St. Maarten/St. Martin entices U.S. exporters with duty-free status

AgExporter,  May, 2002  

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The strongest competition in the retail sector of St. Martin comes from France, which has 60 percent of the market (and the highest market share of wines throughout the island). Brazil has a growing share of whole chicken imports, while pork ribs are purchased primarily from the Netherlands and Brazil. A few products from Canada, like bottled juices, are available.

On the St. Martin side, products of U.S. origin are often found in the meat, seafood and fresh produce categories. However, in all other categories, French and other European products dominate.

U.S. Dominates HRI

The United States enjoys an estimated 80-85 percent share of the $37 million worth of food service imports for the hotel, restaurant and institution (HRI) industry on the island. Again, Florida companies hold the ace card in exporting U.S. products.

Altogether, the island boasts more than 6,500 hotel rooms and 500 restaurants. When researching market possibilities, exporters should keep in mind the ambiance of each side of the island. St. Martin offers an intimate and relaxed atmosphere in accommodations, excellent food and highend boutiques. Dutch St. Maarten entertains with casinos, major resorts, shopping and nightlife.

Hotels and restaurants account for about 85 percent of the U.S. total food service sales; fast food chains account for about 10 percent; and institutions fill in the remainder.

While the heyday of tourism on the island came before the hurricanes of 1995, 1996 and 1998 damaged the sector, there is a strong comeback underway. In 1994, island visitors numbered 586,000 and cruise line passengers reached 717,000. Most of the momentum had been regained by 2000 when 512,000 stay-over tourists and 868,000 cruise passengers visited the island. Initial 2001 figures show a modest increase as well.

French products pose the only substantial competition for U.S. agricultural exporters in the HRI food import market. French imports range from 15 to 20 percent on the French side and from 10 to 15 percent on the Dutch side.

To keep sales flowing, U.S. exporters should take advantage of personal business relationships and relatively short and frequent shipping times from Florida.

Best Prospects

"The best opportunities for U.S. exporters in the retail sector include fresh produce, fresh juices, soft drinks, dairy products, meats, seafood, dry goods, specialty foods and pet food," Bauer said.

On both sides of the island, wholesalers are mostly interested in national brands, while supermarkets look for a wider choice of products.

As for potential in the HRI sector, "The two sides of the island market have idiosyncrasies that exporters should study carefully," Bauer said. "Wholesalers on the Dutch side import the full range of U.S. food service products. On the French side, meats, poultry and fresh produce are almost all of U.S. origin."

Most milk sold in retail stores is in powder form, but several wholesalers serving the retail sector have indicated an interest in fresh milk products. However, chefs on both sides prefer European dairy products, mostly from France and the Netherlands.