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Market Research FINAL REPORT MARKET RESEARCH CARIBBEAN REGIONAL HRD PROGRAM FOR ECONOMIC COMPETIVENESS (CPEC)/CARIBBEAN EXPORT DEVELOPMENT AGENCY (CEDA) HOT PEPPER PROJECT PHASE I MARKET RESEARCH ON THE VIALBILITY AND EXPORT POTENTIAL OF THE REGIONAL HOT PEPPER INDUSTRY JUNE 2003 REVISED MAY 2004 CARIBBEAN EXPORT DEVELOPMENT AGENCY P.O. Box 34B, Brittons Hill, Barbados Tel.: (246) 436-0578 Fax: (246) 436-9999 Table of Contents SECTION ONE .................................................................................................................. 5 OVERVIEW OF THE INTERNATIONAL SITUATION AND....................................... 5 ANALYSIS OF THE CARICOM INDUSTRY................................................................. 5 1.0 BACKGROUND .................................................................................................... 5 1.1 Introduction......................................................................................................... 5 1.2 Justification......................................................................................................... 6 1.3 Terms of Reference............................................................................................. 6 2.0 METHODOLOGY ................................................................................................. 9 2.1 Secondary Research............................................................................................ 9 2.2 Primary Research................................................................................................ 9 3.0 OVERVIEW OF THE INTERNATIONAL SITUATION................................... 11 3.1 Relative Importance in the Agri-food Sector.................................................... 11 3.2 the most Important Hot Pepper species ............................................................ 13 3.3 The Products and Uses.................................................................................... 15 3.3 International Production and Trade .................................................................. 19 3.4 The Industry Players ......................................................................................... 21 4.0 CARICOM PRODUCTION SITUATION................................................................. 24 4.1 Farming System ...................................................................................................... 24 4.2 Land Preparation..................................................................................................... 24 4.3 Seeds and Seedling Production............................................................................... 24 4.4 Transplanting .......................................................................................................... 26 4.5 Irrigation ................................................................................................................. 26 4.6 Fertilization............................................................................................................. 26 4.7 Crop Protection ....................................................................................................... 27 4.8 Weed Management ................................................................................................. 27 4.9 Yields ...................................................................................................................... 27 4.10 Cost of Production ................................................................................................ 28 5.0 CARICOM POST HARVEST SITUATION ............................................................. 29 5.1 Farmers ................................................................................................................... 29 5.2 Marketers ................................................................................................................ 31 1 6.0 CARICOM MARKET SITUATION.......................................................................... 35 6.1 Market Entry Requirements.............................................................................. 35 6.2 Market Size and Trend...................................................................................... 36 6.3 HOUSEHOLD SEGMENT .................................................................................... 47 6.3.1 Fresh Hot Pepper...................................................................................................... 47 6.4 Retail Segment........................................................................................................ 53 6.5 Institutional Segment .............................................................................................. 57 6. 6 PROCESSING SEGMENT ............................................................................ 58 7.0 MAJOR INDUSTRY NEEDS IDENTIFIED BY CARICOM MEMBER COUNTRIES .................................................................................................................... 62 7.1 ANTIGUA & BARBUDA............................................................................... 62 7.2 BARBADOS.................................................................................................... 63 7.3 BELIZE............................................................................................................ 64 7.4 DOMINICA ..................................................................................................... 64 7.5 GRENADA...................................................................................................... 66 7.6 JAMAICA........................................................................................................ 67 7.7 ST LUCIA........................................................................................................ 68 7.8 Trinidad & TOBAGO.................................................................................... 69 SECTION TWO................................................................................................................ 70 EXTRA-REGIONAL MARKETS AND COMPETITOR ANALYSIS ....................... 70 8.0 UNITED STATES MARKET .............................................................................. 70 8.1 MARKET ENTRY REQUIREMENTS ........................................................... 71 8.2 MARKET SIZE AND TREND ........................................................................ 72 8.3 Household Demand........................................................................................... 79 8.4 Wholesale and Retail Segment ...................................................................... 87 8.5 PROCESSING SEGMENT ............................................................................ 99 8.6 Institutional and Food Service Trade............................................................ 100 9.0 UK MARKET..................................................................................................... 102 9.1 Market Entry Requirements.......................................................................... 103 9.2 Nature and Size of the market....................................................................... 104 9.5 Institutional/ Food service Trade ................................................................... 126 2 9.6 Processing Segment ...................................................................................... 127 10.0 THE CANADIAN MARKET........................................................................... 129 10.1 Market Entry Requirements.......................................................................... 129 10.2 NATURE AND SIZE OF THE MARKET .................................................. 130 10.3 Consumer Demand........................................................................................ 132 10.4 Retail Segment............................................................................................. 136 11.0 COMPETITOR ANALYSIS .......................................................................... 141 11.1 UNITED STATES...................................................................................... 141 11.2 MEXICO..................................................................................................... 145 11.3 COSTA RICA............................................................................................. 147 12.0 OPINIONS OF MARKETING INTERMEDIARIES ........................................ 151 SECTION THREE.......................................................................................................... 154 SWOT ANALYSIS AND STRATEGIC PLAN ............................................................ 154 13.0 SWOT ANALYSIS ........................................................................................ 154 13.1 Strengths ..................................................................................................... 154 13.2 WEAKNESSES .......................................................................................... 158 13.3 Opportunities............................................................................................... 160 13.4 Threats......................................................................................................... 164 14.0 STRATEGIC PLAN .......................................................................................... 167 14.1 Role of The Hot Pepper Association .............................................................. 167 14.2 Membership .......................................................................................................
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