Food and Beverage Cottage Industry: Gearing for Exports
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1 Food and Beverage Cottage Industry: Gearing for Exports André Gordon, Ph.D., CFS Technological Solutions Limited exportt EDF 2013, Hyatt Regency, Port-of-Spain October 2013
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3 Introduction
4 The Caribbean has a rich, very exciting and attractive Culture
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7 None more so than Trinidad and Tobago
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11 NATURE OF THE INDUSTRY The Food and Beverage Industry and Cottage Industry Sector in Trinidad and Tobago also mirrors this diversity and vibrancy. Foods and beverages include a wide range of fruits and vegetables, beverages and processed foods.
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15 NATURE OF THE INDUSTRY These are served through delivery channels as diverse as you will find in North America, as well as in more traditional settings (Maracas, roadside vendors, etc.) Many are produced by staff trained and equipped to make high quality products and also by staff with very basic, if any training They are produced in facilities ranging from very basic to state-of-the-art.
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18 World Class Products to Global Markets
19 Introduction The objective, therefore has to be to monetize this advantage by translating this vibrancy and uniqueness that Trinidad and Tobago has into winning food and beverage exports in selected markets around the world.
20 Introduction In order to do this, T&T needs to identify specifically what its best product offerings are Identify, specifically what its best market opportunities are Plan and execute successful market access and development strategies, specific to product/market combinations
21 Export Opportunities for Trinbagonian Products
22 Indicative Exports to the United States from the Caribbean (US$000) Country Vegetables Fresh Fruits Sauces & Condiments Trinidad 1, Dominican Republic Jamaica ,047 Haiti Costa Rica 13,
23 Pricing Differentials for Product A in Selected Cities in Two EU Countries (US$) COUNTRY CITY Total Exports (US$) Value per Carton (US$) Netherlands * 1, Netherlands Honderland U.K. ALL 136, U.K. Berkshire 83, U.K. Feltham U.K. London 36, U.K. Middlesex 15,
24 Pricing Differentials for Product B in Selected Cities in Two EU Countries (US$) COUNTRY CITY Total Exports (US$) Value per Carton (US$) Netherlands Honderland U.K. ALL 1,768, U.K. Birmingham 4, U.K. London 1,688, U.K. Gatwick 23, U.K. Nottingham 8, U.K. Nottington
25 Introduction Capitalizing on these opportunities will require a detailed understanding of T&T s the existing products and the requirements for each product category in the markets being targetted. Meeting these requirements will necessitate a different approach to what has worked well in the Caribbean, as you have been hearing
26 Technical Considerations: Impact on Growing Trinidadian Food & Beverage Exports
27 Technical Considerations for Food & Food Safety Beverage Products Exporters HACCP Hazard Analysis Risk-Based Preventive Controls (HARPC) Produce Rule Canadian Safe Food Act (2012) Good Agricultural Practices (GAPs) Good Manufacturing Practices (GMPs) Packaging and Labelling Requirement Residues (Pesticides, Heavy Metals, Others)
28 FDA Regulations and the FSMA: Impact on Trinidadian Food & Beverage Exports
29 US Regulations Affecting Caribbean Foods 21 CFR 101 Food Labelling 21 CFR 110 Current Good Manufacturing Practices 21 CFR 113 Low Acid Canned Foods 21 CFR 114 Acidified Foods 21 CFR 120 Hazard Analysis Critical Control Points (Juice) 21 CFR 123 Hazard Analysis Critical Control Points (Seafood)
30 US Regulations Affecting Caribbean Foods 21 CFR 11 Electronic Records; Electronic Documents 21 CFR 75 and 82 Labeling of Certified Colours NLEA - Nutritional Labelling FALCPA Allergen Labelling Allergen Management FSMA Traceability and Recall FSMA Prior Notice
31 Supplier Quality Assurance
32 Supplier Quality Assurance Buyers use SQA Audits to ensure that companies supplying them meet their requirements Sometimes more stringent than regulatory requirements Regulators should seek to ensure that there is alignment between what they demand and the SQAs of the major international buyers Example of this is the GFSI Standards
33 Supplier Quality Assurance What do they look for? Physical Facilities; Layout Product Handling Transportation Human Resource adequacy, competence, attire Operations Water Supply HACCP Programme, Testing, Data Collection Prerequisite Programmes (inc. Traceability, Security)
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35 Successful Approaches to Market Entry & Penetration
36 Growing Your Exports Build Reputation for Quality & Safety Strengthen Local Regulatory Capacity Apply Technology to differentiate Product Attributes e.g. use of Oxygen Scavenger technology Nutraceutical benefit to foods Convenience packaging T&T and Caribbean Meals easy to prepare
37 Product Differentiation & Innovation
38 Growing Your Exports Identify the product and service features that create an advantage for you & use them Form alliances (locally & with overseas partners) Identify WINNING Market segments that you can service Contract Packing Identify the regulatory & marketing issues in force or to become influential in the future
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40 Summary and Conclusions
41 Conclusion There are significant opportunities for T&T to grow its F&B exports, including those from the cottage industry sector. Exporting to third country markets require more sophisticated production, quality and food safety systems than has been the norm for exporting to CARICOM. The FSMA provides an opportunity for firms who understand the requirements and ensure they meet them to export to other lucrative markets
42 Conclusions The opportunity is NOW to upgrade operations to world-class levels of competitiveness and move towards compliance and GFSI certification - which opens more markets T&T has an opportunity to leverage its advantages in good production systems, transport linkages, unique T&T and Caribbean culture and the natural inventiveness of its people to conquer the world.
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46 The End
47 For further information contact TSL at: Technological Solutions Limited Unit #31, Trade Centre Red Hills Rd., Kingston OR Dr. André Gordon
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