Doubts linger over hotel food supply

The Government is pressing ahead with an ambitious plan to tap into the lucrative import-substitution market, especially involving the sale of food to the local hotels. However, lingering doubts are still being voiced about both the ability of Jamaican producers to displace foreign suppliers, and the desirability of presenting tourists with only locally produced staples.

At least one local hotelier is pointing out that comparatively low levels of subsidies to the Jamaican farming sector will affect its ability to produce in the volume needed by the large local resort and hospitality sector. Somewhere in there, too, is the issue of pricing.

Data show that in 2009, real value added for the hotels and restaurants industry in Jamaica grew only by an estimated 1.4 per cent and contributed 5.8 per cent to overall gross domestic product, a recession-induced performance, which fell below a 10-year (2000-2009) average annual growth that was in the region of 3.1 per cent.

Improving this contribution to the aggregate production and the national purse has been on the minds of local technocrats and researchers.

Researcher Dr Marshall Hall pointed out in August 2009 that "if we can substitute 20 per cent of food imports with domestic production, we would have a US$160 million industry".

Food import bill

Jamaica's total food import bill was US$802.3 million last year.

And even while, as evidenced by a recent deal between the Government and GraceKennedy, concrete steps have been made to drag down this figure by ramping up food sales to local hotels, commercial interests in the United States continue to see the local hotel and restaurant sector as a growing market for food from that country.

"Approximately US$62 million of Jamaica's total tourist expenditure goes towards the purchase of US high-valued agricultural products, (and) hotels retain a strong demand for US meats, cheeses, wines, fruits, temperate vegetables, seafood, salad dressings, and other specialty dairy products," noted a 2009 publication titled 'A Primer on Exporting to Jamaica' by Christina Storz, Timothy Taylor and Gary Fairchild, and published by the University of Florida.

It added: "Long-term prospects for wines remain positive with demand driven primarily by the hotel restaurant subsector ... . Total imports of fruits and vegetables continue to grow as demand at both hotel restaurant institutions and retail remain strong."

The writers said, too, that foreign products such as tomatoes, carrots, cabbages, melons, lettuce, and other fruits and vegetables, which compete directly with local products, will become less price competitive under Jamaica's Safeguard Act. The Safeguard Act (2001) is overseen by the Anti-Dumping and Subsidies Commission and seeks to ensure fair competition and equity in Jamaica's international trading environment by vigorous and efficient enforcement of Jamaica's trade remedies legislation.

A significant demand for imported beef, lamb and even mutton, still exists in the hotel and restaurant sector, the Americans added.

"Total market for imported beef, lamb, and goat meat is estimated at US$15 million. The United States competes in specialty cuts of high-quality beef (and) although goat meat has always been a principal component of the local cuisine, production has historically remained low, as Jamaica is yet to develop commercial techniques and genetics that suit the domestic situation."

Initiatives detailed

Management and purchasing officials of the larger local hotel chains were not immediately available for comment, but as noted in a story carried in Friday's issue of sister publication the Financial Gleaner, Dr Derrick Deslandes of the agriculture ministry has detailed the many initiatives being pursued to make serious inroads into the local hotel food trade, further displacing foreign sales.

The price issue remains a thorny one that local efforts will have to address, as Barbara Walker, a manager attached to the Mockingbird Hotel in Portland, pointed out.

"Chicken from a local farmer is more expensive than cheap, mass-produced meat from the United States," she remarked.

But, the hotel has been buying food from small farmers and fishermen for the past 17 years.

"It would be easy to look to imports to stop the gap, but as we said, we prefer to be creative with our menus and promote sustainable tourism," the property added in one of its online blurbs.

- avia.collinder@gleanerjm.com