Caribbean Faces Pressure to Diversify Supply Chains
Advisory firm Dawgen Global is highlighting the need for Caribbean nations to diversify their supply chains as part of its Vision 2030 series. The firm points to the region's heavy reliance on food imports—around 80%—as a major vulnerability. This puts a focus on developing more resilient and diversified sourcing strategies for the hospitality sector.
The Caribbean's food import bill exceeds $6 billion annually, with some estimates suggesting 80-90% of all food is imported. Between 2020 and 2022, imports accounted for 86%–100% of all cereal consumption in the region. This dependency creates significant economic leakage and food insecurity, with 3.2 million people considered food insecure as of June 2025. In response, CARICOM has initiated the "25 by 25" program, which aims to cut the region's massive import bill by 25% by the year 2030. This effort, supported by organizations like the Caribbean Private Sector Organisation (CPSO), focuses on de-risking supply chains by diversifying suppliers beyond traditional markets and strengthening intra-regional trade. Inter-island logistics remain a primary obstacle, with a fragmented ecosystem characterized by limited shipping routes and inconsistent customs procedures. For many businesses, shipping goods to a neighboring island can be more expensive than exporting to the United States or Europe due to high operational costs and small shipment volumes. This cost inefficiency is worsened by a one-way flow of goods; cargo ships often travel south to the islands fully loaded but return northward empty. This imbalance makes northbound freight prohibitively expensive, with Caribbean shipping rates estimated to be three times higher than the cost of moving a container across the Pacific. Modernizing port infrastructure is a critical step, as outdated equipment and bureaucratic hurdles slow down the movement of goods. Barbados Port Inc. serves as a regional model after successfully reducing its costs by 17% through structural changes. Global disruptions, like the 2023-2024 drought that reduced Panama Canal transits by 20%, further highlight the vulnerability of regional supply lines. For multi-property hospitality operators, technology is key to managing this complexity. Cloud-based inventory management systems provide real-time stock visibility across multiple resort locations, enabling centralized oversight and data consolidation. This allows for the standardization of purchasing protocols across all properties. Advanced solutions being adopted in the sector include AI-driven algorithms to forecast demand based on historical data and market trends, helping to optimize inventory levels and reduce food costs. IoT devices, such as smart shelves and RFID tags, further enhance efficiency by automating stock level updates, reducing the need for manual checks.
