Government Support of Food Marketing in the Eastern Caribbean The governments of the islands of the Eastern Caribbean play a significant role in promoting food production and marketing ac- tivities. The main focus of government support is in the area of legislative and economic infra-structure for agricultural industry. These efforts include securing markets for the industry, assisting with transportation, providing industry information and technical assistance, and establishing farm product pricing. For instance, members of CARICOM established a regional public enterprise called Caribbean Food Corporation to operate as a commercial enterprise. It is charged with the responsibility to have as its objectives the production, processing, storage, transportation, distribution, and marketing of food. More specifically, it is charged with responsibility to identify, plan and implement all stages of agricultural production schemes; to mobilize funds, technical and managerial skills inside and out- side the region; and to promote, finance and implement agricultural production schemes. Further, it is required to organize and facilitate the bulk of agricultural inputs, as well as marketing and other services associated with agricultural produc- tion schemes. The Corporation had an authorized capitalization of $100 million with an initial issue of $10 million. Another government sponsored organization in the region which could have a significant impact on food consumption in the Caribbean islands is the Caribbean Food and Nutrition In- stitute. This, too, was established by CARICOM. Through the Institute, it is hoped that consumption habits of the islands' populations will change in order to increase nutrition and reduce dependence on externally produced food for which there are local substitutes. Governments have also established and maintained agricultural cooperatives, marketing boards and in the case of the Windward Islands, WINBAN (Windward Islands Banana Association) was formed to provide production and marketing of banana, which is the chief agricultural export of these islands. Other major instruments of regional agricultural cooperation are Agricultural Marketing Protocol (AMP) and Oils and Fats Agreement (OFA). The AMP represents intra-regional trade pro- motion for 22 items comprising vegetables, fruits and some meat products. It requires each island to declare its estimated surpluses and deficits of the listed items twice a year. The AMP committee of officials then allocates markets among all the territories. Membership in Common Markets Finally, membership in common markets and marketing agreements with other countries can present a valuable oppor- tunity to Eastern Caribbean islands to enhance their food marketing strategies. Such arrangements provide markets in which the food commodities of the islands are protected from un- favorable market forces such as stiff competition, tariffs, and commodity price fluctuations. Every island in the Eastern Caribbean benefits from some kind of bilateral or multilateral arrangement with other countries. These arrangements include CARICOM, the Caribbean Basin In- itiative, African Caribbean and Pacific Countries (ACP), the Lome Agreement, and the European Common Community (ECC). Under the Lome Agreement, for instance, over 99% of ACP products can enter the ECC with exemption from customs duties. Thus far, the paper has dealt with factors which have a positive influence in developing effective marketing strategies for the economies of the Eastern Caribbean islands. These factors include the existence of a substantial demand for food commodities in both the intra-island sector of the island market as well as in the inter-island and island-to-mainland market sectors. Other factors beneficial to island food trade are the natural resources, abun- dant supply of cheap labor, government support, and belonging to the common market. The next phase in developing effective marketing strategies is to examine some of the major constraints facing food marketing in the region. Constraints to Marketing Food in the Eastern Caribbean In spite of the apparent substantial opportunities for marketing food that exist in the Eastern Caribbean islands, as presented in the foregoing analysis, food marketing is far from desired levels. In The Caribbean Community in the 1980's (Chernic), a group of leading experts in the region concluded that agricultural marketing was a "weak area in domestic food production and in export agriculture of the non-traditional type." Therefore, effective food marketing strategies for the Eastern Caribbean have to recognize and counter those factors which con- strain the marketing function. Among the leading constraints are: 1. Constrained production systems; 2. Undersized markets; 3. Underdeveloped distribution systems; 4. Legal restrictions on trade; 5. Impact of external economic forces; and 6. Inadequate market information base. Constrained Production Systems One of the major constraints on food production systems in island economies is the size of farms. As Jainarain notes in Trade and Underdevelopment (1976), farms are generally too small to be economic. As a result, farmers are often forced by economic demands to engage in non-farm activities. Such a practice does, of course, contribute to poor farm production. Other factors noted byJainarain (1976) as constraints to the production systems are: 1. Low levels of income in the agricultural sector; consequent- ly, the sector is constrained in attracting and keeping quality personnel; 2. A historical stigma attached to agriculture, a stigma rein- forced by the low level of income in the agricultural sector; likewise, attracting and keeping quality people in the in- dustry becomes problematic which often leads to low yields and high production costs. 3. Low level of management and husbandry; for instance, apart from sugar and rice, a great many crops are inter- planted; many crops are planted on lands for which they are not suited; 4. Poor pricing policy by marketing corporations and marketing boards; 5. Lack of sufficient linkages between the food production sector and the rest of the economy; and 6. Over-dependence of islands on imported foods which could be produced locally. Undersized Markets Market opportunities for food and crop produce discussed earlier notwithstanding, a major constraint to marketing food in island economies is a lack of economically large-sized markets for the produce. Given that most islands have small populations as compared to continental economies, island markets are often too small to optimize on the benefits of economies of scale. Conse- quently, local production of many food items often surpasses the demand in the intra-island market segment. With supply ex- ceeding demand, these food items have to deal with depressed prices in the home market. The economic and psychological im- plications for this phenomenon would normally constrain marketing efforts in the domestic sector of the market. PROCEEDINGS of the CARIBBEAN FOOD CROPS SOCIETY-VOL. XX 274