Gaps in the local food services market may lead to greater importation of foreign goods according to a Hotel, Restaurant and Institutional (HRI) Food Service Report.

This disparity, which arises from the inability of local industries to adequately service the demand for certain goods especially in the tourism sector, has allowed for increased penetration of imported goods.

“Local products could easily lose market share to imports due to inconsistent quantity and quality, if imports were allowed and even if prices were slightly higher” said the report commissioned by the United States Department of Agriculture. Jamaica has a food service market estimated at US$500 million.

Several factors have prevented the importation of more goods from the US as they face significant barriers which restrict sale of many products including poultry, pork and pork products, meat, dairy, eggs and processed food products.

“The poultry market is protected by high tariffs while pork and pork products are restricted due to the presence of pseudo-rabies in the US. The other products are partially restricted in the market due to the difficuties and arbitrary requirements as demanded by the Jamaican veterinary authorities”. These restrictions to further importation present an excellent opportunity for local producers who have yet to fully capitalise on them.

“The agricultural sector currently contributes 5.6 per cent to the Jamaican economy and employs and employs approximately 18.9 per cent of the Jamaican labour force. However there are tremendous opportunities to expand production in both domestic and export markets” states the Jamaica Promotions Corporation (JAMPRO) website.

The country imported just over US$800 million in food and beverages, 60 per cent of which was directed at the HRI sector with the remainder being directed at household consumption. The country’s total consumer food service sector was valued at US$500 million, 40 per cent less than the figure of HRI importation.

JAMPRO has identified several areas in which measures can be taken to improve the country’s agricultural productivity and viability in the HRI industry. Among the areas to be targeted are food processing, aquaculture, bio-technology and livestock rearing to meet local industry needs and support hotels and restaurant demands.

With almost two million stop-over tourists in 2010, Jamaica registered the best performance for the tourism sector in the Caribbean with the report predicting continued growth for the sector.