THE World Bank has identified sauce and spice production as a potentially significant growth area for Jamaica, as global demand for ethnic and specialty food swells.

In a recent report titled Jamaica Country Economic memorandum: Unlocking Growth, the World Bank identified sauces and spices as a sub-sector with growth potential because, compared to such segments as beverages, food preparation, and cereals, it has a better overall combination of rising exports, high SME participation, potential linkages to local agriculture, and potential for competitive advantage.

In 2009, the sauces and spices sub-sector accounted for only 2.5 per cent of total food-processing exports, while total food-processing value added in Jamaica reached close to US$600 million in 2008.

Importantly, Jamaica’s sauces and spices exports have been steadily growing since 2001 — from US$6.5 million in 2001 to US$10.5 million in 2008 — but the world export market for sauces and spices is far more sizeable.

In 2009, global sauces and spices imports totalled approximately US$8.2 billion. The top five markets and their share of world imports were the UK (10.3 per cent), the US (9.0 per cent), France (6.9 per cent), Germany (5.6 per cent), and Canada (5.1 per cent).

“One possible strategy for Jamaica to maintain and expand its market share in the more mature North American and European markets is a focus on emerging niches,” said the World Bank document. “A significant trend affecting the food-processing industry in recent years has been the exceptional growth in demand for organic and ethnic foods. Worldwide, the organic food market has been growing by 20 per cent to 30 per cent annually in recent years. According to the Organic Trade Association (OTA, citing a recent report by Organic Monitor), global organic sales are estimated at US$50.9 billion in 2008, double the US$25 billion of 2003. OTA also reports that United States sales of organic food and beverages have grown from US$1 billion in 1990 to US$24.8 billion in 2009.”