Processed food to Mauritius

(Last updated: 16 Mar 2009)

Trends and opportunities

The market

Supermarket shelves in Mauritius host a wide selection of imported food products, including a fair proportion of Australian goods. These include butter, cheese, milk,  salami and other meat products, biscuits, cereals, processed fruits and vegetables, and beverages.

In 2008, Mauritius’ imports of food and live animals amounted to A$1 billion, ie. 19.2 per cent higher than in 2007. The most significant increases were noted in imports of rice (+49.6 per cent), dairy products (+23.1 per cent), and fish and fish preparations (+21 per cent).

Demand for Australian dairy products is significant; Australia is the main supplier of dairy products to Mauritius the bulk being cream and processed cheese (mostly long-life cheddar cheese).

The Mauritian market is a small one, with a population of 1.2 million, food and non-alcoholic beverages is a significant component of household expenditure as it represents 30 per cent of total household consumption expenditure. While a major proportion of the population purchase basic items, the middle and upper class seek more elaborate, convenient and ready-to-eat products.

Some 900,000 tourists visit the island every year and these visitors also need basic and sophisticated food products. Hotels are important buyers of meat, wine, dairy products, fruits and vegetables and other food ingredients. According to the ‘Food Balance Sheet’ from the Mauritius Central Statistics Office, the main items consumed by households are:

• wheat flour
• fresh fruit and vegetables
• rice and pulses
• sugar
• meat and meat preparations
• oils and fats
• fish and fish preparations
• milk and dairy
• eggs

Opportunities

Australian exporters are regarded as reliable suppliers of quality food. Mauritian importers are receptive to proposals offering good value for money.

Processed food items with the best opportunities for Australia include:

• Dairy products
• Meat and meat preparations
• Food additives and ingredients (for further processing)
• Specific fruits and vegetables
• Health products (eg. for diabetics)

Competitive environment

Competition is tough and price remains the determinant factor in making decisions. There is already strong competition from Asian and South African suppliers in many market niches, which could be developed by Australian suppliers.

Food processing operations in Mauritius include:

• Three food canning plants
• Three dairy (yogurt and other products) manufacturers
• Large-scale and cottage industries manufacturing biscuits, sweets, snacks, pastry, beverages (alcoholic and non-alcoholic), noodles, canned tuna, and processed meats

Tariffs, regulations and customs

At present, customs duty is nil on almost all foodstuffs. A value added tax (VAT) of 15 per cent is payable on  goods and services with the exception of basic food items such as rice, milk, cream, butter, cheese, fish and meat.

Excise duty is levied on alcoholic drinks.

The Food Act 1998, regulations govern all categories of food in Mauritius. The guidelines are very detailed and Australian suppliers should consider them on a case-by-case basis. The strictest restrictions pertain to food preparations for infants, which require a specific import permit.

Mauritius is an island with a significant dependence on the agricultural sector; any possible external threats to the industry are regarded with serious concern by local health authorities. Assurances are required from the AQIS in the form of health or phytosanitary certification for food products exported from Australia.

For the importation of any new brand of processed food in Mauritius, samples must be sent for composition analysis so that the local authorities can establish its conformity with the local health requirements/standards.

A phytosanitary certificate and a food and drug permit should accompany every consignment of processed food brought in.

Quotas apply on the importation of a small number of controlled products. The Import Permit section of the  Commerce Division of the Ministry of Business, Enterprise and Cooperatives provides this information. Although import permits may sometimes be required, no quotas are applicable on processed food products exported to Mauritius from Australia.

Industry standards

Standards governing the composition, packaging, labelling, sampling, use and handling of all categories of food in Mauritius are listed in the Food Act 1998.

Marketing your products and services

Market entry

Australia has a good image in Mauritius and is regarded as a 'clean and 'green' country and a reliable supplier of quality products.

The most efficient means for Australian companies to become established suppliers in Mauritius is to appoint a local importer distributor. The latter are able to afford the cost of freighting goods to Mauritius by consolidating orders from their customers – supermarkets, smaller retail outlets, hotels and even other wholesalers – and consolidating supply from a multi-supplier base. 

Tourism is an important industry in Mauritius and higher-end imported food products are consumed in hotels and restaurants. Quality is an important factor for success in this segment. Hotels prefer to be supplied by an import agent rather than importing directly. In order to access hotel procurement, Australian suppliers should recruit an agent or distributor who is active in this market.

Food processing manufactures may be interested in other ingredients or products for further processing (eg. cheese flavourings or butter oil), especially where production is complementary to current operations or products

In some instances, manufacturers use a tender process to procure large quantities of a product such as milk powder for yogurt manufacturing

Mauritians are typically conservative consumers who are reluctant to switch brands. The main purchase driver is value for money with price the key determinant. Mauritius is a developing country and purchasing power is not very high.

Mauritian companies seek credit facilities at times (eg. letter of credit 30-days or 60-days). This needs to be considered in a case-by-case basis.

Distribution channels

End-consumers buy their food from hypermarkets, supermarkets, corner shops, grocery stores, wholesalers and open markets.

The retail distribution sector has undergone major transformation since 1995 with the launching of a series of hypermarkets: Jumbo Score (2 units); Super U (2 units); and Shoprite. This introduced the concept of large-scale distribution, consolidation and centralisation of orders. Hyper/supermarkets have the choice between importing direct or sourcing products locally, depending on the nature of the goods.

Overseas products are imported by wholesalers as well as by retail outlets. Some manufacturers import to supplement their locally produced range. Normal practice is for wholesalers and manufacturers to distribute to clients. Individual arrangements enable some retailers and shop owners to source their goods from manufacturers or wholesalers.

Most supermarket chains obtain their supplies by either importing direct or purchasing from wholesalers. They also undertake their own internal distribution.

Hotels and restaurants buy direct from wholesalers or brokers and supermarkets.

Transport

Mauritius has one international airport, the Sir Seewoosagur Ramgoolam International Airport in south eastern Mauritius (at the opposite end of the island from the capital, Port Louis).

Air Mauritius is the national carrier, providing passenger and cargo services to over 30 destinations worldwide including Perth, Sydney and Melbourne in Australia.

Port Louis is the major commercial port for the country.

The island has a road network of approximately 2000km of paved roads. 

Links and industry contacts

Food–related resources

Ministry of Agro Industry, Food Production and Security
Agricultural Services Reduit
Tel: +230 401 2800 or 454 1091
Fax: +230 464 8749
Email: moa-cao@mail.gov.mu  

National Plant Protection Office
Reduit
Mauritius
Tel: +230 464 4872
Fax: +230 465 9591
Email: plpath@intnet.mu

Ministry of Health & Quality of Life – www.gov.mu/portal/site/mohsite
5^th Floor, Emmanuel Anquetil Building
Port Louis
Mauritius 
Tel: +230 201 2175
Fax: +230 208 7222
Email: moh@mail.gov.mu

Government, business and trade resources for Mauritius

Mauritius Chamber of Commerce and Industry  – www.mcci.org
Government of Mauritius – www.gov.mu

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au