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1.

a)
The rise of agri-food standards has been seen since the SPS agreement has been
signed, the agriculture sector in many nations went through multiple stages of
expansion, facilitating growth of their economies, as the demand for high-value
products has greatly increased. This is due to many factors, namely:

 The increasing incidence of many food borne diseases in regions of the world-

Food borne diseases remain one of the most widespread public health
problems in the world, as such, it reduces economic productivity; with the
development of a well-functioning food safety system, a great attempt can be
placed on filling the gap between traditional and modern production
standards. The development of the Caribbean Agricultural Health and Food
Safety Agency (CAHFSA) in 2010, helps to facilitate Caribbean states in
developing and practicing national health and food safety standards, with
careful compliance to the sanitary and phytosanitary measures the CAHFSA
assists producers in achieving an internationally established criteria, focusing
solely on trade regulations such as; surveying the risks associated with pests,
diseases and food-borne illnesses on foods.
According to the Food and Agriculture Organization of the United Nations,
(FAO), the burden of food-borne diseases is increasing in the region, with
Salmonella, being one of the most prominent food-borne disease affecting the
Caribbean population, with the highest reported rate being 800 people in 2010
and approximately 650 in 2014. Salmonella is not the only food-borne
diseases one can adopt, diseases such as; Typhi, Ciguatera, Norovirus,
Shigella, Campylobacter, among many others are prominent in Caribbean
society, as such, there was an immediate upturn to reinforce food safety
policies in the region, with assistance from the CAHFSA as well as the
Jamaican Food Safety Policy. The Jamaican food safety policy is a
compilation of 20 acts and regulations administered by a joint venture from
the Ministry of Agriculture and Fisheries, the Minister of Health and the
Industry Investment and Commerce in Jamaica, it was adopted to progress the
national food safety and security systems, ensuring international standards are
met when producing goods.
Food and safety regulations have driven the focus on increasing the need for
food quality assurance, most Caribbean territories experience high tourist
traffic, with the tourism sector being the largest economy in some regions, as
such there is a demand for high quality foods, without focus on food quality
assurance, the tourism sector can be placed in jeopardy as a large percentage
of outbreaks occur on cruise ships, tourist attractions and hotels.
 Changing lifestyles, depicted by an increasing number of people eating
outside the home, in food service or catering establishments, at street food
stalls, or in fast-food restaurants-

Globalization has a major impact on food systems around the world, there is
greater availability and diversity of foods that are all easily accessible to us.
Changes in food systems are due to urbanization, increased income, capital
flow and market liberalization; the lower socio-economic population
gravitates towards poorer quality, energy-dense cheap and all-around
affordable foods, however, these foods must meet food safety regulations.
As mentioned before, food safety regulations must be met, data from the
Caribbean Epidemiology Centre suggest that the burden of food-borne
diseases are increasing in the region. In the Caribbean, there is limited
information available in order to pin point the sources and how it makes its
way into the food supply chain, as such a rise to food safety policies and
institutions have been observed in the region.
Consumers are attracted to the means of eating out, as a result of its
convenience, eating out does not only mean unhealthy food, matter of fact, no
food is particularly unhealthy as long as it fulfils your macronutrient goals for
the day. The development of institutions in the region helps in ensuring that
food quality regulations are met; institutions such as National Food and
Nutrition Security Policies and Action Plans (NFNSP/AP), Regional Food and
Nutrition Food Security Policy/ Action Plan alongside the Caribbean Food
and Nutrition Institute; helps to address numerous challenges facing the food
sector such as, non-communicable diseases and other food and nutrition
concerns in a systematic and coordinated way, which allows for maximum
efficiency. The Caribbean Food and Nutrition Institute focuses specifically on
improved nutrition and infectious diseases, these institutions put together help
to ensure food quality assurance is met, as well as supporting, healthy eating
and healthy living.
Changing lifestyles and consumer behaviour with respect to food services,
have increased risk of poor-quality assurance as the vast availability of the
food market and business, makes it difficult for regulations to be closely
monitored, posing major threats to the human population that enjoys a more
convenient eating experience; the severity of communicable diseases may not
be fully understood; hence, this poses a threat to the entire population.

 Emerging foodborne pathogens-

Records related to food borne diseases in the Caribbean are poorly


documented; key information regarding morbidity and mortality associated
with food borne diseases are unavailable, however, the most worrying factor
is that the sources of these pathogens remain unclear, there is no information
or knowledge available on how these pathogens are introduced in the food
supply chain. In the Caribbean illnesses such as; Salmonella and Shigella rank
as the highest contracted food borne diseases, followed by Rotavirus and
Norovirus. These diseases are undoubtedly related to food sources as research
conducted showed no animal to human contact or human to human contact
being responsible for the cause of the diseases.
Food borne diseases carry substantial burden on the population of a nation,
however, another major concern is the effect these diseases have on the
tourism industry. Tourism is very important to Caribbean economies, the
economic impact of food borne diseases is reason for concern. Due to the
large influx of people the country receives, many books their vacation via
cruise ships and resorts, which all have inclusive meal plans; food borne
diseases may impact negatively on the Caribbean country’s sustainability as
vulnerability to health and safety challenges puts tourists in jeopardy.
While food borne diseases may not directly lead to death, there could be
future complication as a result of the severe effects of the diseases, such as
long-lasting disability and cancer. While the burden of food borne diseases is
prominent, its effect to public health and economics have often been
underestimated due to the mere lack of availability and difficulty in
establishing relationships between food contamination and resulting illnesses.
The world population continues to grow, the industrialization of the food
sector meets increasing demand, and as such greater responsibility must be
placed on food producers and food handlers to ensure food quality and safety
regulations are met.

 An increase in the number of vulnerable people, such as the elderly, immuno-


compromised individuals, the undernourished, and individuals with other
underlying health problems-

Vulnerability to food borne diseases may be due to numerous factors, such as;
age, immune system resistance and overall health condition. To be considered
“vulnerable,” individuals must fit the outlined criteria; very young (under 1
year), older adults, immune compromised individuals and women who are
pregnant. Food borne diseases are often times underestimated and can be
extremely dangerous, common symptoms such as vomited and fever can
intensity and become life-threatening, leading to disabilities and sometimes
death.
The immune system, also known as the body’s natural defence system, aids in
combating pathogens, bacteria or viruses that can cause diseases. A properly
functioning immune system can readily fight off pathogens, however, as we
age our immune functions begin depleting overtime, rendering our body as
less effective in combating bacteria. Individuals with pre-existing conditions
may already have weakened immune systems, rendering them in a less
effective state to combat foreign pathogens. Young children, with developing
immune systems are more at risk to attract food borne diseases, their immune
system has not experienced any shock or trauma forcing itself to strengthen,
hence their bodies are sensitive and are most susceptible to diseases. Pregnant
women may not have compromised immune systems, rather, their immune
systems are altered to serve a specific purpose, although this alteration makes
the body susceptible to infection.
In order to reduce the risk faced by vulnerable population, preventative
measures must be put into place. Though there is lack of information
available, food and safety regulations are being developed and implemented
by multiple institutions to help keep contaminants out of processes and
manufacturing, this offers reduced chances of pathogens entering the food
supply chain.

b)
i) Caribbean importers of agricultural products-

 The basis for sanitary and phytosanitary measures which restrict trade are
made clearer by the SPS agreement- Importers of food, although having to
adopt increased overhead costs for higher quality products, face no restriction
in trade with other countries, as long as the items being traded meets the stated
healthy and safety regulations put forward by the country.
 Free flow of trade- Food importers benefit as there is a free and efficient flow
of trade between trading partners, there is a greater certainty regarding border
measures. The SPS agreement helps provide a stable market for food
importers.

ii) Caribbean exporters of agricultural products-

 Eliminates uncertainty about the conditions for selling in a specific market-


food exporters enter a fair market, allowing equal opportunity for sales, as
products are of similar quality, there is no alternative products to satisfy
buyers.
 Eliminates barriers to trade- The SPS agreement allows for free and fair trade
between trading partners, ensuring the trade of high-quality products between
countries.

c)
Three functions of NAMDEVCO-

 Green Vine monthly bulletin- NAMDEVCO serves as a communication


channel between the market and the farmers, among many other functions
such as strengthening the managerial capacity of agribusiness. The green vine
bulletin provides monthly updates on; wholesale prices, volumes export
prices, seafood prices and retail prices, allowing them to get a fair and full
price for their product. This update provides agricultural producers with vital
information regarding the value of their product in the international market, as
well as provides them with information on market opportunities in foreign
markets.
 NAMDEVCO website- The NAMDEVCO website has vital information on;
registration, list of exporters, trade protocols and good agricultural practices,
this information provides agricultural producers with everything they need to;
identify market opportunities; registering on the NAMDEVCO website places
the individual on a list of exporters, who are made aware of important trade
opportunities available on the market. Furthermore, producers are able to
satisfy international market requirements as there is information on; trade
protocols that are prevalent in certain markets and good agricultural practices
to ensure regulations are met on the international market.
 NAMDEVCO’s Packaging house- the packaging house helps to facilitate the
market of high quality, safe agri-food products. The packing house is linked to
only certified farmers in order to source the best fresh produce available. Post-
harvest activities set the bar for export opportunities for a product, at this
packaging house, products are sorted, washed and processed for packaging
suitable for export markets, ensuring each health and safety regulation is met.
This satisfies international market requirements and helps agri-food producers
obtain trading partners. Furthermore, the packing house offers both
refrigerated and frozen storage facilities.

2.
a) Three major types of intermediaries-

 Agents- An individual or company that serves as a middle man in the


export process, they take possession of the commodity and represent the
producer throughout the distribution process, profit is made through fees
and commissions.
 Representatives- A representative is an authorized body that acts on behalf
of the seller, there is no exclusive agent, the representative body carries
out all required actions to facilitate the sale of the commodity.
 Trading houses and distributors- Trading houses and distributors help
facilitate trade between countries, it aids in eliminating trade barriers
allowing free access to foreign markets.

b) Three major elements in the management of the import/export function for


agricultural products-
 Pre-export product preparation- Product preparation is the most important
process in an import/export market, proper preparation activities ensure steady
trade between partners; pre-export, the exporter is in charge of; ensuring
contractual obligations are met, grading the product, packaging the product
and marking and labelling. Furthermore, legal requirements must be met
before exportation, ensuring each product reaches the required health and
safety measure for the market it is entering.
 Process- Logistic management- involves selecting the mode of transport; road,
sea, rail or air freight, that is most suitable for the commodity and its
destination, factors such as; destination, availability, types of good, size,
segregation, value, perishability, speed of transit, cost and fragility is taken
into account when selecting modes of transport. Financial management- deals
with payment procedures such as; cash in advance, open account,
documentary collections and documentary credits. Risk management- risks
associated with exporting or importing; business and financial risk. Legal
requirement- proper documentation for the commodity to present to customs
services.
 Output- When all requirements are met; proper pre-export preparation, as well
as proper process management, exports would be effective and efficient.

c) Services provided by the freight forwarder-

 Documentation- A freight forwarder provides all relevant documents such as;


commercial invoice, declaration documents, inspection certificate, packing list
and export license. These documents are essential in ensuring proper
exportation of the commodity.
 Advice- Selecting a trustworthy freight forwarder is vital to any export
business, a good freight forwarder works alongside its customer to ensure
their goods are delivered safely. Freight forwarders help ensure that all
paperwork is up to date, reducing complications when trying to export goods.
The freight forwarder also outlines restrictions that exists with certain
products as well as restrictions in certain markets, making the exporter aware
of any missing documents or license required to enter into foreign markets.
Lastly, a well-established freight forwarder has a strong network, this would
ensure customers get the best possible price for their product with little to no
problems along the way.

d) Common problems experienced by international importers of agricultural products


from the Caribbean-

 Frequent market changes- Prices may fluctuate depending on the market


condition; new competitors, changes in buyer preferences, changing import
rates and exchange rates, cause a number of changes in the market price of a
commodity; importers must pay current market value for the commodity of
their interest.
 Import restrictions- Restrictions are put into place by importing nations to
control the volume of goods entering into its economy, tariff restrictions.
International trade policies may differ from country to country, some rules and
regulations may exist in nations causing certain barriers to trading. It is
important that an importer be aware of certain restrictions and ensure all
regulations align with their trading partner, allowing ease of trading between
both parties.

3.
a)
 Economic Factors-

 Gross Domestic Product- Gross Domestic Product (GDP), is defined as the


total market value of all goods and services produced within a country. It is
most commonly used to measure economic activity and is a useful tool used to
determine the health of an economy and whether or not an economy is
growing. Furthermore, it can determine inflation or recession periods by
observing the continual growth or decline of the market. Gross domestic
product can be calculated using a countries’;
Expenditure- the total value of import plus the total value of net exports to
other countries.
Income- domestic income, the measure of the income between individuals and
businesses within the country
Production- the total market value of everything produced in the country.
Marketing to a country that is going through a recession can be seen as
ineffective marketing, as the country is most likely not able to afford the good
or service; profits can be maximized by marketing to a country with a thriving
economy. The same goes for Gross National Product (GNP).

 Balance of Trade- The trade balance is the net sum of a


country’s exports and imports of goods without taking into account all
financial transfers, investments and other financial components. If the value of
exports exceeds the value of imports, it is said to be a positive balance of
trade. Conversely, a country’s balance of trade is negative if the value of
imports exceeds the value of exports. Favourable balance trades encourage
trade surplus, when a country’s export is greater than its import, this is when a
nation prefers to sell more products and generate more revenue for its
residents, though to maintain a trade surplus, nations resort to trade
protectionism, by defending domestic industries by means of tariffs, quotas or
subsidies, thus causing a trade war. An unfavourable trade balance, often
referred to as a trade deficit, is where a nation relies on heavy importation of
consumer products, causing increased dependency on global commodity
prices. Nations that operate in a trade deficit are usually those whose economy
relies most on exportation of raw materials. Countries that heavily oppose
trade deficits, adopt mercantilism, this is where nations seek to achieve and
maintain a trade surplus, implementing protection measures such as tariffs,
quotas and embargoes; typically leading to higher costs to consumers.
However, a trade deficit is not so much a bad thing as it can be indicative of a
strong economy, with careful planning and investment decisions, a deficit can
lead to a stronger economic growth for a nation.

 Political-legal Factors-

 National employment laws-


National employment laws may slightly differ throughout nations; however,
they are all implemented to ensure that employees work in an environment
that; is free of bias, safe, has fair wages and hours and has equality.
These laws were developed overtime by governments to prevent exploitation
in the face of industrialization.
These labour laws set the standard for working conditions and wages, the fair
labour act was created to prevent child labour and sets minimum wage
standards; Child labour is prominent in areas that are experiencing
urbanization, as the standard of living rises, more individuals seek
employment, some employers go against the act and employ child labourers to
carry out tasks for less than minimum wage.

 International Trade Regulations-


The body that deals with all rules of trade between nations is the World Trade
Organization, created in 1995. The WTO is responsible for negotiating and
implementing new trade agreements and is in control of monitoring member
countries’ adherence to all agreements. Regulations and agreements are
created in order to facilitate fair trade between nations and follow basic
principles such as; Non-discrimination, Reciprocity, Binding commitments,
Transparency and Safety valves.
Trade regulations ensure a free and competitive economy for all nations,
ensuring that no one nation reigns supreme to others, it helps enforce
consumer protection and promote economic growth. Trade policies come in
the form of duties, tariffs and embargoes, however, some member nations
have developed free trade agreements between each other, such as the EU free
trade market, allowing European territories to be free from trade barriers.
b) Four problems encountered in international marketing research-

 Data problems- problems in assessing; validity, availability,


completeness, currency, consistency and misinterpretation. Data is
complex, it may be difficult to obtain adequate information to fulfil the
factors listed before; compromising the usefulness of the data.
 Cost and time in collection of data- International market research is a
sizeable task to carry out, depending on what is being assessed,
sampling method and sampling size can cause the cost of this
operation to skyrocket. Before conducting international market
research, a firm must determine if they would receive positive return
on investment.
 Methodological difficulties- Conducting international market research
on a foreign place may prove to be difficult as there are certain barriers
in communications that may arise, such as; language, interpretation,
culture and practices. These barriers pose a direct threat to the market
research as relevant information may not be able to be obtained.
 Infrastructural difficulties- Lack of telephones and roads; depending
on the research being conducted, these factors affect market research
as it makes it more difficult to obtain information relative to the study;
prolonging the research process and costing the researcher/firm more
in the long term.

4.
a)

• Two Benefits to buyers-

1. Convenience- E-commerce shops are accessible from anywhere that offers


internet connection and is available 24/7 to consumers. Consumers no longer have
to waste time in traffic just to arrive at the store and not get a parking space,
furthermore, an online store has no lines, payment for online products can be done
in less than 10 minutes. Packages are delivered within a week’s order, while some
stores have the option for express shipping, offering delivery within days. There is
no limit as to what can be purchased online, many storefronts have launched
virtual grocery stores, allowing consumers to purchase food items from the
comfort of their home, and have it delivered at their door steps. Comparative
shopping can be easily carried out by consumers offering further convenience.
2. Greater product access- Consumers are attracted to items that satisfies their needs,
e-stores offer unlimited access and selection to consumers at their fingertips
compared to what a consumer would have at the traditional brick-and-mortar
store; these stores are not retrained to physical boundaries and can offer products
to consumers anywhere in the world. There is unlimited freedom to view products
without any stress or hurry. However, although there is a wide variety of products
available it does not always mean that the product is in stock, as such, there are
attached wait times not only for delivery but for restocking as well.

• Two benefits to sellers-

1. Customer relationship building- The internet is a powerful tool that can be used to fortify
customer relationship, because of its interactive nature, a business can communicate with
consumers at their convenience, to learn more about their specific needs and wants.
Based on the feedback received, companies can increase customer value and satisfaction
through product and service refinement. Furthermore, a company can increase sales by
encouraging customers to rate and review existing products so that new customers find
the good to be useful or fulfil its need.

2. Reduced costs- A virtual storefront costs less to maintain than a traditional brick-and-
mortar store. Automated inventory management can be utilized using web-based
management systems, as such, E-marketers do not have to undertake expenses such as;
maintenance, rent, insurance and utilities, most importantly, virtual storefronts, while
having unlimited choice options, there is little to no storage fees for items. Consumers
deal directly with sellers, there is no middle man involved in the business transaction,
hence the reason for lower costs.

b)
 Email Marketing-
Email marketing has been around for a long time, simply because it works.
Email marketing has to provide useful content that relates to the business,
there must be a clear line between formal and informal, however, in order to
improve customer relation, the email should be somewhat personal. This form
of marketing allows for business transparency, an email does not have to be
limited to a few well-structured sentences, it can include; events and new
products, that relates to your customer, gauging their interest and keeping
them actively engaged in the business. Emails are efficient, versatile and can
be sent to more than one customer.
As with any business seeking to maintain customer relation, customer
engagement is the number one priority. In the case processed agricultural
products such as dried fruits or instant coffee; the target market must be
specified, this data can be obtained by establishing a virtual storefront,
prompting customers to input their emails for some sort of deal or for updates;
Upon receiving such data, the target market can be categorized judging by
engagement. When the target market is outlined, emails can then be sent to
specific consumers announcing special promotions and allowing for further
customer engagement in the form of feedback, this feedback can then lead to
further innovations in the dried fruit or instant coffee product that properly
satisfied the customer.
Email marketing allows for confidentiality between business and consumer, as
offers and strategies have more privacy between two persons rather than being
published in the open and available to competitors.
Emails is a simple, efficient, yet effective form of marketing that engages
customers and allows the business to receive proper feedback without even
contacting customers.

 Websites-
Websites allow consumers to have unlimited access, 24/7, to the information
published. A website is used as a means to attract potential customers to
products; it is an international window for opportunity therefore it must be
easy to use and attractive. Websites allow for a range of products and services
to be advertised without anyone being physically present with the customer,
therefore the customer feels no sense of pressure or hurry to make a decision
on the item, coupled with proper customer support, a website can be made
into a powerhouse to support a business.
There are tools available that can be added to a website, that allows a business
to view where a customer spends the most time, whether it be the home page,
products catalogue, contact or searching for social media links.
Dried fruit or instant coffee, can be easily marketed on a website specifically
tailored to suit the product. A website developed to market dried fruit should
have; a storefront, nutritional benefits, the processing stage and customer
feedback; it can also include a page showing future products and prospects,
this encouraging the consumer to return to the sites for updates. Likewise,
instant coffee can be easily marketed as well, as long as the website includes
important nutritional informational, outlines processing stages as well as
customer support.
E-Marketing is the future of business, almost everyone has some piece of
technology that allows for connection to the internet, with proper research and
development, marketing strategies can be tailored to suit a product’s target
market.

c)
1. CARICOM area invoice- The CARICOM area invoice contains vital
information, with the three main pieces of information being; description of
goods, origin of goods and value of goods. This invoice shows the price paid
locally for the goods.
2. Bill of lading- A bill of lading acts as a receipt of freight services between the
freight forwarder and shipper. It is a legally binding document that details the
journey of the good from origin to its destination.
3. C82 form- The C82 form is a customs declaration form needed to export the
goods from Trinidad and Tobago.

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