All ACP Commodities Programme
Caribbean Region
NUTMEG & MACE
SECTOR STRATEGY DEVELOPMENT
Preparatory Information Summary
20-21 October 2008
St. George’s Grenada
Prepared by Hazel M. Bierzynski and …..
National Consultant
18 October 2008
TABLE OF CONTENTS
1. BACKGROUND 3
2. NUTMEG SECTOR ANALYSIS 4
Nutmeg and Mace Production and Export (2000 – 2004) 4
Price paid to Growers for Nutmeg and Mace (2000 – 2004) 4 Damage Cost Assessment of Hurricane Ivan on Nutmeg
and Mace Industry 4 Nutmeg and Mace Exported to various destinations 5
Revised estimated production and export value (2005 – 2008) 5
3. VALUE CHAIN STAGE 6
4. DEVELOPMENT ACTIVITIES IMPACTING ON THE NUTMEG SECCTOR 7
5. PRIORITIES FOR THE NUTMEG SECTOR 8
6. KEY STAKEHOLDERS 9
7. NATIONAL CO-ORDINATING COMMITTEE 11
8. NATIONAL SUPPORT TEAM 11
APPENDIX 1
Outputs from the Regional Consultative Kick-Off Workshop – Herbs and Spices Group, Caribbean Region, 1 – 3 April, 2008, Montego Bay Jamaica
SOURCES
1. Background
Nutmeg was introduced to the British Colonies in 1843 and was first planted in Grenada at Belvedere Estate where the plants adapted well because of the favourable climatic conditions.
After Indonesia (70%), Grenada is the second largest world producer (25%) of nutmegs and mace. In the years 1987 to 1989, the crops averaged about 40% of Total Domestic Exports (TDE). In 1990 the importance declined 30% of TDE, and then to 17% in 1991. There was some recovery after 1995 and by 2002 nutmeg and mace contribution to total domestic export was 40.3%.
The importance of the nutmeg and mace industry to Grenada goes beyond its contribution to GDP, foreign exchange earnings and employment. Perhaps more important to farmers, nutmeg and mace also provided weekly and year round income and employment.
In 1947 The Grenada Co-operative Nutmeg Association (GCNA) was formed in 1947 and is governed by the Nutmeg Act Ordinance. All of Grenada’s production is exported through the GCNA and the method of payment to farmers is similar to that used by the other associations, with an end- of- year “bonus” payment.
The legislation mandates the GCNA to distribute all surpluses earned from the sale of products to member. This act now appears unduly restrictive to the growth of the nutmeg industry in the current environment. With the requirement to distribute surplus earnings to members, the GCNA has been unable to accumulate the capital needed for investment in modernizing its operations, including equipment and infrastructure in its processing stations and in research and development of new value added products. The Act has thus far hindered the GCNA from operating as a commercial enterprise designed to move the sector forward by focusing on profit and modern management practices.
The industry affects approximately 30,720 persons directly or indirectly, and in 2002 had a contribution of 22.5% of total merchandise export.
The nutmeg sector was devastated by the passage of Hurricanes Ivan and Emily in 2004 and 2005 respectively with considerable destruction to 90% of its nutmeg trees.
The number of registered farmers pre- Hurricane Ivan was 6579. The approximate number of active farmers post-Hurricane Ivan is 2500.
2. Sector Analysis
Nutmeg and Mace Production and Export (2000 – 2004)
Item
/ Year2000 / 2001 / 2002 / 2003 / 2004
1a. Purchases (‘000 lbs) / 5,719 / 5,358 / 4,796 / 6,614 / ,6440
1b. Value of purchases (‘000 EC$) / 14,265 / 14,627 / 16,534 / 25,129 / 13,577
2a. Export (‘000 lbs) / 5,402 / 4,365 / 5,051 / 5,208 / 3,946
2b. Mace export (‘000 lbs) / n.a. / n.a. / n.a. / .471 / .396
3a. Value of export (‘000 EC$) / 49,696 / 35,671 / 36,265 / 35,034 / 21,363
3b. Value of Mace export (‘000 EC$) / n.a. / n.a. / n.a. / 3,615 / 2,513
Price paid to Growers for Nutmeg and Mace (2000 – 2004)
(EC$ per lb)
Year
2000 / 2001 / 2002 / 2003 / 20041. Nutmeg / 1.50 / 1.50 / 2.00 / 1.50 / 1.00
2. Mace I / 5.00 / 4.00 / 4.00 / 4.00 / 6.00
3.Mace II / 4.00 / 3.00 / 3.00 / 3.00 / 4.00
Damage Cost Assessment of Hurricane Ivan on Nutmeg and Mace Industry
Parish
/ Acreage / Direct Cost / Indirect cost / TotalSt. John
St. George
St. David
St. Patrick
St. Mark
St. Andrew
Total
/ 250.069.0
124.5
180.5
148.5
760.0
1,532.5 / $ 843,750.00
$ 181,124.10
$ 465,150.60
$ 609,184.20
$ 501,184.80
$2,565,000.00
$ 5,165,393.70 / $ 3,960,081.90
$ 869,585.60
$ 2 ,236,353.60
$ 2,918,003.40
$ 2,400,683.40
$12,286,347.30
$24,669,055.20 / $ 4,803,831.90
$ 1,048,709.70
$ 2,701,504.20
$ 3,527,187.60
$ 2,901,868.20
$ 14,851,347.30
$ 29,834,448.90
Nutmeg and Mace Exported to various destinations
Destination / Nutmeg (lbs) / % / Mace (lbs) / % / Nutmeg (lbs) / % / Mace (lbs) / %
Holland / 630,352 / 42.72 / - / - / 197,258 / 56.14 / - / -
Canada / 396,858 / 26.89 / 5,294 / 21.98 / 51,794 / 14.74 / 6,618 3/4 / 22.19
USA / 234,175 / 15.87 / - / - / 33,060 / 9.41 / - / -
Belgium / 67,222 / 4.56 / 18,762 / 77.92 / 30,856 / 8.78 / 23,182 1/2 / 77.73
Dominican Republic / 66,000 / 4.47 / - / - / - / - / - / -
Jamaica / 33,060 / 2,24 / - / - / 26,448 / 7.53 / - / -
Germany / 27,550 / 1.87 / - / - / - / - / - / -
Trinidad / 12,109 / 0.08 / - / - / 7,791 1/2 / 2.22 / - / -
Barbados / 5,569 / 0.38 / - / - / 867 / 0.25 / - / -
Antigua / 1,533 / 0.10 / - / - / 1,467 / 0.42 / - / -
Tortola / 583 / 0.04 / 25 / 300 / 0.08 / 25 / 0.08
Dominica / 547 / 0.04 / - / - / 760 / 0.22 / - / -
St. Kitts / 67 / 0.00 / - / - / - / - / - / -
Suriname / - / - / - / - / 735 / 0.21 / - / -
1,475,625 / 100.00 / 24,081 / 100.00 / 351,336 1/2 / 100.00 / 29,826 1/4 / 100.00
Nutmeg: Revised estimated production and export value (2005 – 2008)
Year / Production (‘000 lbs) / Export value of production (EC$ ‘000)2005
2006
2007
2008 / 880
100 1,475
1500 700
1500 ?? / 6,000
7,500
9,000 6.600
11,800
3. VALUE CHAIN STAGE
DEVELOPMENT ISSUES IMPACTING ON THE NUTMEG SECTOR
4. DEVELOPMENT ACTIVITIES IMPACTING ON THE NUTMEG SECTOR
Area / Development ActivityMinistry of Agriculture / (a) Fast tracking the propagation programme involving ?macotting? and seedlings;
(b) Identifying and selecting new varieties through trials on selected private farms/government estates- using CARDI and GCNA resources;
(c) Rationalizing and strengthening the governance structure for the production; processing and marketing of spices in Grenada;
(d) Implementing a training programme for young farmers in high technology commercial farming of nutmeg, and other spices;
(e) Developing and adopting production systems that are profitable, ecologically and agriculturally sustainable and viable in terms of cost of products produced and processed.
(f) Rehabilitation of road infrastructure - CCC Agricultural Feeder Roads Project
GCNA / (a) FAO Project for assistance to the Nutmeg Industry with objectives to:
- Upgrade harvesting, post harvest handling, treatment, processing of nutmegs and mace;
- Strengthen the capacity to support a quality assurance programme for the nutmeg and mace industry;
- Build capacity in by-product processing.
(b) Modernizing the Oil Distillation Plant and establishing other value added industries (fat, pods, water, shells, etc);
(c) Communication – Regular radio programmes; twice yearly area meetings;
(d) Tourism linkage – Tours offered at the Gouyave and Grenville Nutmeg stations
5. PRIORITIES FOR THE NUTMEG SECTOR
· Acceleration of the replanting and production of nutmegs. Goal is 5.000 trees eq 500 Mts of potential output
· Review and amendment of the Nutmeg Ordinance to remove impediments, which prevent the GCNA from achieving maximum efficiency. Goal is to allow for investments …
· Development of a business culture within the GCNA and the strengthening of the management capacity of the GCNA.
· Diversification of the income base of the GCNA.
· Strengthening of in-house capabilities of GCNA to conduct ongoing international market research and strategic planning for nutmeg/nutmeg products. Goal is to become able to sell directly to the largest grinders in the USA and Europe
· Creation of one body for the production, processing and marketing of all spices in Grenada. Goals is increase leverage towards buyer markets and ….
· Pursue merger plans with Grenada Cocoa Association
· Improvement of the professional image of the industry by developing a more business-oriented approach. ???
· Provide incentives to make lands and capital more readily available particularly to young farmers.
· Greater compliance with pertinent international standards. Goal is to facilitate exports
· Improvement of technical support services and on-going training to farmers.
· Preparation and transfer of improved production technology packages to growers.
· Modernization of the industry through the use of appropriate technology.
· On-going research to identify labour saving mechanism with respect to harvesting techniques to determine there are devices that can be adapted for use in the harvesting of nutmegs.
· Use of solar dryers for nutmeg drying.
· Undertake studies into developing innovative labour supply mechanism for nutmeg
· Production of a high quality, low aflatoxin nutmeg.
· Improvements in the levels of communication with all stakeholders.
· Conduct studies in key international markets on the potential for value added nutmeg products including, cosmetics, medicinal/pharmaceuticals
· Investigation of the market for other nutmeg value added products such as from fat, pods, shells waste, etc
· Diversification into other spices (eg. cinnamon, vanilla, pimento. mauby, bois bande) thus creating spice farms that could also become and serve as tourist attraction sites;
6. KEY STAKEHOLDERS PARTICIPANTS
INVITEES / NAMES/ATTENDEESBureau of Standards / Simonne Lewis
Produce Chemist Laboratory / Dr. Marcelle Guido
Grenada Chamber of Industry and Commerce / Dennis Noel
Bankers Association Representative / Richardo Charles, FCIB
De La Grenade Industries / Cecile La Grenade
Noelville Ltd. / Kim Henry
Minor Spices / Mary Barry
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA Farmer –
GCNA Farmer
Field Officer / Jerry Romain
Faith Jessamy
Lennox Graham
Charles Daniel
Alban Clyne
Irene Livingstone
David William
Osmond Matthew
Nelice Stewart
Jeremiah Beggs
Shadel Nyack Compton
Roland Courtney
GRENROP / Theresa Marryshow
Grenada Industrial Development Corporation / Kevin Frank
Ministry of Finance / Mervyn Haynes
CARDI / Reginald Andall
IICA / Cosmos Joseph
MOA, Chief Extension Officer
MOA, Agricultural Assistant
MOA, Eastern District Supervisor
MOA, Northern District Supervisor / Randolph Shears
George Phillip
Kelly Patrick
Albinus Powlette
Renwick Thompson & Co. Ltd / Ken Fletcher
Farm & Garden Centre / Collin La Barrie
Grenada Hotel & Tourism Association / Pancy Cross
Ministry of Tourism / Francis Robertson
Board of Tourism
Grenada Ports Authority / Edward Lord
Customs / Eric Charles
Marketing National Importing Board / Fitzroy James
Grenada Hotel Taxi Association / Carl Medford
Grenada Cocoa Association / Samuel Brathwaite
GRENCODA( Community Development Agency) / John Wells
ART( Agency for Rural Transformation) / Sandra Ferguson
T.A. Marryshow Community College / Jeffrey Britton
National Science & Technology Council / Peter Thomas
Legal Department Registry / Robert Branch
Grenada National Museum / Michael Jessamy
St. George’s University / Dr. Wayne Sandiford
Dr. Dennis Paul
UWI/Extra Mural Department / Dr. Curtis Jacob
Grenada Airport Authority / Joan Gilbert
Jessamy Industries / Jessie Jessamy
Trade Union Council / Eliot Bishop
National Insurance Scheme/Policy Advisor / Alfred Logie
Grenada National Organisation for Women / Elaine Henry-Mc queen
Agricultural Consultant / Arnold Cruickshank
Agricultural Consultant / Kenneth Buckmire
Agricultural Consultant / Clifford Robertson
Media Workers Association of Grenada / Ray Roberts
Farmers Representative in the Senate / Sen. The Hon. Keith Clouden
Grenada Cultural Foundation / Jacqueline Alexis
Former Minister of Agriculture / George Brizan
Special Advisor to the P.M / Aaron Moses
GCNA Board Member / Byron Campbell
EU Representative / Lennox Andrews
Private Sector Development / Christopher De riggs
Rush Landing Cargo / Rennie Rush
International Consultant / Dr. Spencer Thomas
Food Fair Supermarket / Nicholas Harris
Food Land Supermarket / Carl Hycianth
Belzeb Products/Moi Spa / Roberte Laurent
Coyaba Beach Resort / Richard Cherman
7. NATIONAL CO-ORDINATING COMMITTEE
Dr. Guido Marcelle, Chairman
Mr. Augustine Vesprey
Mr. Fitzroy James
Ms. Shanta Williams-Cox
Mr. Cosmos Joseph
Ms. Keisha Gellineau
Mr. Francis Robertson
Mr. Denis Noel
Mr. Daniel Lewis
8. NATIONAL SUPPORT TEAM
Ms. Hazel Bierzynski, National Consultant
Ms. Sandra Holas, National Consultant
Ms. Apolonia Collins, Secretary
Appendix1
Outputs from the Regional Consultative Kick-Off Workshop – Herbs and Spices Group, Caribbean Region, 1 – 3 April, 2008, Montego Bay Jamaica
Sources
Grenada Co-operative Nutmeg Association, Strategic Development Plan for 2008 to 2012
Commonwealth Secretariat, An Action Plan for the Revitalization of the Nutmeg Industry in Grenada; Final Report of a Commonwealth Diagnostic Mission, December 2005
Revitalization of the Nutmeg Industry in the Aftermath of Hurricane Ivan, author unknown
FAO, Project on Assistance to the Nutmeg Industry in Grenada; Review of the Nutmeg and Mace Drying Technologies in Grenada and Recommendations for Improvements, August 2004
Grenada Co-operative Nutmeg Association, Hazard Analysis and Critical Control Points (CCP’s)
Grenada Co-operative Nutmeg Association, Financial Statements and Trading Summary for the year ended 30 June 200