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Report on Nutmeg and Other Spices Sector in Grenada

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Report on Nutmeg and Other Spices Sector in Grenada ALL ACP AGRICULTURAL COMMODITIES DEVELOPMENT PROGRAMME Report on Nutmeg and Other Spices Sector in Grenada Dr. C. K. George International Consultant for Spices and Herbs November ± December 2011 For the Grenada Cooperative Nutmeg Associations and the International Trade Centre 0 | Page Report on Nutmeg and Other Spices Sector in Grenada Project No. INT/75/24D CONTENTS Preface͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘3 Executive Summary͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘4 Summary of recommendations ĂŶĚŶĞǁƉƌŽũĞĐƚƉƌŽƉŽƐĂůƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙ϴ Report on Nutmeg and Other Spices Sector in Grenada͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘ϭϰ Introduction͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘ϭϰ Grenada Nutmeg Sector Development Strategy͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘14 Institution of the Study͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ϭϱ First visit from 27th November 2011 to 5th ĞĐĞŵďĞƌϮϬϭϭ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘ϭϲ Second visit from 11th December 2011 50 17th ĞĐĞŵďĞƌϮϬϭϭ͙͙͙͙͙͙͙͙͙͙͙͙͙͘17 Findings, Analysis, Conclusions and Recommendations͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙17 Strategy Objective 2 ʹ Study on the GCNA͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..17 Creation of Grenada Cooperative Nutmeg Association (GCNA)͙͙͙͙͙͙͙͙͙͙͙͙͙͘17 ^ĐŽƉĞ͕ŽďũĞĐƚŝǀĞƐ͕ƌŽůĞ͕ĨƵŶĐƚŝŽŶƐŽĨƚŚĞ'E͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..18 dŚĞŐŽǀĞƌŶŝŶŐďŽĂƌĚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙18 Progress ŵĂĚĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘ϭϵ DĂũŽƌƐĞƚďĂĐŬ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘.19 ŽŶƐƚƌƵĐƚŝŽŶŽĨƐŚŽƉƉŝŶŐŵĂůů͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.20 ^ƚƌĂƚĞŐLJƉůĂŶŶŝŶŐǁŽƌŬƐŚŽƉ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.21 WƵƌĐŚĂƐĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘.24 džƉŽƌƚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘Ϯϱ sĂůƵĞĂĚĚŝƚŝŽŶ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘Ϯϳ Restructuring the GCNA͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘28 ŶĂůLJƐŝƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙Ϯϴ Proposals to make the GCNA viable and finĂŶĐŝĂůůLJƐŽƵŶĚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙29 Strategy Objective 3 ʹ Examine the existing laboratory facilities͙͙͙͙͙͙͙͙͙͙͙.37 dŚĞ'EůĂďŽƌĂƚŽƌLJ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.38 KƚŚĞƌ>ĂďŽƌĂƚŽƌŝĞƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘ϯϵ WƌŽĚƵĐĞĐŚĞŵŝƐƚůĂďŽƌĂƚŽƌLJ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.39 Laboratory of the Grenada Bureau of ^ƚĂŶĚĂƌĚƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..40 Suggestions for consideratiŽŶ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘40 Assess potential for strengthening production of other spices and value addition͙͘41 džƉŽƌƚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ϰϯ ŽŵĞƐƚŝĐƵƐĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ϰϯ 1 | Page Potential for increasing production͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.43 sĂůƵĞĂĚĚŝƚŝŽŶ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.44 Strategy Objective 2 ʹ Identify areas where funding is ƌĞƋƵŝƌĞĚ͙͙͙͙͙͙͙͙͙͙͙45 Projects approved for funding or under prŽĐĞƐƐŽĨĨƵŶĚŝŶŐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙.46 New project proposals͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘47 Annexes 1 to 11 Minutes of briefing meeting with Permanent SecretaƌLJ͕DŝŶŝƐƚƌLJŽĨŐƌŝĐƵůƚƵƌĞ͙͘͘ϰϵ Minutes of the meeting with managemenƚƚĞĂŵŽĨƚŚĞ'E͙͙͙͙͙͙͙͙͙͙͙͙51 Minutes of Grenada Nutmeg Sector Development Strategy ʹ EĂƚŝŽŶĂůŽŽƌĚŝŶĂƚŝŽŶŽŵŵŝƚƚĞĞŵĞĞƚŝŶŐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘.52 Minutes of debriefing meeting with Permanent Secretary, DŝŶŝƐƚƌLJŽĨŐƌŝĐƵůƚƵƌĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙55 Meeting of the special meeting of the proŐƌĂŵŵĞŵĂŶĂŐĞŵĞŶƚƚĞĂŵ͙͙͙͙͙͙͘͘ϱϳ ĐƚŝŽŶƉůĂŶƉƌĞƐĞŶƚĞĚďLJƚŚĞŽŶƐƵůƚĂŶƚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙62 Minutes of the Cabinet sub-committee on Agriculture and Agri-ďƵƐŝŶĞƐƐ͙͙͙͙͙͘ϲϳ Minutes of the Grenada Nutmeg Strategy Development- National Coordination Committee meĞƚŝŶŐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘ϳϬ Minutes of debriefing meeting with Permanent Secretary, DŝŶŝƐƚƌLJŽĨŐƌŝĐƵůƚƵƌĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙73 WĞƌƐŽŶƐĐŽŶƚĂĐƚĞĚŝŶ'ƌĞŶĂĚĂ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘75 Conversion Table, Acronyms used͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙77 Preface 2 | Page The study for revitalizing the nutmeg industry, improving the functioning of the Grenada Cooperative Nutmeg Association (GCNA) with increased exports, evaluating the capability of existing laboratories for quality analysis, assessing the potential for strengthening production of other spices and their value addition and identification of areas for external funding, was taken under the project, the ³$OO $&3 Agricultural &RPPRGLWLHV 3URJUDPPH´ with funding from European Union (INT/75/24D). All areas except assessing the potential for the production of other spices and their value addition are a part of the objectives of the Grenada Nutmeg Sector Development Strategy prepared in 2010. The project is implemented by the International Trade Centre (ITC), Geneva. The study was conducted by Dr. C.K. George, International Consultant on Spices and Herbs in two visits of about a week each during November-December 2011. He gathered views of all the important players in nutmeg and other spices industry including Minister of Agriculture, Minister of Finance, Attorney General, Permanent Secretary for Agriculture, Officials of the Agriculture Ministry, Chairman of the GCNA, Chairman of the National Coordination Committee of the Grenada Nutmeg Sector Development Strategy, Manager of the Spice Research Project, agro-processors and farmers. The findings, conclusions and recommendations of the study were presented in the meetings of Board of Directors of the GCNA, National Coordination Committee of the Grenada Nutmeg Sector Development Strategy and Ministry of Agriculture held on 13th and 16th December 2011 and they were endorsed. However, some of the recommendations like, restructuring the GCNA and entrusting it with additional functions, etc. have legal implications and can be taken up only after due examination by the government. The author expresses his thanks to Mr. Ian Sayers, Coordinator Sector Development, Division of Market Development, ITC for his constant support in the study. Dr. Guido Marcelle, Chairman, National Coordination Committee of the Grenada Nutmeg Sector Development Strategy spared his valuable time to accompany him in almost all the visits. The encouragements and guidance received from Dr. Guido in conducting the study is precious and wishes to record his special thanks to him. Ms. Hazel Bierzynski, ITC National Consultant has been assisting him by providing all information asked for the study and he would like to thank her profusely. While efforts have been made to verify the information contained in the document, the ITC cannot take responsibility on errors, if any, it may contain. The views expressed in this study report in no way reflect the opinion of the European Union and the ITC. The usual disclaimers regarding responsibilities apply to this report. For further details, please contact Mr. Ian Sayers ([email protected]). 3 | Page Report on Nutmeg and Other Spices Sector in Grenada Project No. INT/75/24D EXECUTIVE SUMMARY The story of nutmeg in Grenada started 168 years back. This tree which produces two important spices of commerce, nutmeg and mace was introduced into Grenada in 1843 from its native country, Indonesia and found another home in Grenada with its favourable agro-climatic conditions. Its cultivation spread fast and became the important cash crop of the island. Both nutmeg and mace are priced high in the spice family of 109 members. When production increased year after year and became large, the government of Grenada set up the Grenada Cooperative Nutmeg Association (GCNA) in 1947 under the Act of Legislature to procure nutmeg and mace assuring due prices to growers and dispose of by export. The GCNA was doing well till the beginning of the present millennium except when a natural calamity, hurricane Janet occurred in 1955. Production continued to grow and reached an all time record of 6,614,732 lb (3000.391 Mt) nutmeg and 460,921 lb (208.070 Mt) mace in 2003. Exports grew with increase in production and contributed 22.5% of the total merchandise exports and nearly 66 to 70% of all agricultural exports at that time. Nutmeg tree provided livelihood to nearly 30% of the population and about 7000 families enjoyed fruits of this spice industry. The well established industry faced a severe blow with two consecutive hurricanes one after another; Ivan in September 2004 and Emily in July 2005. As a result of it, over 90% of the nutmeg trees were fallen and damaged, and production plummeted to 501,086 lb (227.288 Mt) Nutmeg and 25,724 lb (11.688 Mt) mace. The catastrophe affected everyone in the country particularly nutmeg farmers who are the majority among the farming community. The business of the GCNA steeply fell down to the bottom level in 2006. Being a perennial crop with long precocity, revival of production is not an easy task. The GCNA and all stakeholders together worked out a strategy plan with new vision and mission in 2008 for increasing production of nutmeg and improving business, but, the desired results have not been achieved till now other than some slow increase in production, collection and export of nutmeg and mace. As a part of the EU funded WKH³All ACP Agricultural Commodities Programme´, the Ministry of Agriculture, the GCNA and other sector stakeholders namely FAO, UNCTAD and the World Bank in collaboration with International Trade Centre examined the problems of the nutmeg industry in Grenada and developed a comprehensive strategy in 2010. It identified six important areas namely, reinforce capacity of the GCNA, greater access to market information of nutmeg and mace, increase quality and quantity of production, improve availability of finance, strengthen cross ministry coordination and public/ private partnership, and ensure the long term sustainability of the
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