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Manufacturing Profile 4: Hot Peppers

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Manufacturing Profile 4: Hot Peppers ABSTRACT Trinidad and Tobago (T&T) is home to some of the hottest peppers in the world, including the Moruga Scorpion measuring over 2 million Scoville Heat Units (SHU)and the Scotch Bonnet at 100,000 – 350,000 SHU. The increasing demand is in the value added products such as MANUFACTURING pepper sauce, ground pepper, pepper mash and pepper oil extract. PROFILE 4: HOT PEPPERS The Development of Project Profiles for the ENGINEERING INSTITUTE 2016 Manufacturing Sector of T&T The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus Manufacturing Profile 4: Hot Peppers ii The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus Manufacturing Profile 4: Hot Peppers Table of Contents List of Tables ........................................................................................................................... v List of Figures ......................................................................................................................... vi 1 Description of the Opportunity ............................................................................................. 1 1.1 Summary ........................................................................................................................ 1 1.2 Product Mix.................................................................................................................... 2 1.3 Description of Activities ................................................................................................ 4 2 Industry Overview ................................................................................................................ 7 2.1 Industry Description ....................................................................................................... 7 2.2 Incentives ..................................................................................................................... 10 3 Stakeholder Analysis .......................................................................................................... 13 3.1 Stakeholder Identification ............................................................................................ 14 3.2 Stakeholder Analysis.................................................................................................... 14 4 Environmental Scan ............................................................................................................ 17 4.1 External Analysis ......................................................................................................... 17 4.2 Internal Analysis .......................................................................................................... 20 5 Sub-Sector Assessment ....................................................................................................... 22 iii The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus Manufacturing Profile 4: Hot Peppers 6 Identification of Value Added Services .............................................................................. 24 6.1 Supply Chain Issues ..................................................................................................... 25 7 Plant and Equipment with Estimated Cost ......................................................................... 27 7.1 Infrastructure ................................................................................................................ 27 7.2 Annual Utilities Usage ................................................................................................. 27 7.3 Salaries ......................................................................................................................... 28 7.4 Legal/ Statutory Fees ................................................................................................... 29 7.5 Operational Costs ......................................................................................................... 29 7.6 Equipment .................................................................................................................... 30 7.6 Investment Summary ................................................................................................... 31 8 Human Resources ............................................................................................................... 34 8.1 Organisation Chart ....................................................................................................... 34 8.2 Job Descriptions for Key Positions .............................................................................. 35 8.3 Labour Availability ...................................................................................................... 38 9 Location .............................................................................................................................. 40 10 List of Potential Investors and Partners ............................................................................ 42 11 Concluding Remarks ........................................................................................................ 47 12 References ......................................................................................................................... 50 iv The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus Manufacturing Profile 4: Hot Peppers List of Tables Table 1: Optimistic, Pessimistic and Moderate Scenarios of the Hot Pepper Industry ........... 1 Table 2: Proposed Sizing and Pricing ...................................................................................... 4 Table 3: Stakeholder Categorisation for the Hot Pepper Industry ......................................... 15 Table 4: PESTLE Analysis for the Hot Pepper Industry ....................................................... 17 Table 5: Competitive Issues in the Hot Pepper Industry ....................................................... 19 Table 6: SWOT Analysis of Hot Pepper ............................................................................... 20 Table 7: Sub-Sector Assessment of Hot Pepper .................................................................... 22 Table 8: Approximate Cost of Infrastructure ......................................................................... 27 Table 9: Annual Utilities Cost ............................................................................................... 28 Table 10: Summary of Annual Salaries ................................................................................. 28 Table 11: Operational Costs .................................................................................................. 29 Table 12: Base Equipment Costs ........................................................................................... 30 Table 13: Summary of Costs ................................................................................................. 31 Table 14: Job Descriptions for Key Positions ....................................................................... 35 Table 15: Table showing potential labour pools for proposed positions ............................... 38 Table 16: Location Decision Table ........................................................................................ 41 Table 17: List of Potential Investors or Partners ................................................................... 42 v The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus Manufacturing Profile 4: Hot Peppers List of Figures Figure 1: Proposed Product Mix .............................................................................................. 3 Figure 2: Description of Activities .......................................................................................... 6 Figure 3: Major Pepper Producing Areas in Trinidad and Tobago ......................................... 8 Figure 4: Trinidad & Tobago Yearly Pepper Exports in USD ................................................ 9 Figure 5: Key Stakeholder Groups within the Hot Pepper Industry ...................................... 14 Figure 6: Stakeholders in the Hot Pepper Industry ................................................................ 16 Figure 7: Value Stream Map of Hot Pepper .......................................................................... 24 Figure 8: Discounted Annual Net Cash Flows ...................................................................... 33 Figure 9: Organizational Structure for the Hot Pepper Industry ........................................... 35 vi The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus 1 Description of the Opportunity 1.1 Summary Trinidad and Tobago (T&T), is home to some of the hottest peppers in the world, including the Moruga Scorpion measuring over 2 million Scoville Heat Units (SHU) and the Scotch Bonnet at 100,000 – 350,000 SHU. These peppers are used in a variety of products such as pepper mash, dried pepper ground, pepper oil, pepper sauces and other value added products such as salsas and pickles. Peppers are even sold whole, in fresh or frozen states on the international market. The hot pepper industry has been in existence for some time; it is
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