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Nutmeg and Derivatives FO:MISC/94/7 Working Paper NUTMEG AND DERIVATIVES FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 1994 FO:MISC/9417FO:MISC/94/7 Working Paper NUTMEG ANDAND DERIVATIVESDERIVATIVES FOOD AND AGRICULTUREAGRICULTURE ORGANIZATION OF THE UNITED NATIONSNATIONS Rome, SeptemberSeptember 19941994 This document is a working paper.It documents information forming part of a larger study and informs interested persons about work in progress.It is available in limited' ilnumbers for comment and discussion. The designations employed andand thethe presentation ofof material in this publicationpublication do notnot imply the expressionexpression of anyany opinionopinion whatsoever onon thethe part of thethe FoodFood andand AgricultureAgriculture Organization (FAO) ofof thethe UnitedUnited NationsNations concerning the legal status of any country, territory,territory, city or areaarea oror ofof its its authorities,authorities, oror concerning concerning thethe delimitationdelimitation ofof its its frontiersfrontiers oror boundaries. boundaries. The opinion expressed in the document are those of the author(s)author(s) andand dodo notnot necessarilynecessarily reflect the opinion on the part of thethe FAO.FAO. (ii) PREFACE This document consists ofof twotwo related reports: (i) Nutmeg Processing and Marketing in Grenada prepared by Dr. DilonDilon DanielDaniel andand (ii) Nutmeg,Nutmeg, MaceMace andand their By-Products:By-Products: AA MarketMarket Overview preparedprepared byby the TradeTrade InformationInformation Service of thethe InternationalInternational Trade CentreCentre UNCTAD/GATT. These reports form part ofof thethe severalseveral studiesstudies on Non-WoodNon-Wood Forest Products (NWFP), commissioned byby FAO.FAO. InIn thethe twotwo reports,reports, thethe authorsauthors havehave used different sources of relevant information. No attemptattempt has been mademade to reconcilereconcile differences,differences, if any, inin thethe statisticalstatistical information provided. This document, along with other similar andand relatedrelated studies,studies, willwill bebe usedused forfor preparing a substantial publication of wider coverage on NWFP. Comments on the document (along with supporting materials as relevant) may kindly be sent to:to: C. ChandrasekharanChandrasekharan Chief, Non-WoodNon-Wood Products and Energy BranchBranch Forest ProductsProducts DivisionDivision FAO Viale delle Terme di CaracallaCaracalla 00100 RomeRome Italy (iii) TABLE OF CONTENTSCONTENTS Page PREFACE iii REPORT No.No.1 1 List of AbbreviationsAbbreviations x Executive Summary 1 1. Background InformationInformation andand Trends Relating to thethe Growing,Growing, Management,Management, Production, andand TradeTrade ofof Nutmeg/Nutmeg Nutmeg/Nutmeg ProductsProducts inin GrenadaGrenada 2 2. Relative Importance of NutmegNutmeg inin ProvidingProviding Income,Income, EmploymentEmployment andand ExportExport Earnings 2 3. Constraints/Problems Faced by Grenada in NutmegNutmeg Production and Trade, andand Proposed SolutionsSolutions 3 4. Definition of TermsTerms 6 5. Description of ComponentsComponents of NutmegNutmeg 6 7. The Present MarketMarket StatusStatus ofof thethe VegetableVegetable FatsFats andand OleochemicalOleo chemical Industries 15 8. Market Analysis for TrimyristinTrimyristin and MyristicMyristic AcidAcid 20 9. Recommendations 23 Endnotes 25 TABLES Table 1:1: Grenada's NutmegNutmeg andand MaceMace ProductionProduction 1986-1993 1986-1993 (tons)(tons) 2 Table 2:2: Export Quantities of Nutmeg and Mace and Total Earnings forfor thethe Period 1986-19931986-1993 3 Table 3:3: Prices Received byby Grenada forfor its NutmegNutmeg and Mace for thethe Period 1988-19931988-1993 (US$)(US$) 3 Table 4:4: US Imports ofof NutmegNutmeg forfor ConsumptionConsumption 4 Table 5:5: US Imports ofof MaceMace forfor ConsumptionConsumption 4 Table 6:6: US Imports ofof NutmegNutmeg OilOil forfor ConsumptionConsumption 4 Table 7: EEC ImportsImports ofof NutmegNutmeg forfor ManufactureManufacture of NutmegNutmeg Oil 5 Table 8: Sources of TrimyristinTrimyristin 12 (v)(y) Table 9:9: World Production ofof Oils and FatsFats byby SourceSource (million(million metricmetric tons) 15 Table 10:10: World Oil andand FatFat ProductionProduction byby GeographicGeographic RegionRegion (million(million metric tons)tons) 16 Table 11:11: Prices of MajorMajor RawRaw MaterialsMaterials ofof Oleochemicals Oleochemicals 16 Table 12:12: Relative Fatty Acid CompositionComposition 17 Table 13:13: World Fatty AcidAcid Production,Production, 1988-20001988-2000 (1,000(1,000 MT)MT) 18 Table 14:14: Consumption ofof Natural Fatty Acids, 1987-19921987-1992 (1,000 MT) 18 Table 15:15: World Glycerine Production, Consumption andand Capacity, 19881988 (1,000 MT) 19 Table 16:16: World ProductionProduction ofof BasicBasic NaturalNatural OleochemicalsOleochemicals By-ProductBy-Product Group, 1988-20001988-2000 (1,000 MT)MT) 19 Table 17:17: World Production ofof BasicBasic OleochemicalsOleochemicals by Region,Region, 1988-20001988-2000 (1,000 MT) 19 Table 18:18: Listed Catalogue Price for TrimyristinTrimyristin 21 Table 19:19: US Imports of IndustrialIndustrial Mono Fatty Acids from Coconut, Palm Kernel, and PalmPalm OilOil 22 Table 20:20: Myristic Acid into Ports ofof NewNew YorkYork andand NewNew JerseyJersey 22 Table 21:21: Prices of FourFour MajorMajor FattyFatty AcidsAcids 22 APPENDICES Appendix 1:1: Structure and Physical Properties of NutmegNutmeg OilOil ComponentsComponents 29 Appendix 2: Manufacturers andand Suppliers ofof MyristicMyristic AcidAcid andand MyristylMyristyl Alcohol 31 Appendix 3: Price Quote forfor aa GasGas ChromatographChromatograph MachineMachine 33 Appendix 4: Companies Presently Selling Trimyristin as a Laboratory Reagent 37 Appendix 5: Companies Selling Oils and FatsFats ExtractionExtraction EquipmentEquipment 39 Appendix 6: Estimate forfor a PilotPilot StudyStudy to bebe ConductedConducted at TexasTexas A andand MM University and Price QuotationQuotation forfor EquipmentsEquipments NecessaryNecessary forfor thethe Production of Trimyristin on aa CommercialCommercial Scale, fromfrom CrownCrown Iron Works 41 (vi) REPORT No.No.2 2 List ofof AbbreviationsAbbreviations 50 List of ACP and LDCsLDCs 51 1. Nutmeg and Mace -- WorldWorld OverviewOverview 53 2. Nutmeg and Mace -- EuropeanEuropean UnionUnion OverviewOverview 59 3. Nutmeg and Mace - USAUSA 65 4. Nutmeg and Mace - JapanJapan 69 5. Nutmeg and Mace - India 71 6. Derivatives of Nutmeg and Mace - Market OverviewOverview 75 TABLES Table 1:1: Minimum Export Prices Agreed to byby IndonesianIndonesian andand GrenadianGrenadian Producers Under 'Marketing'Marketing Agreement' in 19871987 54 Table 2: MNS Prices for NutmegsNutmegs and Mace as on 29 April 19941994 56 Table 3:3: Customs TariffsTariffs in the EU for ImportsImports of NutmegNutmeg and MaceMace 60 Table 4: Customs ChargesCharges in USA for Imports of Nutmeg and Mace 66 Table 5:5: Main Suppliers of Nutmeg Oil to the USUS MarketMarket 76 APPENDICES Appendix 1:1: Statistical Annexes 83 Appendix 2: List of Importers 97 (vii) REPORT No.No.1 1 Nutmeg Processing and Marketing in GrenadaGrenada prepared by Dilon DanielDaniel LIST OFOF ABBREVIATIONSABBREVIATIONS AAI% Average AnnualAnnual PercentPercent IncreaseIncrease FELDA Malaysian FederalFederal LandLand DevelopmentDevelopment AuthorityAuthority g gram GCNA Grenada CooperativeCooperative NutmegNutmeg AssociationAssociation GC Gas ChromatographyChromatography Inform International News on FatsFats andand OilsOils andand RelatedRelated MaterialsMaterials kg Kilogramme MT Metric Ton $ Dollars US United StatesStates USDA US DepartmentDepartment of AgricultureAgriculture (x) TABLE OFOF CONTENTSCONTENTS Page Executive Summary 1 1. Background Information andand Trends Relating to thethe Growing,Growing, Management,Management, Production, andand TradeTrade ofof Nutmeg/Nutmeg Nutmeg/Nutmeg ProductsProducts inin GrenadaGrenada 2 2. Relative Importance of Nutmeg in ProvidingProviding Income, Employment andand Export Earnings 2 3. Constraints/Problems Faced by Grenada in NutmegNutmeg Production and Trade, andand Proposed SolutionsSolutions 3 4. Definition of TermsTerms 6 5. Description of ComponentsComponents ofof NutmegNutmeg 6 7. The Present MarketMarket StatusStatus ofof thethe VegetableVegetable FatsFats andand OleochemicalOleo chemical IndustriesIndustries 15 8. Market AnalysisAnalysis for TrimyristinTrimyristin andand MyristicMyristic AcidAcid 20 9. Recommendations 23 Endnotes 25 TABLES Table 1:1: Grenada's NutmegNutmeg andand MaceMace ProductionProduction 1986-19931986-1993 (tons)(tons) 2 Table 2: Export QuantitiesQuantities of Nutmeg andand Mace andand TotalTotal Earnings forfor thethe Period 1986-19931986-1993 3 Table 3:3: Prices Received byby Grenada forfor its NutmegNutmeg and Mace for thethe Period 1988-19931988-1993 (US$)(US$) 3 Table 4: US ImportsImports ofof NutmegNutmeg forfor ConsumptionConsumption 4 Table 5:5: US Imports of MaceMace forfor ConsumptionConsumption 4 Table 6:6: US Imports of NutmegNutmeg OilOil forfor ConsumptionConsumption 4 Table 7:7: EEC Imports of NutmegNutmeg for ManufactureManufacture of Nutmeg Oil 5 Table 8:8: Sources of Trimyristin 12 Table 9:9: World Production ofof Oils andand FatsFats byby SourceSource (million(million metricmetric tons) 15 (xi) Table 10:10: World Oil andand FatFat ProductionProduction byby GeographicGeographic RegionRegion (million(million metric tons)tons) 16 Table 11:11: Prices ofof MajorMajor RawRaw MaterialsMaterials ofof Oleochemicals Oleochemicals 16 Table 12:12: Relative
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