Country Profile

The Caribbean Market for Value-Added MeatsJune 2002

6.0Aruba

Country Profile

Per capita GDP: / US$28,000
GDP growth rate: / 3.5%
Population: / 70,007 (July 2001)
Age breakdown: / 0-14 years: 21.29%
15-64 years: 68.52%
65+ years: 10.19%
Life expectancy: / 78.52 years
Ethnic makeup: / Mixed white/Caribbean Amerindian: 80%
Religion: / Roman Catholic: 82% Protestant: 8%
Other: 10%
Currency: / Aruba florin (AWG)
US$1.00 = AWG1.78
Source: CIA World Factbook, 2001

6.1Overview

Aruba is located just east of Curaçao and north of Venezuela’s Peninsula de Paraguana. Historically, the island of Aruba gained full autonomy in internal affairs in 1986 upon separation from the Netherlands Antilles, and became an autonomous member of the Kingdom of the Netherlands.

Tourism and petroleum are Aruba’s major economic sectors. Aruba enjoys one of the highest per capita GDPs in the region, estimated at $28,000 in 2001. Over the last ten years, the Aruban government has focused on developing its tourism trade. Growth has also been spurred by the reopening of the country's oil refinery in 1993. The government’s decision to fix the exchange rate of the Aruba Florin to the US dollar proved instrumental in sustaining investor confidence and growth. In 1999, unemployment was estimated at less than 1 percent.

Aruba depends heavily on food imports due to its low-level of agricultural production. Local production of poultry, eggs, fruits, and vegetables falls far short of the island’s needs. As a result, Aruba remains a good venue for US exporters of consumer foods including processed meats. According to USDA, the US supplied Aruba with 40 percent of its consumer-oriented food products in 1999. It is also estimated that the US supplies 70 percent of the products that go to Aruba’s hotel, restaurant and institutional (HRI) sector. As the country’s tourism growth continues, the United States will continue to play an increasingly important role in the local food market.

6.1aDemographics

Aruba’s total population is approximately 70 thousand. The majority of the population resides in Oranjestad, the capital. In addition, Aruba attracts a large number of annual visitors, including 721,224 overnight tourists in 2000, with US visitors accounting for 62 percent of the total. According to the USDA, visitor arrivals have increased 17 percent annually since 1995.

6.1bConsumption

Aruba has virtually no agricultural base and depends on imports for most of its food and agriculture products. Sources indicate that the meat products consumed in greatest quantity are fresh beef, chicken and seafood. Aruba is heavily influenced by the US as a result of media, tourism, and the volume of US products entering the island. Prepared and ready-to-eat/ready-to-cook meals, while not widely popular with the local community, do appeal to the tourist masses.

Annual consumption of processed meats is estimated to have grown 37 percent by volume for sausage products from 1996 to 2000. However, processed beef and pork have fallen by 75 percent and 22 percent, respectively. Source indicates that this is due in part to growing consumer awareness of health issues. Supermarkets appears to be increasing their lines of healthier food products in response to this trend. This was evident during visits to Aruban supermarkets where products such as Hormel’s Lean Ham and Spam Lite, among others, were available in the canned meats sections, and white meats such as turkey and chicken were available in numerous quantities in the chilled meats section (sources indicated that consumers prefer to eat fresh chicken and turkey to canned products).

Pork consumption follows that of poultry. Consumption of pork products tends to increase during Christmas and Easter. Sources indicate that during this period consumers purchase canned ham shoulders to put into small gift baskets. Holiday demand is also high for pre-cooked ham shoulders (usually in the frozen meat section), although these are also consumed throughout the year.

6.2Imports

US food imports are generally associated with high quality as well as high price. The Netherlands and US are the major exporters of value-added meat products to Aruba, as well as the vast majority of all foods consumed in Aruba.

6.2aImport Volumes and Values

Official Aruban import statistics were not available for the desired period (1996-2001). Official export statistics of the US and EU reveal that Aruban imports of processed meats totaled 958 MTs worth $2.4 million (cif) in 2000. Aruban imports of sausages, pork and chicken each ranged around 300 MTs in 2000 (see tables below).

6.2bCountry Suppliers

The US is the main supplier of processed meats to Aruba, shipping 457 MTs of product with cif value of US $980,000. Major US products included processed chicken (306 MTs) and sausages (114 MTs).

European processed meat imports come primarily from the Netherlands and, to a lesser extent, Denmark and Germany.Sources also indicate that much of the product shipped from the Netherlands is of German and Danish origin (as well as Dutch). Major Dutch products in 2000 included sausages (107 MTs) and processed pork (196 MTs).

Visits to local supermarkets also revealed products from Canada, including chicken nuggets and patties. Also in evidence were imports from other competitors in the Americas such as canned corn beef from Brazil.

6.2cImport Statistics

Official import statistics of the US and the EU (provided below) show a noted increase in imports of processed meats in recent years. (Note: Not all country suppliers are shown due to the unavailability of official Aruban trade statistics).

Table 6.1: Aruban Imports of Sausages
1996 / 1997 / 1998 / 1999 / 2000
MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s
US / 108 / 286 / 838 / 238 / 81 / 210 / 40 / 113 / 114 / 217
Netherlands / 50 / 196 / 97 / 350 / 77 / 269 / 74 / 261 / 107 / 325
Denmark / 64 / 179 / 69 / 179 / 61 / 157 / 81 / 195 / 84 / 199
Total / 222 / 661 / 1,004 / 767 / 219 / 636 / 195 / 569 / 305 / 741

Source: Official Trade Statistics of the US and EU

Includes all sausage products (spicy, sweet, breakfast links, etc.) made from poultry, pork and beef.
Table 6.2: Aruban Imports of Processed Turkey
1996 / 1997 / 1998 / 1999 / 2000
MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s
US / 1 / 9 / 24 / 20 / 1 / 9
Netherlands / 3 / 10
Total / 1 / 9 / 24 / 20 / 3 / 19

Source: Official Trade Statistics of the US and EU

Includes all processed turkey products except sausages.
Table 6.3: Aruban Imports of Processed Chicken and Poultry (except Turkey)
1996 / 1997 / 1998 / 1999 / 2000
MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s
US / 176 / 605 / 67 / 198 / 238 / 683 / 446 / 920 / 306 / 637
Netherlands / 4 / 14 / 7 / 29 / 6 / 36 / 5 / 18 / 13 / 34
Denmark / 1 / 3
Germany / 3 / 19
Total / 181 / 622 / 77 / 246 / 246 / 729 / 451 / 938 / 319 / 671

Source: Official Trade Statistics of the US and EU

Includes all processed chicken and non-turkey poultry products except sausages.
Table 6.4: Aruban Imports of Processed Pork
1996 / 1997 / 1998 / 1999 / 2000
MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s
US / 182 / 625 / 4 / 16 / 30 / 104 / 29 / 76
Netherlands / 139 / 759 / 146 / 661 / 120 / 531 / 169 / 651 / 196 / 549
Denmark / 70 / 241 / 104 / 337 / 93 / 285 / 68 / 212 / 97 / 275
Germany / 3 / 16 / 7 / 28 / 5 / 27
Belgium / 22 / 55
Total / 413 / 1,680 / 257 / 1,030 / 250 / 948 / 242 / 890 / 322 / 900

Source: Official Trade Statistics of the US and EU

Includes all processed pork products except sausages.
Table 6.5: Aruban Imports of Processed Beef
1996 / 1997 / 1998 / 1999 / 2000
MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s
US / 22 / 22 / 14 / 39 / 23 / 43 / 7 / 22 / 5 / 21
Netherlands / 1 / 3 / 4 / 14 / 3 / 15 / 1 / 3 / 1 / 2
Denmark / 1 / 4
Germany / 1 / 4
Total / 24 / 29 / 19 / 57 / 26 / 58 / 8 / 25 / 6 / 23

Source: Official Trade Statistics of the US and EU

Includes processed and canned beef products (corned beef, shredded beef, etc.) except sausages.
Table 6.6: Aruban Imports of Other Meat Products, Mixed or Otherwise
1996 / 1997 / 1998 / 1999 / 2000
MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s / MTs / US$000s
US / 77 / 58 / 1 / 3 / 2 / 20
Netherlands / 2 / 5 / 3 / 7 / 4 / 11 / 1 / 1
Total / 79 / 63 / 3 / 10 / 4 / 11 / 3 / 21

Source: Official Trade Statistics of the US and EU

Includes all processed meat mixtures except sausages.

6.3Distribution

6.3aStructure and Trends

Due to Aruba’s relatively small size, there are a limited number of importer-distributors on the island. Distributors in Aruba may also serve as exclusive agents for major brands. Local distributors supply both the retail and HRI sectors, although most of the supermarkets chains source their stock directly from Florida consolidators as the size of the Aruban market makes it difficult for supermarkets to import directly from manufacturers.

6.3bImporter-distributors

There are at least four major import / distribution companies in Aruba. The largest ones are (1) Frasa International Trading NV, (2) Caribbean Overseas Ltd (recently purchased Lee Tai Trading), (3) Compra, and (4) Consales Aruba NV (with sister agencies in Curaçao). Compra and Consales account for more than 30 percent of Aruba’s food distribution. Other importers include AquAruba and Kong Hing Wholesale (owner of Kong Hing Supermarkets). Smaller wholesalers include Eight Continent, Unisales Corp, and Martijn Trading Company who represent big international companies. A list of major Aruban importer-distributors carrying processed meat products is provided below:

Table 6.7: Aruba Importer-Distributors
AquAruba NV
Wayaca 31 B
Oranjestad, Aruba, Dutch Caribbean
Contact: Mr. Albert Luidens, Operations Manager
Tel: 297-8-24-205;Fax: 297-8-22-503
E-mail: / Exclusive importer-distributor for the Normeat (Dutch products). Sources many varieties of food products from the US directly as well as Europe.
Interested in receiving product information from potential suppliers.
Frasa International Trading NV
Schotlandstraat 39
Oranjestad, Aruba, Dutch Caribbean
Contact: Mr. Frances Saladim, Import Buyer
Tel: 297-8-22-704; Fax: 297-8-31-035
E-mail: / Importer-wholesaler distributor of a wide variety of foods including deli and value-added processed meats. One of the largest importer-distributor on the island supplying supermarkets, hotels, restaurants, and convenience stores.
Consales Aruba NV
Gutenbergstraat 2 Box 580
Oranjestad, Aruba, Dutch Caribbean
Mr. Patrick Paris, Director
Tel: 297-8-23-; Fax: 297-8-23187 / Sister agency of the Consales Curaçao NV. Sources many food products from Florida-based consolidators.
Kong Hing Wholesale
Schotlandstraat 33
Oranjestad, Aruba Dutch Caribbean
Contact: Mr. Farley Yee, President
Tel: 297-8-30-892;Fax: 297-30894 / Sister company and wholesale supplier to Hong King Supermarkets. Also supplies other stores and food service clients in Aruba. Sources many varieties of food products from the US (mostly via Florida consolidators) including Butterball, Oscar Mayer and Pilgrim’s Pride products.
Interested in receiving product information from potential suppliers.
Caribbean Overseas Ltd.
Schotlandstraat 47
Oranjestad, Aruba
Contact: Peter Rooyakkers, General Manager
Tel: 297-8-21064; Fax: 297-8-28213 / Major Aruban importing company that recently purchased the Lee Tai Trading Company. Supplies all supermarkets in the region. Exclusive distributor for Hormel products in Aruba.
Martijn Trading Co. Ltd
Italiestraat 1, P.O. Box 104
Oranjestad, Aruba
Contact: Mr. Hammerstein, Manager
Tel: 297-8-21528; Fax: 297-8-22932 / Small importing company handling meat products.

6.4Retail Sales

There are more than 150 food retailers participating in the retail distribution market in Aruba. Food retailers in Aruba include large supermarkets, mini-markets, and small grocery stores. The major supermarkets with a sizeable representation of deli meat products are Certified Groceries (2 stores), Kong Hing Supermarkets (2), Ling and Sons, Supermercado Favorito and Pueblo Food Center. These supermarkets account for over 50 percent of sales. Certified Groceries has recently opened an 80,000 square feet store, Certified Megastore, in the heart of the Oranjestad tourist area beside the newly renovated Kong Hing Supercenter. One striking particularity in Aruba is the clustering of supermarkets in the same area that intensifies competition significantly. As a result, supermarkets make strong use of advertising (TV, radio, newspaper) and promotional campaigns.

Supermarket stores typically range in size from 25,000 to 30,000 square feet, and sell both food and non-food items. The layout of the stores is similar to US supermarkets, with separate deli, bakery, meat, frozen, seafood and produce sections. Wealthier neighborhood supermarkets offer a wider selection of products. Certified Groceries and Kong Hing (mega-supermarkets) target affluent consumers and tourists. Kong Hing Super center, Certified Megastore and Ling and Sons are all located in the metropolitan area of Oranjestad near hotels in Druit Bay, Manchebo Beach and Palm Beach.

Smaller supermarkets range in area between 6,000 and 20,000 square feet and offer frozen and chilled items as well as specialty foods. Deli sections are not as elaborate as in the super centers, as these stores cater mainly to the working class. Competition among the smaller stores is not as intense as that between larger supermarkets. These markets tend to be located in less wealthy areas of the island. In St. Nicolaas, south of Oranjestad, the main supermarkets are Johnson Supermarkets, Greenhills, Springfield, Wang Boy Supermarket, S Chow Supermarket and Winter Gardens. In Santa Cruz (north of Oranjestad), Mundo Nobel is the main supermarket. There are also smaller stores like 88 Stores that serve as small corner groceries. Visits to some of these stores show that the deli counters are not well furnished or stocked, carrying a smaller selection of local, Dutch and US meat products (including brands like Oscar Mayer, Louis Ridge and Jennie O).

Small grocery stores usually have an area of 2,000 square feet or less. While some are organized into chains, most are independent family-owned businesses whose main advantage is convenience.

6.4aMajor Supermarket Chains

Leading supermarkets in Aruba include Certified Groceries (2 stores), Hong King (2), and Ling and Sons and others.

Table 6.8: Aruba Supermarkets
Certified Groceries, Ltd
LG Smith Blvd 150
Oranjestad, Aruba, Dutch Caribbean
Contact: Mr. Thomas Cha, General Manager
Tel: 297-8-29013; Fax: 297-8-29166 / Certified Groceries is a chain of two stores, including one newly remodeled and transformed hypermarket (80,000 square feet in size). Catering mainly to higher income consumers and tourists.
Features a large, modern deli area.
Kong Hing Supercenter
L.G. Smith Blvd 152
Oranjestad, Aruba, Dutch Caribbean
Contact: Wendy Vinke, Dairy and Deli Manager
Tel: 297-8-25545 (ext 252); Fax: 297-8-25549
E-mail: / Chain of two stores, sister company of Kong Hing wholesale. The newly renovated and bigger store is located next to Certified Groceries, ten minutes away from the main tourist area. A smaller and older store is located in the main tourist area (this store is slated for closure).
The renovated store features a large, modern deli section with counter.
Ling and Sons Supermarket, NV
Italiestraat 26
Oranjestad, Aruba, Dutch Caribbean
Contact: Ingrid Ling, Manager
Tel: 297-8-32370; Fax: 297-8-32253
E-mail:
/ Supermarket located in the vicinity of timeshares and resorts in the Oranjestad area.
Features a small, but modern deli counter.
Wang Boy Supermarket
Dr Schaepmanstraat #19
San Nicolaas, Aruba, Dutch Caribbean
Contact: Wan Pui Ho, Director
Tel: 297-8-45045; Fax: 297-8-4646 / Small supermarket in the San Nicolaas area. Caters to middle class consumers, but still carries many US deli meats.
Small, modest deli counter section.

6.4bMeat Departments

Meat departments in major stores such as Certified and Kong Hing offer the full spectrum of meat products from the US, the Netherlands and other countries. These supermarkets – each with modern frozen, chilled foods and deli sections – carry a wide variety of US and Dutch meat products. While the volume of Dutch products (Normeat, Zwan and Belle brands) in the deli meats section generally outnumbers that of the US, while products from the latter are more plentiful in the chilled, canned and frozen sections.

The major canned product, Vienna sausage, is dominated by Libby’s and Hormel. Other canned meats include Hormel Spam and Underwood Deviled Ham. Frozen sections commonly offer franks, sausages, and value-added items such as chicken nuggets and chicken patties. Other products include Morning Star and Swift premium bacon strips, Tyson’s chicken breast patties, Country Skillet chicken nuggets, and Hormel’s pork roast.

6.4cProducts and Prices

Value-added meat products found at the 3 supermarket chains granting permission to record store data (Certified Groceries, Hong King and Ling and Sons) are provided in the tables below, along with brand names, countries of origin and retail prices in US dollars.

Table 6.9: Products and Prices – Certified Groceries, Oranjestad
Product / Brand / Origin / Size / Price
Deli section
Bologna, beef / Lykes / USA / 16 oz / $2.64
Bologna, beef, “Lite” / Oscar Mayer / USA / 8 oz / $2.16
Bologna, sliced pack , “Low Fat” / Louis Rich / USA / 8 oz / $2.16
Bologna, sliced, “Lite” / Oscar Mayer / USA / 12 oz / $1.87
Chicken breast / Honey Suckle / USA / 16 oz / $3.77
Chicken breast, golden / Dietz & Watson / USA / 16 oz / $3.98
Ham, shoulder / Fibron / Netherlands / 16 oz / $3.38
Ham, boiled, sliced pack / Oscar Mayer / USA / 6 oz / $2.43
Ham, chopped / Oscar Mayer / USA / 12 oz / $2.33
Ham, shoulder / Dubuque / USA / 16 oz / $2.52
Ham, sliced, Low Sodium / Oscar Mayer / USA / 12 oz / $3.90
Ham, smoked, sliced pack / Oscar Mayer / USA / 6 oz / $2.43
Ham, turkey, smoked , sliced / Louis Rich / USA / 8 oz / $1.59
Ham, turkey, smoked, sliced / Honey Suckle / USA / 16 oz / $3.04
Ham, Virginia / Carando / USA / 16 oz / $3.43
Pepperoni, Classic Italian / Carando / USA / 16 oz / $3.97
Rookworst Sausage / Unox / Netherlands / 9 oz / $1.77
Salami, Boeren Metworst / Fibron / Netherlands / 16 oz / $2.30
Salami, Cervelaat Extra / Stegeman / Netherlands / 16 oz / $3.15
Salami, Cotto, sliced pack / Oscar Mayer / USA / 12 oz / $3.51
Salami, Genoa, sliced pack / Hormel / USA / 3.5 oz / $1.71
Salami, hard / Swift Premium / USA / 16 oz / $3.46
Salami, smoked / Belle / Netherlands / 16 oz / $4.98
Salami, turkey / Louis Rich / USA / 8 oz / $2.72
Turkey breast / Hormel / USA / 16 oz / $4.70
Turkey breast, “Golden Oven” / Butterball / USA / 16 oz / $4.72
Turkey breast, 98% Fat Free / Healthy Choice / USA / 16 oz / $4.70
Turkey breast, Honey Roasted / Butterball / USA / 16 oz / $3.94
Turkey breast, Peppered / Butterball / USA / 16 oz / $3.51
Turkey ham, smoked / Louis Rich / USA / 8 oz / $1.60
Turkey ham, smoked / Honey Suckle / USA / 16 oz / $3.04
Turkey pastrami / Honey Suckle / USA / 16 oz / $3.22
Canned section
Corned beef / Hering / Australia / 12 oz / $1.32
Corned beef / Hereford / Brazil / 12 oz / $1.32
Corned beef / Libby’s / Brazil / 12 oz / $2.16
Ham, picnic / Normeat / Netherlands / 17 oz / $3.43
Ham, picnic / Tulip / Netherlands / 16 oz / $3.48
Luncheon meats, pork / Goya / Holland / 12 oz / $1.88
Luncheon meats, pork / Libby’s / USA / 12 oz / $2.74
Luncheon meats, pork / Tulip / Holland / 12 oz / $1.35
Potted meat / Libby’s / USA / 3 oz / $0.40
Sausage, cocktail, hot / Normeat / Netherlands / 14 oz / $3.70
Spam / Hormel / USA / 12 oz / $2.15
Spam, turkey / Hormel / USA / 12 oz / $3.70
Vienna sausage / Libby’s / USA / 5 oz / $0.55
Vienna sausage / Armour / USA / 5 oz / $0.93
Vienna sausage / Libby’s / USA / 5 oz / $0.71
Vienna sausage / Armour / USA / 9.25 oz / $1.79
Vienna sausage, BBQ / Armour / USA / 5 oz / $1.26
Vienna sausage, BBQ / Libby’s / USA / 5 oz / $0.71
Vienna sausage, chicken / Armour / USA / 5 oz / $0.93
Vienna sausage, hot n spicy / Armour / USA / 5 oz / $1.26