Open to Imports

OTA estimates total organic market consumer sales of Dominican Republic at about $7 million USD per year.

QUALITATIVE ANALYSIS

Quick Facts

  • Organic packaged food and beverage consumption in the Dominican Republic is expected to see a 12.7% CAGR and $2.9mn absolute value growth over the forecast period (2015–2018).
  • The Dominican Republic’s economy is relatively diversified but closely tied to that of the US. Steady growth in the US economy, a buoyant tourist sector, and strong gains in private consumption will support economic growth in the near term.
  • The country’s population totaled 9.9 million in 2014, an increase of 80% since 1980. Although a modest aging process is underway, the number of people under 20 years old will still make up a significant portion of the total population in the medium term.
     

General Economic & Demographic Landscape

Economy

  • Real GDP is expected to grow by 4.6% in 2015, down from 7.3% in 2014. Although economic growth is supported by steady growth in the US economy, a buoyant tourist sector, and strong gains in private consumption, electriurban area shortages and weaknesses in agriculture and manufacturing are drags.
  • The government has followed prudent policies since its banking disaster in 2003. Real GDP rose by 38.1% in 2004–2008, one of the best performances of any Latin American country. Economic growth in the post-recession era has been relatively steady, although below historical trends. In 2013, real GDP rose by 4.8%, driven by a combination of mining, construction, agriculture, and tourism. Growth soared to 7.3% in 2014 as construction and mining continued to record impressive gains.
  • Though the Dominican Republic’s economy is relatively diversified, it is closely tied to that of the US. The island is a major destination for US foreign direct investment and American tourists.
  • Services make up 64.7% of GDP. In the financial sector, the government has implemented a number of new policies and regulations to avoid more banking failures like those that occurred in 2003. Banks are profitable and well capitalized. Financial services currently account for around 4% of GDP. Growth in the service sector has slowed steadily during 2015.

Population demographics: 

  • The population totaled 9.9 million in 2014, an increase of 80% since 1980. The median age in 2014 was 26.2 years, 7.7 years greater than in 1980. Although a modest aging process is underway, the number of people under 20 years old will still make up a significant portion of the total population in the medium term.
  • The fertility rate has fallen from 4.4 births per female in 1980 to 2.4 births in 2014. However, the present figure still exceeds replacement level, a trend that will persist in the medium term. Steady gains in the number of women of childbearing age (15 to 49 years old) ensure that the population boom will continue even while fertility declines.

Income & expenditure: 

  • Consumer expenditure per capita amounted to Do$216,015 (US$4,966) in 2014. The indicator will grow by 2.7% in real terms in 2015. Transport and education are expected to be amongst the fastest-growing categories through 2030, backed by the continued expansion of the middle class.
  • Total consumer expenditure (in real terms) will increase by 3.7% in 2015, and will grow at an average annual rate of 3.1% in real terms over the 2013–2030 period. Total consumer expenditure represented 73.4% of GDP in 2015.
  • Poverty soared to almost 50% in 2004 following the 2003 financial and economic crisis. However, the poverty rate has gradually declined since then, dipping to less than 36% in 2014. The poorest half of the population receives less than one-fifth of GDP, while the richest 10% enjoys nearly 40% of GDP.
     

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

 

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

716.5

728.3

757.7

789.9

816.2

846.1

877.7

3.3%

3.6%

Organic packaged food and beverages consumption

4.0

4.8

5.9

6.7

7.6

8.6

9.6

18.8%

12.7%

Organic packaged food consumption

-

-

-

-

-

-

-

-

-

Organic beverages consumption

4.0

4.8

5.9

6.7

7.6

8.6

9.6

18.8%

12.7%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

0.6%

0.7%

0.8%

0.8%

0.9%

1.0%

1.1%

-

-

 

Economic & demographic data

 

Data type

2012

2013

2014

2015

2016

2017

2018

 

 

 

 

 

 

 

 

Total population

9.7

9.8

9.9

10.0

10.1

10.2

10.3

% Middle and upper class of total population

30.4%

29.6%

29.4%

29.2%

29.0%

28.9%

28.7%

% Population aged 65+

6.1%

6.2%

6.3%

6.4%

6.6%

6.8%

6.9%

% Population aged 0-14

30.4%

30.0%

29.6%

29.3%

28.9%

28.5%

28.2%

% Population with higher education degrees

14.4%

14.5%

14.6%

14.7%

14.8%

14.9%

14.9%

Average number of children per household

1.3

1.2

1.2

1.2

1.2

1.1

1.1

GDP per capita

5,458.7

5,812.2

6,266.0

6,727.4

6,976.0

7,262.6

7,481.8

Consumer expenditure per capita (US$)

4,350.8

4,552.9

4,801.4

4,986.2

5,013.4

5,066.2

5,172.6

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

1,065.7

1,097.8

1,134.9

1,155.7

1,138.2

1,125.6

1,123.5

 

 

 

Retailer & urban area data

 

Data category

Rank

Urban Area/retailer

Population 
(mns)

 

 

 

 

Top urban areas by population (2015)

1

Santo Domingo

3.7

Top urban areas by population (2015)

2

Santiago

0.8

Top urban areas by population (2015)

3

Higüey

0.3

Top urban areas by population (2015)

4

La Romana

0.3

Top urban areas by population (2015)

5

San Pedro de Macorís

0.2

Top grocery retailers by sales (2015)

1

Multicentro La Sirena

-

Top grocery retailers by sales (2015)

2

Jumbo

-

Top grocery retailers by sales (2015)

3

Hipermercado Plaza Lama

-

Top grocery retailers by sales (2015)

4

Almacenes Iberia

-

Top grocery retailers by sales (2015)

5

Hipermercado Ole

-

 

USDA GATS data

Rank

2015

2014

2013

2012

1

Grapes

Coffee Roast

Apples

Apples

2

Peas

Apples

Grapes

Grapes

3

Potatoes

Grapes

Lettuce

Potatoes

4

Lettuce

Pears

Tomato Sauce

Pears

5

Apples

Potatoes

Pears

Lettuce

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

Ministry of Agriculture
Departamento de Agricultura Orgánica (DAO) (Department of Organic Agriculture)
Oficina Nacional de Control de Agricultura Orgánica (OCAO) (National Office for the Control of Organic Agriculture)
National Organic Agriculture Program (PRONAA)
National Organic Farming Council (CONAO)
Dominican Centre for Export Promotion (CEDOPEX)

Agency(s) Contact Information: 

Bureau of Organic Agriculture (OCAO)
Minister of Agriculture
Santo Domingo, D. N.
Phone: 809 547-3888 Ext.4120
Email: oficinacontrolorganico@agricultura.gob.do

Ing. Agron. Jose Zapata Gómez
Director of the Bureau of Organic Agriculture
Phone: 829-931-6384
Email: jose.zapata@agricultura.gob.do
Web

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

Resolution N. 08/2005 – creation of the National Organic Agriculture Program (PRONAA) and Competent Authority
 
Current publications, including the Control System for Organic Agriculture of the Dominican Republic and registration forms for producers, processors, marketers and inspectors, can be downloaded from the Ministry of Agriculture.

Date of Implementation: 

2003

Regulation and/or Standard Scope: 

Regulates the production, processing, packaging, labeling, storage, transport, marketing, export and import of products bearing or intended to bear indications referring to organic farming system

Imported Products Requirements

Imported Products: 

Imported products must have an import permit, description of goods, and organic certification documents. Organic imports need a certificate issued by the control authority from a country whose standards are equivalent. Importers are required to cooperate concerning inspection, and store products in ways that prevent tampering.

Certification and Accreditation

Certification: 

The Department for Organic Agriculture has not yet approved certification bodies
Dependent on foreign certifiers

Accreditation: 

Dominican Republic Competent Authority assesses, records, and monitors the activities of certification bodies for organic agriculture. The Competent Authority is attached to the National Organic Agriculture Program (PRONAA), but has full operational independence in implementing the control system of Organic Agriculture in the Dominican Republic.

Additional Information

Reference Standards: 

Costa Rica, Honduras, Guatemala, El Salvador, Nicaragua, plus Panama and the Dominican Republic are benchmarking their standards to a regional organic standard - the Central America Regional Standard. August 2016 these regional standards were put before the World Trade Organization for comment.

Additional Information: 

USDA's GAIN Report Exporter Guide (2016)

Definitions

Review definitions of terminology included in this website.