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.
2.
3.
4.
5.
6.
7.
8.
BACKGROUND
NUTMEG SECTOR ANALYSIS
Nutmeg and Mace Production and Export (2000 – 2004)
Price paid to Growers for Nutmeg and Mace (2000 – 2004)
Damage Cost Assessment of Hurricane Ivan on Nutmeg
and Mace Industry
Nutmeg and Mace Exported to various destinations
Revised estimated production and export value (2005 – 2008)
3
4
4
4
VALUE CHAIN STAGE
DEVELOPMENT ACTIVITIES IMPACTING ON THE NUTMEG SECTOR
PRIORITIES FOR THE NUTMEG SECTOR
KEY STAKEHOLDERS
NATIONAL CO-ORDINATING COMMITTEE
NATIONAL SUPPORT TEAM
6
7
8
9
11
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
4
5
5
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%.
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.
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
1a. Purchases (‘000 lbs)
1b. Value of purchases (‘000 EC$)
2a. Export (‘000 lbs)
2b. Mace export (‘000 lbs)
3a. Value of export (‘000 EC$)
3b. Value of Mace export (‘000 EC$)
2000
2001
5,719 5,358
14,265 14,627
5,402 4,365
n.a.
n.a.
49,696 35,671
n.a.
n.a.
Year
2002
2003
2004
4,796 6,614 ,6440
16,534 25,129 13,577
5,051 5,208 3,946
n.a.
.471
.396
36,265 35,034 21,363
n.a. 3,615 2,513
Price paid to Growers for Nutmeg and Mace (2000 – 2004)
(EC$ per lb)
2000
1.50
5.00
4.00
1. Nutmeg
2. Mace I
3.Mace II
2001
1.50
4.00
3.00
Year
2002
2.00
4.00
3.00
2003
1.50
4.00
3.00
2004
1.00
6.00
4.00
Damage Cost Assessment of Hurricane Ivan on Nutmeg and Mace Industry
Parish
St. John
St. George
St. David
St. Patrick
St. Mark
St. Andrew
Total
Acreage
Direct Cost
Indirect cost
Total
250.0
$ 843,750.00
$ 3,960,081.90
$ 4,803,831.90
69.0
$ 181,124.10
$ 869,585.60
$ 1,048,709.70
124.5
$ 465,150.60 $ 2 ,236,353.60
$ 2,701,504.20
180.5
$ 609,184.20
$ 2,918,003.40
$ 3,527,187.60
148.5
$ 501,184.80
$ 2,400,683.40
$ 2,901,868.20
760.0
$2,565,000.00 $12,286,347.30
$ 14,851,347.30
1,532.5
$ 5,165,393.70
$24,669,055.20
$ 29,834,448.90
Nutmeg and Mace Exported to various destinations
Destination
Holland
Canada
USA
Belgium
Dominican
Republic
Jamaica
Germany
Trinidad
Barbados
Antigua
Tortola
Dominica
St. Kitts
Suriname
Year ending 30 June 2006
Nutmeg
%
Mace
(lbs)
(lbs)
630,352 42.72 396,858 26.89 5,294
234,175 15.87 67,222
4.56
18,76
2
66,000
4.47
-
21.98
77.92
Half year ending 31st December 2007
Nutmeg
%
Mace
%
(lbs)
(lbs)
197,258
56.14 51,794
14.74 6,618 3/4 22.19
33,060
9.41
23,182 1/2 77.73
30,856
8.78
-
-
-
-
-
7.53
2.22
0.25
0.42
0.08
0.22
0.21
25
-
0.08
-
100.00
29,826 1/4
100.00
%
33,060
27,550
12,109
5,569
1,533
583
547
67
-
2,24
1.87
0.08
0.38
0.10
0.04
0.04
0.00
-
25
-
-
26,448
7,791 1/2
867
1,467
300
760
735
1,475,625
100.00
24,081
100.00
351,336 1/2
Nutmeg: Revised estimated production and export value (2005 – 2008)
Year
2005
2006
2007
2008
Production (‘000 lbs)
880
100 1,475
1500 700
1500 ??
Export value of
production (EC$ ‘000)
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
Ministry of Agriculture
GCNA
Development Activity
(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
(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
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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
Bureau of Standards
Produce Chemist Laboratory
Grenada Chamber of Industry and
Commerce
Bankers Association
Representative
De La Grenade Industries
Noelville Ltd.
Minor Spices
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA – Farmer
GCNA Farmer –
GCNA Farmer
Field Officer
GRENROP
Grenada Industrial Development
Corporation
Ministry of Finance
CARDI
IICA
MOA, Chief Extension Officer
MOA, Agricultural Assistant
MOA, Eastern District Supervisor
MOA, Northern District Supervisor
Renwick Thompson & Co. Ltd
Farm & Garden Centre
Grenada Hotel & Tourism
Association
Ministry of Tourism
Board of Tourism
Grenada Ports Authority
NAMES/ATTENDEES
Simonne Lewis
Dr. Marcelle Guido
Dennis Noel
Richardo Charles, FCIB
Cecile La Grenade
Kim Henry
Mary Barry
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
Theresa Marryshow
Kevin Frank
Mervyn Haynes
Reginald Andall
Cosmos Joseph
Randolph Shears
George Phillip
Kelly Patrick
Albinus Powlette
Ken Fletcher
Collin La Barrie
Pancy Cross
Francis Robertson
Edward Lord
Customs
Marketing National Importing
Board
Grenada Hotel Taxi Association
Grenada Cocoa Association
GRENCODA( Community
Development Agency)
ART( Agency for Rural
Transformation)
T.A. Marryshow Community
College
National Science & Technology
Council
Legal Department Registry
Grenada National Museum
St. George’s University
UWI/Extra Mural Department
Grenada Airport Authority
Jessamy Industries
Trade Union Council
National Insurance Scheme/Policy
Advisor
Grenada National Organisation for
Women
Agricultural Consultant
Agricultural Consultant
Agricultural Consultant
Media Workers Association of
Grenada
Farmers Representative in the
Senate
Grenada Cultural Foundation
Former Minister of Agriculture
Special Advisor to the P.M
GCNA Board Member
EU Representative
Private Sector Development
Rush Landing Cargo
International Consultant
Food Fair Supermarket
Food Land Supermarket
Belzeb Products/Moi Spa
Coyaba Beach Resort
Eric Charles
Fitzroy James
Carl Medford
Samuel Brathwaite
John Wells
Sandra Ferguson
Jeffrey Britton
Peter Thomas
Robert Branch
Michael Jessamy
Dr. Wayne Sandiford
Dr. Dennis Paul
Dr. Curtis Jacob
Joan Gilbert
Jessie Jessamy
Eliot Bishop
Alfred Logie
Elaine Henry-Mc queen
Arnold Cruickshank
Kenneth Buckmire
Clifford Robertson
Ray Roberts
Sen. The Hon. Keith Clouden
Jacqueline Alexis
George Brizan
Aaron Moses
Byron Campbell
Lennox Andrews
Christopher De riggs
Rennie Rush
Dr. Spencer Thomas
Nicholas Harris
Carl Hycianth
Roberte Laurent
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
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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