Oranjestad, 17 september 2024 – The Aruba Fair Trade Authority (AFTA) today presented the findings of its market research on prices and market structure in Aruba’s food sector. This study, which was announced on the 22nd of February 2024, focuses on the factors influencing food prices and how the local market functions.
Although part of these high prices is due to transportation costs, as most food in Aruba is imported, other factors are also critical. The small scale of the island’s market, limited competition in the logistics chain, and the cumulative tax system contribute to prices being higher than in other countries. Additionally, exclusive distribution agreements between importers and wholesalers may be limiting competition and further driving up prices.
Key Findings of the Study
- Food prices in Aruba are structurally higher than in the Netherlands and the United States, and are on par with prices in Curaçao.
- The small market size, logistics costs, and the cumulative tax burden all contribute to the higher prices.
- There are concerns about limited competition in some segments of the food sector, such as container shipping and exclusive distribution agreements between importers and wholesalers.
- While there is adequate competition between supermarkets, further research is needed to assess the impact of exclusive distribution agreements on prices.
Next Steps
AFTA announces that it will launch two additional investigations: one into the impact of exclusive distribution agreements in the food sector and another on competition in container shipping to Aruba. These investigations are vital to ensuring fair competition and affordable prices for Aruba’s population.
The Aruba Fair Trade Authority remains committed to promoting fair competition, better prices, and a market structure that benefits consumers.
For more information about AFTA, please contact us at:
Tel: (297) 280-0480
E-mail: [email protected]
Website: www.afta.aw