Report on Nutmeg and Other Spices Sector in Grenada

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ALL ACP AGRICULTURAL COMMODITIES DEVELOPMENT PROGRAMME

Dr. C. K. George International Consultant for Spices and Herbs

November ± December 2011

For the Grenada Cooperative Nutmeg Associations and the International Trade Centre

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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

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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

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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]).

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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 nutmeg industry. A National Coordination Committee was set up for monitoring the implementation of various programmes drawn up under the strategy to achieve

4 | Page the objectives and provide all support necessary for revival of the nutmeg sector. The outlay required for implementing all the programmes then identified toward this purpose was estimated at US $ 6,588,000 for 3 years.

As a part of the above strategy and for the overall development of spices in Grenada, the International Trade Centre appointed Dr. C. K. George, Consultant for Spices and Herbs under WKH(8IXQGHGWKH³All ACP Agricultural Commodities Programme´WRFDUU\RXWWKHIROORZLQJ tasks.

1. Study the role and functioning of the GCNA and suggest changes to be effected to make the organization viable with increasing exports (Strategy Objective 2). 2. Examine the existing laboratories for analyzing quality parameters and also biochemical constituents for which nutmeg and other spices are valued for and identify the appropriate laboratory and suggest areas for strengthening where necessary (Strategy Objective 3). 3. Assess the potential for strengthening production of various spices other than nutmeg and mace and suggest value added products which could be prepared out of them considering marketability. 4. Identify areas for funding the GCNA and spices development and assist the National Coordination Committee if required for drafting proposals for consideration of funding agencies (Strategy Objective 2).

The Consultant carried out the study in two visits to Grenada, the first from 27th November 2011 to 5th December 2011 and the second from 11th December 2011 to 17th December 2011. He visited the Agriculture Ministry, GCNA, nutmeg pools, nutmeg and other spices producing farms, three laboratories; held discussion with Minister for Agriculture, Minister for Finance, Attorney General, Permanent Secretary for Agriculture, Chairman, Board of Directors and the management team of the GCNA, Chairman and members of the National Coordination Committee of the Nutmeg Sector Development Strategy and attended meetings organized by them. The findings, conclusions drawn and recommendations made and accepted by the GCNA and the National Coordination Committee are detailed as follows:

Nutmeg industry and the GCNA: The present collection of nutmeg and mace though improved in the six years after the hurricanes in 2004 and 2005, it is not at all adequate considering the past achievements, sustainability of the GCNA and the need to increase exports. The main bottlenecks are delay in replanting and new planting of nutmeg and non-diversification of the activities by the GCNA to generate additional income. The measures suggested are providing incentives to farmers to use planting materials propagated by vegetative means with buds collected from elite trees producing large nutmegs and thick mace, restoration of organic production, improving grading method, introduction of special grades in nutmeg and mace for retail packing, faster drying of procured nutmeg mechanically, revival of production of essential oil by steam distillation, recovery of nutmeg fat from spent material, reducing dependence on sales agents abroad and doing direct export, entry into collection and export of other spices,

5 | Page adoption of traceability and quality assurance measures. There is need to strengthen the Nutmeg Board with two or three professional hands inducted by the Board based on business acumen, legal expertise and exposure to financial management and prolong tenure of Directors of the Board from the present one year to two or three years for continuity in business operation. The RIILFHU¶VWHDPPD\EHDGGHG with Executive Secretary to look after all administrative and related matters and Quality Assurance Officer to ensure the quality of nutmeg and other spices traded by the GCNA. Further, increase the role and functions of the GCNA to take up the additional activities including handling of other spices suggested.

Laboratory for quality analysis and determining biochemical constituents in spices: The existing facilities at the laboratory of the GCNA, Produce Chemist Laboratory and the laboratory of the Grenada Bureau of Standards were examined. The GCNA laboratory is not functioning and no hands are available at present. Albeit, it has identified the required space and possesses a few equipment. It is a big task to make this laboratory functional. Moreover, it will not have the status of an independent laboratory as the GCNA itself is the exporter. The Produce Chemist Laboratory has most of the equipment and some trained hands but the objectives with which it has been set up is different as it functions also as a public laboratory including analysis of forensic materials in criminal cases. The laboratory of the Grenada Bureau of Standards may be the right choice among the three laboratories visited, as it has almost all equipment required and qualified hands. It however, needs one or two equipment additionally and training of a couple of hands abroad to take up complete analysis adopting internationally accepted procedures.

Potential for production of other spices and value addition: Grenada has all important tropical spices. Except cinnamon, production of all other spices (ginger, turmeric, hot chili, clove, pimento, West Indian bay leaves, etc.) is small at present. There is great potential for increasing production as agro-climatic conditions are suitable for growing them. Attempts should be made to identify high yielding varieties of these spices with high intrinsic quality for propagation. Market exists for these spices within the country, in the Caribbean islands and in the West. Value addition by making ground products and retail packing for domestic sale and in the nearby islands may be taken up besides organic production for the West. Syrup, preserve, crystallized product, tit bits, brined product, ale, etc. may be prepared from ginger in addition to the sliced and ground. Hot chili is already used for making hot sauce. Distillation of oil and extraction of oleoresin may be thought of as a joint venture when production of a few spices is large enough.

Existing and new pr oposals: Nutmeg and spice industry in Grenada needs strengthening. A couple of projects, Establishment of Market Information System and Nutmeg Industry Modernization and Revitalization have been funded by the Centre for Development of Enterprise (CDE). The Caribbean Development Bank is examining a proposal on Nutmeg Tree Access and Replanting. Assistance is becoming available for identification of causal organism and control of nutmeg wilt from IICA and for mapping nutmeg trees from FAO. Two proposals namely, Nutmeg Farmer Loan Guarantee Scheme and Nutmeg Value Added Feasibility Study have

6 | Page already been identified and are to be posed for funding. New areas which need support as a result of the present study are training Agricultural Officers and progressive farmers on improved harvest and post harvest management, quality assurance measures and assisting large production of planting materials of nutmeg and other spices by providing a truck for transporting top soil, and a Bob-Cat for mixing topsoil and manure, besides a machine for slicing ginger and turmeric for making sliced dry products. These new proposals will reduce cost of planting materials of spices and production of dry ginger enormously and improve quality of spices produced in Grenada superior meeting international standards.

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Summar y of recommendations and new project proposals

Summary of recommendations under four areas of study and new project proposals are given in a tabular form below.

S. Subj ect Present position Recommendation Endorsement, if No. any Nutmeg industry and Grenada Cooperative Nutmeg Association (GCNA) 1 Induction of The Act states One proposal is to elect only three Chairman, GCNA did Independent seven to nine Directors from Delegates and the not appreciate any of the Directors based Directors for the other three inducted by the Board as suggestions. There are professionalism Board. independent Directors based legal implications as on Director Board Now the Board business acumen, legal capability Nutmeg Ordinance Act is consists of nine and exposure to financial to be amended. So Directors of management. Another suggestion is Government may take which six elected to make number of total Directors suitable decision after from among twelve and the additional three legal analysis as Delegates and Directors inducted as suggested. Yet indicated in the Cabinet three nominated another suggestion is to reduce the Sub-Committee on by the Minister of number of Directors to seven as Agriculture meeting held Agriculture. There some analyses as the present Board on 13th December 2011. are no of nine Directors itself is unwieldy. independent No change proposed of the Directors now on Directors nominated by the the Board. Minister. 2 Tenure of the Tenure is one year Too short tenure for a business As in S. No. 1 Director Board from 1st July to concern and may be increased to 2 30th June. or 3 years. It can be achieved by staggering the election of Directors so that in any one year only two Directors retire. 3 Position of The Act provides The post of Secretary may be Proposal could not be Executive the position of designated as Executive Secretary discussed with Secretary Secretary but not as many responsibilities are to be Chairman, GCNA. filled in. discharged and filled in. 4 Position of Quality The position does Create the post of Quality Proposal could not be Assurance Officer not exist now. Assurance Officer and a suitable discussed with hand with required qualification and Chairman, GCNA. experience in Quality Assurance posted. 5 Replanting to There is no A replanting programme may be Both Director Board of revive nutmeg concrete proposal taken up soon with vegetative the GCNA and the production now on hand. propagated planting materials. For Grenada Nutmeg Sector adopting vegetative this, buds collected from elite Development Strategy- propagation nutmeg tree with large sized nutmeg National Coordination and thick mace, and producing high Committee endorsed the yield may be used. A policy proposal. decision may be taken in this regard. 6 Revival of Discontinued after May be revived after contacting Both Director Board of production of Hurricanes in buyers abroad, particularly in the GCNA and National organic nutmeg 2004 and 2005. Europe. Participate in BioFach Coordination Committee and mace (largest organic fair), Nuremberg, endorsed the proposal. Germany.

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7 Drying Nutmeg Slow drying Artificial drying may be resorted to Both Director Board of lasting 4 to 8 and drying completed in about 5 the GCNA and the weeks is days. Solar drying trial if found National Coordination followed. successful may be adopted to. Committee endorsed the proposal. 8 Separation of Nutmeg put in an Mechanical separation may be Both Director Board of heavy of heavy open basket is resorted to for separation of light the GCNA and the nutmeg from the immersed in water ones as wetting dried nutmeg National Coordination light ones by for the light ones particularly with cracks may lead Committee endorsed the floatation in water to float. Both fungal infection and sometimes proposal. grades are dried aflatoxin production. again. 9 Grading of nutmeg No special grade Introduce a jumbo grade with 50 Both Director Board of and mace is made for nutmegs per pound and a flower the GCNA and the premium market. grade in mace for retail packing for National Coordination housewives and premium Committee endorsed the consumers after consulting buyers proposal. abroad. 10 Distilling essential The hydro- The hydro-distillation unit may be Both Director Board of oil from nutmeg distillation unit set converted to steam distillation unit the GCNA and the up at Marli is if feasible or a new steam National Coordination defunct. distillation unit set up and continue Committee endorsed the production of essential. Also proposal. establish a unit to extract fat from spent material. 11 Exporting nutmeg Nutmeg and mace Direct sales to buyers may also be Both Director Board of and mace are sold solely resorted to for better price the GCNA and the through agents in realization. Buyers may be chosen National Coordination Belgium, the US who give the highest price and be in Committee endorsed the and Canada. contact with them regularly. A team proposal. of good buyers may be developed for regular export. 12 Manufacture of No unit has been When production of other spices is Both Director Board of Oleoresin from set up to produce large and the Act amended, setting the GCNA and the nutmeg and other spice oleoresins up of an oleoresin unit can be National Coordination spices for export. thought of. But it is desirable to Committee endorsed the establish as a joint venture as proposal. product specifications are very stringent. 13 Manufacture and No unit has been Once Act is amended a feasibility The National marketing of set up by the study may be conducted before Coordination Committee individual spice GCNA to produce entering into manufacturing and endorsed the proposal. powders and individual spice marketing individual spice powders mixed spice powders and and mixed spice powders. There powders mixed spice could be demand from Grenadians, powders, and tourists and other Caribbean islands market them. to begin with. 14 Marketing whole Marketing of Marketing of whole spices in retail The National spices in consumer whole spices in packs may be started initially to Coordination Committee packs retail packs is not local consumers, foreign tourists endorsed the proposal. done now. and other Caribbean islands once the Act is amended. A joint venture with a leading retail marketing company may be thought of later for export to Western countries.

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15 Export of spices GCNA is not Buyers abroad demand spices such The National other nutmeg and involved in the as ginger, turmeric, chili, black Coordination Committee mace procurement and pepper, vanilla, cinnamon, clove, endorsed the proposal. export of spices pimento etc besides nutmeg and other than nutmeg mace. In fact, some buyers may be and mace. keen to get a mixed container of different spices and will offer higher prices. Hence purchase of other spices may also be initiated once the Act is modified. 16 Participation in The GCNA does Since direct export to buyers is The National international fairs not participate in proposed it is important to Coordination Committee the food fairs held participate in international food fairs endorsed the proposal. abroad on a such as Anuga, Food Ingredients, regular basis. Agri-Expo, etc. besides, World Spice Congress in India. 17 Improving both No specific and Improve intrinsic (desirable The National Intrinsic and concrete biochemical constituents) in the Coordination Committee hygienic qualities programme now spices by selecting and planting the endorsed the proposal. to improve right varieties, and modernizing quality. processing and adopting ISO standards and HACCP strictly. 18 Merging Grenada The proposal is Desirable as both cocoa and nutmeg Both Director Board of Cocoa Association under are grown by the same farmers and the GCNA and the with GCNA consideration the GCNA capable of handling of National Coordination since 2008. cocoa also. But operations should be Committee endorsed the done carefully as both have proposal. different flavour profiles and mixing products affects quality. 19 Utilizing vacant GCNA took some Expedite utilization of vacant spaces Not formally discussed spaces action but even with GCNA at St. Georges and also with GCNA and National prime facilities in some of the pools by self and/or Coordination Committee. still not utilized. giving on lease. 20 Advanced training Not done as an To improve efficiency of the Not formally discussed for the essential management team, periodical with GCNA and National management team requirement training in the subject matter should Coordination Committee. be given to officers. Facilities outside the country may be thought of with external assistance 21 Inviting foreign No foreign buyers Invite leading importers of spices, Not formally discussed buyers to Grenada are invited for show facilities and strengthen with GCNA and National for sales promotion business contacts with them to develop Coordination Committee. discussion. business.

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Laboratory for quality analysis and determining biochemical constituents in spices 22 Laboratory for A proposal is on Equipping a laboratory under Both Director Board of quality testing and hand to set up a GCNA is very expensive as only a the GCNA and the determining quality testing part of the equipment possessed and National Coordination biochemical laboratory under no technical hands working now. Committee endorsed the constituents GCNA and some Desirable to have an independent proposal. efforts are taken laboratory as the GCNA is the in this regard exporter. Produce Chemists including availing Laboratory has most of the FAO assistance equipment and some technical hands but some more equipment necessary and one or two more technical hands to be appointed. But part of its objectives is entirely different from that of quality testing. The laboratory of Grenada Bureau of Standards is the most suitable as it has almost all equipment necessary and all needed technical hands. But, only requires orientation training and establishing equivalence with laboratories in the West. Objectives also matches with quality test. Hence this laboratory may be chosen for the purpose. Potential for increasing production of other spices and value addition 22 Nomenclature of Spices other than Many of the spices grouped under Both Director Board of spices produced nutmeg such as, Minor Spices are major spices in the the GCNA and the besides, nutmeg ginger, turmeric, international trade and consumption. National Coordination chili, clove, black Hence they may be called Other Committee endorsed the pepper, vanilla, Spices as a group and the expression proposal. west Indian bay Minor Spices may be discontinued. leaf etc. produced in Grenada are grouped under Minor Spices 23 Potential for A few spices such The agro-climatic conditions in Both Director Board of increasing as, ginger, Grenada are suitable for producing the GCNA and the production of other turmeric, chili, all the tropical spices listed in National Coordination spices clove, black column 2, but promotional efforts Committee endorsed the pepper, vanilla, taken are marginal. Production of proposal. west Indian bay some of the spices should be taken leaf etc. are grown up after assessing cultivars for high by farmers but no yield and desirable biochemical assessment made constituents and also market on potential for demand. Some of these spices can increasing be grown as intercrops and mixed production crops. 24 Potential for value Some value added But much more items could be Both Director Board of products from products such as made from different spices- candy, the GCNA and the other spices ground spices and preserve, marmalade, crystallized National Coordination jam, jelly, syrup, ginger, tit bits, ale, etc. from ginger; Committee endorsed the etc. are made curcumin from turmeric, capsaicin proposal. from pericarp of from hot chili are some besides, nutmeg. essential oils and oleoresin.

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New project proposals 25 Harvest and post Harvest and post Harvest and post harvest Chairman, National harvest harvest practices management are most important in Coordination Committee management of followed now are making spices of top quality with endorsed the proposal. spices not latest and high intrinsic values and required scientific. Source hygienic quality. Sufficient is literature what expertise in this area is not available is available from in the country. Hence proposed the Internet and print services of an international expert media. for a month for production of literature and for training Agriculture Officers and progressive farmers. 26 Large scale The main Purchase of 4-ton truck, Bob-Cat Chairman, National production of bottleneck in and slicing machine (from Emura Coordination Committee planting materials producing Food Machine Co. Ltd.). are endorsed the proposal. and transportation planting materials proposed. Truck is for transporting to farms and in large numbers top soil and planting materials and slicing of ginger is the non- Bob-cat for mixing top soil and availability of top organic manure at the nursery site soil at the site and under the Spice Research Project. facility for mixing Slicing machine from Emura Food it with manure. Machine Co. has proved credibility There is no in fast slicing ginger and hence very efficient slicing useful in preparing sliced dry ginger machine for fast by the Spice Marketing Cooperative slicing of ginger. Society and the GCNA.

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Report on Nutmeg and Other Spices Sector in Grenada Project No. INT/75/24D Introduction

Grenada is a tri-island nation consisting of a large island, Grenada and two small islands, Carriacou and Petite Martinique. The origin of these islands is volcanic. The island, Grenada has a geographical area of 120 sq. miles (440 sq. km) with rugged topography. Agriculture production is mainly in this island with an estimated area of 38% under various crops. Nutmeg tree which gives two high value spices, nutmeg and mace is the most important cash crop of Grenada.

According to the popular belief, nutmeg was introduced into Grenada in 1843 at Belvedere (VWDWH LQ 6W -RKQ¶V 3DULVK IURP ,QGRQHVLD WKH KRPH RI WKLV VSLFH +DYLQJ IRXQG WKH DJUR- climatic condition favourable, its cultivation was spread to different parishes in the island and attained a significant position in the economy and culture of the country. It is surprising that the demand for nutmeg and mace in Grenada is relatively very small for cuisine. However, enterprising people developed a few products like, syrup, rum punch, liqueur, jam, jelly, etc. from the thick pericarp of the fruit, otherwise a waste product. These products are very popular not only among islanders but also among tourists who visit the country. Nutmeg and mace after drying are exported taking advantage of the growing demand in the international market for meat processing, sausage preparation and bakery products. Grenada Nutmeg Sector Development Strategy

The flourishing nutmeg sector got a severe blow when hurricane Ivan and Emily struck Grenada in September 2004 and July 2005 respectively. Earlier nutmeg industry was contributing substantially to the livelihood of nearly 33% of the population directly and indirectly and the natural calamity severely constricted the flow of money to the rural people as over 90% of nutmeg trees were fallen and production of nutmeg and mace came down to a bottom level.

The nutmeg sector has to be revived for assuring better life to the farming community and to ensure continued foreign exchange flow to the country. The Nutmeg Sector Development Strategy was therefore developed in 2010 to deal with the revitalization of this important sector. The methodology adopted for emerging the strategy was participatory using value chain approach with inputs from over 70 sector stakeholders from private, public and the government. The EU funded, the ³All ACP Agriculture Commodities Programme´ under the leadership of the Ministry of Agriculture, Lands, Forestry and Fisheries of the Government of Grenada and other sector stakeholders namely FAO, UNCTAD and World Bank in collaboration with International Trade Centre, Geneva is a part of this partnership.

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The strategy formulated is comprehensive and encompasses all aspects of the nutmeg industry. The objectives and specifically identified areas as stated in the document are the following:

x Reinforce access to market information to enable better decision making for the sector x Build capacity of the GCNA to better compete and develop the nutmeg industry x Increase quantity and quality of nutmeg and mace collected by the GCNA x Augment access to finance for all stakeholders to facilitate sector operations and manage risk x Improve cross Ministry co-ordination and public/private partnerships for better policy making x Ensure the long term sustainability of the nutmeg industry in Grenada

While some of the areas in the objectives which are ongoing have been strengthened, certain others have been prioritized for implementation.

The National Co-ordination Committee has been set up to monitor, improve and supplement the implementation of the programmes wherever necessary. The Committee meets periodically and takes stock of the progress made and hurdles, if any, are removed by approaching the concerned authorities. Institution of the Study

The National Coordination Committee suggested to the International Trade Centre which is responsible for implementing the EU funded ³All ACP Agriculture Commodities Programme´ to support a study on nutmeg and other spices in the following areas and make suitable recommendations with the help of an international consultant.

1. Examine the existing structure of the Grenada Cooperative Nutmeg Association(GCNA), its responsibilities, processing and export operations and suggest improvements, where necessary (Objective 2)

2. Suggest new areas the GCNA may enter into to make the organization better able to serve the nutmeg growers in particular and other spices producers in general (Objective 2).

3. Study the laboratory facilities now available with GCNA and propose additional facilities as necessary, considering the need to analyze nutmeg and other spices for various contaminants and biochemical constituents (Objective 3).

4. Assess the potential for strengthening the production of spices other than nutmeg and if found sound; indicate value-added products which could be prepared out of them for export.

Accordingly Dr. C. K. George who was the Consultant to plan, organize and execute the study tour on nutmeg in Kerala State, India for the six stakeholders from Grenada was appointed by the International Trade Centre to carry out the assignment.

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The study and analysis were done by Dr. George in two visits to Grenada from 27th November 2011 to 5th December 2011 and from 11th December 2011 to 17th December 2011. During both stints Dr. Guido Marcelle, Chairman of the National Co-ordination Committee of the Grenada Nutmeg Sector Development Strategy accompanied him in all visits except on 30th November ZKHQ0U5RQDOG2¶1HDOH took him to show the work done on spices other than nutmeg under the Spice Research Project for which he has been directly responsible.

First Visit from 27th November to 5th December 2011

The following meetings were attended by the Consultant besides a few visits and discussions.

The briefing meeting taken by the Permanent Secretary, Ministry of Agriculture at 8.30 AM on 28th November 2011 in his chamber, the next day of arrival of the Consultant in Grenada. Minutes of the meeting is given at Annex 1.

The meeting with the Management Team of the GCNA at 10.00 AM on 28th November 2011 in the Board Room to explain the purpose of visit and areas which the Consultant has been assigned for examination as per the Terms of Reference of the study and to get their views. Minutes of the meeting is given at Annex 2.

The meeting of the Grenada Nutmeg Sector Development Strategy ± National Coordinating Committee at 3.00 PM on 28th November 2011 in the Conference Room of the Tourism Ministry to explain the purpose of visit of the Consultant to the members and for their interaction with him on any issue connected with his study as detailed in the Terms of Reference. Minutes of the meeting is given at Annex 3.

The debriefing meeting taken by the Permanent Secretary, Ministry of Agriculture at 4.00 PM on 4th December 2011, on the previous day of departure of the Consultant from Grenada in his chamber. Minutes of the meeting is given at Annex 4.

Second Visit from 11th December to 17th December 2011

The special meeting of the Technical Management Team, Ministry of Agriculture taken by the Permanent Secretary, Ministry of Agriculture along with the Consultant at 9.50 AM on Monday, 12th December 2011at the Conference Room of Produce Chemist Laboratory. Minutes of the meeting is given at Annex 5.

The meeting of the GCNA Board of Directors at 10.00 AM on Tuesday, 13th December 2011 in the GCNA Board Room wherein the Consultant presented an Action Plan on the rejuvenation of nutmeg industry and measures for increasing production of other spices with high quality and for their value addition. Report of the Action Plan presented to the Board is given at Annex 6.

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The Meeting of the Cabinet Sub-Committee on Agriculture and Agri-business held at 1:45PM on Tuesday, 13th December 2011 in the Chamber of the Minister for Agriculture, Government of Grenada for presenting findings of the Consultant. Minutes of the meeting is given at Annex 7.

The meetings of the Grenada Nutmeg Sector Development Strategy ± National Coordinating Committee at 10:00AM on Friday, 16 December 2011in the Board Room of the GCNA for presentation the findings, conclusions and recommendations by the Consultant. Minutes of the meeting is given at Annex 8.

The debriefing meeting taken by the Permanent Secretary, Ministry of Agriculture with the Consultant at 12.30 PM on Friday, 16th December 2011on the previous day of his departure in his chamber. Minutes of the meeting is given at Annex 9.

The list of important persons contacted by the Consultant during the two visits is given in Annex 10. Findings, analysis, conclusions and recommendations

The information collected, analysis carried out, conclusions drawn and recommendations made on the four areas of the study under the Terms of Reference of the assignment are given seriatim:

1. Strategy Objective 2: Study the scope, objective, role, functions, strength and weakness of the GCNA and discuss suggested changes with its governing body, members of the Nutmeg Strategy Committee and Government officials and improvements to be made to make the organization viable and financially sound. Draft proposals with recommendations for changes to render the organization self-sustainable within 5 years whilst supporting a flourishing export spices sector.

Creation of Grenada Cooperative Nutmeg Association (GCNA)

In the early years, transactions in nutmeg and mace were not orderly and traders and exporters were not giving reasonable prices to producers. Further, there were unhealthy competitions among exporters. A conference of the producers was therefore held on 17th March 1942 to discuss the issues and as a consequence a spice working committee was set up for further action. As a follow up of this, the Government of Grenada made the Legislation Number 8 of 1946, the Grenada Nutmeg Industry Ordinance (Nutmeg Industry Act, Cap. 215 and Nutmeg Regulation of Export Cap. 216) which provided the formation of Grenada Cooperative Nutmeg Association (GCNA). The GCNA started functioning on 1st October 1947.

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Scope, objectives, role and functions of the GCNA

As per the Act, nutmeg industry with all its aspects is placed at the disposal of the GCNA. All the rights are bestowed on its Board to function effectively serving stakeholders of the industry. The role and functions of the GCNA as given in the Act are as follows:

x To act as the sole purchaser and exporter of nutmeg and mace securing stable prices. x End the competition among local exporters. x Provide producers with more of the industry by excluding middlemen. x Increase demand by setting up standards for quality. x Make value added products by distilling oil and manufacture of products (from nutmeg, mace and pericarp). x Consider and advice the Minister for Agriculture in regard to all matters affecting nutmeg industry. x Expend and account all such moneys as may be collected by a cess on the industry and placed at the disposal of the Board for the purpose of research, marketing and other services of the industry.

The governing board

As per the Act, the GCNA will be governed by a Board of Directors of no less than seven and no more than nine members. The affairs of the Association are controlled by a Board, called the Nutmeg Board which shall be the governing and executive body of the Association. There is General Manager who reports to the Board of Directors and is responsible to manage the day-today affairs of the Association.

The head quarters of the GCNA is at St. *HRUJH¶VDnd has at present a team of 17 officers and staff. The management team includes Accountant, Operations Manager and Field Inspector, besides, General Manager. There are approximately 140 daily paid workers employed on yearly basis to carry out purchase and processing operations at various purchasing centres named, nutmeg pools.

All the nutmeg producers in the country have to sell nutmeg and mace to the GCNA and become members. These members elect 240 Delegates each representing 100 members in a Parish (The number of Delegates may vary depending upon members in a parish). The Delegates in turn elect six Directors to the Board in their General Body Meetings. Three Directors are appointed by the Agriculture Minister. One of the six Directors elected by the Delegates is chosen as the Chairman by the Board and under his leadership the Board of nine Directors carries out all the operations of the GCNA.

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Progress made

With increase in production and purchases by the GCNA, coupled with some improvement in quality and organized handling, nutmeg and mace of Grenada became sought after spices in the international market. However, the industry faced a major impediment due to a severe hurricane, Janet in 1955 but made good progress afterwards by timely replanting and new planting. It may be mentioned that nutmeg industry in Grenada grew up even before 1980s to hold the second position, next to Indonesia in the world market.

Production of nutmeg which was 5,257,605 lb (2,347.01 Mt) in 1951 reached 6,614, 73 lb (2,953.01 Mt) in 2003. Nevertheless, in the case of mace there was some reduction in collection from 705,471 lb (314.94 Mt) to 460,921 lb (205.75 Mt.).

This industry became the main contributor to the GDP, foreign exchange earnings and employment generation. Nearly 7000 growers got involved in production and it provided income and employment to 30% of the population of about 100,000 inhabitants and the rural economy grew at a fast rate. During 2000 to 2004, revenue from nutmeg and mace was very high and averaged EC $ 35 million and shared 22.5 RI *UHQDGD¶V WRWDO PHUFKDQGLVH H[SRUW in 2002. Customarily, export of these spices has contributed nearly 66% to 70% of all agricultural exports of the country.

Major setback

This fast growing sector faced severe blow with two devastating hurricanes, one after another, Ivan in September 2004 and Emily in July 2005. Consequently, over 90% of the nutmeg trees were fallen or damaged, besides, the heavy losses incurred to houses and other properties. Production tumbled down to 501,086 lb (223.70 Mt) nutmeg and 25,724 lb (11.48Mt) mace in 2006 as a result of these hurricanes. The Table 1 gives pre-Ivan, Ivan, post Ivan and Emily production, and post Ivan and post Emily production of nutmeg and mace.

Table 1 Pre and Post Ivan (September 2004) and Emily (July 2005) Production of Nutmeg and Mace

Year (1st July Nutmeg equivalent Mace (lb) to 30th June) cracked (lb) Pre Ivan production 2000 5,719,276 418,114 2001 5,358,077 228,590 2002 4,796,803 310,781 2003 6,614,732 460,921 Ivan production 2004 6,446,945 284,738

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Post Ivan and Emily production 2005 1,783,469 77,579 Post Ivan and Post Emily production 2006 501,086 25,724 2007 601,330 42,596 2008 697,780 54,506 2009 789,535 55,453 2010 715,375 53,147 2011 904,654 64,343

Source: GCNA Strategic Development Plan 2008-2012 and Financial Statement and Trading Summery for the year ended 30th June 2011

After the calamities, total export earnings from nutmeg and mace plummeted from EC $ 37.4 million in 2002 to EC $ 7.5 million in 2006. In other words, share of foreign exchange earnings from nutmeg and mace fell steeply to 40 % of all agricultural products and 11 % of the total exports in that year.

Being a tree crop, nutmeg is not easily amenable for rejuvenation. Young seedlings could be planted only after clearing the land of the debris and established dense weed growth. Many farmers who lost or had damages to their houses gave priority for renovation of their properties or to construct new ones as they needed dwellings urgently.

The fallen trees had matured fruits and a large number of seeds germinated when fell on the ground and seedlings grew from them. But, fate of these seedlings is to be watched as they have not been planted in pits in the normal way for establishing the root system and to give good anchorage when grown up. It is likely that some of them might grow well as tap roots have not been bent or coiled as often happens in the case of poly bag seedlings planted late. In the meanwhile, some of the planters have done replanting, but not even 25 to 30% of the area has been covered, though six years are over after the hurricanes.

Hence arrivals of nutmeg and mace at the nutmeg pools have not picked up and in 2011 it was not even 15% of the production of pre-Ivan year 2003. Many farms are still unapproachable to collect nutmeg fruits as thick bush has been developed due to continued neglect.

There were other severe losses to the GCNA on account of hurricanes as some of the buildings at the pools were badly damaged needing expensive repair.

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Construction of Shopping Mall

The GCNA went into the construction of a shopping mall on an attractive plot in St. *HRUJH¶V facing water front, Lagoon Road Complex adjacent to its headquarters by borrowing funds from a commercial bank in 2004. This was with the intention of earning diversified income to make the organization financially better off. Investment on this building came to about EC $ 26 million as against the original estimate of EC $ 12.5 million. This was due to the cost escalation of building materials after hurricanes and delay in completion of the construction work. Accordingly, the bank loan which was originally EC $ 12.5 million had to be raised by another EC $ 5.0 million to complete the work besides, taking some funds of the GCNA. Anyway, this commercial venture has not started generating the expected income as the private firm which hired a part of the area on the ground floor for a supermarket occupied it only temporarily and the GCNA is still in the process of looking for prospective tenant/s.

Another costly construction work done by the GCNA was the Jubilee Street Complex modifying the existing nutmeg pool at Grenville at an estimated amount of EC $ 3.5 million. Ground floor of the building though let out to a tenant, the rental fee is not sufficient according to the bank which provided the advance for construction. Further, the first floor is vacant and yet to attract a tenant. The GCNA had to expend money for the repairs of other nutmeg pools also. There is a balance liability of EC $ 29,600,739 as on 30th June 2011 as per the audit report of PKF, St. *HRUJH¶V

The financial problem of GCNA therefore increased in addition to the very slow growth in business after the natural calamities. It is observed that nutmeg farms may take long period to come to normal production as 75% of the area is still left for replanting.

Strategy planning workshop

In the above scenario the Board of Directors of the GCNA decided to have a Strategic Planning Workshop in the meeting held on 8th January 2008 on realization of the necessity to review the position of GCNA and to develop a course of action to become viable by the next five years. The workshop was held on 22nd February 2008 at the Red Cross conference room with the participation of thirty six key personnel representing the Board of Directors and Senior Management of GCNA, the Ministry of Agriculture, Caribbean Agriculture Research and Development Institute (CARDI), the Grenada Cocoa Association, private business personnel and individual farmers.

The workshop collectively revisited the vision and mission of the GCNA and formed three working groups with the specific tasks to arrive at the Strength and Weakness of the GCNA, Stakeholders Needs, and Opportunities and Threats. The Vision and Mission statements of the GCNA as given in the Strategic Development Plan for 2008 to 2012 are reproduced below.

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Vision: ³7KH*&1$ZLOObe a world leader in the production, manufacturing and marketing of high quality nutmegs, its bye-products, other spices and managing its assets for the benefit of the VWDNHKROGHUV´ Mission: ³The Mission of the GCNA is to effectively manage its assets, production, processing and marketing of high quality nutmeg, its products and other spices at premium prices for the EHQHILWRIIDUPHUVDQGRWKHUVWDNHKROGHUV´ The analysis of strengths, weaknesses, opportunities and threats of the GCNA visualized by the working groups has been revisited by the Consultant and improved upon after taking into consideration of the current situation and it is given in Table 2.

Table 2: SW OT Analysis Strengths Weaknesses Finance/ Resources Finance/ Resources x Access to capital x Low inventory level x Cash management x Poor capacity utilization x Enough assets x Defaults in timely collection of rent x Liquidity x Inheritance of huge amount as debt Marketing/ Sales capacity x Want good tenants for surplus space x Reasonably strong brand image x Weak asset management x Notable market share x Weak profitability x Strategic locations of collection points Marketing/ Sales capacity x Cash and carry transaction x No value addition Management team/ Employees x Hydro-distillation unit of oil defunct x Some trained and skilled employees x Long drying time delays export x Committed employees x Old shelling machines x Low compensation and benefits x Non-existence of independent laboratory for x Working days not lost by agitation quality evaluation x Good relationship with the Board x No direct contact with buyers abroad Product/ services x Weak productivity of sales team x Good product quality x Inadequate market research x Some product differentiation x Not prudent pricing x Enjoy loyalty from sales agents x Lack of advertising/ promotion campaign x No major agronomic problems Management team/ employees Logistics x Insufficient communication from management x Monopoly purchase x Slow response to change x Monopoly export x Inability to attract/ retain high prices for long x Strong supply management chain x Poor technology adoption x Efficient procurement system x Weak management team and poor leadership x Adequate warehousing facility for business x Excellent relationship with producers x No private firm operating culture x Distance to haul the products limited x Not enough strategic planning x Good name in the past by the GCNA Product/ services x Nutmeg, the most important cash crop of x Need to expand of product lines Grenada x No new nutmeg/ mace products x No R & D work x Necessity to improve distillation technology x High cost of electricity x High cost of labour x No domestic demand x Failure to honour export orders

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Opportunities Threats

General General x Present high prices due to limited supply in the x Changes in social values and norms affecting international market productivity levels x Potential access to new regional markets x Changes in customer needs and preferences x Opportunity to upgrade distillation plant x Loss of market share by inability to supply incorporating new technology increased quantities x Product differentiation in international market x Present trends toward blending products x Scope to attract young people to the industry x Potential loss of trained workers to other x Availability of assets to utilize better industries which can afford to pay higher wages x Market development to supply organic nutmeg with less exertion Major x Young generation moving away from farming x Potential for introduction of high yielding and activity high quality varieties/ cultivars with zero level x Low expertise and salary of the managerial Aflatoxin and very low level of Safrole personnel x Scope for improving grades of both nutmeg and x General unavailability of skilled and unskilled mace workers x Possibilities to make value added products such x Present poor remuneration and unattractive as, high quality essential oil, oleoresin, nutmeg benefits to skilled and trained man power powder, flavoured products, etc. by taking up R x Insufficient funds with Government to support & D work industry with incentives to bring in modern x Opportunity to introduce labour saving technologies developed abroad and also technology and devices and reduce cost of subsidize the cost of imported machinery operation Major x Potential to develop other tropical spices x Increasing price of raw materials (Ginger, Turmeric, Vanilla, Cinnamon, Clove, x Poor accessibility to farms Hot chili, etc.) to make the spice basket with x Narrow and poor condition of roads to farms more spices and demanding to the buyers and collection points x Good possibility for diversification by x High cost of electric power and gas amalgamating cocoa industry x Delay in starting R & D work x Scope for joint venture to manufacture x Increasing competition from other producing high value products like, oleoresin countries and also from new entrants like, India with established companies abroad x Annual change of the Board responsible for governing and executing decisions of the GCNA

The Strategy Planning Workshop also identified key priorities to act as the guiding factors in regard to the future of the GCNA. They are grouped under environmental dictates, stakeholder needs and institutional strengthening.

Environmental dictates 1. Lobby the government to amend the ordinance to facilitate capitalization of assets 2. Provide incentives and make land and capital available especially to young farmers 3. Accelerate replanting and increase production of nutmeg and mace 4. Ensure compliance with pertinent international standards 5. Diversify the income source of the GCNA

Stake holder needs i.e. corporate responsibilities 6. Strengthen technical support/ services/financial incentives to farmers

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7. Produce high quality aflatoxin free, low safrole or shikimol (genotoxic and carcinogenic) nutmeg with reasonable amount of myristicisin (main psychoactive component in nutmeg) 8. Modernize the industry with the use of appropriate technology 9. Improve communication among all stakeholders 10. Develop nutmeg industry based agro-tourism

Intuitional strengthening 11. Create a business culture within the GCNA 12. Strengthen management capability of the GCNA 13. Improve level of communication within the GCNA 14. Review compensation policy of the management team and others in the GCNA 15. Pursue merger plans with Grenada Cocoa Association

Almost all the above proposals are still under consideration and yet to be implemented by the GCNA. Some of them such as, amendment of the ordinance for capitalization of the assets and merger of the Grenada Cocoa Association with the GCNA need support of the legislature.

Purchase

Nutmeg (Fresh, green, wet, partially dry or dry) with shell is purchased from farmers at the pools. For six months from July to December 2010 the advance price was EC $ 2.50 per pound. During this period the quantity of green nutmeg purchased was only 415,498 lb and the number of farmers who delivered the produce also was much less. The advance price was later increased to EC $ 4.00 (EC $ 8.81 per kg). On 8th December it was further increased to EC $ 5.00 (EC $ 11.01 per kg).

Only dry and graded mace is purchased from farmers. Price of Mace 1 grade was increased from EC $ 5.00 to EC $ 8.00 (17.62) per pound sometime back and then again to EC $ 9.00 (EC $ 19.82) on 8th December 2011.

The two lower grades of mace No 2 and No 3 are purchased at lower prices of EC $ 2.00 and EC $ 1.25 per pound respectively.

At the time of purchase only an advance price is paid to the farmers. Payment up to EC $ 50 is given in cash directly and the balance by bank cheque. When the financial year is ended the profit is worked out and bonus or surplus amount is given to the farmers based on the quantities delivered. In the case of mace there is no bonus payment. Bonus is distributed before Christmas and farmers eagerly look forward to receiving a good amount as it will help defray the expenses for Christmas celebration which is the most important festival in Grenada.

Export

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There is only very little domestic demand for nutmeg and mace. There are different grades of nutmeg and mace for export.

Grading: First, shelled nutmeg is placed in water in a basket and immersed and floating nutmegs are separated and re-dried. Those sunk in water are graded as 60/ 65 per pound, 80 per pound and 110 per pound and sound un-assorted nutmeg (SUN) before export. Some exporters ask for nutmeg with the shell after drying. Since there is export demand for ground form, nutmeg floated on water along with broken once dried is used for grinding. The last grade consisting of shriveled, infected, etc. is taken for distillation of oil. There is export of broken and light nutmeg in small quantities.

Mace is dried again after purchase, and then cleaned and graded. Since there is preference for yellow mace in the international market the bags are kept in the open state in the store for a couple of months for changing the red colour. Grades of mace are follows:

Mace is graded into 3 grades as No. 1 whole pale yellow, No. 2 broken partially with blemishes and No. 3 in pieces.

Packing: Packing of nutmeg is done in jute gunny bags with 62.5 kg net weight for export. According to the advice of the International Labour Organization net weight of each bag should not exceed 25 kg. Hence bagging with 25 kg net weight have to followed after the matter is taken up with buyers to meet the extra cost involved.

Mace is packed in poly bags. No. 1 grade at the rate of 25 kg, No. 2 grade at the rate of 40 kg and No. 3 grade at the rate of 50 kg are packed per poly bag.

Exports are done through a single agent based in Brussels for Europe who in turn sells to buyers in Europe. Similarly, there is an agent in the USA and another agent in Canada .Generally there is no direct sale to the importers or end processors of nutmeg and mace in any of the countries. Hence the agent finalizes the transaction.

Export price was EC $ 27.00 per kg dry de-shelled nutmeg (average price of different grades) in 2011. The conversion factor is O.5 fresh to dry. The financial year ending June 2011 realized EC $ 9.890 million from the sale of 724,577 lb of nutmeg.

Mace export was 29,625 lb mace at an approximate price of EC $ 52.00 per kg in the financial year ending June 2011 and earned EC $ O.773 million. Total export earnings came to EC $ 10,663 million during the financial year ending 30th June 2011.

Exports of nutmeg and mace during pre-Ivan, Ivan, post Ivan and Emily and post-Ivan and post Emily periods are given in Tables 5 and 6.

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Table 5: Pre and Post Ivan (September 2004) and Emily (July 2005) Quantity and Value Export of Nutmeg

Year (1st July Nutmeg (lb) Value (EC $) to 30th June) Pre I van 2000 5,402,478 42,858,385 2001 4,365,426 30,920,556 2002 5,051,921 31,616,149 2003 5,208,924 35,034,950 Ivan Export 2004 4,169,382 22,938,409 Post Ivan and Emily Export 2005 4,232,615 29,500,000 Post Ivan and Post Emily Export 2006 1,474,571 8,248,661 2007 1,792,010 8,978,810 2008 707,029 5,592,803 2009 662,405 6,342,874 2010 1,015,881 9,648,926 2011 724,577 9,891,052 Source: Communication from GCNA

Quantities exported will vary from year to year even if there is sufficient stock on hand due to lack of export orders. However, exports of nutmeg and mace have been keeping more or less a steady growth during pre-Ivan years. During post Ivan and post Emily quantities exported came down drastically for want of production and delivery. It has affected the export income of the GCNA drastically.

Table 6: Pre and Post Ivan (September 2004) and Emily (July 2005) Quantity and Value Export of Mace Year (1st July Mace (lb) Value (EC $) to 30th June) Pre I van 2000 490,125 5,203,303 2001 400,086 3,166,012 2002 461,368 2,923,043 2003 470,937 3,615,779 Ivan Export 2004 391,815 2,354,156 Post Ivan, and Emily Export 2005 192,079 1,410,000

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Post Ivan and Post Emily Export 2006 24,082 236,251 2007 56,487 526,504 2008 36,506 568,495 2009 65,670 534,120 2010 78,242 884,685 2011 69,844 1,371,817 Source: Communication from GCNA

The picture of export of mace is similar to that of purchase. Earlier nutmeg to mace ratio was as wide as 14:1. Now it has come down to 7:1. It is an indication that farmers are now collecting mace carefully from nutmeg fruits as price is attractive and after proper drying sell to the pool.

Value addition

Value addition is not done much in nutmeg and mace except grading, grinding and distillation of essential oil.

Essential oil: Essential (volatile) oil is extracted from the last grades of nutmeg and mace in a small factory set up at Marli. The technology adopted is hydro-distillation where steam generated by a boiler is passed through nutmeg/ mace in water and volatile oil is collected by condensation method leaving fat and other residues in the still. The method is inefficient as fat in nutmeg/ mace is not extracted which has commercial value particularly in the cosmetic industry. There are four hydro-distillation units and all of them are not working since 2010. The unit requires repair to some of the parts including the heating system (of the boiler) in addition to servicing and maintenance.

Hydro-distillation may be discontinued and converted into steam distillation. The spent material after steam distillation is good for extraction of nutmeg fat. But no unit has been set up for it so far.

Oleoresin: Oleoresin can be prepared from nutmeg which has good demand in the West. But, getting into this area requires importation of technology, besides setting up of a good laboratory. The buyers abroad want high quality oleoresin with a few ppm of solvent residues (generally less than 10 ppm). Some may ask for solvent free oleoresin in which case very expensive Super Critical Liquid Carbon Dioxide extraction method has to be employed. If the GCNA wants to enter into oleoresin extraction, it seems not wise now as buyers will ask for oleoresins from a few more spices than from nutmeg alone. It may be noted that the present production of spices other than nutmeg is very low except that of true cinnamon, Cinnamomum verum. Importing spices like, black pepper, ginger, turmeric, chili, vanilla, etc. from other countries is expensive and not a feasible proposition. These tropical spices are available in Grenada and hence may wait for a few years so that their production reaches sizeable quantities.

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Restructuring the GCNA

One of the important talks going all over the island is restructuring the GCNA. In the changed global economic scenario, a public limited company is preferable than a co-operative. A proposal in this regard has already been included in the Strategic Development Plan prepared in 2008 and also in the Report of the Board of Directors to the Annual General Meeting on 8th December 2011. The merger of the GCNA with Grenada Cocoa Association (GCA) after capitalization of the GCNA assets is also under consideration. Many nutmeg producers are of the firm opinion that they should have tangible benefit by way of shareholding in the new organization, as the GCNA grew creating many assets mainly because of the income earned from nutmeg and mace business. The GCA was set up in 1965 as a statutory body of the Ministry of Agriculture under the Cocoa Industry Ordinance No. 30 of 1964 and both now operates from the same building.

The Board wants to continue the monopoly right to purchase and export nutmeg and mace in the new set up and all the privileges now enjoyed with protection from the Government. The Government is aware of the restructuring need of the GCNA and the Legal Affairs Ministry of the Government is in the process of examining the right option protecting interest of the growers and continued growth of nutmeg (and cocoa) industry.

Analysis

Today, the GCNA enjoys many rights and facilities which a private sector exporter or exporting company FDQ¶WWKLQNRI in Grenada. The entire quantity of nutmeg and mace can be purchased only by the GCNA. Being a statutory body set under the Ministry of Agriculture by the Legislature it enjoys all rights and privileges to carry out its slated functions.

The GCNA has now completed 64 years of nutmeg operation. The main maladies faced during this period were hurricanes Ivan and Emily in 2004 and 2005 and another one Janet in 1955. The GCNA grew with increased business from 1,192,979 lb nutmeg shelled and 176,355 lb mace (annual average for the year ended 30th June during 1956 to 1960) to 6,614,732 lb nutmeg shelled and 460,921 lb mace in 2003. In other words there has been 5.5 times increase in the volume of business of nutmeg and 2.6 times in the case of mace. The discrepancy of lower production of mace could be attributed to being a highly perishable nature commodity and unattractive prices in the previous years. It is relevant to point out that while nutmeg is purchased in any form, fresh, wet or dry, mace only after drying. If any farmer brings fresh or partially dry mace to the nutmeg pool it will face rejection.

The number of pools grew with increase in business and reached 22 before Ivan. All these pools functioned in well constructed buildings not only for purchase activity but also for drying and storage, some with extensive lands. They are at ideal locations in the towns and villages. Currently only 7 pools are being operated for want of adequate arrivals. The GCNA has leased

27 | Page out some of the facilities wholly or partially for effective utilization of the space and to earn income which has come down steeply due to drastic decline in business.

Proposals to make the GCNA viable and financially sound

The damages caused due to natural calamities in 2004 and 2005 will need a few more years to regain to the earlier position. Hence, it is essential for the GCNA to enter into other commercial activities to make up the income loss and to grow further. This subject had already been deliberated by the Board a few times without easy solution. However, it is important to improve upon the structure of the GCNA to make it more efficient and capable to face challenges in business especially when exports are to be done directly to importers for realizing higher prices.

1. It may be noted that the Nutmeg Board is responsible for all affairs of the GCNA and shall be the governing and executive body as per the Act. As of now it consists of a total of nine Directors, six elected Directors from producers through their Delegates and three nominated Directors by the Minister for Agriculture. The election of Directors from among producers is not based on qualification, expertise or experience. They may or may not possess managerial capability and be aware of developments in the global nutmeg industry. As per rules, any nutmeg farmer can be a Delegate representing every 100 farmers in his parish, and a Delegate if elected from among Delegates, a Director. Many farmers may therefore wish to become Delegates and if possible Directors of the GCNA Board which is a prestigious organization functioning in Grenada under the Act of Parliament. So often farmers, due to their acquired status in the society and public acceptance are elected as Delegates and become Directors without possessing business acumen.

To make the Board efficient and for the business growth, some criteria may have to be fixed to become an elected Director. One proposal is to limit the number of elected Directors from among the Delegates to three. The remaining three Directors may be independent Directors inducted by the Board itself based on business aptitude, legal expertise and/or capability in financial management. Another suggestion is to increase total number of Directors to twelve by keeping the number of Directors elected from among Delegates the same as of now and the three independent Directors inducted by the Board additional. Yet another proposal is to bring down the number of Directors to seven as there is a feeling that the present number of nine Directors on the Board is on the higher side (the Act stipulates not less than seven and not more than nine). Since making change in the structure of the Director Board needs detailed discussion with farmers, economists and legal experts, the subject is left to the decision of the government.

Further, the term of the Board is only one nutmeg year (from 1st July to 30th June) as per the Act. It may be pointed out that this period is too short as the Directors who are

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elected, will take at least a few months to become familiar with ongoing business operations, study the problems faced in the past and challenges lay ahead (especially when direct sales to importers are commenced). It is observed that some of the Directors get elected again and there is some continuity in the Board. But LWFDQ¶WEH taken for granted as due to political or other extraneous reasons there are chances that entirely a new team of Directors or majority with new Directors may come into the Board after a year. Hence it is suggested that the tenure of the Directors may be increased to 2 or 3 years for continuity in the business policy. This can be achieved by staggering the election of Directors so that in any one year only two Directors by rotation are elected new (unless in an Extraordinary General Meeting, stakeholders demand the resignation of all Directors and elect an entirely new team as per rules) while others continue.

Chairman of the GCNA did not prima facie agree with any of the above proposals during discussion with him on 13th December 2011. There are legal implications for making changes in the Director Board and also in increasing its term for more than one year. The Nutmeg Ordinance Act has to be amended by the Legislature for all modifications. The Government of Grenada is examining the issue and a decision will be taken in due course as indicated in the Cabinet Sub Committee meeting on Agriculture held on 13th December 2011. Minutes of the Cabinet Sub- Committee meeting is attached at Annex 7.

2. The GCNA has 18 officers and staff besides many regular workers under a General Manager. All the responsibilities such as, administration, procurement and export of nutmeg and mace, processing, grading, packing export, management of the properties owned by the GCNA, diversification programmes and business development, etc. are under the direct responsibility of this General Manager. Though there is statuary post of Secretary as per the Act it has not been filled in so far. Job of the Secretary includes assisting Chairman in receiving application from nutmeg farmers and processing for membership, looking after administrative matters of officers and staff, transfer, disciplinary action, etc. The GCNA is growing and it is becoming difficult to discharge all these responsibilities by the General Manager. In tune with the present corporate management the post may be designated as Executive Secretary. Hence the post of Executive Secretary may be created under the GCNA and may be filled in at the earliest. The Executive Secretary may report directly to the Chairman.

The proposal was not discussed with GCNA. I t has been supported by the Chairman, Coordination Committee, Grenada Nutmeg Sector Strategy.

3. Quality is the watchword in business and quality assurance has become very important in today¶V transactions. It may be mentioned that there is increased

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awareness on both physical and hygienic quality parameters among consumers in all countries. So importers look for superior quality products even if to be sourced from far away locations to satisfy their customers. Many are willing to pay a higher price for superior quality products. Physical quality parameters such as, aroma, taste, colour, appearance, etc. of each product is different and these can be best retained only with thorough knowledge on the factors affecting them. Besides, health concerns drive towards ensuring hygienic quality of spices and it is of prime importance. Importers look for clean and not cleaned spices. There are various measures such as, adoption of ISO Standards, HACCP etc. to achieve this goal. It is therefore necessary to have an officer fairly at senior level in the GCNA fully responsible for ensuring quality of nutmeg, mace and any other product handled by it for domestic marketing or export. The post may be designated as Quality Assurance Officer and created by the GCNA to hold complete responsibility on quality assurance. He may report directly to the Chairman.

The proposal was not discussed with GCNA. I t has been supported by the Chairman, Coordination Committee, Grenada Nutmeg Sector Strategy.

4. Revival of nutmeg production is crucial for the GCNA for business development and for farmers for increasing income. It is therefore necessary to make a concrete plan to encourage replanting and to look after the plantlets (seedlings) already planted with due care and attention. Replanting may be completed within a span of 5 years. Long delays in replanting will adversely affect production and export of nutmeg and mace from Grenada. No doubt, it will help the competitors to increase their production and replace Grenada to lower position in the international trade.

To increase exports of nutmeg and mace, high yielding varieties with large and heavy nuts and thick mace have to be selected and propagated through vegetative means, budding on healthy seedlings. The Spices Research Project has most of the technology for increasing production and the required knowhow for budding. Budding method has to be popularized by training selected farmers and farm workers who have the keenness to learn this skill. Epicotyl grafting, which was introduced earlier though ensures productivity; budding is simple and easy to perform. A policy decision may therefore be taken that only vegetatively propagated planting materials will be used for future planting. Before enforcing this decision, all the necessary back up must be arranged including selection of elite trees, training of farmers and farm workers on budding, compensation to be paid to the farm workers for successful budding and price to be paid to the elite tree owners per bud, etc.

The replanting programme was presented to the GCNA Director Board on 13th December 2011 and to the Grenada Nutmeg Sector Development Strategy-National

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Coordination Committee on 16th December 2011. Both Director Board of the GCNA and the National Coordination Committee endorsed the programme and the Action Plan prepared in this regard. The details of the Action Plan are given at Annex 6.

5. There was certified organic nutmeg and mace production till Ivan in 2004 but it has not been revived till now. The certification was done by BCS Oko-Garantie Gmbh, Germany. This company certifies according to EU Regulation of Organic Agriculture, National Organic Programme of the United States Department of Agriculture (NOP) and Japanese Agricultural Standard of Organic Products (JAS).

It may be noted that demand for organic agricultural products is growing fast. Germany is the leading buyer of organic spices including organic nutmeg and mace. These products have demand in other European countries such as, the Netherlands, the UK, Switzerland, France and Belgium. Generally, prices of organic spices are higher than that of the conventional. Export dealings in the case of organic products should be directly with buyers (importers) and not through agents as transparency from production to export is very important in these trades. The former buyers of certified organic nutmeg and mace may be contacted to ascertain their demand, besides locating new buyers. It is worthwhile to visit ZRUOG¶V ODUJHVW RUJDQLF IRRG fair, BioFach held in Nuremberg, Germany in February every year and meet buyers for canvassing orders. The organic certification may be restarted with a certifying agency preferred by the buyers.

The programme for production, certification and export of organic nutmeg and mace was presented to the GCNA Director Board on 13th December 2011 and to the Grenada Nutmeg Sector Development Strategy - National Coordination Committee on 16th December 2011. Both Director Board of the GCNA and the National Coordination Committee endorsed the proposal.

6. Nutmeg is generally purchased afresh without drying. This is a good practice as farmers may not dry nutmeg immediately after collection. Moreover, it might rain while nutmeg is put in the sun. Delay and rain during drying will encourage mould growth and sometimes production of aflatoxin in the kernel. Hence nutmeg after purchase at the pools is spread and turned at intervals on multilevel stands erected with wood for drying. The process takes about four weeks (sometimes as long as 6 to 8 weeks during rainy season) as drying is slow and in addition to a lot of space is required due to slow drying. It would be better if nutmeg is dried artificially in an enclosed space fitted with movable trays using through-flow of hot air. Old shipping containers after insulating to prevent loss of heat from its metal body can be made use of for this purpose. Solar drying may be adopted if the trial initiated at Gouyave is successful.

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The proposal for fast drying was presented to the GCNA Director Board on 13th December 2011 and to the Grenada Nutmeg Sector Development Strategy-National Coordination Committee on 16th December 2011. Both Director Board of the GCNA and the National Coordination Committee endorsed the proposal.

7. After drying and de-shelling, nutmeg kernels are placed in water in a basket to sort out the heavy and submerged from the light and floating. After the separation both qualities are dried again. Though the method is the least expensive, not a desirable practice as dried nutmeg is allowed to come in contact with water again. Wetting nutmeg invites mould development, particularly in the cracked and broken pieces. Nutmeg is one of the spices easily susceptible to mould growth and aflatoxin production. The method needs to change. A grader may be fabricated locally with the help of a mechanical engineer or imported from a good manufacturer abroad.

The proposal for mechanical grading was presented to the GCNA Director Board on 13th December 2011 and to the Grenada Nutmeg Sector Development Strategy- National Coordination Committee on 16th December 2011. Both Director Board of the GCNA and the National Coordination Committee endorsed the proposal.

There could be a jumbo grade of whole of big sized shelled nutmeg with 50 numbers per pound. Large retail packers in the importing countries may be consulted regarding introduction of such a grade as they would to like market this grade in transparent containers (glass bottles) at a premium price (to housewives and small consumers). Such grades are available in other spices like, black pepper and vanilla beans for retail marketing to premium customers. Generally importers are willing to offer a higher price for this special grade.

Similarly, there could be a new grade of mace for retail packers in glass bottles. It is QDPHG µMace )ORZHU¶ LQ ,QGLD ,Q WKLV JUDGH WKHUH DUH µ5HG Mace )ORZHU¶ DQG µ

The proposal for new grades of nutmeg and mace was presented to the GCNA Director Board on 13th December 2011 and to the Grenada Nutmeg Sector Development Strategy-National Coordination Committee on 16th December 2011. Both Director Board of the GCNA and the National coordination Committee endorsed the proposal. The new grades in both nutmeg and mace may be

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introduced after talking to the retail packers abroad and the price advantage ascertained.

8. Value addition is another area the GCNA should enter into. The hydro-distillation plant at Marli is defunct now. It has to be modified into a simple steam distillation unit for efficiency. No doubt, this is the best way to utilize shriveled, shrunken, broken and other low grades of nutmeg if they FDQ¶WEHXVHGIRUJULQGLQJ. The GCNA has good experience in marketing and exporting nutmeg oil. In the spent material there is nutmeg fat. It has commercial value especially in cosmetic industry. Hence a unit to extract nutmeg fat should be set up when the existing hydro-distillation unit is modified to steam distillation.

The GNCA has decided to modify the existing hydro-distillation unit to a steam distillation unit. An Evaluation of the existing unit was done to determine whether it was worthwhile to continue with the operations. The report indicated that the plant was poorly maintained, however, it was recommended that the plant should be refurbished.

At the Meeting held on 8 December 2011 the Board indicated that the GCNA was engaging a private company to try to form some sort of a collaborative agreement for the production of nutmeg oil. The details of arrangements in this regard have to be worked out.

9. The GCNA sells nutmeg and mace through agents in Europe, USA and Canada. Marketing through agents may be reduced gradually and do direct sale to importers. In other words the DJHQW¶V role may be reduced to locate buyers when necessary and the price and delivery schedule decided by the GCNA. Direct exports to the buyers would enable to secure better prices and also to gather market information from them on a regular basis. Improving quality, grading and packing, and sticking to delivery schedule, etc. as desired by the importers will enable the GCNA to realize the best possible price in export.

The GCNA Board is seized of this issue and is trying to make suitable changes in the agreement to be signed with the agents in Belgium for Europe and the agents in the US and Canada. Drafting the new agreement is under discussion with the lawyer of the GCNA as informed by the Chairman during the meeting with him on 13th December 2011.

10. After a few years when the production of spices like, clove, ginger, turmeric, hot chilly etc is large enough, the GCNA can get into oleoresin extraction. It is not worthwhile to enter into this area now with heavy investment as meat processors look for high quality oleoresins of a few spices at a time with very low (less than 10 ppm) residual solvent. Further, the unit should have the capability to alter the biochemical

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constituents in the oleoresins matching with the requirements of the meat processing industry. Since sophisticated technology is required for production of oleoresin it is proposed to go for a joint venture with an established firm in the field than doing it alone.

The Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December 2011 endorsed the proposal. The production of other spices (except cinnamon bark) is very smal l now to venture into extraction of oleoresin from other spices but will be considered when the situation is ripe.

11. An area which the GCNA can get into now is the manufacture of nutmeg powder, other individual spice powders, and mixed spice powders with or without nutmeg according to popular recipes. The market may be local Grenadians, tourists and other Caribbean islands to begin with. Ground spices have to be sold in airtight and sealed packs as they will lose aroma fast and invite fungal infection on exposure to humid atmosphere. It is suggested that a feasibility study may be conducted by the GCNA on their market size, prevailing prices demand, etc. once the statutes are amended.

The proposal was presented to the Grenada Nutmeg Sector Development Strategy- National Coordination Committee which met on 16th December 2011. The committee endorsed the proposal.

12. Marketing whole spices in retail packs may be easier as there are such packs already available in the domestic market. But the present demand may be local, from foreign tourists visiting Grenada or from other Caribbean islands. It may take time to get orders for retail packed whole spices from the West. Consumers there generally look for food materials coming from developed countries. Hence better quality retail packed spices may be marketed to these segments of consumers with aggressive campaigns and effective distribution system when the GCNA acquires capability and confidence in this area of trade. A joint venture may be preferable in this area.

The Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December endorsed the proposal.

13. The Minor spices Cooperative Marketing Society purchases some quantities of different spices from the farmers and sells domestically for local needs and also to the tourists besides export to neigbouring Caribbean countries. While the Society may continue to do the same, the GCNA may also purchase through nutmeg pools other spices also produced in the country for export in bulk once statutes are amended. It may be mentioned in this context that the nutmeg importers will also require other spices and they will be happy if a few more spices could be obtained from the same source.

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The Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December 2011 endorsed the proposal.

14. International food fairs (Anuga, Food Ingredients, Agri-Expo West and East, etc) are held in the important spice importing countries like, Germany, France, USA, etc. The Spices Board of India organizes the World Spices Congress every alternate year in the end of January or early February in one of the cities in India. The Congress lasts three days and nearly a hundred spice importers from different countries participate in it. The next Congress is during 9 to 11 February 2012 at Pune in Maharashtra State of India. Similarly, ASTA Convention is an important event where American spice importers, processors and traders meet annually. It would be worthwhile to attend some of these events to meet the importers, canvass orders and also to know changes in the market.

The Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December 2011 endorsed the proposal.

15. There is no need to emphasize the importance of high intrinsic value (desirable biochemical constituents), top hygienic quality (contamination free) and also traceability of the products for better price realization. These quality factors can be achieved in the products by following the right practices such as, use of selected planting materials, adherence to good agricultural practices, adoption of scientific processing, use of suitable packing material and timely export, in addition to the upkeep of necessary records from the purchase of raw material to export. Implementation of HACCP is the best tool for quality assurance. The cost involved in adopting them is negligible compared to the advantages derived. In the modern business, all information asked for by the buyer on products should be available with the exporter for sustained business.

The Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December 2011 endorsed the proposal.

16. There is a proposal to merge Grenada Cocoa Association with the GCNA as same farmers produce both nutmeg and cocoa. The *&1$¶V RSHUDWLRQV DUH VPDOO RQ nutmeg and mace at present and may be possible to handle cocoa also. But, processing, storing and handling of cocoa and nutmeg (includes mace) should be done at separate places not to affect the flavour of each product. As of now Grenada enjoys distinct superiority in the international market for these products than those from other countries.

The Board of GCNA has already made a decision in this regard someti me back. But it may be mentioned here that merger plan of GCNA and Grenada Cocoa Association was again considered in the Annual General Meeting held on 8th

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December 2011. The Board was not prepared to address the issue now unless capitalization of the assets has been achieved. This was as per the request of the nutmeg farmers. Further there are legal implications as both organizations have been set up under different Acts.

17) It is needless to say that efforts should be continued to let out the vacant spaces with the GCNA till such time they are not required. Steps are being taken in this direction and hoped that almost all vacant spaces would be able to be given on a reasonable rent soon.

18) Further, the management team may be given advanced training in their respective fields to enable them to improve their expertise and efficiency in work and to take challenges while modernizing the business operations of the GCNA.

19) It would be worthwhile to invite some of the importers to Grenada to show facilities of the GCNA and develop business relationship. Being an island nation with tropical climate some of the importers would like to make the visit not only for business purposes but also for holiday during their not too busy period.

The above three recommendations being general were not formally presented to the GCNA Board or to the Grenada Nutmeg Sector Development Strategy-National Coordination Committee.

2. Strategy Objective 3: Examine the existing Laboratory Facilities of the GCNA for Compliance with the needs of International Standards and Requirements in analyzing contaminants and various biochemical constituents in Nutmeg and Other Spices.

The GCNA Laboratory

The GCNA proposed to set up a laboratory under Quality Assurance and Inspection Department. Enough space has been allotted on the ground floor of a building close to its head office. There is a FAO programme to provide services of a Consultant and fund to purchase a few equipment. The Consultant Dr. M.V. Rao visited the facility and prepared a lay out plan for the laboratory and earmarked separate rooms for chemistry and microbiology wings, besides, provision for meeting room, library, store, etc., however, no further work has been done afterwards. Mr. Roland Courtney, Field Officer of the GCNA is in charge of the laboratory.

There are some equipment and apparatus already purchased by the GCNA. As per the list given by the Field Officer these equipment are Stereo microscope, Abbe refractometer, Moisture analyzer, Refrigerated water bath, Air oven, Open top balance, Blender-explosion proof, Hot plate stirrer, 4 place digital, Distilled water still (single stage), Heatle mantle, Bench humidity meter, Handheld refractometer, Fume cupboard (bench top) and Desiccator. The equipment have not been placed in the laboratory and their present condition is not known.

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Under the project, 17 equipments are to be purchased namely, Kobra cell or Post column derivatization unit, High purity gas generators-(Nitrogen generator, Hydrogen generator and zero air generator), Ultra high quality water purification system, Analytical balance and Laminar flow biosafety cabinet, Polarimeter, Solid phase extraction system with vacuum manifold, Electrical muffle furnace, Stonacher, Certified weights, pH/Temperature conductivity (TDA) meter, Colony counter, Digital thermometer, Water-bath (4hole) Vortex mixer and Accessories for Varian 3400 Gas chromatograph and Incubators at an estimated cost of US $ 77,000.00.

There was a microbiologist in position sometime back. At present there is no technician working in the laboratory and it is under lock and key.

As per the Report of the Board of Directors to the Annual General Meeting of the GCNA on 8th December 2011, the benefits which will be derived by establishing the laboratory has to be reviewed vis-à-vis the cost of its operation. It has been further stated that though the GCNA would prefer to share the cost of operating the facility with the Ministry of Agriculture, it appeared not possible. The GCNA has to have a laboratory fully functional.

Some costly equipment such as, High Performance Liquid Chromatography with accessories, Spectrophotometer and Atomic absorption spectrophotometer (AAS) are to be added to the purchase list proposed by the FAO. Further, analytical chemist, microbiologist and supporting staff have to be appointed and trained on the use of equipment to make them fully functional. It may be pointed out here that it is easier to convince buyers on the quality of spices to be exported if analytical results are from an independent laboratory not under the control of the GCNA. Hence it is for the consideration of the GCNA whether it should go ahead with setting up of a fully equipped laboratory and appointment of the analytical team.

However, the GCNA should have a mini laboratory to determine basic parameters like, foreign matter, extraneous matter, broken pieces, moisture, mould infection, pest infestation etc. at different stages of handling the products to check the quality which is essential.

Other Laboratories

If the GCNA is not setting it up the modern facility with comprehensive testing facilities, there are two other laboratories in St. George¶s which could be considered for the required analysis. They are Produce Chemist Laboratory and the Laboratory of the Grenada Bureau of Standards.

Produce Chemist Laboratory

This laboratory is under the Ministry of Agriculture to analyse various agricultural products, serve as a promoter of trade and also to act as a forensic laboratory in criminal investigation. It is headed by Mr. Erwin Henry, Chief Analytical Chemist. The laboratory is functional though space is limited. Its main functions enlisted are:

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1. Fulfilling services as required by the public and private sector, important for production and trade. 2. Provision of limited forensic support to Royal Grenada Police Force and analytical Testing of seized drugs. 3. Providing of training to Small Agro Processors to equip desirable members of the public in the areas of agro-processing and increase knowledge and skills thus increasing their opportunity to initiate and develop small business. 4. Research and product development to strengthen the knowledge based on a large variety of products and processes, to be always in a position to afford support to desiring personnel in the agro processing sector and to increase the value of primary agricultural produce through secondary products so as to enhance the income of farmers. 5. Strengthening linkages with other Ministries, Organization and Institutions and support and work collaboratively with other entities for the continued development of the Agricultural, Agro-Processing and sustainable development areas.

A few equipments are available in the laboratory but needs the following to make it fully functional. These include Atomic Absorption Spectrophotometer, FT-IR Spectrophotometer, GC-MS, UV-Vis Spectrophotometer, Distillation Apparatus for Volatile Recovery including lighter and heavier than water -6, Heating Mantels with Temperature Control , Hammer Mill, Stereo Microscope with Zoom Camera, Automatic Water Bath, Incubators Temperature Range 5-62o C, Micro Wave Oven, Programmable Laboratory Blender with Blending bags, Digital Colony Counters, Vortex Mixers, Melting Point Apparatus, Calorimeter, Centrifuge and Oil less Air Compressors.

There are a few technical hands qualified in food engineering and chemistry at first degree level with experience in addition to a food technologist with Masters Degree. But, there is no person at graduate degree level for microbial analysis.

It will be expensive to strengthen the laboratory with the equipment listed above. Further, main purpose of the laboratory is quite different from quality testing. Hence it may not be the right facility to analyze quality of agricultural products including for export.

Laboratory of the Grenada Bureau of Standards

The Grenada Bureau of Standards was established in WR³prepare and promote standards for all goods, services, practices and processes in Grenada´. Its Mission is to improve the quality and competitiveness of Grenadian industries and the vision is to become a centre of excellence for providing services in standardization, certification, quality assurance, metrology and compliance to standards.

The laboratory is fairly well established with most of the equipment needed for both chemical and microbial analysis in quality check. A new Gas chromatography/ Mass spectrometer system

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(GCMS) has also been installed recently. The laboratory has experienced personnel for all the required analysis. It appears to have the necessary ambiance to carry out analysis as needed by the importing countries.

The laboratory has to be strengthened with two equipment namely, Atomic Absorption Spectrophotometer (AAS) for analyzing heavy metals and High Performance Liquid Chromatography (HPLC) for determining biochemical constituents and pesticides like, organo- phosphorus (OP) compounds for doing all analyses necessary for quality check. They may cost about US $ 100,000 (to be confirmed by the supplier of the region and the make available). The laboratory needs an official copy of standard analytical procedures of Association of Official Analytical Chemists (AOAC) which costs US $ 800 for carrying out analysis as per the approved procedure.

Suggestion for consideration

The laboratory of Grenada Bureau of Standards may be chosen for quality testing of nutmeg, mace, other spices and other agricultural commodities in Grenada for export. The laboratory is fairly well equipped and needs only a couple of equipment more to do analysis of all quality parameters. It has the required personnel already in position. Moreover, it is an independent laboratory as not under the control of the GCNA, the present major exporting organization of spices. Its Mission is to serve for quality improvement for products in Grenada and standardization, certification and quality assurance which will go well with an exporting organization.

To bring in adequate capability to the laboratory, one analytical chemist and one microbiologist may have to be trained in an established food testing laboratory abroad. The Spices Board of India has a modern laboratory with the necessary equipment doing quality evaluation work exclusively of different spices (52 spices now on hand) produced in India. Qualified and experienced personnel are working in this laboratory and do testing of all quality parameters prescribed by various spices importing countries and also of American Spice Trade Association (ASTA) and European Spice Association (ESA).

The laboratory of the Grenada Bureau of Standards once chosen has to participate in the Round Robin Test (performance proficiency test) with other established quality testing laboratories in Europe and/ or USA when training of the personnel is over to prove the credibility of the analytical results.

Chairman, GCNA more or less agreed with the observations made on their laboratory and willing to go with another suitable facility for quality check during discussion with him on 13th December 2011. The proposal was presented to the Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December 2011 and they endorsed it.

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This recommendation may be considered by the Government for taking a final decision being a policy issue.

3. Assess the potential for strengthening the production of spices other than nutmeg and if found viable; indicate the value-added products which could be prepared out of them for export.

Grenada enjoys tropical climate with 6 to 7 months rainfall from June to December and some years 8 to 9 months with extended rainfall. The average annual temperature is 28o C and there are no extremes. Hence many tropical spices have been introduced and they are growing mixed with nutmeg, fruit trees and vegetables.

The spices produced other than nutmeg are cinnamon, clove, bay leaves (West Indian), allspice, vanilla, black pepper, hot pepper, ginger, turmeric and a few herbal spices (Rosemary, Thyme, etc.). According to the Spices Research Project, tonka bean and sapota are also spices. While tonka bean has the smell of vanilla and traditionally used in flavouring ice cream, custard, soufflé, etc. its application many countries is now regulated since it contains coumarin. The US FDA has also banned its application in food because of the same reason. Sapota is not a spice of commerce as the seed kernel smells only like almond. Hence both may be deleted from the list of spices. It is relevant to note here that both tonka bean and sapota do not appear in the Terminology of Spices prepared by the International Standards Organization.

Except cinnamon, all other spices are produced in very small quantities. There are no estimates of production of these spices as growing areas are scattered and no efforts have been made to arrive at the figures. The Minor Spices Cooperative Marketing Society collects various spices from farmers and does marketing as whole and ground in the domestic market particularly to the tourists. The efforts of the Society help to restore the livelihoods and provide additional income to some farmers and also to retain eminence of Grenada as the µSpice Isle of the Caribbean¶.

The quantities of spices purchased other than nutmeg and mace and the prices paid by the Minor Spices Cooperative Marketing Society are given in Table 7.

Table 7: Quantities of spices purchased by the Society and the prices paid Name of Spice 2010 2011 Quantity Price/ lb Quantity in lb in lb in EC $ Cinnamon bark 4128.00 4109.00 *8.00 Clove 29.75 196.00 25.00 Ginger dry 70.00 53.25 20.00 Turmeric dry 140.25 62.75 5.00 Pimento 105.50 34.5 5.00

Source: Note from Manager, Spice Research Project. * Average price of three grades

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The above Table does not include production and prices of black pepper, vanilla, hot pepper, bay leaves though there is small trade by a few private businessmen.

The price paid to farmers for cinnamon bark per lb by the Society was EC $ 3.00 prior to Ivan in 2004. The price was later revised to EC $ 8.00 and in 2010 to EC $ 10.00 per lb. Similarly clove price was also increased from EC $ 10 in the pre-Ivan period to EC $ 25.00 per lb in 2010. All purchases are for local sales and hence no relationship with international market prices.

In the case of cinnamon, there are three grades and the quantities purchased by the Society under each grade are given in Table 8.

Table 8: Different grades of Cinnamon purchased by the Society and the prices paid

2010 2011 Price per Grade Quantity in Quantity in lb in EC $ lb lb Curls 681.00 163.00 10.00 Shipment (flat, thick) 393.00 640.00 8.00 Fines 3054.00 3306.00 6.00 Source: Note from Manager, Spice Research Project

Though cinnamon produced in Grenada belongs to the same species as in Sri Lanka, Cinnamomum verum, the true cinnamon, the processing practice followed here is different. In Grenada, nR4XLOOV ´ORQJ 4XLOOLQJ, Featherings, etc. are made as in Sri Lanka which requires a special knife and trained workers. In Grenada, cinnamon tree is cut when 15 to 20 years old when sufficient thickness is attained. After removing small branches which are green, bark is scraped clean and taken out using a knife. Bark is embedded with essential oil glands. The long bark curls when dry and contributes to the top grade. If bark is thick, it would not curl but remains flat and forms the second grade. Broken pieces and bits are put in the last grade and sold DVµ)ine¶.

Export Cinnamon and very small quantities of clove and turmeric as whole and ground are exported by the Minor Spices Cooperative Marketing Society to Barbados and other islands in the Caribbean. A few traders also export cinnamon bark mainly to Trinidad and North America. Quantities of spices exported by the Society since 2003 are given in Table 9.

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Table 9 Quantities of spices exported by the Minor Spices Cooperative Marketing Society during 2003 to 2011 in lb Name of Spice 2003 2004 2005 2006 2007 2008 2009 2010 2011 Cinnamon bark 1530 1500 0 0 0 20 25 3300 30 Cinnamon 4030 3027 0 1463 2000 3020 3100 0 3100 Ground Clove Whole 70 105 0 0 50 50 0 0 0 Clove ground 0 22 0 0 0 0 0 0 0 Turmeric 0 3 0 0 0 0 0 0 0 Source: Note from Manager, Spice Research Project

Domestic uses Cinnamon is a popular spice used for the preparation of hot infusions, soft drinks and bakery products like, cake, biscuits, puddings, etc. Clove buds and bay leaves are used in cooking meat, soup and porridge while ginger finds use in the preparation of hot infusions, soft drinks and meat. There is only limited use for allspice in Grenada in flavouring meat and other dishes. Use of clove is similar to allspice. Hot sauce is prepared with hot pepper. Some years back its production was very high and exported around 30,000 to 60,000 lb. &RRNLQJQDWLRQDOGLVK³2LO 'RZQ´QHHGVWXUPHULF. Turmeric is also used as a folk medicine.

Potential for increasing production

There is great potential for increasing production of almost all the spices, particularly by following multi-level cropping system. The main limiting factor is high wages compared to other tropical countries where these spices are produced. Hence spices to cover large areas should be selected considering short gestation period, easy to grow and good international demand. Cinnamon production is familiar with farmers; crop is fairly hardy and free from pests and diseases. So it can be one of the spices for promoting further propagation.

Though clove prices are often good, considering its long precocity and lack of vegetative propagation method, its production may be taken up only in small areas. Bay leaves (West Indian) have demand in the international market and hence area may be expanded to some extent. So is the case with allspice.

There is good demand for vanilla beans being a popular natural flavour provider. But prices are low now. It can be easily propagated by vegetative means and cultivation not difficult. However, hand pollination is required for the flowers to get fertilized. Further, systematic and prolonged curing is essential to make good quality processed product. Hence its cultivation need be taken only in a limited manner by the interested farmers.

Hot chilly may be produced in some more areas for domestic market and also for export to neighbouring islands.

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Ginger and turmeric may be grown in fairly large areas if quality cultivars with high intrinsic values are available. Ginger of good quality should have fibre less than 4%, essential oil 2% and above, lemony flavour, cream white colour and plump when dried. Since peeling is to be done for making whole dry ginger, sliced dry ginger may be prepared and it is easy with a slicing machine. In the case of turmeric, select a cultivar with curcumin content, minimum 3.5%. If there are cultivars with higher level of curcumin, they may be preferred for production. Though peeling is not necessary for making whole turmeric dry, it is suggested to prepare sliced turmeric as it helps for fast drying. Turmeric needs special curing but it is not a difficult operation.

Value addition

The easiest way to add value is by grinding and making powders. But, powdering should be done only according to orders as it is hygroscopic and deterioration of colour and aroma is faster than unground products.

Essential oils can be distilled from most of the spices. But turmeric essential oil has only very limited value. Normally poor grades which fetch low prices are used for distillation. The distillation unit at Marli when modified can be made use of for steam distilling spices other than nutmeg also. Small samples should be prepared initially and higher quantities later according to demand. Oil quality must be checked up in a good laboratory.

Oleoresins are high value products but should be entered into this field when production of spices is up by many folds and preferably as a joint venture with an established unit abroad. The products should meet buyer¶s specifications which are very stringent. One may be tempted to start oleoresin extraction using lower grades of nutmeg and other spices but marketing at good prices is difficult unless quality is very good and there is understanding with buyers.

Turmeric oleoresin has high demand being a popular food colourant and may be proceeded with if curcumin content in the raw material is high.

Fresh ginger can be used for preparing candy, preserve, marmalade, crystallized ginger, tit bits, ale, etc. These products may have some demand from the tourists and neighbouring countries. They can be prepared in small scale without sophisticated machinery.

Hot chili fruit is already used for making hot sauce. It has built up demand from consumers who like hot food. Increase production if demand is good. Capsaicin, the pungent principle may be extracted which has demand for producing counter irritants.

The Grenada Nutmeg Sector Development Strategy-National Coordination Committee met on 16th December 2011 endorsed the proposal.

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4. Strategy Objective 2: Identify areas where funding is required to make the GCNA fully operative and sustainable in relation to existing and newly proposed objectives and functions.

1. The prime area which needs support for the GCNA is replanting nutmeg to replace the fallen trees with high yielding good quality varieties propagated by budding. For replanting, the following steps are to be taken.

¾ Survey to assess the replanting requirement in each farm in each Parish. ¾ Raise seedlings in large numbers for replanting in a phased manner. ¾ Plant seedlings after clearing the bush ¾ Simultaneously identify elite trees based on tree canopy and producing large sized and heavy nutmeg, thick mace and high yield. ¾ Train farm workers and farmers who are keen to learn the art of budding. ¾ Collect buds from upright growing branches of elite trees. ¾ Do in situ budding on the seedlings which are at least one year old. ¾ Do budding again on unsuccessful seedling. ¾ May be done on older seedlings also if growing healthy. ¾ Look after budded seedlings regularly clearing weed growth and following proper agronomic practices.

The amount of expenditure for replanting programme may be worked out by the GCNA and the Spices Research Project jointly.

2. Another area which needs support is strengthening the laboratory and training of technicians for quality evaluation. The laboratory proposed is that of the Grenada Bureau of Standards.

3. Training on on-farm processing of spices other than nutmeg. An international consultant on spices may be needed for a month.

4. The General Meeting of the GCNA held on 8th December 2011 decided on areas as under important:

9 Replanting programme of nutmeg to increase production and export 9 Developing a proper marketing system to target end users 9 Developing branding for Grenada nutmeg

Incentive package was announced at the Annual General Meeting on 8th December 2011. It is intended to provide motivation to farmers to increase planting and harvesting nutmeg. The incentives included EC $ 750,000 surplus payment to farmers for Christmas of 2011, increase in

44 | Page the price from EC $ 4.00 to EC $ 5.00 per lb nutmeg and from EC $ 8.00 to EC $ 9.00 per lb No. 1 Mace. No replanting programme as such was decided by the GCNA in the meeting.

Projects approved for funding or under process of funding

There are a few projects on nutmeg which have been approved by the funding agencies or under the process of funding. They are as follows:

1. Establishment of Market Information System and Unit: The project entails setting up of a coordinated market information system in the GCNA with well staffed and trained marketing personnel. Cost of the project is US $ 620,000 and is being funded by the Centre for Development of Enterprise (CDE).

2. Nutmeg Industry Modernization and Revitalization project: The project aims at complete overhaul, upgrade and retooling of the operations, maintenance and management structure of the GCNA. It will upgrade and enhance efficiency of the operations of the GCNA by improving the production process. Cost of the project is US $ 1,648,000. The areas such as, food safety, traceability and biotechnology in this project have been funded by the CDE.

3. Nutmeg Tree Access and Replanting Project: The project will focus on intensive replanting of nutmeg in 3000 acres and accessing and rehabilitating 1000 acres of nutmeg trees/plots. Cost of the project is US $ 918,000 and submitted to the Caribbean Development Fund for funding.

4. Nutmeg Wilt Management Project: The project seeks identify the causal factors and suggest measures to effectively manage the dreaded nutmeg wilt disease. It also aims to map the incidence of wilt disease in Grenada. Cost of the project is US $ 116,000 and IICA has indicated it willingness to fund the first part of the project. FAO is expected to contribute to mapping of nutmeg trees including the Wilt affected.

5. Improve Access to Finance: The project aims to design and establish a revolving fund and guarantee scheme to enable nutmeg farmers to gain greater access to financial resources through local banks and other financial intermediaries. Cost of the project is US $ 1,500,000. The funding source is yet to be identified.

6. Nutmeg Value Added Feasibility Study: The project proposes to carry out a feasibility study on value added products which could be derived from nutmeg and mace in order to improve the overall value addition and processing to secure sustainability of the industry. Cost of the project is US $ 150,000.Tthe funding source is yet to be identified.

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New Project Proposals

There are a couple of new project proposals which are to be considered for development of spices in Grenada.

1. Grenada has made a good beginning in the production of spices other than nutmeg such as, ginger, turmeric, chili, vanilla, black pepper, clove, cinnamon and pimento. The potential to increase production of these spices is high as agro-climatic conditions are suitable and most of them can be grown as intercrops or mixed crops.

It is known that value of spices lies largely in the harvest and post harvest management. Harvesting at the right stage of maturity and adoption of proper on-farm processing not only enhance intrinsic values (desirable biochemical constituents) but also improve appearance and quality, and make the products highly demanding in the international market. These aspects are important as there are many producing countries to compete with and buyers from developed countries look for contamination free top quality products.

For want of research in Grenada, harvest and post harvest management practices for spices are followed from the literature available through Internet and books. Sometimes obsolete and unreliable practices are noticed on Internet search. Further, there could be doubts arising in the adoption of a good practice if fully depended on literature from such sources. It is therefore necessary to depend upon the services of an international expert on harvest and post harvest management of spices. The expert should train the Agricultural Officers of the Ministry of Agriculture and also progressive farmers at three locations where spices are produced in concentration. Training programme may have to last three days in one location and should cover all spices mentioned above including nutmeg. The programme may be supported with technical literature prepared by the expert in simple language which could be used as reference material after the training by the participants. For preparation of technical material and providing training, the services of an international expert are required for one month.

Estimated cost is US 25000 including consultation fee for 30 days, daily subsistence allowance in Grenada and international travel cost as detailed below. Local expenses such as, rent for training hall, refreshments, making copies of the training material, etc. may be met by the Ministry of Agriculture.

Consultation fee for 30 days US$ 500 per day US$ 15,000 (Preparation of training materials and training) Daily Subsistence Allowance for 15 days in Grenada US$ 4,500 International Travel US$ 5,500 Total US$ 25,000

The proposal may be submitted to the EU or other funding agencies after approval by the Ministry of Agriculture, Government of Grenada.

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2. The Spice Research Project has been sanctioned by the Agriculture Ministry recently and it needs support. The project now prepares planting materials of elite nutmeg and other spices. A potting shed and green houses have been established at Ashenden with EU support. But certain other logistics such as, top soil for making potting mixture has not been taken care of in the site. Top soil has therefore to be transported from another station called Mirabeau (St Andrew Parish) or other places. A 4-ton truck is necessary for this purpose. The same truck can be used for moving planting materials from Ashenden to far away farms. Besides, a Bob-Cat with accessories for mixing soil with organic manure is required for preparing potting mixture. The availability of truck and Bob-Cat not only helps to produce larger number of seedlings of nutmeg and other spices but also to distribute them to farmers at their farms at low cost.

A machine is required for slicing ginger and turmeric to prepare sliced dry ginger and sliced dry turmeric. At present no good slicing machine is available in Grenada. The slicing machine can be used by the Spice Marketing Cooperative Society and the GCNA according to need. Efficient slicing machines are manufactured by Emura Food Machine Co. Ltd., Japan which operates smoothly even with high fibre ginger varieties. Hence importing a slicing machine from Japan is worthwhile. The estimated cost of the truck and other equipment is US $ 196,000 as follows:

The cost of one 4-ton truck costs: US $ 64,000 One Bob-Cat with 3-4 accessories: US $ 92,600 Ginger slicing machine: US $ 40,000 Total US$ 196,000

The proposals may be submitted to the EU or other funding agencies after approval by the Ministry of Agriculture, Government of Grenada.

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Annex 1

Minutes of Briefing Meeting with the Permanent Secretary, Ministry of Agriculture at 8:30AM on Monday, 28 November 2011held in his chamber

Present: Mr. Aaron Francois, Permanent Secretary Dr. Guido Marcelle, Committee Chairman Ms. Hazel Bierzynski, ITC National Consultant Dr. C.K. George, ITC International Consultant for Spices and Herbs

Welcome and Introduction

x 'U*XLGR0DUFHOOHRXWOLQHGWKHSXUSRVHRI'U*HRUJH¶VYLVLWWR*UHQDGDZKLFKZDVLQ keeping with the Nutmeg Sector Development Strategy. x He explained that under the Terms of Reference of his assignment , Dr. George will look into the following:

9 Laboratories - GCNA Laboratory, the Produce Chemists Laboratory and the Bureau of Standards Laboratory; 9 Assess the potential for strengthening production of spices other than nutmeg; 9 Review the potential for making value added products; 9 Structuring the GCNA and also taking more activities for sustainability and increased exports

x The Permanent Secretary welcomed Dr. George to Grenada and to the Ministry of Agriculture. He thanked him for facilitating the visit of the Grenadian team to India. He stressed that the Spice Sector of Grenada though developing, was very important. He reminded that the hurricanes of 2004 and 2005 had affected nutmeg production severely moving the income derived from the industry from 60 million dollars to 2 million dollars. x Strategy implementation has already been started and Grenada is desirous of repositioning the Spice Sector to look for a value added agenda. x The Permanent Secretary welcomed the opportunity for rationalization of the laboratories in the island in relation to the nutmeg and other spices sector. x He reminded that the Ministry of Agriculture is focusing heavily on the replanting programme and is giving consideration to the establishment of a Germplasm Bank. x The Permanent Secretary reiterated that Nutmeg is a high priority industry for the country. Agriculture/Agri-business has been identified as one of the five sectors for transforming the economy of the country. x The Ministry is making plans for 2012 to be declared as the Year of Nutmeg and Spices. x He listed some of the failings of the sector and mentioned that there was no proper system in place to anticipate production. While GCNA is the main player in the nutmeg sector it must be remembered that it is not the only partner.

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x The addressed the question of the amalgamation of the Commodity Boards including the GCNA, the Grenada Cocoa Association and the Minor Spices Marketing Cooperative. This is deemed necessary to address efficiency particularly with regard to management of the sector and facilities.

Recommended meetings for Dr. George

The Permanent Secretary suggested that on his second visit, arrangements should be made for Dr. George to meet with:

9 The Minister of Agriculture 9 The Cabinet Sub-Committee for Agriculture and Agribusiness 9 Technical Heads within the Ministry of Agriculture

Ms. Hazel Bierzynski will make arrangements for those meetings. Arrangements will also be made for Dr. George to meet with the Permanent Secretary at the end of the week for preliminary discussions of his findings.

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Annex 2

Minutes of the Meeting with the Management Team of the GCNA held at 10.00 AM on Monday 28th November in the Board Room

Present: Marlon J.D. Clyne, General Manager Garnet F.M. Williams, Operational Manager Joyce John, Accountant Ronald Courtney, Field Officer Guido Marcelle, Chairman, Nutmeg Strategy Committee C.K. George, International Consultant for Spices and Herbs

Dr. Guido Marcelle introduced Dr. George, Consultant for Spices to those who were not familiar with him as they were not in the study tour to India. He then explained the terms of reference of the present assignment and indicated that the Mission of Dr. George consists of two visits to Grenada from 27th November to 5th December 2011 and from 11th December to 17th December 2011. The important areas in his Mission where the GCNA directly concerned are as follows:

1. Study the scope, objectives, role, functions and restructuring of the GCNA to make it viable and financially sound with flourishing export of spices

2. Examine the existing laboratory facilities of the GCNA to meet with needs of International Standards, quality of spices for export and determine important biochemical constituents in them.

He also mentioned that if necessary Dr. George will assist the GCNA to draft outline of proposals for submission to donors.

Mr. Marlon briefly explained the operations of the GCNA and gave a few documents including copies of Grenada Nutmeg Industry Act, Strategy Development Plan for 2008 to 2012 and Report of the Nutmeg Board for the Annual General Meeting to be held on 8th December 2011.

Dr. Marcelle informed that Dr. George will be taken to three laboratories (GCNA Laboratory, Produce Chemist laboratory and Laboratory of the Grenada Bureau of Standards), nutmeg pools at Gouyave to show purchase and drying of nutmeg and mace, distillation unit at Marli and for meeting with Dr. Buckmire, Director of the GCNA.

Afterwards there was discussion on the assigned jobs of Dr. George. He drew attention of the Management Team of the GCNA to the changes, if any, to be effected in the GCNA set up or any another area related to the nutmeg industry with which the GCNA is concerned with. There was no issue specifically came out.

Mr. Marlon assured all assistance during both visits of Dr. George. The meeting ended at 12.15 PM.

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Annex 3

Minutes of the Grenada Nutmeg Sector Development Strategy ± National Coordinating Committee Meeting at 3:00PM on Monday, 28 November 2011 Conference Room ± Ministry of Tourism

Present: Dr. Guido Marcelle, Committee Chairman Mr. Cosmos Joseph - IICA Mr. Denis Noel ± Agro-processor Mr. Franklyn Salim ± Farmer 0U5RQDOG2¶1HDOH± Spice Research Project Mr. Gregory Del Sol ± Ministry of Agriculture Mr. Terrence Moore, ITC National Consultant Projects Ms. Hazel Bierzynski, ITC National consultant Implementation Support Dr. C.K George, ITC International Consultant for Spices and Herbs

Excused: Ms. Abiola Streete ± Ministry of Finance

Absent: Ms. Shanta Williams-Cox ± Ministry of Trade Mr. Denis Felix - GCNA Mr. Adrian Thomas - GCNA

1. Introduction of Dr. George ± International Spices Consultant

Dr. Marcelle welcomed Dr. C.K. George and introduced him to the Committee members whom he had not met. He explained that during his visit he will focus on the GCNA, laboratories in relation to assuring quality, potential of other spices and their value addition, and scope for increasing export. As a result he would need to have an understanding of the functioning of GCNA and other related areas and had requested and received the appropriate reference documentation for conducting his work.

The consultancy in Grenada will be undertaken in two visits as follows:

x 27 November to 5 December, 2011 x 11 December to 17 December, 2011

On the Monday morning, he met with the Permanent Secretary, Ministry of Agriculture and later with the members of the Management Team of the GCNA.

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2. Work plan of the visit of Dr. George

Tuesday, 29 November: ± visit to laboratories whic include that of the GCNA, the Produce Chemists and the Bureau of Standards with Dr. Guido Marcelle.

Wednesday, 30 November: ± 9LVLWVLQUHODWLRQWRRWKHUVSLFHVZLWK0U5RQDOG2¶1HDOH and Mr. Roland Courtney

Thursday, 1 December: ± Visit to the Gouyave Processing Plant, Organic Cocoa Processing Plant at Diamond, St. Mark, Marli Nutmeg Distilling Plant, Grenada Chocolate Factory and Belmont Estate with Dr. Marcelle.

Friday, 2 December: ± Review of documentation and follow up meeting with the Permanent Secretary.

2. Status of Projects Mr. Terry Moore confirmed that the CDE started work related to funding the following projects he had submitted to support the implementation of market expansion of GCNA:

o Marketing and in particular market research in Europe for both the commodity and value added products. (Sub Objective 1.2)

o Food safety/ traceability implementation and certification (Objective 3)

o Bio-technology support for i) analysis, understanding and documentation of intrinsic properties and qualities of the existing variety of nutmeg produced in Grenada; ii) development of a research capability and iii) development of varieties and technology adoption.(Objectives 1 and 6)

Additionally, he had completed project concepts for:

x Financing for Small Farmers. In light of that, Dr. George provided some explanation of the Micro financing process in India and promised to obtain information to share with the committee. x Improving accessibility to productive and farm lands x Nutmeg Wilt Management Project. ± IICA has demonstrated an interest to provide support and a consultant will visit Grenada in early December in this regard.

He added that Federica of the FAO has been in contact with Mr. Gregory Del Sol and they have started work on the TCP for funding of the Tree Crop Survey.

Report on Budding Experimentation

0U 5RQDOG 2¶1HDOH GHVFULEHGWKH SURJUHVV RI WKH %XGGLQJ 7ULDO FRQGXFWHG RQ WKUHH VHOHFWHG farms following the visit to India. To date, there is a 60% success rate. Based on the results, he will begin some training by 15 December 2011. He expects to continue training of farmers and

52 | Page extension officers in January 2012. It is hoped that within 1 year, 80% of the farmers will be trained in the technique.

3. Status of Implementation Framework for the Functioning of the Committee Dr. Marcelle advised that a draft submission had been made to the Permanent Secretary Agriculture for his consideration and onward forwarding to the Cabinet. In the meeting with the Permanent Secretary, he confirmed that he is addressing the matter and will forward to the Cabinet for inclusion in the upcoming budget cycle.

Dr. Marcelle will follow up with the Permanent Secretary to confirm the status of the submission.

4. Publication of Brochure for the Strategy Ms. Abiola Streete was unable to attend the meeting but has reported that work is progressing with regard to the publication of the brochure. The Terms of Reference of the Consultant have been agreed to and she will forward a request to a number of individuals and companies shortly for the proposal.

5. Media Appearance 7KHPHHWLQJZDVDGYLVHGWKDW'U0DUFHOOHDQG0U2¶1HDOHZHUHVFKHGXOHGWRDSSHDURQWKH GBN Radio Call in 3URJUDPPH³7RWKH3RLQW´RQ:HGQesday, 30 November 2011.

Other Business

At the meeting with the Board of Directors of the GCNA and the Committee in October, it was agreed that the Strategy should be featured on the Agenda for all meetings of the Board of Directors of the GCNA. The Committee also was pleased to note that the Strategy Objectives had been incorporated as the Objectives of the GCNA in its Annual Report.

Regrettable there was no representation of GCNA at the meeting but the minutes will be forwarded to the representatives on the Committee and the Manager as usual.

Dr. Marcelle will follow up with the Manager to confirm that the strategy is addressed at the meeting and will provide any information as needed.

The meeting ended at 4:13PM.

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Annex 4

Minutes of Debriefing Meeting with the Permanent Secretary, Ministry of Agriculture at 3:00PM on Friday, 4 December 2011held in his chamber

Present: Mr. Aaron Francois, Permanent Secretary Dr. Guido Marcelle, Committee Chairman Ms. Hazel Biezynski, ITC National Consultant Dr. C.K. George, ITC International Consultant in Spices and Herbs

Dr. George outlined the programme he had undertaken during the week:

Monday 28 November 2011

Following the meeting with Permanent Secretary on 28th November 2011 the Consultant visited the GCNA and met with the Management Team and was able to gather data and information for his work

In the afternoon, he met with the members of the National Coordinating Committee of the Nutmeg Sector Development Strategy.

Tuesday 29 November 2011

Worked along with Dr. Guido Marcelle and visited all the three laboratories.

Wednesday 30 December 2011

Visited spices nurseries and nutmeg farms DORQJ ZLWK 0U 5RQDOG 2¶1HDOH 0DQDJHU 6SLFH Research Project and Mr. Roland Courtney, Field Officer of the GCNA. Visited Laura Estate, Minor Spices Cooperative, Spice Research Project Ashenden and a couple of farms on the eastern side of the island.

Thursday 1 December 2011

Dr. Marcelle took him on a tour of the island to include visits and discussion at the following locations:

9 Gouyave Nutmeg Processing Plant; 9 Maran Nursery; 9 Diamond Estate, Project of the Grenada Cocoa Association; 9 Marli Oil Distillery Plant; 9 Belmont Estate; 9 Grenada Cocoa Factory; 9 Meeting with Dr. Reginald Buckmire, member of the Board of Director of GCNA;

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9 Nutmeg Pools in Grenville; 9 Visit to Denis Noel and Franklyn Salim, members of the Grenadian team to India.

Friday 2 December 2011

Visited the GCNA and gathered information.

Dr. George outlined some of his preliminary findings to be included in his report. The Permanent Secretary stated that he looked forward to his second visit and observed that it would be beneficial for him to meet with Minister of Agriculture, members of the Cabinet Agricultural Sub-Committee and members of the technical team of the Ministry of Agriculture.

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Annex 5

Minutes of the Special Meeting of the Programme Management Team (PMT) of the Ministry of Agriculture, Forestry and Fisheries with Consultant on Spices held at 9.50 AM on Monday, 12th December 2011

Produce Chemist Laboratory Conference Room

Meeting started with opening prayer by Permanent Secretary, Ministry of Agriculture, Forestry and Fisheries, Government of Grenada. He welcomed Dr. C.K George, International Consultant for Spices and Herbs, and Dr. Guido Marcelle. The list of participants of the meeting is given at the end of the minutes.

The Permanent Secretary informed the meeting that subsequent to the launch of the Nutmeg Strategy, funding has been secured for 3 projects, Branding of Spices, Up-gradation of Laboratory Facilities and Marketing Research for nutmeg and other spices. The Ministry of Agriculture has also been able to secure assistance from IICA to find a solution to the Nutmeg Wilt. He then requested Dr. George to provide guidance on further development of the Nutmeg and Spice Sector in Grenada.

Dr. C.K George shared his observations and findings of the visits and discussions. He gave insights on spices in India and disclosed that India has 52 spices under the Spices Board, a statutory body set up by the Government of India mainly for export promotion. He indicated that Grenada produces twelve tropical spices and they are valued in the international trade.

Observations:

1. Spices are traditionally grown in Grenada as a mixed crop without any schematic plan and they compete for sunlight, plant nutrients and water. Solution: Need to adopt multi-level cropping due to limited availability of ground space and sunlight. Planned cropping of coconut, nutmeg, vanilla, cocoa and short duration crops such as, ginger (not turmeric which needs sunlight) would significantly improve productivity per unit area.

2. Propagation method in nutmeg to change. Solution: Adoption of vegetative propagation method like, budding for multiplication of elite nutmeg trees. For budding, do not use buds from lateral branches but from branches growing upward.

Media may be used to alert farmers for identifying high yielding elite nutmeg trees for propagation work.

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3. There are a few black pepper vines but its cultivation not developed. Solution: Select plants which produce 1.0 to 1.5 kg dry pepper annually. Black pepper is important in multi-level cropping and can be grown on coconut trees. It can also be grown on Glyricidia and other trees planted on the farm boundaries.

4. Not much research has been done on spice crops. There is urgent need to select high yielding good quality nutmeg trees Solution: There is need to pursue research to select varieties with high productivity and better quality in various spices. A variety of spices may be produced commercially based on market demand. Importers want a number of spices not one. Availability of a few quality spices in large quantities would encourage buyers to import spices from Grenada.

5. Currently mostly fruits and vegetables are promoted as backyard crops. Solution: Introduce seasonal spices also as backyard crops for quick cash to householders. Post harvest practices are very important in spices and the right technology should be demonstrated to farmers. Storage techniques must be improved in order to sell spices when prices are high. Value addition must be encouraged in processing spices.

6. Quality of nutmegs and spices has to be improved. Solution: Need to improve quality of spices produced to get higher prices. Organic production of nutmeg and other spices may be taken up as they fetch good prices especially in Germany, The Netherlands, France, UK and other countries. Organic products sell sometimes at prices 30% more than those of the conventional. There is need to conduct the requisite marketing research. Cardamom is difficult to grow in Grenada with high productivity.

7. Ginger ± not enough emphasis has been given so far. Solution: Ginger is another valuable spice. Ginger with less than 4% fibre, minimum 2% essential oil and cream white colour when dry is a good variety. There is a good variety in Jamaica and attempt may be made to introduce it to Grenada.

8. No attention has been given for turmeric. Solution: Turmeric cultivar with minimum 3.5% curcumin (curcumin gives the colour) content is in demand. Select a good cultivar based on high curcumin content for propagation.

Suggestions:

Traditionally black pepper is known as the king of spices and cardamom as the queen of Spices. Black pepper has very good demand and hence it may be commercially produced.

Assistance was requested in sourcing the natural enemies for coconut mites and other pests which devastated the coconut production in Grenada. Dr. George stated that some work has

57 | Page been done in India on biological control and request has to be made at the government level for assistance.

Tonka bean and Sapote are not treated as spices as per ISO terminology. Use of tonka bean is regulated due to high coumarin content in some varieties.

One of the ways to mitigate damage due to mild hurricane is to plant nutmeg seedling without bending of the tap root so that it grows deep into the soil.

Current drying method of nutmeg and spices need improvement. Solar drying may be introduced if the trial being done at Guayave is successful. Shelling technology used for nutmeg may be upgraded.

Due importance must be given to soil conservation where slopes are steep for preventing loss of top soil which is fertile. The meeting ended at 12.45 pm.

Special Meeting of the Programme Management Team -List of Participants

Organization Contact Name Designation / Email Address Number Department

Ministry of Agriculture Mr. Aaron S. (473) 440- Permanent Secretary Forestry and [email protected] Francois 3386 Fisheries (MOA)

Kimberly 440 ± 2708 Planning Officer MOA [email protected] Thomas ext: 3060

Senior Agriculture 440 ± 2708 George Philip MOA [email protected] Officer ext: 3021 Ronald 443-1678/ Manager Spice Project [email protected] 2¶1HDOH 407-3584 Augustus Chief Forestry Forestry 440-2934 Thomas Officer Division John Paul Manager Farms Roads 405-2035 [email protected] Fletcher Chief Fisheries Fisheries Justin Rennie 3814/3831 [email protected] Officer Division Lauren St. Agronomist Spice Project 443-1678 [email protected] Louis Administrative 440-2708 ext: Brian Pascal MOA [email protected] Officer Projects 3007 Raymond Chief Land Use 440-2708 ext: [email protected] MOA Baptiste Officer 3020 Communications 440-2708 ext: Richard Peters MOA Officer 3056

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Randolph Chief Extension 440-2708 ext: MOA Shears Officer 3001 Produce Christopher Chemist 440-3273 Johnson Laboratory Dr. Guido Chairman Nutmeg 440-2758 [email protected] Marcelle Strategy Chief Agricultural 440-2708 ext: Daniel Lewis MOA [email protected] Officer 3030 Aaron 440-2708 ext: Permanent Secretary MOA [email protected] Francois 3034 440-2708 ext: Ferron Lowe Policy Advisor MOA 3038 Pest Management Paul Graham MOA 440-0019 [email protected] Officer Senior 440-2708 ext: Ann Marie Administrative MOA 3013/ 405 ± [email protected] Marecheau Officer 6882

Denis Noel Manager Noelville Ltd 442- 7514

440-2708 ext: Food Security [email protected] Ingrid Rush MOA 3040 / 405- Officer 5201 440-2708 ext: Gregory Del Planning Officer MOA 3000 / 420- [email protected] Sol 5690 International Dr. C. K. (480) 252 Consultant for ITC, Geneva [email protected] George 8620 (USA) Spices and Herbs

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Annex 6

Action Plan Presented by Dr. C. K. George, Consultant for Spices for Rejuvenation of Nutmeg and Other Spices Sector in Grenada before the GCNA Director Board at 10.00 AM on Tuesday, 13th December 2011 Board Room - GCNA

Present: Mr. Dennis Felix, Chairman, the GCNA Dr. E. Reginald Buckmire, Director, the GCNA Mr. Samuel Joseph, Director, the GCNA Marlon J.D. Clyne, General Manager, the GCNA Mrs. Joyce John, Accountant, the GCNA Mr. Bernard Alexander, Properties Manager, the GCNA Dr. Guido Marcelle, Chairman, Nutmeg Strategy Committee 0U5RQDOG2¶1HDOH0DQDJHU6SLFH5HVHDUFK3URMHFW Dr. C.K. George, International Consultant for Spices and Herbs

Chairman, GCNA after his introductory remarks welcomed Directors on the Board, Dr. Guido Marcelle, Chairman, Nutmeg Strategy Committee and Dr. C.K. George, Consultant for Spices and Herbs. He then requested the Consultant to make his presentation on the Action Plan prepared by him.

After thanking Chairman, the GCNA and Directors of the Board for the opportunity given, Dr. George presented the Action Plan on Spices with the help of a slide show.

1. Introduction

Grenada enjoys tropical climate with rainfall from June to December but some years extending to January and February. Average temperature is 28϶ C with no extremes. Humidity is very high. Soil is rich and friable, but slope in many areas is too steep compelling effective soil conservation measures. The agro-climatic conditions in Grenada favour production of tropical spices.

Grenada grows a few spices namely, Nutmeg (and mace), cinnamon, tamarind, allspice, bay leaves (West Indian), clove, ginger, turmeric, hot chili and a few herbal spices. Tonka bean and sapote (sapota) grouped under spices in Grenada are not true spices as per the Terminology of Spices prepared by the International Standards Organization. Seeds of sapote have smell of almond but not of a spice. Tonka beans (Dipteryx odorata) smell vanilla but should not used as a spice. It normally contains 1±3% coumarin, but some strains may have even up to 10%. Coumarin is poisonous at higher levels, damages liver, prevents blood coagulation and is even carcinogenic. Many countries including the US have restricted its use.

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2. Nutmeg Rejuvenation

Hurricanes Ivan in 2004 and Emily in 2005 damaged nearly 90% of the nutmeg trees. Production came down from 6,614,732 lb nutmeg and 460,921 lb mace in 2003 to 501,086 lb nutmeg and 25, 224 lb mace in 2006. The situation has improved in 2011 but still a long way to go to reach pre-Ivan production. The loss to farmers due to loss in production and to the state exchequer by way of foreign exchange earnings is substantial.

Let us take this calamity an opportunity for modernizing nutmeg production in Grenada.

Replanting and rejuvenation of nutmeg farms: There is no doubt that seeds generally do not breed true. So a policy decision may be taken that nutmeg will be propagated in future only by vegetative method. It is easier and simple to adopt budding than epicotyl grafting. Budding method has been demonstrated to the six member team including Manager of the Spice Research Project who visited Kerala State, India during September 2011.

The method of replanting and new planting involves the following steps. Select elite trees which are minimum 20 years old, healthy, regular yielding, having big sized heavy nuts and thick mace and producing about 5000 fruits annually. Through press and radio farmers could be alerted to report to the Spice Research Project (give phone number) to inform such trees with a message that the selected tree owners will be rewarded suitably. Let the Manager, Spice Research Project and Field officer, the GCNA jointly inspect them and select at least 100 elite trees for meeting immediate requirement of buds and also for future observation to confirm the selection for productivity and quality. More elite trees may be added to the select list if come know later. The Manager should train interested farmers and farm workers the technology of budding on one year seedlings and also on older seedlings/plants. The farm worker after successful training and FHUWLILHGE\WKH0DQDJHUFDQVWDUWEXGGLQJLQIDUPHU¶VILHOGs. He may have to be given a small compensation at the time of budding and a large compensation if budding is successful considering his skilled job. The rate could be fixed by the Manager, Spice Research Project. Continue rigorous selection process and prepare list of the best elite trees in the country. Besides operations such as, clearing bush, planting seedlings and budding at the appropriate time should be carried out on a regular basis. There should be a male tree for every 20 to 25 female trees and also encourage keeping bee hives in the farms as it helps for pollination. Farmers may be provided with incentives to join the programme enthusiastically. A manual may be prepared detailing improved agricultural operations, and harvest and post harvest practices for the use of extension workers and farmers. A plan may be drawn up to complete replanting, new planting and rejuvenation of nutmeg farms within the next five years.

Revival of organic nutmeg production: Nutmeg and mace were produced organically for export before Ivan. Organic nutmeg production may be resumed after developing understanding with importers and certifying agency chosen according to their suggestion. Demand for organic nutmeg is on the rise particularly from Germany, The Netherlands, UK, France, Switzerland, etc.

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Organic food fair, BioFach held at Nuremberg, Germany in February every year may be visited to understand the market developments and also for canvassing orders. Organic nutmeg and mace generally command higher price than the conventional.

Improve post harvest operation: While mace is purchased after drying, nutmeg is purchased afresh immediately after harvest or collected from the field by the farmer. Sometimes, nutmeg is wet at the time of delivery. The drying method followed is traditional by spreading on multilevel wooden platforms inside halls with large windows and it takes about 4 to 8 weeks for complete drying. This slow drying may allow fungal infection particularly in the nutmeg where there is a crack (sometimes hairline not visible to the naked eye) on the shell and water seeped in. Hence fast drying method using solar energy or farm waste like, cracked shell has to be adopted and drying completed within 5 days. Temperature can up to 45϶ to 50϶ C initially and brought down to less than 40϶ C later.

Cracking is done mechanically using a cracker developed many years back. It efficiency has to be improved to save energy and output. Separation of light from heavy nutmeg is done by floatation on water. This is not a desirable practice as dried nutmeg comes in contact with water again. A mechanical grader is the best option.

7KHUHLVSRWHQWLDOIRULQWURGXFLQJDVSHFLDOJUDGHIRUQXWPHJµ-XPER1XWPHJ¶ZLWK counts SHUSRXQGDQGIRUPDFHµ)ORZHU0DFH¶UHGDQG\HOORZ, by selecting those which are intact with no black spots and blemishes for retail packers in glass bottles. These grades may earn higher prices.

The defunct hydro-distillation unit at Marli has to be converted to steam distillation unit and start distilling oil from nutmeg. Another unit may be set up for extraction of nutmeg fat from the spent material after steam distillation.

There is need to develop close contact with buyers to collect market information and market intelligence and be up-to-date in nutmeg and mace business. Hence direct export may be resorted to.

3. Other spices production and export

'RQ¶W not name spices other than nutmeg as µ0LQRU6SLFHVDV some of them are major spices in the international trade. CDOOWKHPµ2WKHU6SLFHV¶ Exclude Tonka beans and sapota seeds from the list of spices.

Among other spices, give priority for ginger and turmeric for development. A good variety for dry ginger making will have less than 4% fibre, more than 2% essential oil, cream white colour, plump when dried after peeling and lemony flavour. Fresh ginger yield per acre should be minimum 10 to 12 Mt and outturn after peeling and drying 23% minimum.

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Turmeric variety may be selected with high curcumin. Higher the curcumin content, better the variety. Yield of fresh turmeric should be minimum 15 Mt per acre and dry output not lower than 20%.

Ginger tolerates some shade but not turmeric. Produce organic ginger and turmeric as they have demand in Europe, the USA, Australia and Japan. Follow scientific pre-harvest, harvest and post-harvest operations. Ginger Manual and Turmeric Manual have been prepared and are available with ITC.

Black pepper though needs support for growing and requires good sunlight. Select varieties with minimum 1.5 kg dry yield for propagation. Apical shoot and runner shoot are the plant parts used for planting. Black pepper has good demand in the international market.

Cinnamon grows well in Grenada. Increase area under other spices if prices are good. Caribbean market may be captured initially. When quantities are large and quality is good, canvass orders from Europe, USA, Canada and other countries. Importers of nutmeg need other spices too.

Quality is the watch word in business. Besides intrinsic quality (higher level of essential oil and desirable biochemical constituents like, curcumin in turmeric, piperine in black pepper, zingiberine and shogoal in ginger, etc.), the hygienic quality should be at the acceptable level. Hygienic quality means level of various contaminants, like, extraneous matter, foreign matter (other than from the same plant), filth, insect infestation, microbial (bacteria, fungi, etc.) load, chemical (heavy metals and pesticide residues) contamination and phytotoxins (such as, aflatoxin and ochratoxin) should not exceed the levels prescribed by the importing countries. ASTA Cleanliness Specifications and levels prescribed by the Environmental Protection Agency of the US for the pesticide residues and Quality Minima of the European Spice Association are important reference manuals on quality for export to the US and Europe respectively. Other countries also have prescribed quality permissible levels of contaminants. Importers wish to have µQRWFOHDQHG¶EXWµFOHDQVSLFHV¶.

One of the laboratories in Grenada has to be upgraded by providing necessary equipment and training to technicians for quality test according to internationally accepted procedures. Out of three laboratories visited, the laboratory of Grenada Bureau of Standards seems to be appropriate for this purpose.

Other useful information

The Consultant explained the word trade of nutmeg, mace and a few other spices with the help of import statistics. They have been sourced from WKH6SLFHV%RDUGRI,QGLD7KH%RDUG¶V data are largely based on trade statistics of the International Trade Centre, Geneva with some refinement. The global import of nutmeg and mace during five years from 2006 to 2010 and import in the important countries in 20101 are given in the following Table.

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Global imports of nutmeg and mace

Year Nutmeg (Mt) Mace (Mt) 2006 17,676 3,922 2007 18,438 3,408 2008 18,840 3,375 2009 16,563 3,012 2010 19,507 3,805 Important importing

countries in 2010 Country Nutmeg (Mt) Mace (Mt) Netherlands 2,331 584 Germany 1,791 528 USA 1,755 305 India 1,252 907 Italy 782 86 Belgium 691 146

World Trade in Ginger

Global import of both fresh and dry ginger together was about 449, 800 Mt and dry ginger alone about 60,000 Mt in 2010.

Important importing countries are the USA, Saudi Arabia, Morocco, the UK, Spain and India.

Important exporting countries of dry ginger are China, India, Nigeria and Nepal.

India imports dry ginger both for domestic consumption and for processing and re-export

World Trade in Turmeric

Imports are in the dry form only. Global import of turmeric in 2009 was about 73,670 Mt.

Important importing countries are India, Iran, Pakistan, Malaysia, Japan, Sri Lanka, the US, the UK, South Africa and Egypt.

Important exporting counties are India, Myanmar, Indonesia, China and Vietnam.

Indian imports of dry turmeric are for processing and re-export.

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Annex 7

Minutes of the Meeting of the Cabinet Sub Committee on Agriculture and Agri- business at 1:45PM on Tuesday, 13 December 2011 in the Chamber of the Minister for Agriculture, Government of Grenada

Present: Hon. Michael Denis Lett, Minister for Agriculture Hon. Nazim Burke, Minister for Finance Mr. Rohan Phillip, Attorney General Mr. Aaron Francois, Permanent Secretary Dr. Guido Marcelle, Committee Chairman 0U5RQDOG2¶1HDOH0DQDJHU6SLFH5HVHDUFK3URMHFW Ms. Hazel Bierzynski, ITC National Consultant Dr. C.K. George, ITC International Consultant for Spices and Herbs

The Minister for Agriculture, Hon. Michael D. Lett welcomed Dr. George to Grenada and to the Ministry of Agriculture. He mentioned that the Ministry has been studying the Nutmeg and Spices Sector and that they are indeed pleased with the visit at this time and look forward to the findings of his study.

Dr. George thanked the Ministers and the Attorney General for taking the time to meet and stated his responsibilities under the study as follows:

1. Review the role and responsibilities of GCNA with the view of determining how it can be transformed to a money making entity. 2. Review the existing labs on the island that are able to provide the required service to the industry particularly for export. 3. 5HYLHZRI*UHQDGD¶VH[SDQVLRQLQWRRWKHUVSLFHV. 4. Review of opportunities for value added products.

He highlighted the following as some preliminary observations in relation to the above.

x While he understood and appreciated WKH LVODQG¶V VWURQJ DVVRFLDWLRQ with nutmeg and mace, he recommended that due considerations should be given for other spices also. He advised that many importers want more spices than nutmeg and mace and as such there is a felt need for expansion of crops such as ginger, turmeric and black pepper. x He recommended that Grenada should move into vegetative propagation for nutmeg for high productivity through budding and also suggested the use of bee pollination. x He emphasized that there should be a greater move towards selection of elite trees in nutmeg and other tree spices and high varieties in annual spices like, ginger and turmeric x He recommended that consideration should be given for improvement with respect to grading of both nutmeg and mace. x He expressed the view that with the use of the agents currently used by the GCNA, Grenada does not derive the full benefit of the value of the commodity and suggested to

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do direct export to buyers with better gathering of market information and understanding of market changes. x None of the existing labs is at international level. He was of the firm view that there was need for an independent lab that is better acceptable to buyers abroad and the lab of Grenada Bureau of Standards once strengthened may fit into this requirement. x He expressed the need for reviving the production of organic nutmeg and mace and also entering into organic production of other spices. x He VXJJHVWHG WKDW WKH WHUP ³0LQRU 6SLFHV´ XVHG IRU VSLFHV RWKHU WKDQ QXWPHJ PD\ EH changed to ³Other Spices´DVVRPHRIWKHPDUHmajor spices in the consuming countries. x He stated the following advantages for spices:

9 It is able to be stored well long 9 Prices are often good 9 Grenada had good soil and suitable climate for the production of many tropical spices.

x He made mention of the Indian Spices Board with 52 spices, a professionally run organization and suggested that the GCNA should also to be more broad based and professionally run.

Minister Burke was pleased with the observations and looked IRUZDUGWR'U*HRUJH¶VUHSort. He reiterated that he saw spice industry as crucial for economic development and its great potential for commercial realities.

The Attorney General mentioned that work has been started in relation to the restructuring of the GCNA and that it will address the legal issues as these relate to the Ordinance of the GCNA.

The Permanent Secretary Agriculture reminded that this particular study was part of the Nutmeg Sector Development Strategy under the EC funded- All ACP Agricultural Commodities Programme. He stressed that within the Ministry, implementation is already taking place in several areas:

9 Study on the Nutmeg Wilt Disease undertaken by the IICA; 9 3 CDE approved projects; 9 FAO approval for counterpart officer to undertake market study; 9 Spice Research Project ± working on the identification of elite trees.

He confirmed that the Ministry appreciated the need to move beyond nutmeg and recognized the value of spices particularly with the benefit of a long shelf life. The Ministry is cognizant of the need to push and develop the industry.

There is overall recognition of the value of the spice industry to Grenada. It was stated that the Ministry would like to have some insight from Dr. George in his report particularly with regard to GCNA on how to establish it as a body on the cutting edge of the industry.

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Annex 8

Minutes of the meeting of the Grenada Nutmeg Sector Development Strategy ± National Coordinating Committee at 10:00AM on Friday, 16 December 2011 at the Board Room ± GCNA

Present: Dr. Guido Marcelle, Committee Chairman Mr. Cosmos Joseph - IICA Ms. Abiola Streete ± Ministry of Finance Mr. Franklyn Salim ± Farmer 0U5RQDOG2¶1HDOH± Spice Research Project Mr. Gregory Del Sol ± Ministry of Agriculture Ms. Hazel Bierzynski, ITC National consultant Implementation Support Dr. C.K George, ITC International Consultant for Spices and Herbs

Excused: Mr. Denis Noel ± Agro-processor Mr. Terrence Moore - ITC National Consultant Projects

Absent: Ms. Shanta Williams-Cox ± Ministry of Trade Mr. Denis Felix - GCNA Mr. Adrian Thomas - GCNA

1. Welcome back Dr. C.K. George

Dr. Marcelle welcomed Dr. C.K. George back for his second visit. He outlined the visits made and meetings attended during the week as follows:

Monday, 12 December 2011: Meeting with the Technical Team, Ministry of Agriculture Tuesday, 13 December 2011: Meetings with the Board of Directors, GCNA, Cabinet Sub- Committee on Agriculture and Agri-Business and the Chairman, GCNA Wednesday, 14 December 2011: Meeting with Mr. Henry Joseph, PKF, Audit Firm of the GCNA Thursday, 15 December 2011: Visit to St. Andrew Friday, 16 December 2011: Meeting with the National Coordinating Committee and Debriefing with the Permanent Secretary Agriculture He invited Dr. George to apprise the Committee of his findings thus far.

2. Review by Dr. George

Dr. George brought greetings from the ITC and India. He stated that his first visit had been very fruitful. He has already begun to formulate his recommendations and was happy to share them

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with the Committee. He looked forward to their feedback to complete the final report.

A. The Scope of the GCNA Dr. George stated that in relation to the restructuring of the GCNA, he would provide a few options for Board of Directors and the Government to consider.

He stated that Grenada should view the hurricanes of 2004 and 2005 as an opportunity to rejuvenate the nutmeg industry. Effort should be placed on the replanting programme and to look after the seedlings planted with particular emphasis on the selection of elite trees of nutmeg.

x He suggested that Grenada should consider taking a policy decision that only vegetatively propagated planting material of nutmeg will be used for future planting. Before enforcing this decision, all the necessary back up must be organized including selection of elite trees, training of farmers and farm workers, compensation to be paid to the farm workers for successful budding and price to be paid to the elite tree owners per bud, etc. x He noted that demand for organic agricultural products is growing fast and that Grenada should restart its organic certification of nutmeg with a certifying agency which is preferred by the buyers. x He reminded that the process for drying nutmeg takes 4 weeks and sometimes about 6 to 8 weeks. This is very slow drying, as delay in drying will encourage mould growth and at times production of aflatoxin. The drying time needs to be reduced to 5 days. x He referred to the introduction of a jumbo grade of whole of big sized shelled nutmeg with 50 numbers per pound. Large retail packers in the importing countries may be consulted regarding introduction of such a grade as they would to like market this grade in transparent containers (glass bottles) at a premium price. x Similarly, there could be a new grade of mace for retail packed in glass bottles. This applies to mace collected without breakage to any part of it and dried soon before developing blemishes and black spots. This grade of mace commands about 25% more price than that of the normal grade in India. x The GCNA should consider discontinuing its only marketing effort through agents in Europe, USA and Canada. They should conduct direct sale to the importers getting better prices and also gather market information from the importers on a regular basis.

B. Value Addition

x The GCNA should consider entering into value addition for its products. The hydro- distillation system at Marli can be modified into a simple steam distillation unit to commence oil extraction. This is the best way to utilize highly shriveled, shrunken, broken and other lower grades of nutmeg. x Essential oils can be prepared from most of the spices. The distillation unit at Marli when repaired can be made use of for distilling spices other than nutmeg also. x Oleoresins from spices are high value items but should be entered into this field when production is up by many folds for other spices and preferably as a joint venture with an

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established unit abroad. The products should meet buyerV¶ specifications which are often very stringent. x Fresh ginger can be used for preparing candy, preserve, marmalade, crystallized ginger, tit bits, ale, etc. These products may have some demand from the tourists and from the neighbouring countries. They can be prepared in small scale without sophisticated machinery.

C. Laboratory Facilities

Following are the observations of Dr. George on the laboratories reviewed.

GCNA Laboratory x While it has some equipment, many equipment which are costly must be additionally purchased. Laboratory hands still have to be appointed and trained on the use of equipment. It may be easier to convince buyers if analytical results are from an independent laboratory not under the control of the GCNA. x It is considered necessary for the GCNA to have a mini laboratory for determining basic parameters like, foreign matter, extraneous matter, broken pieces, moisture, mould infection, pest infestation etc. by drawing samples at different stages of handling the products.

Produce Chemist Laboratory x While there is some equipment, a few more is still needed. x There is some technical staff qualified in food engineering and chemistry. There is no graduate degree level staff for microbial analysis. x It will be costly to strengthen the laboratory with the equipment required for the nutmeg and spices sector. Main aim of the laboratory is quite different from quality testing and it includes testing forensic materials of criminal cases. Therefore, it may not be suitable for analyzing agricultural products for export.

Laboratory of the Grenada Bureau of Standards x The laboratory is fairly well established with most of the equipment required for both chemical and microbial analysis. The laboratory has experienced personnel for all the needed analysis. This laboratory has ambiance to carry out analysis as wanted by the importing countries. x If this laboratory is chosen for quality testing of nutmeg, mace and other spices, staff will have to be trained in an established food testing laboratory abroad. x It is recommended that the laboratory of the Spices Board of India could be considered for the advanced training as it is well set up with the necessary equipment. Well-qualified and experienced personnel are working in this laboratory and do the testing of all quality parameters prescribed by various spices importing countries and also of American Spice Trade Association (ASTA) and European Spice Association (ESA).

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C. Potential for Spices other than Nutmeg There is great potential for increasing production of almost all the spices grown in Grenada. He stressed the fact that spices other than nutmeg VKRXOGQRWEHFDOOHGµ0LQRU 6SLFHV¶EXWVKRXOGEHUHIHUUHGWRDVµ2WKHU6SLFHV¶+HFRQVLGHUHGWKHIROORZLQJDVµ2WKHU Spices¶: Ginger, Turmeric, Cinnamon, Pimento, Clove, Bay (West Indian) leaves, Pimento, Vanilla and Hot Chilies, tamarind, Herbal spices (like, Rosemary, Thyme), etc.

The meeting noticed that Jamaica produces a high quality ginger and Mr. Joseph of IICA (Inter- American Institute for Cooperation on Agriculture) was asked if IICA could source it for Grenada. He advised that a request should come from the Ministry of Agriculture and they would seek to assist. Similarly, it was stated that the Government of Grenada might approach the Government of India through the Embassy of India for assistance with the provision of quality planting material for the spices sector.

3. Project for Establishing a Spice Institute Ms. Abiola Streete advised that her Unit is in the process of drafting TOR for the Feasibility Study on Establishing a Spice Institute. The Spice Institute would be a Research and Development organization that would concentrate on herbs and spices. It would be capable of conducting serious research and product development for value added. Through intellectual property rights on the products it develops it should eventually be self-sustaining and maybe even profitable, though profit would not be the over-riding goal.

The study would assess the technical, institutional and financial feasibility of establishing such an organization.

Dr. Marcelle provided the name of Henry Lowe, a Jamaican, an expert for spices who may be able to assist with the required information.

Dr. Marcelle thanked Dr. George for his visits and works thus far and stated that the government was really looking forward to his report and recommendations as there is need to continue the work for taking the industry forward.

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Annex 9

Minutes of the Debriefing Meeting with Permanent Secretary, Ministry of Agriculture at 12.30 PM on Friday, 16 December 2011

Present: Mr. Aaron Francois, Permanent Secretary Dr. Guido Marcelle, Committee Chairman Ms. Hazel Biezynski, ITC National Consultant Dr. C.K. George, ITC International Consultant in Spices and Herbs

Dr. George thanked the Permanent Secretary for sparing his time to meet with him to brief on the progress related to the preparation of the report for the visit to Grenada.

Study of the GCNA

Dr. George advised that his report will address the structure of the GCNA and will provide a few options on its restructuring for the consideration and final action by the Board of Directors and Government.

He reminded that the disaster by the hurricanes had provided Grenada with the opportunity for replanting of elite trees and to rejuvenate the nutmeg industry.

Developing other Spices

x Dr. George stated that Grenada has great potential for the development of other spices as well and advised to expand their production. He stressed the need to move away from the term ³Minor Spices´ to ³Other Spices´. x He was happy to learn that the Ministry of Agriculture had taken the initiative to declare 2012 as the Year of Nutmeg and Spices and would be equally happy to assist the Committee in any area of this programme. x The Permanent Secretary was told that Jamaica produces ginger of a high quality. Cosmos Joseph of IICA mentioned that if there is a request for this material from the Government of Grenada, IICA could make arrangements to obtain it. x Similarly, Grenada could make a request through the Embassy of India for quality spice plants to improve the production of spices.

Review of the Laboratory Facilities

x Dr. George considers that each of the labs he visited could serve a particular role. x The GCNA Lab is small and not fully equipped and could be better developed to conduct particular in-house tests related to the industry. This is not an independent lab and would not meet the requirements for exports.

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x The stated objectives of the Produce Chemist Lab relate to innovation, research and various other purposes, and should remain for those purposes. x The Bureau of Standards Lab has most of the required equipment and relatively well- trained personnel. It is considered the best suited to meet the criteria as the independent lab also. Additional training is required for staff and this may be obtained by short-term attachments with a laboratory facility in the spice sector. x Consideration could be given to approaching the Ambassador of India for such training.

Dr. George highlighted the following:

x The drying process for nutmeg needs to be reduced from 6-8 weeks to 5 days. x Grenada needs to adopt vegetative propagation as the policy for nutmeg propagation. x Grenada needs to get into the production of all types of spices, selecting those with higher values for export.

The Permanent Secretary thanked Dr. George for his visit and stated that he was really looking forward to the report, which should help them with the implementation of the Nutmeg Sector Strategy and in taking the spice industry forward.

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Annex 10 Persons Contacted in Grenada

S. Name Position Address with Phone No. and E-mail No. Ministry of Agriculture, Forestry and Mr. Aaron S. )LVKHULHV6W*HRUJH¶V 1 Permanent Secretary Francois (O) 473 440 3386 (M) 473 405 6883 [email protected] Grenada Cooperative Nutmeg $VVRFLDWLRQ6W*HRUJH¶V 2 Mr. Denis Felix Chairman (O) 473 440 2117 (M) 473 457 7196 [email protected] Grenada Nutmeg Sector Strategy 6W*HRUJH¶V 3 Dr. Guido Marcelle Chairman (M) 473 440 2758 [email protected] Grenada Nutmeg Sector Strategy Ms. Hazel M. 6W*HRUJH¶V 4 ITC National Consultant Bierzynski (O) 473 444 5240 (M) 473 407 0070 [email protected] Grenada Cooperative Nutmeg Dr. E. Reginald Association, Grenville, St. Andrews 5 Director Buckmire (O) 473 442 7330 [email protected] Grenada Cooperative Nutmeg Mr. Marlon J.D. $VVRFLDWLRQ6W*HRUJH¶V 6 General Manager Clyne (O) 473 440 2117 (M) 473 414 6801 [email protected] Grenada Cooperative Nutmeg Mr. Garnet F.M. $VVRFLDWLRQ6W*HRUJH¶V 7 Operational Manager Williams (O) 473 440 2117 (M) 473 459 0271 [email protected] Grenada Cooperative Nutmeg $VVRFLDWLRQ6W*HRUJH¶V 8 Ms. Joyce John Accountant (O) 473 440 2117 (M) 473 449 8454 [email protected] Grenada Cooperative Nutmeg Mr. Roland $VVRFLDWLRQ6W*HRUJH¶V 9 Field Officer Courtney (O) 473 440 2117 (M) 473 405 0430 [email protected]

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Spice Research Project, Ministry of Agriculture, Ministerial Complex, 10 0U5RQDOG2¶1HDOH Manager %RWDQLFDO*DUGHQV6W*HRUJH¶V (O) 473 443 1679 (M) 473 407 3584 [email protected] Inter-American Institute for Cooperation RQ$JULFXOWXUH6W*HRUJH¶V 11 Mr. Cosmos Joseph Coordinator (M) 473 440 5547 [email protected] Parris pharmacy Ltd., Grenville, St. Mr. Kenneth 12 Secretary/ Director Andrews Buckmire (O) 473 442 733 Grenada Bureau of Standards, Queens Mr. L. Simeon 13 Director 3DUN6W*HRUJH¶V Collins (O) 473 440 5886 (M) 473 456 1523 Produce Chemist Laboratory, St. George Chief Analytical 14 Mr. Erwin Henry (O) 473 440 3273 (M) 473 440 0105 Chemist [email protected] Carlton, St. Andrew 15 Mr. Denis Noel Agro-Processor (H) 473 442 7514 [email protected] Rivulet Lane, St. Andrew 16 Mr. Franklyn Salim Farmer (H) 473 438 5646 [email protected] Ministry of Agriculture Ministerial Complex, Tanteen, St. 17 Mr. Gregory Del Sol Planning Officer *HRUJH¶V (M) 473 420 5690 [email protected] UNESCO Secretariat, Ministry of Education, Tanteen, ITC National Consultant 18 Mr. Terrence Moore 6W*HRUJH¶V (Projects) (M) 473 403 3612 [email protected] PKF Accountants & Business Advisors P.O. Box 1798, Grand Anse, 19 Mr. Henry A. Joseph Managing Partner 6W*HRUJH¶V (O) 473 440 2562/ 3014 [email protected] EDF Support Services Unit Project & Programme Ministry of Finance 20 Ms. Abiola Streete Coordinator 6W*HRUJH¶V (O) 473-435-3227 (M) 473-405-6121 [email protected]

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Annex 11

Conversion Table

US $ 1 = EC $ 2.70 1 lb = 0. 454 kg

Acronyms Used

ASTA American Spice Trade Association ESA European Spice Association CDB Caribbean Development Bank CDE Centre for Development of Enterprise EC East Caribbean EU European Union FAO Food and Agriculture Organization HACCP Hazard Analysis and Critical Control Points GCNA Grenada Cooperative Nutmeg Association IICA Inter-American Institute for Cooperation on Agriculture ISO International Standards Organization ITC International Trade Centre UNCTAD United Nations Conference of Trade and Development

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Street Address: P: +41 22 7030011 Postal address: International Trade Centre F: +41 22 7334439 International Trade Centre 54-56 rue de Montbrillan E: [email protected] Palais des Nations 1202 Geneva, Switzerland www.intracen.org 1211, Geneva 10, Switzerland

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