This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 11/21/2019
For individuals or firms interested in exporting agricultural or food products to the Dominican Republic, please be aware that there is an office of USDA’s Foreign Agricultural Service (FAS) located in the U.S. Embassy, Santo Domingo.  Contact information for the FAS Office of Agricultural Affairs (OAA) is as follows:
USDA-Office of A
gricultural Affairs
U.S. Embassy
Santo Domingo, Dominican Republic
Phone: (809) 368-7741
E-mail: AgsantoDomingo@fas.usda.gov
Website: https://www.fas.usda.gov/

In addition, the OAA publishes an annual Exporter Guide providing more detailed information on the structure and dynamics of the Dominican food and agricultural market.  The 20176 Exporter Guide Report is available at: https://www.fas.usda.gov/data/dominican-republic-exporter-guide-2.


Wheat
This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Wheat*2015201620172018
Total Local Production0000
Total Exports42262528
Total Imports139118128126
Imports from the US95858570
Total Market Size979210398
Exchange Rates:  RD$50.21 = US$1    
Unit: Millions of U.S. dollars
Sources: Unofficial estimate by FAS based on industry and U.S. Census Bureau, Economic Indicators Division; DR Customs; Global Trade Atlas.

The amount of imported wheat into the Dominican Republic remains above 530,000 metric tons (MT) annually since 2010, primarily as a result of the destruction of the wheat mills in Haiti in the January 2010 earthquake.  The Dominican Republic is estimated to import 530,000 MT of wheat during Marketing Year 2018/19 (July 2018/ June 2019), a decrease from the 535,000 MT imported during MY 2017/18.  Exports of wheat flour and products manufactured in the Dominican Republic to Haiti and other Caribbean markets remains strong.  The United States faces increased competition from Canada in the local market.  Historically, Canada has provided wheat to the Dominican market in years of overproduction.  However, during recent Marketing Years, Canada has been regularly supplying Dominican millers. Under the right price conditions, local millers cite a preference for Canadian wheat due to prices and higher protein content. 


Opportunities
Product quality, proximity, and price, in addition to market support and technical assistance efforts such as the ones provided by U.S. Wheat Council, will assure continued presence in the Dominican market. As a basic food item for bread and pasta production, wheat is exempted from import taxes.  Given the increase in international wheat prices and competition from Canada, wheat imports from the United States may continue to decrease slightly in the short term.

Web Resources
The U.S. Foreign Agricultural Service Santo Domingo agricultural specialist covering the grain sector is Virgilio Mayol, virgilio.mayol@fas.usda.gov.

Soybean Meal
This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Soybean meal2015201620172018
Total Local Production0000
Total Exports0000
Total Imports187221159181
Imports from the US187221159175
Total Market Size187221159181
Exchange Rates:  RD$50.21 = US$1    
Unit: Millions of U.S. dollars
Sources: Unofficial estimate by FAS based on industry and U.S. Census Bureau, Economic Indicators Division; Global Trade Atlas.

The United States is the Dominican Republic's main supplier of soybean meal (SBM). During Calendar Year 2018 (CY 2018), the Dominican Republic imported 477,574 MT of soybean meal.  The United States supplied 96 percent of that total, with Brazil supplying the rest.  SBM is used mainly in feed formulation for poultry and swine.  The market is dependent on the poultry sector, which consumes about 70 percent of all feed ingredient imports. The swine and cattle sector consume 20 percent and 10 percent, respectively.  During 2019, SBM imports are expected to increase due to a higher local production of poultry and eggs.  This higher input will be needed to meet increased demand from the Government’s Public Schools Feeding Program and other social programs.


Opportunities
Product quality, geographic proximity, and price, in addition to market support and technical assistance from U.S. Soybean Export Council (USSEC), will assure continued presence of U.S. SBM in the Dominican market.  As a basic feed item for the poultry, swine, and dairy sectors, soybean meal is exempted from import taxes.  In spite of relatively high prices for SBM, imports from the United States are expected to remain strong.

Web Resources
The U.S. Foreign Agricultural Service Santo Domingo agricultural specialist covering the grain sector is Virgilio Mayol, virgilio.mayol@fas.usda.gov.

Corn
This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Corn2015201620172018
Total Local Production14131313
Total Exports1111
Total Imports208219221249
Imports from the US868895160
Total Market Size221231233261
Exchange Rates: RD$50.21 = US$1    
Unit: Millions of U.S. dollars
Sources: Unofficial estimate by FAS based on industry and U.S. Census Bureau, Economic Indicators Division; DR Customs; Global Trade Atlas.

Historically, the United States has dominated the corn market in the Dominican Republic, enjoying close to 100 percent market share until 2009.  Since that year, persistent complaints concerning dust levels, mycotoxins presence, grain cracking, availability and shipping challenges and relatively higher prices have led many importers to source South American supplies, specifically from Brazil and Argentina.  As a result, the United States is now exporting considerably less corn to the DR.  During MY 2017/18 (October 2017/ September 2018), the Dominican Republic imported 1,328,860 MT of corn.  The United States supplied 52 percent of that total, followed by Brazil with 43 percent.  

Opportunities
Product quality, proximity and price, in addition to cooperator support and technical assistance will assure presence in the Dominican market. Coarse grain quality is expected to improve and, as corn is a basic feed item for the poultry, swine, and dairy sectors, it remains exempt from import taxes.

Web Resources
The U.S. Foreign Agricultural Service Santo Domingo agricultural specialist covering the grain sector is Virgilio Mayol, virgilio.mayol@fas.usda.gov.

Consumer-Oriented Products
This is a best prospect industry sector for this country. Includes a market overview and trade data.


Overview
Consumer-Oriented Products2015201620172018
Total Exports503558509484
Total Imports726735798825
Imports from the US452484492569
Exchange Rates: RD$50.21 = US$1    
Unit: Millions of U.S. dollars - Sources: Global Trade Atlas

Imported consumer-oriented food products, mainly those from the United States, are seen as high quality products.  The demand for these products is high and the U.S. market share for these items is approximately 43 percent.  Currently, the major competitors in this group of products are the European Union, Mexico, and Costa Rica.  The hotel, restaurant and industrial (HRI) sector continues to grow strongly, increasingly serving Dominicans as well as tourists. Leading U.S. products for distribution in hotels and restaurants include premium red meat cuts, poultry parts, cheeses, wine, frozen potatoes and vegetables, fresh fruit, and seafood.  However, the majority of the all-inclusive resorts are owned by Spanish companies, which leads to heavy sourcing of Spanish and other European food and beverage items.

The Dominican modern retail sector offers a wide variety of U.S. products, is dominated by locally owned companies, and is growing rapidly.  However, despite the prominence and growth of local supermarket chains, they only account for 20-25 percent of retail sales.  The majority of sales are still in the traditional channel, which includes neighborhood stores (colmados) and warehouses, which offers largely local products. Also, the rapid increase of new and modern gas stations is important, since many food shops are becoming a place for expenditure of various U.S. imported snacks, beverages and fast food throughout the country. This is especially true in the East, where tourism levels have reached record levels.

As we enter the thirteenth year of the CAFTA-DR implementation, we estimate that consumer-oriented product imports from the United States have increased more than 300 percent, placing the Dominican Republic in the top 20 most important trading partners.  Within the Western Hemisphere, recent data indicates that the DR continues to be the fifth largest import market for consumer-oriented items.


Opportunities
The Dominican Republic is reportedly the fastest-growing economy in Latin America.  Demand for consumer-oriented products is expected to increase due to the continued liberalization of the Dominican market under CAFTA-DR; growth in the tourism, hotel, and restaurant industry (HRI) sectors; and economic growth.

Web Resources
The U.S. Foreign Agricultural Service Santo Domingo specialists covering the consumer-oriented products sector is Mayra Carvajal, mayra.carvajal@fas.usda.gov.

Dairy Products

Overview

While the DR’s dairy sector is a very important source of local employment, it is not able to supply the full range of dairy products consumed domestically, especially in the growing hotel, restaurant, and industrial (HRI) sector.  From 2014 to 2018, the DR’s overall imports of dairy products increased approximately 17 percent to $318 million.  U.S. market share has decreased 15 percent, and the EU countries increased by 13 percent during the 2014 to 2018 period.  Nevertheless, U.S. exports of dairy products to the DR increased 13 percent from 2017 ($73.6 million) to 2018 ($83.2 million).

CAFTA-DR has improved the competitiveness of U.S. products.  In terms of dairy products, the DR imported an average of $77.5 million of dairy products from the United States from 2014 to 2018.  During that period, the main products exported by the United States to the DR were fluid milk (HS (040110), cheddar cheese, and fresh cheese.

The DR’s large and growing tourist population demands high value food products, including cheese.  In addition, there is a growing number of consumers demanding higher quality and healthier products, and they generally perceive that U.S. products meet these requirements.  Eight products represent approximately 61 percent of the total U.S. dairy product exports to the DR during the 2014-2017 period.  Their dollar value and quantities are shown in Table 1 below.

 
Table 1: Major U.S. Dairy Exports to the DR
HS CodeDairy Products201620172018 
ValueQty.ValueQty.ValueQty.
Totals43,06718.643,41713.146,49217.6
4011000Milk. <1% fat3,4745.83960.34,0504.4
4021000NFDM,<1.5% fat11,5145.713,329610,6375.5
4041040Whey, Dried1,1300.83840.47920.7
4061000Fresh Cheese9,1272.211,7312.712,2762.9
4062000Cheese All Kinds1,9910.34,1510.74,8291
4063000Cheese, Proc.3,8440.94,42214,4630.9
4069010Cheese, Cheddar3,5160.94,5221.24,9621.3
4069095Cheese, incl. mixt8,47124,48214,4830.8
                                                                                                                       Values: $1,000 USD; Quantity: 1,000 MT
                                                                                                                        Souce: FAS/GTAS
Opportunities
The duties on U.S. dairy products exported to the Dominican Republic are being phased out under the CAFTA-DR agreement. Tariffs and quotas for fluid milk, butter, fresh cheese, cottage cheese, curd and soft cheese were eliminated beginning in 2015 and for ice cream in 2016.  Tariffs and quotas for cheddar cheese will be eliminated in 2020 and for mozzarella cheese, powder milk, and yogurt in 2025.
As a result, dairy product prices are expected to decline in the local market and imports from the United States may regain its increasing path of previous years.

Web Resources:
The U.S. Foreign Agricultural Service Santo Domingo specialist covering the dairy sector is Luis C. González, luis.gonzalez@fas.usda.gov.
Rice
This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Rice2015201620172018
Total Local Production304315333353
Total Exports8456
Total Imports8102011
Imports from the US8102011
Total Market Size304321348358
Exchange Rates: RD$50.21 = US$1    
Unit: Millions of U.S. dollars
Sources: Central Bank; ONE Export Database; Unofficial estimate by FAS on industry; U.S. Census Bureau, Economic Indicators Division; Global Trade Atlas.

Rice is one of the most important agricultural products in the country due to its political, economic and social impact on Dominican society.  The country is self-sufficient in rice production, although this self-sufficiency is based on governmental support through: 1) programs such as the Pledge Program (Programa de Pignoración); and 2) measures that limit rice imports such as the discretionary management of import permits.

These measures continue to limit the volume of U.S. rice that could potentially compete in the local market. Under the CAFTA-DR, tariff rates for rice started to decrease during 2016 and will be phased out in 2025. The current import tariff rate for U.S. rice is 67.3 percent.

Opportunities
Rice is a basic food item in the Dominican diet.  As CAFTA-DR is in full effect, the TRQs for rice will assure a small U.S. presence in the Dominican market with an increasing amount every year until the phase out period ends in 2025.

Web Resources
The U.S. Foreign Agricultural Service Santo Domingo agricultural specialist covering the bulk product sector is Virgilio Mayol, virgilio.mayol@fas.usda.gov.

Pulses and Dried Beans
This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Pulses and Dried Beans2015201620172018
Total Local Production41524948
Total Exports0000
Total Imports44423132
Imports from the US39392827
Total Market Size85948080
Exchange Rates: RD$50.21= US$1    
Unit: Millions of U.S. dollars
Sources: Central Bank; ONE Export Database; Unofficial estimate by FAS on industry; U.S. Census Bureau, Economic Indicators Division; Global Trade Atlas.

Pinto beans are a basic staple in the Dominican diet and the Dominican Republic was self-sufficient in red pinto bean production for many years.  Nonetheless, production can no longer meet the demand.  Over the last four years, worldwide dried bean imports to the DR have averaged more than 37,000 metric tons per year, reaching an estimated value of US$32 million in 2018, due to production shortfalls.  Most dried bean imports into the DR come from U.S. ports located in the Gulf of Mexico.

The Dominican market prefers North American pinto beans to the South American variety due to quality, phytosanitary standards, proximity, and price.  Continued U.S. presence in this market is assured with CAFTA-DR providing a TRQ every year, tariff rates for beans phasing out in 2020, and the current production situation in the country.

Web Resources
The U.S. Foreign Agricultural Service Santo Domingo agricultural specialist covering the bulk product sector is Virgilio Mayol, virgilio.mayol@fas.usda.gov.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.