This market study gives an analysis of the prices of food products in Aruba compared to Curaçao, the Netherlands and the United States and examines the structure of the food sector on the island. The purpose of the study, initiated by the Aruba Fair Trade Authority (hereinafter: the AFTA), is to confirm whether the general perception of high food prices in Aruba can be substantiated by facts and to identify the possible causes of these price levels. The findings show that food prices in Aruba are significantly higher than those in the Netherlands and the United States, although they are currently comparable to those in Curaçao. Aruban households with minimum means of subsistence spend about 40% of their monthly income on food products, a significantly higher percentage than in the Netherlands and the United States. The market structure in Aruba, characterized by several links in the chain, partly because of its heavy dependence on imports, contributes to the higher costs. Although some price differences with the Netherlands and the United States are caused by transportation costs because a large part of the food products must be imported, the impact of these transportation costs on final prices turns out to be relatively stable over time. In addition, the tax burden on food products in Aruba appears to be significantly higher than in the Netherlands and the United States. This is mainly due to the cumulative taxation system of the Business Turnover Tax (abbreviated in Dutch as: “BBO”), where tax is levied in every link of the chain rather than only on the value added, as in a VAT system.