BIGEST POLUTRY PRODUCER IN BARBADOS LOOKING AT

UNCLAS SECTION 01 OF 02 BRIDGETOWN 001406 SIPDIS SIPDIS DEPT FOR WHA/CAR AND DRL USDOL FOR ILAB SOUTHCOM ALSO FOR POLAD E.O. 12958: N/A TAGS: ELAB ECON PGOV PREL BB XL SUBJECT: BIGEST POLUTRY PRODUCER IN BARBADOS LOOKING AT EXPORTING TO US MARKET BRIDGETOWN 00001406 001.3 OF 002 ¶1. Summary: POl/ECON Deputy was contacted by the GM of Chickmont Foods, Barbados who was interested in finding out how to export chickens to the US market. POL/ECON Deputy met with the GM, Geoffry Goddard, to explore their plans and learn more about the poultry industry in Barbados. Mr. Goddard indicated that the poultry business in Barbados is heavily dependent on US suppliers for most of their raw material inputs as well as machinery. He thought that Barbados would be an attractive place for American firms to do business, and was surprised at how few American companies are active in the island. End Summary ¶2. Chickmont Foods is the largest poultry producer in Barbados, with 45% of the market share. They have the most advanced machinery in the region, and are the second country in the entire hemisphere to have the latest chilling units produced in the US. He was most proud of their computerized management system. Every farm in the island that they own or buy from is tied into the network. When they have an order, they go online and can determine which farm is ready to supply the market and then they order the slaughter and pick up/delivery information online. Within minutes the farm is preparing the chickens for delivery to the market. Chickmont is not only the largest supplier in Barbados, but they are also big suppliers to cruise ships who stock up on chicken products when they dock in Barbados. Mr. Goddard said that Chickmont has developed such a good reputation that the cruise ship industry would like to import chicken breasts from them into Miami and supply their ships from there. Mr. Goddard believes his company is the only company in the Eastern Carribean capable of meeting that demand. He contacted the Econ section for advice as to how to get permission to export to the US market. ¶3. Pol/Econ deputy contacted USDA Miami who advised him that the process is complicated, requiring a country to seek certification for the entire industry before they can be allowed to export meat products to the US. The Chief Veterinary Health authorities would be the appropriate government office to start the process overseas. They would request certification of the industry. The request goes to USDA Food Safety Inspection Service, which then schedules an audit of the industry, before issuing a certification. DHS's Animal and Plant Health Inspection Service (APHIS) would also have to sign off on the certification. 4) Goddard was surprised to hear this, and also shocked that China is on the list of suppliers of chicken given that China has some very substandard poultry operators. Pol/Econ officer provided the GM with details on the procedures from the USDA web page and suggested that Chickmont work with a lawyer to begin navigating the process. ¶5. Mr. Goddard is the grandson of Mr. Joseph Goddard, who founded one of the largest corporations in Barbados, Goddard Enterprises, which has operations in more than 23 countries in the region. Mr. Goddard's father founded Chickmont Foods after retiring from the Chairmanship of Goddard Enterprises. Chickmont Foods, though, is not part of the Goddard corporate family. ¶6. Pol/econ chief also asked Mr. Goddard about the recent labor turmoil at ADM Barbados. He said that the situation was badly handled from the beginning by the company. He said that the labor movement, like the rest of Barbados society, is very status conscious and protocol minded. ADM did not go through the standard procedures, and the union objected. The company ultimately decided to settle the matter with the unions rather than risk an embargo. Mr. Goddard said that ADM controls more than 50% of the grain imports coming into Barbados and that any work stoppage or disruption would ruin the economy very quickly. He therefore thought that ADM had more leverage with the union than almost any other company. He commented that he had generally good relations with the union, but sometimes they went a bit too far and always backed down when he confronted them. Comment: The ADM situation illustrates some of the pitfalls facing foreign companies working in Barbados and, for that matter, the entire Eastern Caribbean where labor unions tend BRIDGETOWN 00001406 002.2 OF 002 to be quite powerful politically and are quite conscious of the proper protocols to be followed in labor-management relations. End Comment ¶6. Mr. Goddard indicated that his company would be quite interested in working with other companies in trying to resurrect a regional American chamber of commerce in the eastern Caribbean. He commented that he was surprised that there are so few American companies in the region given that almost every thing is imported from the US. His assistant GM is an American citizen. Pol/Econ Deputy has accepted an offer to visit the plant and see their computerized chicken processing system in operation and to meet with the senior management to explore getting involved in resurrecting AMCHAM. The regional chamber was formed in 2001 and last met in 2003. Bridgetown's Pol/Econ section is quite keen on resurrecting such a regional chamber as having an active AMCHAM will greatly facilite our commercial and economic diplomacy efforts. HOWARD