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3. Markets

                    Dominica channel profitability mapping




       Within this broad picture, segmentation shows that annual profit potential (in USD per acre) ranges very widely by

       channel with retail and export showing the strongest opportunities for women and youth:
       Women & Youth                                       Vegetables                                    Herbs & Spices
       Profit opportunity by channel        Onion      Tomato    Hot pepper Irish potato        Ginger      Tumeric      Celery
       (USD/ acre)
       Contract                          $           7,666  $      23,425  $        3,470  $        1,942  $           6,797  $           4,005  $        7,082
       Non-Contract                      $           7,666  $      23,425  $        4,164  $        2,703  $           7,266  $           4,005  $        7,082
       Retail                            $         13,157  $      34,338  $        4,725  $        9,446  $           8,714  $           5,545  $        9,952
       Export                            $         16,462  $      36,863  $        4,725  $        9,446  $         10,591  $           5,545  $      11,680
       However, quality requirements and logistics (e.g. transport, storage or packing) costs vary widely by channel and
       customer and volumes (sales) and price volatility are equally variable by channel & individual customer:

       Women & Youth    QUALITY LOGISTICS VOLUME VOLATILITY
       Channel constraints                                 •    Contracted pricing is often lower than non-contracted but pricing
       Contract            L       L       H        L           and volumes are guaranteed
                                                           •    Retail quality expectations are significantly higher than farm-gate
       Non-Contract        L       L       H        M
                                                                or vendor requirements but pricing is much higher
       Retail             M        M       L        M      •    Export volumes are higher than in retail but standards can be
                                                                much higher and, as such, pricing is generally superior.
       Export             H        M       H        H
      Interventions and will be dependent on the appetite for risk, cost and investment from partners and the farmers

      themselves. In Dominica, a combination of higher value vegetable and herbs & spices sales into retail and export with
      longer term, lower value contracted sales would make sense as a portfolio approach.


    Sustainable Agriculture in the Caribbean (SAC) Project

                                                                        Slide 70
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