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Dominican Republic, Island Market for U.S. Fruit
By Carlos Suarez
Visitors to the Dominican Republic expecting tropical fruit delicacies might be surprised to discover that residents buy a lot of U.S. apples and, to a lesser extent, grapes and pears.
Citizens of the Dominican Republic (which shares the island of Hispaniola with Haiti in the West Indies) traditionally buy these fruits during the Christmas season. But some recent import statistics have good news for U.S. fruit exporters: Although 85 percent of these U.S. fruits are still bought during the last quarter of the year, demand is growing for fresh fruit year-round.
Almost all the apples and pears consumed in the Dominican Republic originate in the United States. Due to climate constraints, the Dominican Republic grows less than 10 tons of apples annually. Other than the United States, Chile is the only other country that ships apples to the Dominican Republic.
Apple imports have grown almost 15 percent per year during the last 10 years. In calendar year 1995, the Dominican Republic imported 3,600 metric tons of apples; in 1996, 5,400 tons. U.S. apples accounted for over 99 percent of these totals.
Local wholesale prices range from $38 to $43.50 per box. Retail prices vary from $0.36 to $0.51 per apple. Over 95 percent of imported apples are Red Delicious, Washington Extra Fancy #2 and US #1. Some Extra Fancy #1 and a small amount of Golden Delicious and Macintosh are also imported.
Fruit and grocery importers generally contract their purchases before the Christmas season to guarantee delivery. Some of the importers sell directly to smaller outlets or to the seasonal merchants who retail directly to the public through small grocery stores (colmados), tiny outlets and mobile carts on street corners. Other importers sell through wholesale distributors to smaller supermarkets and shops. Larger, vertically integrated companies sell directly to the public through their own supermarkets.
The major apple importers are H. Mejia & Co., C&A, Centro Cuesta Nacional, Pimentel Hnos., S.A., and Genesa, S.A.
Fruit Handlers Need Training
Imports of apples and other U.S. fruits would be much more likely to increase if importers and retailers maintained the produce in better condition. Importers, wholesalers and grocers need technical instruction on the handling and storage of fruits. A recent seminar by the Washington State Apple Commission began to address this problem.
Apples are often received and sold in a damaged or over-ripened condition as a result of poorly organized deliveries, improper storage temperatures and frequent rotations in and out of refrigerated areas.
Tariffs Revised in 1993
In August 1993, the Dominican Republic established a new tariff schedule for fruit that included a Basic Tariff of 35 percent, c.i.f. (cost, insurance and freight) value and a value-added tax of 8 percent, c.i.f. The customs office uses the official exchange rate (Dominican peso $14.00 = US$1.00) to calculate tax and duty rates.
The Dominican Republic tends to follow U.S. standards on grading, labels and chemical residues, but does not actively monitor residues on imported fruit. Imports have no seasonal restrictions but phytosanitary certificates from the country of origin and proof of a two-week quarantine period are required.
Prior to transport, permits and authorization letters are required from the Dominican Republic=s Secretary of Agriculture, Plant Health Division and Agricultural and Livestock Promotion Department. This tedious process can delay imports and act as a non-transparent trade barrier.
The requirement for permits (excluding phytosanitary certification) should be removed as the Dominican Republic complies with its WTO commitment to remove non-tariff trade barriers in the agricultural sector.
Promotional Efforts Underway
The Office of U.S. Agricultural Affairs in Santo Domingo coordinated a technical seminar in February 1997 that addressed the handling issues plus the use of in-store promotions, menu presentations and other marketing tools. The seminar, sponsored by the Washington Apple Commission, attracted 40 participants.
USA Fruits has also worked with importers and distributors to distribute point-of-sale promotional material.
For further information on selling your apples in the Dominican Republic, contact:
U.S. Embassy Santo Domingo (FAS)
Unit 5530
APO AA 34041-5530
Tel.: (1-809) 688-8090
Fax.: (1-809) 685-4743
E-mail: agsantodomingo_po@fas.usda.govAg Export Connections
AgBox 1052
AGX/FAS/USDA
1400 Independence Ave., SW.
Washington, DC 20250-1052
Phone: (202) 720-7103
Fax: (202) 690-4374
E-mail: fasinfo@fas.usda.gov
The author is an agricultural specialist with the FAS Office of Agricultural Affairs in Santo Domingo, Dominican Republic. Tel.: (1-809) 221-688-8090; Fax: (1-809) 685-4743; E-mail: agsantodomingo_po@fas.usda.gov .
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