A cook tends to chicken on the grill at an Island Grill restaurant. Island Grill, a Jamaican food franchise, is part of the regional agri-food service sector which a new study values at US$5.6 billion. - File

A new study has valued Caribbean food distribution services as a US$5.6 billion industry, measured on annual turnover.

But while endorsing the sector's value to Caricom economies and as employer of a 112,000 workforce, the region's top experts on trade say its overall competitiveness is limited by inefficiencies, requiring policy interventions to create the right environment for firms to grow.

The sector, comprising manufacturers, retailers, wholesalers and restaurants, comprises more than 17,000 firms, said the Caribbean Regional Negotiating Machinery (CRNM), the region's top body for trade.

"The agri-food distribution services sector is particularly important to Caricom," said the CRNM office.

"As one of the largest components of the services sector, it is vital for development and has important linkages with other key export sectors such as tourism, agricultural production and food manufacturing."

Incentives

But its value could be enhanced by incentives, a better regulatory environment and structured negotiating strategies in international negotiations, the agency said.

The new study, which pulls together market data on agri-foods, offers suggestions on how to formulate a policy around the sector.

It "presents new information on the Caribbean agri-food distribution services industry and agri-food markets, such as consumer trends and economic contribution, and provides an analysis of the sector relative to international trends and performance benchmarks," said the trade body in a release announcing the study titled 'Assessment of the Agri-Food Distribution Industry in Caricom'.

It also "presents pertinent information to assist the formulation of development policy," said the Barbados-based agency.

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