................................1
3 Buyer Segment Analysis ....................................................................................................2
3.1 Supermarket Segment .................................................................................................2
3.2 Restaurant Segment ....................................................................................................6
3.3 Hotel Segment ...........................................................................................................10
3.4 Catering Segment......................................................................................................14
3.5 Exporters Segment ...................................................................................................18
3.6 Agro-processors Segment ............................................................................................ 20
4 Criteria/Framework for Product Analysis ...........................................................................27
4.1 Recommended Products For Future Analysis ............................................................28
5 Summary ..........................................................................................................................29
6 Potential By Product .........................................................................................................29
6.1 General Survey Information .........................................................................................30
6.2 Product Potential – Sweet Potatoes ............................................................................35
6.3 Product Potential – Watermelon ..................................................................................37
6.4 Product Potential – Papaya .........................................................................................38
6.5 Product Potential – Hot Pepper ....................................................................................40
6.6 Product Potential – Cucumber .....................................................................................42
6.7 Product Potential – Cabbage .......................................................................................... 44
6.8 Product Potential – Lettuce ..........................................................................................46
6.9 Product Potential – Pimento ........................................................................................48
6.10 Product Potential – Tomatoes ......................................................................................49
6.11 Product Potential – Sweet Peppers ..............................................................................51
7 Environmental Challenges & Opportunities .......................................................................53
8 Recommendations For Partners and Products ..................................................................55
9 Appendix One - Survey Instruments Utilized for the Market Study .....................................56
10 Appendix Two- List of Survey Participants ........................................................................67
Bdl - Bundle
CARDI - Caribbean Agricultural Research & Development Institute
CARICOM - Caribbean Community
CHF - Canadian Hunger Foundation
CSO - Central Statistical
DFATD - Department of Foreign Affairs, Trade and Development
Office EU - European Union
Ha - Hectares
HVB - High Value Buyers
HVM - High Value Market
MALMR - Ministry of Land and Marine Resources
N/A - Not Available
NAMDEVCO - National Agricultural Marketing and Development Company
NAMIS - National Agricultural Market Information System
PROPEL - Promotion of Regional Opportunities for Produce through Enterprises and
Linkages
T&T - Trinidad and Tobago
USDA - United States Department of Agriculture
This report presents the empirical findings and analysis of the PROPEL Market Study
consultancy assignment for the island of Trinidad and Tobago (T&T). As indicated in the
Terms of Reference (TOR), the contents of this deliverable includes a summary of the
demand by the selected buyers segmented by type of buyer and product, with
recommendations of which products to investigate and their potential and recommendations to
secure trading linkages between farmers and buyers. The synthesis of all the knowledge
materials revealed that there were ten commodities recommended for further product analysis in
stage three of the consultancy assignment. These ten (10) products are tomato, lettuce, sweet
pepper, sweet potato, hot pepper, pimento, watermelon, cucumber, cabbage and papaya.
2 RESEARCH METHODOLOGY
In Stage One, the research approach focused on conducting a literature review of relevant
studies such as: a Report To Identify Market Opportunities For Protected Agriculture
Vegetables and Herbs (CARDI 2011); The National Food Production Action Plan 2012-2015 by
the Ministry of Food Production, Land and Marine Affairs; and Market Profiles on Tomato,
Cucumber and Sweet Pepper (CARDI, 2013), to ground the research process and to glean
information to craft a relevant research design plan. The outcome of this process was a
segmentation profile of the HVM Buyers into several groups – Supermarkets, Restaurants,
Hotels, Caterers, Agro-processors, Exporters and Wholesaler/Distributors.
In Stage Two the research approach focused on an empirical component with the use of a
survey instrument to evaluate the demand of the HVM Buyers. This questionnaire was
developed with the following themes:
The questionnaire utilised close ended questions in order to easily solicit answers for the
questions provided and to reduce the complexity of data analysis. In some cases, open
discussions were also held with interviewees, which provided additional insights.
However, the largest business in each buyer segment always co-operated. This eventually
resulted in a sample size of thirty-eight (38) businesses. Informal discussions were held with two
(2) mini-marts; one (1) agro processor; and two (2) distributors, for additional insights on their
buying habits. In addition, discussions were held with two (2) national stakeholders, the
Supermarket Association of Trinidad & Tobago and the National Agricultural Marketing and
Development Company (NAMDEVCO). The latter is a state owned organization that assists
farmers to market their fresh produce; collects wholesale prices from the wholesale markets; and
also undertakes an assessment of fresh produce farms for certification, which is accepted by
other CARICOM countries. The duration of the survey was from November 8th, 2014 to
December 2nd, 2014.
An inductive approach was utilized for data analysis, which involved beginning with specific
observations and measurers; identifying patterns and regularities; and then developing
general recommendations. The survey data, for purchase volumes, were recorded on an excel
database and subsequently relevant data was extracted and incorporated into tables within
the data analysis section of the report. The analytical framework disassembled the four
sections of the questionnaire and these sections provided the tangible avenue to discuss
research findings/implications and form the basis of the go-forward strategy.
Stage Three focused on an empirical research process to undertake the product potential
analysis. A questionnaire was developed to generate a production profile of the farmers who
were currently cultivating one or more of the ten products under study. The data outputs from
the survey instrument include: gender configurations; education levels; number of years in
farming; location; area under production; primary and secondary crop cycle flows; target
markets; farming practices; production challenges; and supply capability.
The questionnaire used close ended questions, in order to easily solicit answers for the questions
provided and to reduce the complexity of data analysis. In some cases, open discussions were
also held with interviewees which provided additional insights. A farmer listing was sourced from
NAMDEVCO and a random sampling method employed to acquire survey participants. The
farmers were sourced from NAMDEVCO’s database, since this listing has a high proportion of
certified farmers, who would have the latent potential to serve the HVM segments. The duration
of the survey was from December 15th, 2014 to January 2nd, 2015 and a total of twenty-six (26)
respondents participated in the survey.
Tru-Valu Direct From Farmers 60% 2 weeks 1st quality No-farmers sell
2nd price
(Trincity Distributors elsewhere
Branch) 3rd consistency when prices
4th delivery increase
JTA Direct From Farmers 50% 1 week 1st quality* No- freedom to
2nd price choose based
Supermarket (4 Distributors
branches) 3rd consistency on quality &
4th delivery price
Low Cost From Wholesale 50% cash 1st quality No- freedom to
Supermarket Market 2nd price choose based
Direct From Farmers 3rd consistency on quality &
price
Xtra Foods Direct From Farmers 80% 1 month 1st quality No- freedom to
2nd price choose based
Distributors
3rd consistency on quality &
4th delivery price
The following Tables 2 and 3 represent the volumes and the average price paid by supermarkets
for their major vegetables and fruit. A comparison is also made, between the prices that the
farmers obtain by selling directly to supermarkets, as opposed to selling at the wholesale
market.
Table 2: Main Fresh Vegetables Purchased Weekly By Supermarkets Surveyed
No. Fresh Produce Average Average Average Average Price Benefit in
Quantity Price Paid Wholesale Benefit By TT$ (Col 3
Purchas by Price For Selling by Col 6 e.g.
ed (kg) Supermark 2013 (TT$) Directly To Tomato
Weekly et (TT$) per kg Supermarkets = 26,134 kg
per kg source : by $3.93)
1. Tomato 26,134 kg 18.70 NAMDEVCO 14.77 $3.93 or 27% 102,707 (1st)
2. Lettuce 24,618 hd 5.50 4.22 $1.28 or 30% 31,511 (5th)
3. Cucumber 21,951 kg / head
10.00 / head7.13 $2.87 or 40% 62,999 (2nd)
4. Cabbage 18,213 kg 11.00 8.45 $2.55or 30% 46,443 (3rd)
5. Plantain 13,316 kg 12.98 10.14 $2.84 or 28% 37,817 (4th)
6. Sweet Pepper 8,016 kg 18.00 15.12 $2.88 or 19% 23,086 (6th)
7. Sweet Potatoes 6,645 kg 10.00 7.72 $2.28 or 30% 15,150 (8th)
8. Cauliflower 6,502 hd 15.00 Not Available N/A N/A
(N/A)
9. Pimento 25,730 0.35 0.27ea $0.08 or 30% 2,058(13th)
each
pimentos
10. Hot Peppers 44,808 0.45ea 0.35ea $0.10 or 29% 4,480 (12th)
hot
11. Pumpkin pepper
23,829 kg 4.00 3.24 $0.76 or 23% 18,110 (7th)
12. Patchoi s
4,957 bdl 7.00 bundle 5.48/ bundle $1.52 or 28% 7,535 (10th)
13. Ochro 22,500 0.30 / ochro 0.25 / ochro $0.05 or 20% 1,125 (14th)
ochroes
14. Shadon beni 5,150 bdl 6.00 / bundle N/A N/A N/A
15. Eggplant 2,647 kg 11.00 8.00 $3.00 or 27% 7,941 (9th)
16. Caraille 2,267 kg 10.00 7.38 $2.62 or 36% 5,939 (11th)
17. Eddoes 2,530 kg 16.00 13.42 N/A N/A
18. Chive 3,345 bdl 6.00 N/A N/A N/A
*Quality refers to freshness, consistency in shape, color and free from dirt, insects and chemical residue.
No. Fresh Produce Average Average Average Average Price Benefit in TT$
Quantity Price Paid Wholesale Benefit By (Col 3 by Col 6)
Purchase by Price For 2013 Selling Directly
d Weekly Supermarket (TT$) per kg To
(kg) (TT$) per kg source : Supermarkets
NAMDEVCO
1. Watermelon 20,928 kg 8.70 5.74 $2.96 or 52% 61,946 (1st)
2. Papaya 7,991kg 11.00 7.75 $3.25 or 42% 25,970 (2nd)
3. Bananas 8,732 kg 10.00 8.81 $1.19 or 14% 10,391 (4th)
imported from
CARICOM
Countries
4. Pineapple 3,818 kg 14.00 10.96 $3.04 or 28% 11,606 (3rd)
5. Orange 7,150 2.00 per 1.66 $0.34 or 20% 2,431 (6th)
oranges orange
6. Lime (medium) 24,067 1.50 per 1.07 $0.43 or 40% 10,349 (5th)
limes lime
7. Grapefruit 700 2.00 per N/A N/A N/A
grapefruits grapefruit
The research process, also revealed tantalizing, prospective trends and opportunities for produce
and fruits in high demand by the supermarket segment, which are not easily available.
A study, undertaken by Invest Trinidad and Tobago in 2013, states that the thriving food and
beverage sector in T&T supports 11,000 jobs and represents the largest non-energy
manufacturing sector. The study further suggests that in spite of the global economic crisis, the
fast food and quick service restaurant sub sector, consisting of international franchises and
domestic businesses, has remained strong, because they offer convenience and value for
money.
Likewise, full service, owner-operated restaurants have maintained a steady growth. This growth
is being driven by an increase in disposable incomes and a demand by consumers for greater
choice. Strong patronage and a culture of fine dining have further boosted this sector.
The Minister of Trade and Industry, The Honorable Stephen Cadiz in July 2012 stated that T&T
has a vibrant food service and retail food sector. Growth in this sector is driven by an expanding
population; more sophisticated consumer tastes; and changing demographics. A report compiled
by the USDA Foreign Agriculture Service, estimated that this country’s retail food sector is
valued over US $617 million.
Minister Cadiz further indicated that the varied culture of T&T has resulted in an eclectic mix of
cuisines, from street vendors selling doubles and corn soup to high-end establishments,
specializing in Creole, Italian, Mediterranean, Chinese, Thai and Korean food. The Ministry of
Trade and Industry has estimated that there are over 195 fast-food restaurants and this number
is steadily growing. Table 5 provides a summary matrix of the data gathered for this segment.
Mario's Pizza Direct From Farmers 10% 2 weeks 1st quality No – Based on
2nd price
Distributors relationship
3rd consistency
4th delivery (3
times per week)
1. Fifty-six % (56%) of the restaurants surveyed are receptive to being approached by new
farmers, as this activity will allow for wider choice with respect to quality, price and
consistent supply. The restaurants, which were not receptive to being approached by
new suppliers, stated one or more of the following reasons: satisfied with current
suppliers; and farmers are not reliable. The onus is therefore on the farmers, to adopt
the appropriate modes of operation to satisfy this segment, if they want to develop and
retain transactional relationships.
2. Eight of the nine restaurants surveyed, indicated that delivery of the fresh produce to
their retail outlet is an important purchasing criterion. Restaurants purchase fresh
produce, on an average, three times per week because of their limited storage capacity.
3. Fifty six percent (56%) of the restaurants changed some of their fresh produce
suppliers over the past 24 months. Forty four percent (44%) kept all of their existing
suppliers. The main reasons for the changes were, one or more of the following: poor
quality; higher prices; and inconsistent supply. These gaps can be addressed through
farmer training or by farmers adapting to meet the emerging demand.
4. Restaurants have a preference, for suppliers who can supply more than one item, as
this is more convenient for them and results in greater operational efficiency. Farmers
can position themselves to diversify their produce; and develop arrangements to supply
a diverse product line.
5. Most of the established restaurants are being supplied with locally grown fresh produce
by distributors. This adds an extra layer in the value chain and depresses positive
value for the farmers, by way of indirect transactions and limited access to high value
buyers (HVB). An opportunity exists, to compress the distribution chain, if perceptions
of the players change and clear sourcing guidelines and pricing models are formulated.
6. The preferred purchasing criteria are standard among this segment, based on a ranking
system of: quality; price; and consistency of supply. A go forward strategy can be, to
disseminate these informal standards/requirements, to educate farmers in order to
strengthen their production to be better perceived as an attractive direct source of
produce for the restaurants.
With respect to the volume of produce purchased by restaurants, Table 6 shows the main types
of produce purchased by restaurants with a comparative analysis to wholesale market prices
for the same products.
35
30
25
20
15
10
0
Lettuce Tomato S pepper Cucumber Hot Pepper Pimentos Limes
Note: For comparison purposes pimento and hot peppers were converted to kg. using an
estimate of 40 units per kg. Limes were converted at 20 limes per kg and lettuce at 6 heads per
kg.
1. There is a clear opportunity for farmers to obtain higher prices for their fresh produce by
selling directly to the restaurants and bypassing wholesalers and distributors. For
example, they can obtain an average of $1.78 more for a head of lettuce and $3.87
more for a kilogram of cucumber, which are substantial differences. According to Trip
Advisor, there are 99 established restaurants in Port of Spain, 22 in San Fernando and
12 in Chaguanas. Several more established restaurants can be found in the other
major towns and boroughs such as Arima, Point Fortin, Sangre Grande, Rio Claro,
Couva and Princes Town. The restaurant sector represents a viable market that
farmers can engage in direct selling and the establishment of long lasting relationships.
2. In order to serve this market segment successfully, farmers must understand the
purchasing criteria and requirements used by restaurants and adhere to them. Simple
business etiquette; the ability to conduct basic market research; and to prepare a cover
letter and a price list. These steps would help change the perceptions of the restaurant
buyer towards the farmers in a positive manner and would increase their inclination to
do business directly with the producers.
3. Subway which has 45 outlets in T&T currently imports 26,252 heads of lettuce on a
weekly basis. In previous years, this fast food restaurant purchased most of its lettuce
from local farmers. However, due to inconsistent supply and non adherence to
contracts, when the price of lettuce increased on the wholesale market, Subway decided
to import all of its lettuce for greater stability in its operations. Subway continues to
purchase all of its cucumber (2,045 kg per week) from local farmers.
4. One third of the restaurants surveyed accepted the prices charged by their distributors.
These restaurants have a long standing relationship with their distributors. Fifty six
percent (56%) of the restaurants compare prices of their suppliers and occasionally visit
NAMDEVCO’s website to determine an acceptable price while 11% visit the wholesale
market to obtain price information. Subway also checks a website
(www.freshpoint.com/) to obtain information on international fresh produce prices. This
means that the restaurant buyers are well informed. Farmers therefore need to be
operating with the same level of market knowledge and information, if they are to level
the playing field in the restaurant supply market space.
The significant learning points from the above include the following:
1. Fifty percent (50%) of the hotels surveyed including the 2 largest in the sector, the Hilton
and Hyatt, are receptive to being approached by new farmers, as this will allow for wider
choice with respect to quality, price and consistent supply. However, Hyatt specified that
the prospective local farmer must be certified by NAMDEVCO. The 50% of hotels,
which were not receptive to being approached by new suppliers, said that they are
satisfied with their current supply arrangements.
2. Eighty-three percent (83%) of the hotels surveyed, indicated that delivery of the fresh
produce to their retail outlet is an important purchasing criterion. Hotels purchase fresh
produce on average three times per week because of their limited storage capacity and
desire for very fresh items. While a source of possible income and trading opportunities
exist, there needs to be further research into the capacity of farmers to engage in a
reorientation to secure supply arrangements.
PROPEL Trinidad and Tobago Market Study 11
3. Fifty percent (50%) of the hotels changed suppliers over the past 24 months; 33% added
new suppliers to their existing database, but did not change any of their existing
suppliers. The main reasons for the changes were one or more of the following: poor
quality; higher prices; and inconsistent supply. This suggests that the hotel sector have
very high standards and are receptive to the engagement of new suppliers once specific
terms and conditions can be met.
4. Hotels have a preference for suppliers who can supply more than one item as this is
more convenient for them and results in greater operational efficiency and reduced
processing time for the hotels.
5. Sixty seven (67%) of the hotels surveyed, determine an acceptable price to buy their
fresh produce by comparing prices charged by their suppliers. 83% of the hotels
surveyed, also occasionally browse the NAMDEVCO’s website for up-to-date wholesale
prices while 17% actually visit the wholesale and farmers’ markets and compare prices
and quality.
6. At the start of each week, the 4 distributors who supply the Hilton, are required to submit
price lists to facilitate the bidding process. Table 8 shows the volume of fresh produce
purchased by hotels and also an analysis of prices paid in comparison to the wholesale
market.
Table 8: Main Fresh Produce Purchased Weekly By Hotels Surveyed
No. Fresh Quantity Average Average Average Price Benefit in TT$
Produce Purchased Price Paid Wholesale Price Benefit By (Col 3 by
Weekly (kg) by Hotels For 2013 (TT$) Selling Directly Col 6)
(TT$) per kg per kg source : To Hotels
NAMDEVCO
1. Lettuce 1,806 heads 5.00 (locally 4.22 (locally $0.78 or 16% 1,409 (4th)
grown) grown)
2. Tomato 889 kg 20.90 14.77 $6.13 or 42% 5,450 (1st)
3. Sweet 612 kg 22.00 15.12 $6.88 or 46% 4,211 (2nd)
pepper
4. Cucumber 667 kg 9.90 7.13 $2.77 or 39% 1,848 (3rd)
5. Hot Pepper 3,415 hot 0.40 / hot 0.35 $0.05 or 14% 171 (9th)
peppers pepper
6. Sweet 356 kg 10.78 7.72 $3.06 or 40% 1,089 (5th)
Potatoes
7. Pimento 4,525 0.35 / 0.27 $0.08 or 30% 362 (8th)
pimentos pimento
8. Eggplant 300 kg 11.00 8.00 $3.00 or 38% 900 (6th)
9 Yam 172 kg 11.00 7.65 $3.35 or 44% 576 (7th)
10. Dasheen 140 kg 14.20 13.80 $0.40 or 3% 56 (10th)
FRUIT
1. Watermelon 2,415 kg 8.25 5.74 $2.51 or 44 6,062 (1st)
2. Limes 5,520 limes 1.80 / lime 1.07 $0.73 or 68% 4,030 (2nd)
(medium )
3. Pineapple 1,507 kg 13.20 10.96 $2.24 or 20% 3,376 (3rd)
4. Papaya 1,001 kg 11.00 7.75 $3.25 or 42% 3,253 (4th)
5. Bananas 717 kg 10.00 8.81 $1.19 or 14% 853 (5th)
(imported %
from other
CARICOM
countries )
The weekly demand by hotels for fruit is presented in Figure 3 below, to illustrate the overall
demand for fruit.
1. There is a distinct opportunity for farmers to obtain substantially higher prices for their
fresh produce by selling directly to the hotels and bypassing wholesalers and
distributors. For example, they can obtain an average price of: 42% more per kilogram
for tomatoes; 30% more for sweet peppers; and 42% more for papaya.
2. According to Trip Advisor, there are 52 established hotels in Trinidad. There are also
over 35 established hotels in Tobago. However, from the survey, it was found that
some hotels are more price sensitive than others. For instance, the bidding process
at Hilton Trinidad is very competitive when compared to HYATT Trinidad. Farmers
therefore need to conduct basic market research to identify their best opportunities.
In spite of the bidding process, prices obtained at Hilton Trinidad are still better than
those farmers obtain when selling on the wholesale market and can still be viewed as
a viable business opportunity.
3. In order to serve this market segment successfully, farmers must understand the
purchasing criteria used by hotels and ensure they can adhere to those on an ongoing
basis. Simple business etiquette, the ability to conduct basic market research and
prepare a cover letter and a price list would be simple steps they can take to access
the HVM opportunity hotels represent.
4. Hotels are also demanding more tropical fruit, especially papaya, avocadoes and Julie
mangoes. They did not give actual quantities, but from discussions, it has been
estimated that the additional demand per week by the hotels surveyed is
approximately 300 kg for papaya; 40 avocadoes; and 40 Julie mangoes. These figures
would be substantially higher when applied to all the hotels.
A summary matrix of the information received from this sector is illustrated in Table 9:
Food Caterer Source of Purchase Approximate Payment Most Important Are Contracts
% Grown Terms Purchasing Offered To
Locally Criteria Farmers?
Boomerang From Wholesale Market 50% cash 1st quality No- freedom to
Caterers Distributor 2nd price choose based
3rd consistency on quality &
4th delivery price
Food Etcetera From Wholesale Market 50% cash 1st quality No- freedom to
(most purchases are from 2nd price choose based
wholesalers at the market 3rd consistency on quality &
not farmers) price
Kater Serv Direct From Farmers 85% 2 weeks 1st quality No- freedom to
Distributors 2d price choose based
3rd consistency on quality &
4th delivery price
B&B Enterprises Direct From Farmers 95% 1 week 1st quality No- farmers do
Ltd. Distributors 2 price not honour
3rd consistency contracts
4th delivery
1. Seventy-five (75%) of the food caterers surveyed are interested to being approached
by new farmers as this can provide a wider choice with respect to quality, price and
consistent supply from a direct source. However, 25% indicated that farmers are not
reliable and consistent with the price and quality of their produce and would not be
interested in purchasing from farmers.
2. All 100% of the caterers surveyed, purchased varying percentages (5% to 50%) of
imported fresh produce, in preference to the same local items. These include cabbage
and cauliflower, which they indicated are of better quality to the locally grown ones,
because there is no pesticide residue and consequently a better taste. Fifty percent
(50%) of the caterers surveyed purchased imported tomatoes for their salads. The
imported tomatoes were described as larger and better for slicing. One of the large
food caterers, Food Etcetera, preferred to purchase yam, dasheen and eddoes
imported from St. Vincent, because of their cleaner appearance and better taste. These
imported items are usually sold for approximately TT$1 to TT$2 more per kilogram
than the local ones.
3. Food caterers purchase fresh produce on an average twice per week which represents
a good and reliable stream of sales and income for farmers if they can make the
necessary connections with the food caterers.
With respect to the volume of produce and fruit purchased by caterers, Tables 10 and 11
present the volumes as well as the differential pricing between what
c a t e r e r s p a y a n d t h e p r i c e s o n t h e wholesale markets.
Table 11: Main Fresh Fruit Purchased Weekly By The Food Caterers Surveyed
No. Fresh Average Average Average Average Price Benefit in TT$
Produce Quantity Price Paid Wholesale Benefit By (Col 3 by
Purchased by Caterers Price For 2013 Selling Directly Col 6)
Weekly (TT$) per (TT$) To Food
(kg) kg per kg source : Caterers
NAMDEVCO
1. Watermelon 1,745 kg 7.7 5.74 $1.96 or 34% $3,420 (1st)
Lime 2,400 1.2
0 1.07 $0.18 or 14% $432 (3rd)
(medium) limes 5
2. Papaya 357 kg 11.0 7.75 $3.25 or 42% $1,160 (2nd)
3. Bananas 370 kg 09.9 8.81 $1.09 or 12% $403 (4th)
imported 0
from other
CARICOM
countries
4. Pineapple 113 kg 14.0 10.96 $3.04 or 28% $344 (5th)
0
A graphical representation of the quantities purchased by food caterers on a weekly basis for
various commodities can be seen in Figure 4.
60
50
40
30
20
10
0
Watermelon Lime Papaya Bananas Pineapple
The main learning points from the catering sector analysis are as follows:
1. There are opportunities for farmers to obtain higher prices for specific items of fresh
produce by selling directly to food caterers and bypassing wholesalers and
distributors. For example, the average price paid by these buyers for tomatoes is
34% more than selling this commodity on the wholesale market; 30% more for lettuce;
and 42% more for papaya.
2. According to Searchin TT 2014 website, there are 57 food caterers (excluding the
School Feeding Programme) in T&T. These caterers serve corporate, private and
wedding events. A few of them are also involved in the School Feeding Programme.
The School Feeding Programme currently has over 72 caterers. They serve breakfast
and lunch meals to over 120,000 school children daily, five days a week.
3. In order to serve this market segment successfully, farmers must understand the
purchasing criteria used by food caterers and ensure they adhere to those criteria.
Simple business etiquette, ability to conduct basic market research, negotiate and
prepare a cover letter and a price list would be advantageous.
4. Fifty percent (50%) of the food caterers surveyed determine acceptable prices by
checking the website of NAMDEVO, which provides information on current wholesale
prices. The other 50% visit the wholesale market and interact with the sellers.
Table 13 presents a summary matrix for the information gained for this segment from the survey as follows:
1. Sixty-seven percent (67%) of the exporters surveyed are receptive to being approached
by new farmers, as this activity will allow for wider choice with respect to quality, price
and risk management during fluctuations and scarcity.
2. Thirty-three (33%) indicated that they already have adequate farmers on their
database. Also, 33% of the exporters only transact business with local farmers,
certified by NAMDEVCO, as their export market (within CARICOM) specifies this
condition. This opens a channel for farmers to connect with this state agency, in order
to leverage and increase their competitiveness.
PROPEL Trinidad and Tobago Market Study 18
3. All the exporters surveyed changed suppliers over the past 24 months. The main
reasons for the change were one or more of the following: poor quality; higher prices;
and inconsistent supply.
4. Exporters are receptive to purchasing their fresh produce supplies at farm gate, if
required. However, they usually negotiate for a lower price when this is done, which can
be a disadvantage for the farmers.
With respect to the volume of produce purchased by Exporters Table 14 shows the main types
of produce exported as well as a price comparison between prices the exporters pay and the
prices at the wholesale market.
Table 14: Main Fresh Produce Purchased Weekly By Exporters Surveyed
No Fresh Produce Quantity Average Price Average Price Obtained Average Price
. Purchased Paid by Exporters By Farmers At Benefit By
Weekly by (TT$) per kg Wholesale Market For Selling
Exporters 2013 (TT$) per kg Directly To
(kg) (source : NAMDEVCO) Exporters
A graphical representation of the quantities purchased by exporters on a weekly basis for fruit can
be seen in Figure 5.
60
50
40
30
20
10
0
Watermelon Lime Pineappl Papaya
e
1. This is generally not a viable buyer segment for farmers. For most fresh produce
items, farmers would obtain a slightly better price at the wholesale market. One
hundred percent (100%) of the exporters surveyed are not willing to pay higher than
the wholesale price and they want farmers to keep their prices for 3 months. Twenty
percent (20%) of exporters indicated that they negotiate to purchase produce from
farmers for a price 20% below the wholesale price. NAMDEVCO confirmed this
research finding and also stated that farmers have made complaints on the low prices
paid by exporters. The exporter’s justification for their low prices is that there is a high
risk in exporting fresh produce, due to spoilage and non-payment by the importer.
2. The advantage of this buyer segment is that the exporters purchase high volumes for
the main export items including: pumpkin; hot peppers; pimento; papaya; pineapple;
and dasheen leaves. It is therefore a fast way for farmers to dispose of their sizeable
harvests, which is an attraction for the farmers that sell to exporters.
3. Information from NAMDEVCO’s website revealed that there are 29 exporters of fresh
produce. However, NAMDEVCO stated, that many exporters on this list are not
currently active, because this year (2014) has been affected by drought for the 1st half
of the year and by heavy rains and floods during the 2nd half. These adverse weather
conditions have resulted in high price fluctuations and inconsistency in supplies.
Table 15 presents a summary matrix of the information received for this segment.
Table 15: Agro-Processors Summary Matrix
With respect to the volume of produce purchased by exporters, Table 16 shows the produce as
well as the prices paid for by exporters in comparison to the wholesale market price.
Table 16: Main Fresh Vegetables Purchased weekly By Agro - Processors Surveyed
No. Fresh Quantity Average Price Average Price Average Price
Produce Purchased Paid by Agro- Obtained By Benefit By
Weekly (kg) Processors (TT$) Farmers At Selling Directly
per kg Wholesale Market To Agro -
For 2013 (TT$) per Processors
kg (source :
NAMDEVCO)
FRUITS
1. This is generally not a viable buyer segment for farmers. For most of the fresh produce
items, farmers would obtain a better price at the wholesale market. All (100%) of the
exporters surveyed, are not willing to pay higher than the wholesale price and they
want farmers to maintain their prices for 3 to 6 months.
2. Processors justification for their low prices is that their final products are being sold in
very competitive markets and they are unable to raise their prices easily. This is a
standard position held by agro-producers, which is difficult to challenge and change.
3. The advantage of the agro-processing sector is that medium and large processors
purchase sizeable volumes, making it easier for farmers with large volumes of the
appropriate crop to quickly sell their products to one buyer on a weekly basis.
4. Based on Information from NAMDEVCO’s website, there are over 35 agro-processors
in T&T. This segment comprises large processors, such as National Canners,
Coconut Growers Association and mainly SMEs. National Canners Ltd. purchases a
large quantity of tomatoes and pineapples, but in crushed form which is imported, as it
is not available locally.
These markets are open to farmers to sell their produce and to buyers who purchase in sizeable
quantities such as wholesalers, distributors, hotels, restaurants, supermarkets and caterers. Farmers
are the main sellers at these markets, but some distributors also have stalls at these wholesale
markets. They buy from farmers and also sell to the aforementioned buyers. Wholesalers are
experienced business people who purchase large quantities for cash and therefore have strong
bargaining power. On many occasions they buy out all the supplies from the early farmers for low
prices and then compete with the remaining farmers in selling to the various buyers. Some
wholesalers also sell imported fresh produce from other CARICOM countries as well as from USA
and Canada. These imported items include carrots, broccoli, tomatoes, cauliflower, cabbage,
lettuce, sweet peppers, zucchini, honeydew melon, cantaloupe, apples, grapes and pears from
North America and bananas, dasheen, yam, eddoes, ginger and plantain from St. Vincent and to a
lesser extent Guyana, St. Lucia and Suriname. These commodities compete directly with local
farmers’ tomatoes, sweet peppers, lettuce, cabbage, cauliflower, dasheen, yam, eddoes, ginger and
plantain.
Table 17 presents a Summary Matrix of the information received from this segment.
Table 17: Information on Wholesaler and Distributor Segment
Distributor 2 Direct From Farmers 50% Cash and 1st quality No-due to
(Established 1 week for 2nd price inconsistent
wholesaler / Purchase from importers some 3rd consistency supply and
distributor for who import bananas from St. farmers farmers not
Papaya and Vincent, St. Lucia and honoring
Bananas) Suriname contracts when
prices increase
Distributor 3 Purchase from wholesaler in 60% 7 days 1st quality No- develop long
(Established Trinidad and distributes to most 2nd price lasting relationship
distributor in of the supermarkets in Tobago, 3rd consistency
Tobago some hotels and roadside 4th ship from
vendors Trinidad to
Tobago
Table 18 represents the commodities and average quantities which these buyers purchase on a
weekly basis for resale.
Vegetables Total
Tomato - Local Kg 4091 0 454 855
Tomato - Imported Kg 1818 0 0 1818
Cucumber - Local Kg 1818 0 454 2272
Cucumber - Imported Kg 0 0 0 0
Sweet Pepper - Local Kg 1591 0 225 1816
Sweet Pepper - Imported Kg 0 0 0 0
Pumpkin Kg 0 0 1363 1363
Squash Kg 0 0 0 0
Lettuce -
Local Heads 300 0 300 600
Lettuce - Imported Heads 0 0 0 0
Cabbage - Local Kg 1644 0 225 1869
Cabbage - Imported Kg 0 0 0 0
Cauliflower - Local Heads 0 0 0 0
Cauliflower - Imported Heads 0 0 0 0
Patchoi Bundles 0 0 0 0
Eggplant Kg 0 0 0 0
Carallie Kg 0 0 0 0
Christophene Kg 0 0 45 45
Ochro Kg 0 0 1000 1000
Callalloo Bush Bundles 0 0 100 100
Bodi Bundles 0 0 20 20
Plantain Kg 4545 0 227 4772
Spices
Pimento Kg 0 0 6000 6000
Hot peppers Kg 0 0 1500 1500
Shadon Beni Bundles 0 0 80 80
Celery Bundles 0 0 0 0
Chive Bundles 0 0 25 25
Root Crops
Sweet Potatoes Kg 9000 0 227 9227
Dasheen Kg 6818 0 91 6909
Yam Kg 4545 0 23 4568
Cassava Kg 1136 0 0 1136
Eddoes Kg 4545 0 0 4545
Ginger Kg 1772 0 0 1772
Fruit
Watermelon Kg 0 0 273 273
Cantaloupe - Imported Kg 0 0 0 0
Papaya Kg 0 5455 45 5500
PROPEL Trinidad and Tobago Market Study 25
Pineapple Kg 0 0 0 0
Bananas - Imported Kg 0 7272 20 7292
Limes Kg 0 0 500 500
Oranges Kg 0 0 300 300
Grapefruit Kg 0 0 200 200
Portugal Kg 0 0 0 0
Mango Kg 0 0 0 0
The main learning points from this segment include the following:
Based on the observed buying habits of wholesalers and distributors, they represent a lower profit
option for farmers to sell their fresh produce. Wholesalers and distributors are committed as a
segment of the market to pay the lowest possible price for produce and also have developed an
import strategy and network. This buyer segment should only be targeted by farmers who have an
excess supply to sell.
The process for selecting commodities for further analysis for the market study was based on the
consideration of three factors: results from the empirical research; the NAMDEVCO’s Market
classification system; and the National Food Production Action Plan 2012-2015 produced by the
Ministry of Food Production.
1. Examination of the volume for each commodity in each HVB Segment. The commodities
with the highest volumes traded for each buyer segment as captured from the survey
were transferred from the excel sheets to the analytical tables in the body of the report
(refer to Table 2 as an example).
2. A price comparison analysis was undertaken for each commodity in each HVB Segment
with the wholesale market price (refer to Appendix 3) for the respective commodity. This
determined the surplus price (additional revenue that could be obtained, if any) by selling
the commodity to that particular buyer segment as opposed to selling the commodity on
the wholesale market.
3. Commodities in each HVB segment were subsequently ranked using the 2 variables of
volume and surplus price. Refer to final column in Table 2 under the Supermarket Buyer
segment as an example.
The next step in selecting commodities for further analysis was to classify the commodities into
groups using NAMDEVCO’s classification of fresh produce as a guide. The categories are
vegetables, leafy vegetables, spices, root crops and fruit. Based on the ranking of commodities
in the aforementioned item 3, commodities that were the highest ranking were placed in their
respective groups. This procedure yielded a summary matrix of the produce in each commodity
group with best potential from each buyer segment. This matrix (Table 19) is illustrated as
follows:
Table 19: Summary Matrix of the Produce in each Commodity Group with Best Potential
from each Buyer Segment
These rankings were then mapped against those commodities that have been earmarked for
support and future research under the National Food Action Plan to ensure that there is some
level of alignment with the proposed products and the Governmental Policy for Development.
Based on the information in the summary matrix and the aforementioned process, the following
products and their rankings are noted:
1. Tomato
2. Lettuce
3. Sweet Potato
4. Hot Pepper
5. Pimento
6. Watermelon
7. Cucumber
8. Cabbage
9. Papaya
10. Sweet Pepper
The aforementioned fresh produce are priority commodities, listed in this country’s National Food
Production Action Plan for further development, in an effort to reduce this country’s food import
bill.
5 SUMMARY
As a result of the research and analysis undertaken, there are viable opportunities for the ten (10)
identified commodities in one or more of the following buyer segments: Supermarkets,
Restaurants, Hotels and Food Caterers. There are also some isolated opportunities in the Agro-
processor and Exporter segments, but the research revealed that these segments are highly
sensitive to prices and the prices farmers obtain from these segments are often lower than the
wholesale benchmark price.
6 POTENTIAL BY PRODUCT
This section of the report presents the product potential analysis for the ten selected products in
the market study.
3. Farmer 3 – Female; Lettuce – Eden & Patchoi, Supermarket & also retail at the Yes –
28yr; South Trinidad Trinity 0.1 ha; Hot Cabbage & Farmers’ Market Consistent
Pepper – West Chive Supply
Indies Red;
0.1 ha.
4. Farmer 4 – Female; Pimento – 0.2 ha. Nil Wholesale Market & No – Pest &
46yr; East Trinidad Exporters. Prefer to sell to Disease
exporter at farm gate for
slightly lower price
11. Farmer 11 – Male; Lettuce – Lyra or Papaya; Supermarkets & Distributors; Yes – Hydroponic
42yr; North Trinidad; iceberg variety; Celery. Obtain higher price for lettuce is more reliable
Tertiary education hydroponics than wholesale price because than open land for
system on 0.2 ha. of consistent high quality due high quality and
Pimento – Hybrid; to the hydroponic system consistent
0.1 ha. (open land) production level
13. Farmer 13 – Male; Lettuce – Eden; Hot Pepper Sell to distributors at farm gate No – Adverse
54yr; East Trinidad; 0.8 ha. who sell to restaurants. Price Weather
Primary Level obtained is lower than
Education wholesale price
14. Farmer 14 – Male; Sweet Potato; 0.4 Pigeon Peas; Wholesale Market No - Labor
73yr; South ha. Plantain; Shortage
Trinidad; Primary Cassava
Education
15. Farmer 15 – Male; 34yr; Hot Pepper – Pimento; Retail at the Farmers’ market Yes –
South Trinidad; Primary Moruga Red & Pumpkin; and also wholesale to Consistent
Education Yellow; 0.4 ha. Cucumber vendors & middleman Supply
16. Farmer 16 – Male; 36yr; Tomato – Delhi; Bodi & Wholesale Market No – Crop
South Trinidad; 0.2 ha. Ochro damage by
Secondary Level animals
Education
17. Farmer 17 – Male; Cucumber – Sweet Sell cucumber to Subway Chain No – Initially
58yr; West Trinidad; Expedition; 0.1 ha Pepper; of Restaurants via a Distributor purchased a
Post Secondary Level Greenhouse; Lettuce; and obtain less than wholesale defective
Tomato – Dianne; Patchoi; price; Also retail at the Farmers’ Greenhouse
0.1 ha Celery Market and wholesale to system but
Greenhouse Roadside Vendors. cucumber
production is now
continuous and
quality is
consistent
19. Farmer 19 – Male; Sweet Potato - Watermelon; Middleman At Farm gate Yes –
54yr; Central Chicken Foot Papaya; Consistent
Trinidad Vareity; 8ha. Corn; Supply
Pumpkin
25. Farmer 25 – Male; Lettuce – 0.1 ha; patchoi Sold at the wholesale and No – adverse
58yr; East Iceberg farmer’s markets weather
Trinidad
26. Farmer 26 – Female; 0.8 ha. Pimento Cassava Sold at the wholesale market No – Irrigation
35yr; Central Trinidad problems; labor
shortage
Only twenty-eight percent (28%) of the farmers surveyed have been able to produce a
consistent supply throughout the year. Fifty percent (50%) said that they have not been
able to produce a consistent supply throughout the year because of flood or adverse
weather conditions. Labor shortage was the next major factor for being unable to
produce a consistent supply throughout the year.
The farmers surveyed indicated that they chose crops to cultivate based on a
combination of factors, with the main factor being, knowledge & experience in the crops
cultivated. Other important factors in choosing the type of crops to cultivate are: to
supply orders; crops which require less labor; and crops which have strong year round
demand.
Sixty-eight percent (68%) of these farmers are willing to cultivate crops which they are
not currently cultivating, if they are guaranteed prices higher than wholesale prices.
Seventy seven percent (77%) of the farmers currently cultivate more than one crop.
Gender
31%
Female
Male
69%
The education level of farmers who participated in the survey was varied with 32% having
primary school education only, 44% having secondary education and 24% having tertiary level
education. This is represented in Figure 8:
Figure 8: Education Level of Farmers Who Participated in the Survey
Education Level
24%
32% Primary School Education
Secondary School
Education
Tertiary Education
44%
12%
Below 10 Years
Ten Years Or More
88%
With respect to cultivation technology, 12% of farmers surveyed used protected or semi
protected systems (greenhouse and hydroponics) while 88% used open land cultivation
systems. This is illustrated in Figure10:
Figure 10: Cultivation Technology Utilized By Farmers Surveyed
Cultivation Technology
12%
Protected System
Open Land
88%
Sweet Potato is a targeted crop in the National Food Production Action Plan of Trinidad and
Tobago. An increase in production has been projected as 13,090 tones at the end of 2015. To
achieve this goal, 121 hectares have been allocated to be distributed to farmers for sweet potato
cultivation. Most of these lands have already been distributed. There are also plans for the
research and development of high yielding, pest resistant, varieties of sweet potato with seven
new varieties expected to be introduced. Other aspects of the action plan for sweet potato
include: the development of investment profiles to assist farmers and entrepreneurs in making
investment decisions on the crop; and the introduction of specific post-harvest technology,
which includes the provision of cold storage and curing facilities specifically for root crops like
sweet potato.
6.2 b Varieties
Farmers try to choose varieties which are high yielding, have good shelf – life, and are resistant
to pests and diseases. The Ministry of Food Production has over 55 varieties in its possession.
The most popular variety grown in T&T is Chicken Foot. The shape of its leaf resembles a
chicken foot. The farmers who were surveyed also cultivated this variety.
6.2 c Competition
Sweet potatoes are on the front burner these days in a variety of trendy foods, from sweet
potato fries to sweet potato bread, cookies, muffins and smoothies. Local farmers receive
competition from sweet potatoes imported from St. Vincent, Guyana and Suriname. Because
these imported supplies are from CARICOM countries, no import duty or taxes are applied.
Figure 11 shows that there is a sizeable market for the imported sweet potato, but this is to
provide for excess demand, for which there is insufficient local supply. There is no evidence from
the data, that imported sweet potato is replacing the locally produced sweet potato. Figure 12
demonstrates that the local price is substantially lower (between 20 % - 30%) than the imported
price. From the survey of buyers in the previous phase, some buyers said that they preferred
the yam and dasheen from St. Vincent, but those same buyers said that they preferred the local
variety of sweet potato. However, there was consensus among buyers that the imported root
1,600
1,400
1,200
1,000
Local
800
Imported
600
400
200
0
YEAR 2011 YEAR 2012 YEAR 2013
Source: NAMDEVCO (2014)
Figure 12: Comparison of Prices for Local & Imported Sweet Potato between 2011 And 2013
at The Norris Deonarine Wholesale Market
10
9
8
7
6
Local price
5
Imported price
4
3
2
1
0
YEAR 2011 YEAR 2012 YEAR 2013
Figure 13 reveals that there is moderate fluctuation in the availability of watermelon for sale at
the Norris Deonarine Wholesale Market, which is the larger of the two wholesale markets in
T&T. This variation in quantity is mainly due to adverse weather in the respective years.
1000
900
800
700
600
500
400
300
200
100
0
YEAR 2007 YEAR 2008 YEAR 2009 YEAR 2010 YEAR 2011 YEAR 2012 YEAR 2013
6.3 c Competition
Competition in watermelon sales is limited to local farmers. Competition emerges, mainly in the
dry period, when there is a substantial increase in production. During the rainy season,
production falls because of adverse weather and therefore price increases. Competition from
imports is negligible, as only a small quantity of muskmelons and honeydew melons are
imported. Most of the restaurants, hotels, supermarkets and caterers either do not purchase
these imported commodities or utilize small quantities. The farmers surveyed indicate that
cultivation of watermelon generates much profit, but there is high risk of floods and losses
during the period from June to January.
Papaya, also known as paw-paw, is popularly grown in the tropics. The fruit has a sweet taste,
high levels of antioxidant and is rich in vitamin C and amino acids. Fruit maturity occurs
approximately 8.5 months after seed germination.
400
350
300
250
200
150
100
50
0
YEAR 2007 YEAR 2008 YEAR 2009 YEAR 2010 YEAR 2011 YEAR 2012 YEAR 2013
6.4 b Varieties
Many varieties of papaya are grown in T&T, but the popular ones are Tainung No.1, Tainung
No. 2 and Red Lady. Tainung No. 1 is used in the fresh fruit market and also for processing. It
is similar to Tainung No. 2, except that it has a tougher skin. Tainung No. 2 is the preferred
variety for the fresh fruit market. It is medium size; oblong shaped and has an average weight
of 1.1 kg. This variety is also an early bearer, maturing in six months. Red Lady is large; oval
shaped and has an average weight of 1.8 kg. It is an excellent variety for processing.
6.4 c Competition
In 2011, imports of papaya to the region were recorded at 0.2 million kg, whereas exports
amounted to 65.1 million kg. The major exporting country being Belize, which accounted for
98.1% of the quantity exported. Barbados, the Bahamas and Antigua and Barbuda were the
major importers during the period 2004 – 2008 with imports of 83.2, 81.5 and 15.7 thousand kg
respectively.
The Competitiveness and Industry Development Strategy (Sing, R.H., Seepersaud, G and
Rankine, L. B. - 2007) commissioned by the CARICOM Regional Transformation Programme for
Agriculture on Papaya, found that the USA and the European Union dominated global imports,
accounting for 38% and 33% respectively. Canada imported a relatively smaller quantity,
accounting for 5% of global imports in value terms. Although opportunities exist in these
markets, the USA is clearly the most important market for CARICOM producers to target, given
Regional demand for papaya remains undersupplied. Papaya is viewed as an exotic fruit, and is
in demand by both the local population as well as the tourism sector. The potential opportunities
of exports within the regional market, is substantial. In T&T, during the survey of buyers, Hilton
Trinidad stated that from time to time they experience difficulty in procuring an adequate supply
of papaya.
Figure 15 demonstrates how the production of hot pepper fluctuated in T&T between 2007 and
2012. There was a steady increase between 2007 and 2010, but this was followed by a sharp
fall between 2010 and 2011 and 2011 and 2012.
6.5 b Varieties
The West Indies Red and Hood are popular varieties cultivated by the farmers surveyed and are
also recommended by the Ministry of Food Production. Other varieties recommended by the
Ministry of Food Production are: Scotch Bonnet, CARDI Green and Faria Series.
6.5 c Competition
A large market exists for locally grown hot peppers in North America where more than 1,000
metric tons were exported over a ten-year period, according to local databases (Trinidad Express
Newspaper, 2010). Several research papers have stated that hot pepper from T&T has a
competitive advantage in international markets because of its high pungency.
A high demand exists for local hot peppers by the HVB surveyed for this study. Imported chili
peppers are the main competitor for the local hot peppers but the chili peppers are more
expensive and were not in high demand by the buyers surveyed. The level of competition is
stronger on the international markets.
A farmer from Caparo, said that he lost 1.6 hectares of hot peppers in the flood. "The peppers
were growing very well and it was almost time for harvesting when the rains came and the land
became waterlogged," he said. Jankie concluded the article, by deducing that local farmers are
willing to participate in shared initiatives, however, external conditions such as adverse weather
play a critical role in the success of these efforts to formalize the sector.
Figure 16 demonstrates how the production of cucumber in T&T fluctuated from year to year
mainly due to adverse weather conditions. Production also decreased substantially from
2,557,000 kg in 2007 to 1,232,000 kg in 2011 with a gradual rise in 2012 to 1,392,000 kg.
2,500
2,000
1,500
Cucumbers Harvested In
Trinidad & Tobago ('000 kg)
1,000
500
0
Year Year Year Year Year Year
2007 2008 2009 2010 2011 2012
Source: Central Statistical Office, 2014
6.6 b Varieties
According to CARDI (2013), the popular varieties in this country are the local type (slicing type)
followed by Ashley and Gemini. The farmers surveyed cultivated the Expedition variety.
6.6 c Exports
T&T is not a major importer of cucumbers. All of the supermarkets, hotels, restaurants and
Caterers that participated in the survey purchased locally produced cucumbers. The National
Food Action Plan postulates that cucumber is a produce with export potential. In addition, the
National Plan has projected cucumber production of 17,600 tons in 2015 and has allocated 10
hectares for protected cucumber cultivation. Trinidad continues to export a sizeable amount of
cucumbers mainly to Barbados as follows:
The main problem affecting the ability of local cucumber farmers to serve the HVB is lack of a
consistent supply due to floods or adverse weather. As a result, the HVB prefer to transact
business with distributors, who search and source the commodity from the wholesale markets or
from farmers not affected by the floods.
Cabbage is classified as a leafy vegetable and is usually green or purple in color. It is a good
source of dietary fiber, vitamins A, B6, C and K, as well as folate, potassium, calcium,
magnesium and iron. Cabbage has a fairly short crop cycle of 12 weeks after transplanting and is
therefore an excellent cash crop for farmers. The traditional use of cabbage includes: fresh and
chilled salads; coleslaw; and additions to other vegetable side dishes in HVB operations.
6.7 b Competition
Figures 17 and 18 demonstrate the strong competition between locally produced cabbage and
imported cabbage. In 2010, the amount of imported cabbage sold at the country’s largest
wholesale market represented 95% of the total quantity of domestic cabbage sold (i.e. almost the
same amount was imported as was produced locally). In 2011 and 2012 it was 87%. The
reasons for the large quantities of imported cabbage are: to meet shortages in domestic supply;
and that imported cabbage is available at a lower price than the local cabbage. From the survey
of buyers, at least 50% showed a preference for imported cabbage from the USA and Canada
over the local cabbage, because of better shelf life and no pesticide residue.
Cabbage has not been included as a priority crop for increased production under the country’s
National Food Production Plan for 2015.
900
800
700
600
500
Local
400
Imported
300
200
100
0
YEAR 2010 YEAR 2011 YEAR2012
9
8
7
6
Average Price - Local
5 Cabbage
4 Average Price - Imported
Cabbage
3
2
1
0
YEAR 2010 YEAR 2011 YEAR 2012
Hydroponics uses water & minerals rather than soil to grow plants
Lettuce has a short crop cycle, usually harvested 4 to 6 weeks after transplanting, and is
therefore an excellent cash crop. Lettuce belongs to the family, Asteraceae and is not related to
the Cruciferae groups such as cabbage and broccoli. It is a good source of dietary fiber,
calcium, iron and vitamins A, B, C and E. Traditional use of lettuce in T&T includes: fresh and
chilled salads; and garnishes.
The local Guardian Newspaper (2012) highlighted a father and son success story in the
cultivation of lettuce. These farmers transformed their lettuce farm from open land cultivation to
the hydroponic system on 0.6 hectares land. In 2012, they produced 40,000 heads of lettuce per
month and supplied this country’s established supermarkets and restaurants. They said that the
hydroponic system allowed for greater control of the plant and thus final product quality is better.
This differentiation has given them a clear advantage over other farmers. They also attributed
their marketing skills and post-harvest techniques as other advantages. For example, their
lettuce is placed in a clear plastic bag with their own brand label for identification as well as a
barcode, which is an added advantage when selling to supermarkets.
Figure19 demonstrates how the production of lettuce in T&T has consistently increased from
2007 to 2012. This rising production in lettuce could be due to the gradual increase in farmers
who are cultivating lettuce under protected systems as opposed to open land cultivation.
PROPEL Trinidad and Tobago Market Study 46
Figure 19: Production of Lettuce Between 2007-2012 in Trinidad and Tobago
2000
1500
Lettuce Harvested In
1000 Trinidad & Tobago
('000 kg)
500
0
YEAR YEAR YEAR YEAR YEAR YEAR
2007 2008 2009 2010 2011 2012
6.8 b Competition
All of the HVB have a strong demand for lettuce to use in their operations. Lettuce has been
identified, in the National Food Production Action Plan, as a crop to increase production for local
consumption to meet the increasing demand. The proposed production target is from 1,394 tons
to 1,500 tons at the end of 2015. To achieve this target, the plan has included an allocation of 5
hectares for cultivation of lettuce under protected agriculture.
The average price obtained for lettuce, at the Norris Deonarine Wholesale Market in 2013, was:
$3.06 for a small head of cabbage; $4.22 for a medium head; and $5.23 for a large head.
Imported lettuce was not sold at the wholesale market. However, Subway which is the largest
purchaser of lettuce in Trinidad, imports most of its requirement because in the past the
business complained of inconsistent supplies from local farmers. Farmers are seeing the
opportunity to generate substantial profit from lettuce cultivation and an increasing number are
investing in protected systems and hydroponic systems.
6.9 b Competition
Pimentos are not 'hot' and therefore do not compete with hot peppers The primary substance
that controls "hotness" in peppers is called capsaicin, and it is found in very small amounts in
pimento. Pimento has a unique taste and has no direct competition. It is a high demand
seasoning pepper by local supermarkets, hotels, restaurants, caterers, certain exporters and
households. The price paid by supermarkets, hotels, restaurants and caterers, are in most
cases, higher than the price obtained at the wholesale market.
6.9 c Varieties
Information from the farmers surveyed revealed that seeds for planting pimento nurseries are
obtained from two sources. They are a hybrid variety available at the agro shops and seed
extracted from a previous crop.
Figure 20 illustrates the level of fluctuation in tomato production between the years 2007 and
2012.
Figure 20: Production of Tomatoes Between 2007-2012 in Trinidad and Tobago
3,500
3,000
2,500
2,000
Tomatoes Harvested In
1,500 Trinidad & Tobago ('000 kg)
1,000
500
0
Year Year Year Year Year Year
2007 2008 2009 2010 2011 2012
From the survey of farmers it was found that 100% of the farmers who cultivated tomato, as their
main crop, used a phased strategy, in an effort to achieve continuous production. Their bearing
plots ranged from 0.1 hectare to 0.8 hectare. The varieties cultivated by the farmers in the survey
are Delhi, Dianne and NS501. However, CARDI (2013) stated that the most popular variety of
tomato grown in the country was Hybrid 61, followed by Heat Master. The Ministry of Food
Production has recommended the following varieties for local production: Royal Pearl; Royal
Gold; Chandini; Dianne; Hybrid 61; and Akash.
6.10 b Imports
Available import statistics reveal that the amount of tomato imported by T&T between 2006 and
2010 is as follows:
Tomato farmers indicated that most of the importation of tomatoes occurs during periods of
shortage, caused mainly by floods, which result in sharp price increases for the commodity. Over
95% of the imports are from the USA, and to a lesser extent Canada. Local production is more
reliable in the dry period between February and May. Floods can occur anytime between June
and January. The average price of tomato in the dry period is usually about 50% less than in the
wet season. As a result, only a minimal quantity is imported during this period.
6.10 c Exports
T&T also exports tomato to other countries in the Caribbean Common Market (CARICOM), mainly
Barbados. The tomatoes exported to Barbados must be sourced from farms certified by
NAMDEVCO, which is a condition under the Agricultural Trade Protocol between T&T and
Barbados. The following tomato exports have been undertaken between 2006-2010:
The main problem affecting the ability of local farmers to serve the HVB is lack of a consistent
supply which is strongly supported by the aforementioned statistics from the Central Statistical
Office, as well as the survey results undertaken for this study.
Sweet pepper is one of the major crops grown in T&T. Most of the crop is
grown under the open-field system, but over the last few years, there has
been some production in greenhouses. The average area cultivated by an
individual farmer is about 0.31 hectares (CARDI, 2013). The sweet
pepper is a crop identified in the National Food Action Plan to increase
production from 343 tons to 2,623 tones; and 20 hectares have been
identified and being allocated to farmers for sweet pepper production.
6.11 b Imports
Available import statistics reveal that the amount of sweet pepper imported by T&T between
2006 and 2010 is as follows:
Statistics on the annual quantity of sweet pepper harvested in T&T reveal that there is high
fluctuation from year to year. From the survey of farmers undertaken for this study, seventy-
five percent (75%) of the farmers indicated that they have not been able to provide a
consistent supply of fresh produce because of one or more of the following reasons: flood;
adverse weather (prolonged period of high temperature or excessive rainfall); pest and disease;
and labor shortage. This is illustrated in Figure 22:
Figure 22: Sweet Peppers Harvested in Trinidad & Tobago Between 2007-2012
500
400
100
0
Year Year Year Year Year Year
2007 2008 2009 2010 2011 2012
CARDI (2013) stated that King Henry is by far the most common variety grown in T&T, followed by
Paladin and King Arthur. From the survey undertaken for this study, one established greenhouse
farmer, who supplies a supermarket chain, cultivates the California Wonder. CARDI (2013) also
revealed that eighty-one percent (81%) of the sweet peppers purchased by supermarkets, hotels
and restaurants are Green followed by Mixed (11%), Red (4%) and Yellow (4%).
The main problem affecting the ability of local farmers to serve the high value buyers is lack of a
consistent supply which is strongly supported by the aforementioned statistics from the Central
Statistical Office, as well as the survey results undertaken for this study.
The following constraints and challenges were noted from the research:
Buyers and Products with the best potential - The following nine (9) commodities
have been found to have the best potential for further expansion and leveraging with
the HVBs sweet potato; papaya; watermelon; lettuce; hot pepper; cucumber; pimento;
sweet pepper; and tomato. These products were selected because there has been a
trend of high demand over the past five years across all HVB segments. There is a
cumulative learning curve/experience by farmers in these produce sectors which can
lend itself to ramp up production. These produce have short – medium crop cycles so
farmers can see the immediate benefits of focusing on them and reaping profits.
Farmers are interested in shifting or upgrading their operations to facilitate these crops
as a primary activity. Although papaya has a slightly longer crop cycle, research has
shown that it has strong local demand among the HVBs and has excellent export
potential.
Conditions required to make the products competitive - In suggesting conditional
changes to improve produce competitiveness, there needs to be both internal and
external context changes.
• A) Internal (from the farmer perspective) require a shift of models from a
subsistence player to an active entrepreneur who invests resources on profit
based projections. Farmers would have to be trained in basic entrepreneurial
and management skills and have access to mentors. This will improve their
operations on a consistent basis and will help develop characteristics of a
credible producer in order to woo and sustain business relationships with the
HVB. Another internal enabler is the gradual shift to protected agriculture
among the farmers who are willing to enter HVB relationships. From the
empirical research, it was revealed that farmers, who employ greenhouses
and hydroponics as methods of production, have higher yields and better
qualities. Farmers can be encouraged to take advantage of incentives that
are being offered by the Ministry of Food Production and the Agricultural
Development Bank to introduce greenhouse methodologies in their
operations.
• B) External enablers will include ongoing educational campaigns to “Buy
Local” and foster a sense of pride in local produce and inputs. Farmers can
also be profiled and NAMDEVCO’s centralized database for grouping farmers
by produce, volume, time of harvest & price points can be updated to
facilitate the value chain process. Post-harvest techniques and quality
assessments need to be built into the operations of farming enterprises to
ensure there is consistency of quality, quantity and reliability of production in
order to secure contracts.
Conditions to build sustainable linkages between buyers and producers - Further
research/study needs to be undertaken within the produce specific sectors to identify
and engage both farmers and HVB as parties that are interested in participating in
specific contractual obligations under required terms and conditions.
PROPEL Trinidad and Tobago Market Study 55
9 APPENDIX ONE
For
Funded by:
Canadian Department of Foreign Affairs, Trade & Development (DFATD) and the
Canadian Hunger Foundation (CHF)
November, 2014
B. TYPE OF ESTABLISHMENT
Wholesaler/Middleman
Farmer
Other
3. Is the fresh produce purchased by your company delivered or collected and in what form?
Yes No
4 b. If no, please state reason (s)
5. How many suppliers your company changed over the last 24 months?
Yes No
8. If the answer to the above question is yes, for what period of time is the price fixed?
10. What are the factors influencing your company’s purchasing decision:
Grading Other
11. How does your company access information relating to the fresh produce market?
12. Does your company currently purchase any of the following items? If yes, kindly indicate your
company’s preference, quantity and frequency of purchase?
Cooking kg
Yellow kg
Green kg
c) Cabbage
d) Pumpkin
e) Squash
f) Eggplant Kg
g) Caraille Kg
h) Pigeon Peas Kg
i) Christophine
j) Pimento
k) Hot Peppers
Long type kg
m) Patchoi Bundle
Iceberg Head
Other Head
o) Cauliflower Kg
q) Cilantro Bundle
r) Thyme Bundle
s) Yam Kg.
u) Dasheen Kg.
v) Cassava
w) Dasheen
Leaves
x) Cantaloupe Kg.
y) Pineapple Kg.
z) Limes
aa) Papaya Kg
Watermelon Kg
Plantain Kg
Cooking Fig Kg
14. Are there any other items, that your company would be interested in purchasing?
15. Would your company be interested in linking directly with local farmers as part of the value chain
to purchase produce?
Yes No
Why?
16. Can you provide us with any trends you have observed regarding consumer demand for fresh
produce or general information on the market conditions for fresh produce?
For
Funded by:
December, 2014
A. NAME OF FARMER:
B. Male Female
C. Education : Primary Secondary Tertiary
D. ADDRESS:
1. Type of Crops
2.
3.
4.
5.
6.
Knowledge & Experience In Cultivating Crop (s) To Supply Orders To Fulfill Contract
4. Would you be interested in growing any of the following commodities if you are currently not
growing it? Tomato Sweet Pepper Cucumber Lettuce Cabbage
Pimento
5. Have you ever sold fresh produce to one or more of the following buyer segments?
7. If your answer is yes to question 5, what was your experience regarding the following :
Price Paid
Payment Terms
Quality of Produce
Frequency of Purchase
Price Changes_
8. Have you ever supplied fresh produce under a contract arrangement? Yes No
9. If your contract was terminated or not renewed state reasons?
Cost of production per lb. or kg. for each crop Profit earned per crop
17. How do you decide at what price to sell your fresh produce?
18. Over the last 2 years, have you been able to produce a consistent supply? Yes No
If no, state reasons
19. What post harvest activities do you undertake? (State emphasis using a score from 0 to 10 with 10
being the highest)
Why?
22. Are you interested in being trained in one or more of the following areas?
Record Keeping Marketing & Sales Post Harvest Management Costing &Pricing
23. Do you produce your crops at a competitive cost when compared with local farmers and imports?
Yes No
24. How do you know?
25. What are some of the current problems that you experience?
26. What support do you need to improve your current production levels?
27. What would be the expected terms and conditions that you would like reflected in a supplier
contract with a Buyer?
No. Name Of Farmer; Sex; Age Main Crop; Variety & Acreage Secondary Crops Cultivated
& Farm Location
1. Farmer 1 – Female; 37yr; East Papaya - Tainung No. 2 Variety; Hot Pepper; Pimento
Trinidad 0.4 ha.
2. Farmer 2 – Female; 55yr; Tomato – Delhi; 0.2 ha & Eggplant
North Trinidad Cucumber – Atlantis; 0.4 ha.
3. Farmer 3 – Female; 28yr; South Lettuce – Eden & Trinity 0.1 ha; Patchoi, Cabbage & Chive
Trinidad Hot Pepper – West Indies Red;
0.1 ha.
4. Farmer 4 – Female; 46yr; East Pimento – 0.2 ha. Nil
Trinidad
5. Farmer 5 – Female; 44yr; Papaya - Tainung No. 2 Variety; Eddoes; Patchoi; Lettuce &
South Trinidad 0.4 ha. Pigeon Peas
6. Farmer 6 – Female; 42 yr; East Papaya - Tainung No. 2 Variety; Nil
Trinidad 0.4 ha; Watermelon – Palladin;
0.8 ha.
7. Farmer 7 – Female; 59yr; North Cucumber – 0.1 ha; Papaya – Nil
Trinidad 0.4ha.
8. Farmer 8 – Male; 58yr; East Watermelon; Sentinel & Tropical Tomato
Trinidad Gold; 2ha.
Hot Pepper (yellow & red); 1.2ha.
9. Farmer 9 – Male; 34yr; Central Sweet Potato – Chicken Foot; 1.6 Pumpkin
Trinidad ha; Papaya – No. 1 Tainung; 1 ha
Watermelon
10. Farmer 10 – Male; 51yr; South Cabbage – Tropicana; 0.2 ha; Nil
Trinidad Tomato – NS 501 variety; 0.4 ha.
11. Farmer 11 – Male; 42yr; North Lettuce – Lyra or iceberg variety; Papaya; Celery.
Trinidad; Tertiary education hydroponics system on 0.2 ha.
Pimento – Hybrid; 0.1 ha. (open
land)
12. Farmer 12 – Male; 52yr; Cabbage – Tropicana; 0.2 ha. Cantaloupe
South Trinidad; Secondary
Level Education
13. Farmer 13 – Male; 54yr; East Lettuce – Eden; 0.8 ha. Hot Pepper
Trinidad; Primary Level
Education
14. Farmer 14 – Male; 73yr; Sweet Potato; 0.4 ha. Pigeon Peas; Plantain; Cassava
South Trinidad; Primary
Education
15. Farmer 15 – Male; 34yr; South Hot Pepper – Moruga Red & Pimento; Pumpkin; Cucumber
Trinidad; Primary Education Yellow; 0.4 ha.
16. Farmer 16 – Male; 36yr; Tomato – Delhi; 0.2 ha. Bodi & Ochro
South Trinidad; Secondary
Level Education
17. Farmer 17 – Male; 58yr; West Cucumber – Expedition; 0.1 ha Sweet Pepper; Lettuce; Patchoi;
Trinidad; Post Secondary Level Greenhouse; Tomato – Dianne; Celery
0.1 ha Greenhouse
18. Farmer 18 – Male; 56yr; Sweet Pepper – California Nil
Central Trinidad Wonder; 0.4 ha. Greenhouse
19. Farmer 19 – Male; 54yr; Central Sweet Potato - Chicken Foot Watermelon; Papaya; Corn;
Trinidad Variety; 8ha. Pumpkin