See

discussions, stats, and author profiles for this publication at: http://www.researchgate.net/publication/275771715

Case Study - THE NUTMEG AND SPICE INDUSTRY

IN GRENADA. Singh, R., Sankat. C.K. and
Mujaffar, S.

RESEARCH · MAY 2015

3 AUTHORS, INCLUDING:

Saheeda Mujaffar
The University of the West Indies, Trinidad a…
18 PUBLICATIONS 57 CITATIONS

SEE PROFILE

Available from: Saheeda Mujaffar

Retrieved on: 22 August 2015
 THE NUTMEG AND SPICE INDUSTRY IN GRENADA:
INNOVATIONS AND COMPETITIVENESS
A Case Study

Presented at:

Workshop on the Role of Science, Technology and Innovation in

Increasing Competitiveness in the Productive Sector1

Dr. Ranjit H. Singh

Prof. Clement K. Sankat
Dr. Saheeda Mujaffar

The University of the West Indies

St. Augustine, Trinidad

November 2003

1
Organized by The Office of Science and Technology (OS&T) of the Organization of American States (OAS) and
the Secretariat of Science, Technology and Productive Innovation (SeCYT)
 1

THE NUTMEG AND SPICE INDUSTRY IN GRENADA:

INNOVATIONS AND COMPETITIVENESS
A Case Study

Dr. Ranjit H. Singh1, Prof. Clement K. Sankat2 & Dr. Saheeda Mujaffar2
1
Faculty of Science and Agriculture,
The University of the West Indies, St. Augustine, Trinidad.
2
Faculty of Engineering,
The University of the West Indies, St. Augustine, Trinidad.

ABSTRACT

The large quantity and variety of aromatic compounds in the seed and mace of the nutmeg fruit
have led to the historic and continued use of nutmeg and mace as spices. Dried and ground
nutmeg and mace are widely used for their flavouring characteristics in the food industry. The
nutmeg seed is rich in aromatic oil (30-55%) of which the "essential oil" accounts for 5-15% and
the "fixed oil" or "nutmeg butter" accounts for 24-40%. Mace contains 4-17% volatile oil.
Products of nutmeg and mace in the form of oleoresins, butter and essential oil are also widely
used in the food, cosmetic and pharmaceutical industries. World demand for nutmeg and mace
is estimated at 9000 tons with the respective markets Europe (42%) and USA (26%). Indonesia
produces 70% of the world demand for nutmeg while Grenada produces some 25%, with the
majority of the balance coming from Sri Lanka/India. Nutmegs are processed for export from
Grenada through a set of operational steps which have been practised for many years. The
industry is highly labour intensive, employing many unskilled and a few experienced workers.
The processing tasks are manual, tedious and repetitive and involve excessive handling. With
the exception of one unit operation, there is an absence of mechanical aids or machinery for
handling and processing the crop. Only recently has mechanization been seriously considered
and evaluated. Research and development work on the key processing operations such as
cracking, drying and sorting has the potential for positively impacting on the industry. In
addition to the uses of nutmeg and mace as a spice in baking products, dairy products and
alcoholic beverages, the ripe open pods of the fruit are utilized in Grenada and processed into
jams, jellies, syrups, preserved in syrup, "cheese" and candied pods and the nutmeg oil is used as
a balm for aching muscles. What started as a kitchen/cottage type industry is now emerging as a
viable contributor to Grenada’s economy with the establishment of a steam distillation plant and
several lines of nutmeg products including jams and jellies, syrups and liqueurs and pain
relieving balms. There is a need for research and development work on waste utilization as well
as on the isolation of trimyristin, a fat which accounts for 40% of the nutmeg seed and 75% of
the oil. Trimyristin is used industrially as a raw material for myristic acid and glycerol and there
is a large potential market for trimyristin as a raw material for the soap, pharmaceutical and
oleochemical industries.
 2

TABLE OF CONTENTS
Abstract 1
1.0 Background on the World Nutmeg Industry 3
1.1 Origin & History 3
1.2 The Nutmeg and Fruit 4
1.3 Major Producers of Nutmeg and Mace 4
2.0 Market Structure and Performance 4
2.1 Trade Flows 5
2.2 Market Structure 5
2.3 Pricing and Marketing Agreement among Producers 5
2.4 Exports of Grenadian Nutmegs and Mace 5
3.0 The Grenadian Nutmeg Industry: Background 7
3.1 Structure of the Industry In Grenada 7
3.2 Production and Process Systems 7
3.2.1 Harvesting Nutmegs 9
3.2.2 Processing Nutmegs 9
3.2.3 Drying 9
3.2.4 Cracking 9
3.2.5 Separation 9
3.2.6 Grading 10
3.2.7 Processing Mace 10
3.3 Contribution of the Nutmeg Industry to the Economy of Grenada 10
3.4 Socio-economic Importance of the Industry 12
3.5 Challenges 14
4.0 Improving Competitiveness 14
4.1 Products and Constituents of Nutmeg 14
4.2 Scope/strategies for improvement 20
5.0 Innovations & Impact on Competitiveness 21
5.1 Innovations in Processing Technology 21
5.1.1 Drying 21
5.1.2 Cracking 21
5.1.3 Separating 21
5.1.4 Sorting 22
5.1.5 Material Handling 23
5.1.6 Conclusion 24
5.2 Innovations in Product Development 25
5.2.1 GCNA 25
5.2.2 W&W Spices 25
5.2.3 Noelville Ltd 26
5.2.4 De La Grenade Industries 27
6.0 Threats to the Future Performance of the Industry 29
6.1 SPS: USDA – Chemical Residues and HACCP 29
6.2 Traceability 30
6.3 Environmental and Regulatory measures 30
Conclusion 30
References 31
 3

SECTION 1
BACKGROUND: WORLD NUTMEG INDUSTRY

1.1 Origin & History

The Nutmeg tree (Myristica fragans Houtt) belongs to the family Myristicaceae, with 18 genera
and 300 species. Myristica is the largest genus, with 72 species. Its origin is traced to the Banda
Islands of Eastern Indonesia. Its genus name is Greek meaning balm, ointment and its species
name is Latin for fragrant, aromatic. Nutmeg and its associated product mace historically gained
popularity as a spice. Traditionally, the ground nutmeg seed is widely used in food flavouring
while ground mace, having a milder flavour, is used in the baking and dairy industries, seafood
and processed meats.

Nutmeg was first introduced into Europe during the 11th century but the trade in nutmeg and
mace began in the 16th century with the Portuguese sailing to India. In the 17th and 18th it was
commonly known that Indonesia was the sole location of the spice, the Dutch then proceeded to
impose the tightest monopoly the world has ever witnessed by isolating the Banda Islands. The
civil war of 1621 resulted in the introduction of Chinese labour and the penetration of Arab
traders. This effectively initiated the demise of the Dutch monopoly. By the 18th century the
French smuggled the first trees out of the Banda Islands thereby breaking the Dutch monopoly.
This diverse ethnic influence and trade has resulted in the wide and varied use of the product.
The nutmeg tree was first planted in Grenada on the Belvedere Estate (in St. John’s Parish) by
Hon. Frank Gurney in 1843. The first commercial plantation started in 1850 and by 1865
Grenada’s production was influencing the landscape of world trade. Currently, global trade in
nutmeg (and mace) is differentiated by its geographic origin, Indonesian nutmeg (and mace) is
referred to as East Indian nutmeg while Grenadian nutmeg (and mace) is referred to as West
Indian nutmeg.

1.2 The Nutmeg Fruit

Banda (cultivated species Myristica fragans Houtt) is exclusively grown in Grenada. The tree,
described as a tropical evergreen and dioecious, grows to 10m with a spreading or conical
canopy, leaves are thick and the root network is shallow. Cultivation is in the lowland tropical
rainforest although there are some mountainous species (on hillsides, primarily for the purpose of
preventing soil erosion). At 5 years old the tree will flower and the sex determined. Males are
culled to a ratio of 1:10 females. Commercial production commences at about the 7th – 8th year
and by age 15 years the tree will reaches its maximum productivity (~2,000 nutmeg/year) and
attain a height of 40-50 feet. Fruiting continues for another 40 to 80 years.

The nutmeg fruit (myristica fragrans) is a fleshy drupe, variable in size and form, with large
fruits being about 6.25 cm long and the shape varying from round to oval (Ridley, 1912). When
ripe, the fleshy husk or pericarp which is about 1.25 cm thick splits into two halves, revealing the
seed. The kernel (nutmeg of commerce) is enclosed in a deep brown shining seed coat or shell.
Surrounding this seed coat is a striking crimson network called mace, which is an arillus or
outgrowth from the base of the seed (Figure 1). When fresh the nutmeg fills up the shell, but on
drying it shrinks and rattles within. The nutmeg is oval shaped, hard and woody, variable in size
and aromatic.
 4

Husk or pericarp

Seed containing nutmeg of

commerce

Mace

Figure 1.1. Diagram showing the seed in a split nutmeg fruit

1.3 Major Producers of Nutmeg and Mace

While there are four major producers of nutmeg and mace, the market is segmented based on
product differentiation. The market prefers the products originating out of Indonesia and
Grenada and so these two dominate the trade in nutmeg and mace. The products coming from the
other two producers, India and Sri Lanka, are said to be the inferior “adulterants”. Traditionally,
Indonesia accounts for approximately 70% of world trade in nutmeg and mace while Grenada
exports some 20 – 25%. However, recent data suggest significant increases in production and
exports from India.

SECTION 2
MARKET STRUCTURE AND PERFORMANCE

2.1 Trade Flows

The world market for spices and herbs is valued at over US$2.3 billion (Business Times, 2003)
of which it is estimated that nutmegs and mace account of over USD 140 million. World
production of nutmeg is estimated at 10,000-12,000 MT annually, of which approximately 20-
25% is supplied by Grenada and 70% by Indonesia, the two major producers. World demand is
estimated at 9,000 MT, with the two major markets being Europe, accounting for 42% of the
trade and the USA 26% (Janssen, 2003).

The nutmeg and mace producers in Grenada and Indonesia generally supply the World market
with primary processed products – that is the nutmeg and mace are dried, sorted, graded and
packaged for export. The majority of the primary products exported is bought by a few
intermediaries or brokers located in Holland, Germany and the US. Brokers trade in whole
nutmegs and mace but some are also involved in further processing – grinding, packaging and
distribution. Some are also involved in the distillation of nutmeg oils.
 5

2.2 Market Structure

The structure of the world market for nutmegs and mace is a unique one in that there is market
concentration in both production and the purchasing ends. That is, the majority of global supplies
is concentrated amongst the two major producers, Indonesia and Grenada (India supplying
smaller amounts) and the market for these products is largely controlled by a few large brokers.
In this scenario, the potential exists for control of the market by whichever group is better
organized in terms of cooperation. If producers in Grenada and Indonesia were to collaborate and
reach agreement on a marketing strategy, they would obviously be in a position to control the
market. In the case of Grenada, the marketing of nutmeg is legally under the purview of the
Grenada Cooperative Nutmeg Association, established by an Act of Parliament in 1947. The
industry in Indonesia has not always been as organized with respect to exports in that there were
a number of firms involved in marketing. In such a scenario of many exporters of nutmegs and
mace, the brokers would be in a position to control the industry.

2.3 Pricing and Marketing Agreement

Prior to 1987 exports of Indonesian nutmegs and mace were uncoordinated with many exporters.
This meant the absence of collusion amongst the two major producers. Prices received by
exports were therefore largely leveraged by the brokers and so the 1970s and 1980s were
characterized by extremely depressed prices for nutmegs and mace. In response to this the
Grenada Cooperative Nutmeg Association (GCNA) and the Association of Nutmeg Producers in
Indonesia (ASPIN) signed a Marketing Agreement in 1987. Under the Agreement both
producers agreed to limit the volume of exports so as to achieve a more reasonable price for their
growers. Prices for top quality nutmeg increased from under US $1000 per tonne to well over US
$6000 per tonne by 1989. This buoyancy was short lived as external pressure was placed on
Indonesia to deregulate the industry. The result was a spiralling down of prices to below US
$2000 per tonne. As a consequence, nutmeg prices to producers have remained depressed since
the early 1990s. In an attempt to exercise some leverage in the market the Grenada Cooperative
Nutmeg Association in 1993 GCNA appointed JHB International S.A. (Belgium) as the sole
marketing agent in Europe (Singh et al., 1990; Marcell, 1995).

2.4 Exports of Grenadian Nutmegs and Mace

The major market for Grenadian nutmeg and mace is Europe. In the case of nutmeg almost one
half of total exports in 2002 went to the Netherlands with only about 12% going to the US
(Figure 2.1). In the case of mace, Germany is the major market destination, accounting for 63%
of Grenadian exports, with The Netherlands absorbing 31.5 % in 2002 (Figure 2.2). Grenadian
products are graded and sold according to the industry standards given in Table 2.1. In terms of
current prices the Jan-Mar 2001 New York spot market price for West Indian whole nutmeg was
US $3.7 US per pound (CPAS, 2003).
 6

Argentina Canada
Germany
5% 2%
8%

Belgium
7%

France
The
11%
Netherlands
53%
United States
14%

Figure 2.1. Major Markets for Grenadian Nutmeg, 2002

Canada United
The 3% Kingdom
Netherlands 3%
32% Germany
62%

Figure 2.2 Major Markets for Grenadian Mace, 2002

 7

Table 2.1. Grading System for Grenadian Nutmegs and Mace

Product Grade Description

Mace No. 1 Whole Pale Mace
No.2 Broken Mace (mixed colour)
No. 3 Broken pieces and pickings
Nutmeg 1 Sound Unsorted (suns)
2 Sound Selected: 60/65S, 80S, 110S
3 Defectives:
No.1 Grenada Unassorted (not exported since ‘94)
No.2 Grinders
Distillation Grade
4 Dry in Shell
5 Shiny Black Seed (select buyers)
By-Products Shells Used in mulch, fuel, paved ways
Pods Used in Agro processing
(Marcell,1995; Hossle, 2003)

SECTION 3
THE GRENADIAN NUTMEG INDUSTRY: BACKGROUND

3.1 Structure of the Industry in Grenada

The nutmeg industry in Grenada is characterized by a large number of growers, the majority of
whom are small producers. Out of approximately 8000 nutmeg growers, more than one half have
annual sales of less than 250 lbs and almost 75% of all growers sell less than 500lbs of nutmeg
annually. Only 3.3% of growers have sales in excess of 2500 lbs, and these account for almost
40% of the total production (Singh et al., 1990).

While the industry has many nutmeg growers, marketing of all produce (as discussed in Section
2) is conducted by the Grenada Cooperative Nutmeg Association. Since its establishment in 1947
by an Act of parliament, the Grenada Cooperative Nutmeg Association has had the sole
responsibility for the purchase of nutmegs and mace from all growers; processing all purchases;
and export marketing. Producers are paid an ‘advance rate’ fixed fortnightly by the Board and a
bonus/surplus at the end of the year (difference between advance rate and net realised price)

3.2 Production and Processing Systems

The main operations in the nutmeg industry include harvesting, processing, drying, cracking,
separation, sorting/grading and packing/storage (Figure 3.1).
 8

Figure 3.1. Processing Nutmegs in Grenada

Green seeds delivered to

processing station

SORT Defective seeds (grinders)

Seeds (30-35% M.C.)

DRY

Dried seeds (8-9% M.C.)

CRACK

Uncracked seeds Whole and defective nutmeg shells, uncracked seeds

Shells
SEPARATE
Defective nutmegs
Whole nutmegs

SEPARATE Unsound nutmegs

(floaters)
Sound nutmegs

DRY

Dried nutmegs

GRADE

60 65 80 110 130 Graded nutmegs (no. of

nutmegs/pound)

BAG

Graded, bagged nutmegs

FUMIGATE

Nutmegs for export

 9

3.2.1 Harvesting
The ripe or mature fruit splits open at the groove while still on the tree and the seed surrounded
by the red aril falls to the ground. Harvesting involves collecting the seed or seed with aril from
the ground. Usually the fruits are allowed to split and fall to the ground before harvesting, but in
some areas, a long pole is used to take opened pods directly from the tree (rodding). This
ensures a better quality harvest but can also result in damage to flowers and younger fruit. The
husk is easily removed from the seed, while the thin and fragile mace is carefully removed. The
harvested seeds have an initial moisture content of 30-35% (wet basis) and farmers sell their
seeds as is or dried.

3.2.2 Receiving
At the processing station, seeds are discharged onto sorting trays and spread with a wooden
pallet. Broken seeds, slightly discoloured seeds, water-logged seeds, empty or rotten seeds,
mouldy seeds, very light seeds and germinating seeds are hand selected and are usually returned
to the delivering farmer. The remaining seeds are scooped into a receiving bag. There are four
major operations in processing nutmegs: drying, cracking, separating and grading.

3.2.3 Drying
Drying is carried out through natural convection with the seeds placed in trays which are
removed from direct sunlight. Usually the drying trays are on the top floor of the processing
station, directly under the roof, where the temperatures average 29-32°C. The drying trays are
stacked in tiers, 7-10 trays per tier, with trays being 15 cm deep and the distance between trays
being 30 cm. The seeds are distributed on the trays 3-4 seeds deep (approximately 10 cm).
During drying, the seeds are stirred twice per day by rakes, to accomplish uniform drying. The
energy for drying comes from the sun on the large galvanized roof of the station and the warm
circulating air and the seeds closer to the roof tend to dry much faster. Drying completion is
indicated by simple inspection. Usually after 6 weeks a sample of seeds is taken, these are
cracked, cut with a knife and inspected for moisture. The characteristics looked for are rattling in
shells, difficulty or ease to cut, degree of oiliness and intensity of the aromatic smell. The seeds
are dried to a final moisture content of 8-9%, and the drying time ranges from 6-8 weeks.

3.2.4 Cracking
On drying the seeds, the nutmeg shrinks within the shell and can be removed by splitting the
shell. Drying is therefore important not only from a storage viewpoint, but it facilitates removal
of the nutmeg from the shell. Cracking is accomplished manually by using a wooden mallet, or
mechanically by an impact-type machine. The manual method is effective but slow, while the
mechanical method produces not only shelled nutmegs, but also damaged nutmegs called
“defectives” and some nutmegs with shells only partially removed.

3.2.5 Separation
The output of the cracking machine is a loose mixture of broken shells, whole nutmegs and
damaged nutmegs (defectives). These are separated out manually, first by removing all shells,
and then by removing broken nutmegs from whole nutmegs. Whole sound nutmegs are then
separated from unsound nutmegs by a sink-float batch process in a water bath. Unsound
nutmegs or “floaters” are usually immature nutmegs, germinating nutmegs or previously water
logged nutmegs. When defective "floaters" are inspected by cutting in half, they usually show
 10

incomplete kernels (large airspaces, or whitish cork tissue with reduced brownish endosperm).
The sound nutmegs are then dried for 12 hours in tray driers previously described to remove
surface moisture, while the unsound nutmegs are dried for 24 hours.

3.2.6 Grading
Sound, unassorted nutmegs are then graded on the basis of weight, that is, the number of
nutmegs per pound. The most common are 60’s, 65’s, 80’s, 110’s and 130’s nutmegs per pound.
A series of three screens are used as an aid in this process, but the final grading is done by a
number of skilled and experienced workers. Using large metal sieves with uniform regular
circular perforations and sieves of different sizes, workers pour on hand-graded sounds and
gently massage them. The appropriate kernels fall through the appropriate holes into collecting
bags. As an additional quality control measure, before putting into new labelled bags, sound
graded nutmegs are further inspected visually. The worker will spread the nutmegs of a
particular grade in a small wooden tray and hand remove any broken pieces, cracked nutmegs or
shrivelled and discoloured. The graded nutmegs are then bagged and placed in a fumigation
chamber where they are chemically treated (methyl bromide) to protect against infestation. They
are then shipped to various markets in Europe and North America. Damaged or defective
nutmegs, grinders and unsound nutmegs may be exported, but they are used locally for the
distillation of nutmeg oil.

3.2.7 Processing Mace

The mace delivered at the receiving station is carefully inspected on delivery and classified as
No. 1 or No. 2. The mace is then bagged according to grades and at the end of the day the
separated grades are reweighed, the weights noted, and the mace placed in separate wooden
curing bins. Each bin may be loaded to the level of 1600 - 1700 lbs (727 - 772 kg) and left for 3
months. A bottle with carbon disulphide (CS2) is suspended in each bin to keep away insect
pests. After the three months curing period the mace is now ready for export. The cured graded
mace is bagged accordingly and fumigated.

3.3 Contribution of the Nutmeg Industry to the Economy of Grenada

The nutmeg industry in Grenada has traditionally provided the major source of foreign exchange
earnings to the country as well as a major source of income and livelihood for a large segment of
the population. Nutmeg along with cocoa bean and bananas has traditionally dominated the
agricultural sector of the country. However, the drastic decline in the latter two industries over
the past decade has meant an even greater reliance on the nutmeg as a source of national income.

Table 3.1 and Figures 3.2 and 3.3 show the importance of agricultural export to the Grenadian
economy. In 1979/81 the sector accounted for most of the export earnings (90%). However,
during the 1990s the decline of banana and cocoa industries as well as the depressed prices for
nutmegs has reduced the sector’s contribution to export earnings to approximately 50%. The
table also reveals the significance of the nutmeg industry. In recent years the contribution of the
nutmeg industry to Agricultural Exports has increased to as much as 71% (1999) even though
earnings in dollar values have been depressed.
 11

Table 3.1. Contribution Nutmeg and Agriculture to Export Earnings: 1979- 2000

1979 - 1996 1997 1998 1999 2000

81
Total exports (US$M) 19 19.9 20.2 26.8 47.1 52.5

Total Agricultural Exports as a % of 90.0 66.3 68.3 67.2 50.3 46.9

total exports
Total Agricultural Exports (US$M) 17.1 13.2 13.8 18 23.7 24.6

Nutmeg & Mace exports

(% Agricultural Exports) 24.9% 39.2% 58.7% 57.3% 71.0% 63.1%
Agriculture Trade Balance 1.7 -30.7 -22.2 -23.7 -13.2 -11.6
(Exports - Imports) (US$M)
Source: Singh et al. (1992)

Figure 3.2. Total Agricultural Exports as a Percentage of Total Exports

100 90.0

80
66.3 68.3 67.2
Percentage

60 50.3
46.9

40

20

0
1979 - 81 1996 1997 1998 1999 2000
Year

Figure 3.3. Nutmeg & Mace as a % of Total Agricultural Exports

80%
70%
60% 71.0%
63.1%
Percentage

50% 58.7% 57.3%

40%
30% 39.2%
20%
24.9%
10%
0%
1979 - 81 1996 1997 1998 1999 2000
Year
 12

3.4 Socio-Economic Importance of the Industry

One third of the working population is directly involved in the nutmeg industry, but this number
is diminishing as it is traditionally a family oriented business. Generations are moving away
from the industry due to its labour intensiveness, falling prices as a result of the failure of the
GCNA/ASPIN Agreement in 1990 (Singh et al., 1990).

More spices are grown per hectare in Grenada than any other place in the world, and some
7,000-10,000 small growers (Table 3.2, Figure 3.4) derive their main income from this industry,
yet poverty across the island has doubled in the last decade, due in part also to declining prices in
banana and cocoa (FAO, 1994). The nutmeg industry is characterized by a large proportion of
growers who are advanced in age as well as a significant proportion that are female. In 1992,
more than 50% of the growers were above the age of 55 and a further 29% would have reached
retirement age by 2002 (Singh, 1990).

Although the Grenada Cooperative Nutmeg Association distributes most its income earned
(77%, see Figure 3.5) to growers, income levels in the industry are quite low. More than 50% of
growers earned less than US $333 from nutmeg and mace sales based on 2000 market prices.
However, only 3.3% of growers would have annual earnings of over US $3325. For most
farmers, the nutmeg industry is their only source of income. On average amongst all growers,
nutmeg accounts for approximately two-thirds of their income.

Table 3.2. Distribution of Nutmeg Growers and Levels of Nutmeg Production by Sales
Volume

Annual Sales volume (lbs.) % Growers % Total Production

<50 16.2 0.69
<100 29.3 2.37
<250 55.2 9.91
<500 74.2 21.77
<1000 88.4 39.12
<2500 96.7 60.63
Source: Singh et al. (1992)
 13

Figure 3.4. Distribution of Nutmeg Growers and Levels of Nutmeg

Production by Sales Volume

60.63
Levels of Sales Distribution

<2500 96.7
<1000 39.12
88.4
<500 21.77
74.2 % Total Production
<250 9.91 % Growers
55.2
<100 2.37
29.3

<50 0.69
16.2

0 20 40 60 80 100 120
% of Nutmeg Growers

Figure 3.5. Distribution of Income Earned by Grenada from Nutmeg & Mace Exports
(Source: GCNA, 2002)

Payment to
foreign sales
Direct
agents
Expenses
4%
10%

Administation
of GCNA
8%
Payment to
farmers
78%
 14

3.5 Challenges

The major challenges facing the nutmeg industry today include:

• Increasing emergence of adulterants from Papua New Guinea (M. argentea called Macassar
or Papua nutmeg) and South India (M. malabarica which is a wild nutmeg and known as
Bombay nutmeg). These adulterants are less fragrant and aromatic and tend to be more
pungent; they are also acorn shaped as opposed to the traditional oval (Katzer, 2003).
• Sri Lanka/India supplies a smaller, cheaper product to Eastern Europe and China for the meat
processing industry.
• Chemical inspection for aflatoxins.
• Illegal trade in BWP (broken, wormy, punky) grade products. These are rejected products,
which are being ground and sold or distilled to produce essential oils and oleoresin (Katzer,
2003).
• Growing impact of India on the world trade market, in 2 years Bangalore-based Growmore
Biotech must handover to the Spices Board India the protocol of nutmeg tissue culture as
well as 1500 ready-to-plant- nutmegs trees (Global, 2003).
• The industry is still labour intensive and has not kept pace with technological advances.

SECTION 4
IMPROVING COMPETITIVENESS
4.1 Products and Constituents of Nutmeg
The large quantity and variety of aromatic compounds in the seed (kernel) and mace (aril) of the
nutmeg fruit, compounds essential in the defence mechanism of the plant, have led to the historic
and continued use of nutmeg and mace as spices. Dried and ground nutmeg and mace as well as
their oils are widely used for their flavouring characteristics in the food industry. Products of
nutmeg and mace in the form of oleoresins, butter and essential oil also find application in the
cosmetic and pharmaceutical industries. Figure 4.1 shows the principal commercial products
obtained from nutmeg. Figures 4.2 and 4.3 summarize the most important uses of the various
forms of nutmeg and mace. In addition to these uses, nutmeg and mace are used for a range of
ethno-medical reasons worldwide. Table 4.1 lists a range of ethno-medical uses from various
countries (FAO, 1985).

About 30-55% of the nutmeg seed consists of oils and 45-60% consists of solid matter including
cellulose materials. There are two types of oils. The "essential oil of nutmeg" also called the
"volatile oil" or “nutmeg oil” accounts for 5-15% of the nutmeg seed. The "fixed oil of nutmeg"
sometimes called "nutmeg butter" or “expressed oil of nutmeg” which accounts for 24-40% of
the nutmeg seed. Mace contains 4-17% volatile oil. The relative percentages of the different
components will vary depending on the geographical origin of the nutmeg.

The essential oil is obtained from the nutmeg by steam distillation. It is a colourless or pale
yellow liquid with a taste and odour of nutmeg. This oil is soluble in alcohol and insoluble in
water. Since it is light and air sensitive, it must be kept cool in a tightly closed container and
 15

protected from light. Because of its aroma, the essential oil has been used as a natural flavouring
extract and as a perfume in the cosmetic industries. In particular, the oil has been used as a
flavouring agent, replacing ground nutmeg in order to avoid leaving particles in foods and
beverages. For example, it has been used to flavour baked goods, beverages, candies, meats and
syrups. The essential oil has also found widespread use in the cosmetic industry when a spicy
odour is required. For example, it has been employed as a flavour in dental creams in
combination with peppermint, methyl salicylate and cloves. In addition to its use in cosmetic
industries, nutmeg oil is prominently used in the pharmaceutical industry. Historically, nutmeg
has been used as a form of medicine to treat many illnesses ranging from those affecting the
nervous system to the digestive system. Presently, the nutmeg oil is used by many
pharmaceutical companies in their formulations of products to treat different illnesses (Vicks
Cough Syrup, Easy Breather Tissue, Ramedica Herbal Wonder Balm).

Depending upon the method used to obtain the fixed oil of nutmeg or “nutmeg butter” from the
seed, varying amounts of essential oil will be present in the fixed oil. There are two general ways
in which the fixed oil of nutmeg is extracted from nutmeg. In the first process, the ground
nutmeg is subjected to intense hydraulic pressure and heat. The other method employs a solvent,
for example, diethyl ether. The quantities of essential oil vary between 10-12%. If the essential
oil is removed by steam distillation prior to extracting the crude fixed oil, then the fixed oil of
nutmeg will contain only trace amounts of essential oil. Unlike the liquid essential oil, the fixed
oil or nutmeg butter is a semi-solid, reddish brown material with both the smell and taste of
nutmeg. It melts at 45-51°C. Like most oils, it is completely soluble in hot alcohol, however,
sparingly soluble in cold alcohol. The fixed oil is freely soluble in ether and chloroform. The
fixed oils that contain a substantial amount of essential oil have the same odour as nutmeg.
Therefore, these fixed oils have been used in perfumes. In medicine, the fixed oil has been used
externally for sprains and rheumatism. As a whole, the fixed oil finds very little commercial use;
however, components of the fixed oils and derivatives of some of those compounds find
extensive commercial uses.

Nutmeg and mace oleoresins are prepared by extracting comminute spices with organic solvents.
The oleoresins contain steam-volatile oil, fixed oil and other extractives soluble in the chosen
solvent. Nutmeg and mace oleoresins are considered to possess an odour and flavour nearer to
that of the spice than the corresponding steam-distilled oils.

The essential oil contains the greater number of individual compounds or components, most of
which are valuable in industries (See Table 4.2). Nutmeg butter (fixed oil) contains an important
constituent, trimyristin. Trimyristin is a fat which is used industrially as a raw material for
myristic acid and glycerol. As a saturated fat, there is a large potential market for trimyristin as a
raw material for the soap and oleochemical industries. It has been looked at as a possible
substitute for cocoa-butter. It has been blended with cottonseed oil and palm oil to produce an
edible fat compound and has been used as a tablet lubricant. It is used in the cosmetic industry.
 16

Figure 4.1. The principal commercial products obtained from nutmeg.

NUTMEG FRUIT

Fat = 30-55% Whole Nutmeg Seed Whole Mace

Solid Matter = 45-60%

Grinding

Ground mace
Ground Nutmeg

Distillation Pressing or Solvent Extraction

Volatile Oil Oleoresins
Solvent Extraction 4-17%

Volatile (Essential) Oil Oleoresins

5-15% of seed (Volatile & Fixed Oils and
Fixed Oil or Butter other extractives)
24-45% of seed
10-12% essential oil

Camphene, d-Pinene,
Dipentene, Coriandrol, Trimyristin (73%)
d-Borneol, i-Terpineol,
Geraniol, Myristicin,
Safrole, Eugenol, iso-
eugenol Myristic Acid Glycerol
 17

Figure 4.2. Nutmeg Utilization

Whole Nutmeg • Domestic culinary use

• Industrial use for flavouring

• Foods
Ground Nutmeg • Meat products: sausages, frankfurters, bologna, soups, prepared
sauces, ketchup.
• Dairy products: eggnog, ice cream, milk pudding
• Alcoholic Beverages: Rum punch
• Baking Products: Cakes, cookies or sulfide rich foods, cabbage
The Nutmeg
Seed
• Extracted with non-polar solvent (Flavouring processed
Oleoresins
foods)
• Extracted with polar solvent "Absolute of Nutmeg" -

Butter • Pharmaceutical purposes: ointments, shampoos, hand lotion,

soaps, plasters, candles, fatty acid derivatives

Figure 4.3. Mace Utilization (FAO, 1995)

• Cosmetic industry: perfumes, male fragrances, after-shave
lotion
Essential Oil • Food and Drink Industry- Meats, syrup, candies,
• Liqueur, Coco-cola
• Pharmaceutical Industry - Vicks rub, cough syrups, breathing
tissues, herbal balms, dental creams.
• Most importers distil their own essential oil for the cosmetics
 18

Figure 4.3 Mace Utilization

Whole • Domestic culinary use

• Industrial culinary use as flavouring

Ground • Sweet foods, cakes, doughnuts, fruit pies
• Dairy products: eggnog, milk pudding
• Cigarettes
• Chewed to mask foul breath

MACE
Oleoresins • Flavoured processed foods and baking products

• Special gum extract used in perfumes, scented soaps,

Essential Oil denture and chewing gum
 19

Table 4.1. Ethno Medical Information on the Nutmeg

Part of Nutmeg Plant used Function Country of use

Entire plant Abortifacient India
Aphrodisiac Trinidad
Mace Antipyretic Thailand
Gastrointestinal Aromatic Mexico
Seed Stimulant U.S.A
Aphrodisiac, Narcotic Africa
Properties India
Carminative India
Digestive India
Expectorant India

Table 4.2. Important nutmeg derivatives

Component Use
Camphene Numerous industrial processes and manufactures; used in the manufacture of
camphor and its related compounds. Camphene and its chloro-derivative have
strong antibacterial, antifungal, and insecticidal properties. Many of camphene
derivatives are known pharmaceutical drugs.
d-Pinene Accounts for 8-20% of the essential oil of nutmeg, used in the manufacture of
camphor, solvents, plasticizers, perfume bases and synthetic pine oil.
Dipentene Used as a solvent and also a wetting and dispersing agent and in the manufacture
of resins.
Coriandrol Used in perfumery substituting for bergamot oil or french oil.
d-Borneol Used in the manufacturing industries, perfumery and incense making.
i-Terpineol Used as an antiseptic and in the making of perfumes and in soap manufacturing.
Geraniol Used mainly in perfumery because of its sweet rose aroma. Some of its esters such
as butyrate are used for making artificial attar of rose.
Myristicin The most studied individual compound found in nutmeg, especially its
pharmacological properties. This compound is thought to be responsible for the
hallucinogenic effect of nutmeg oil.
Safrole Used industrially in perfumery, and in the manufacturing of heliotropin and in the
denaturing of fats in soap manufacture. Medically, it is used as an antiseptic.
Eugenol Used in the manufacture of vanillin, and in perfumery, instead of oil of cloves and
is also used as a dental analgesic.
iso-eugenol Used in the manufacture of vanillin.
Trimyristin Used industrially as a raw material for myristic acid and glycerol, shows potential
as a raw material for the soap and oleochemical industries and possible substitute
for cocoa-butter. Used as a tablet lubricant and used in the cosmetic industry.
(Merck Index, 11th edition and the CRC handbook of Physics and Chemistry).
 20

There are three major other natural sources of trimyristin; coconut oil, palm kernel oil and
babassu oil (See Table 4.3). Trimyristin accounts for over three quarters of the fixed oil of
nutmeg. Because the essential oil was considered as a component of the fixed oil, trimyristin is
about 75% of the total oil (fixed and volatile) extracted from nutmeg. This implies that nutmeg is
made up of approximately 40% trimyristin.

Table 4.3: Sources of Trimyristin

Source Percentage of trimyristin
Nutmeg butter 76.7
Babassu oil 19.9
Coconut oil 17.5
Palm kernel oil 14.1
Soybean oil 6.5
Beef tallow 3.0
Palm oil 1.0

4.2 Scope/Strategies for improvement

Nutmegs are processed for export from Grenada through a set of operational steps which have
been practised for many years, many of which are manual and tedious. Only recently
mechanisation has been seriously considered and evaluated. The industry can be broadly
classified as follows:

• Highly labour intensive, employing many unskilled and a few experienced workers.
• With the exception of one unit operation, there is an absence of mechanical aids or
machinery for handling and processing the crop.
• The processing tasks are manual, tedious and repetitive.
• The processing operations are discontinuous, necessitating excessive handling, bagging and
unbagging.

Numerous opportunities exist for improving the primary processing technology and research and
development work geared towards optimizing the key operations such as cracking, drying,
separation and sorting.

The ripe pods of the nutmeg fruit should be exploited to the fullest. There should be innovative
and creative extension of the range of agro-products now prepared or manufactured from the
pod. The emphasis to date has been on sweet products but there is room for low sweet, bland or
salty products. Rotting pods are potential soil mix.

The spent residue from the extraction of fixed oil, essential oil and oleoresin must be seen as a
by-product with the potential to be used as fuel or possible potting materials or growing medium.
Additionally, powders and pieces generated for the processing operations should be viewed as
potential by-products for other end products. Similarly, the cracked shells must be harvested for
their potential to be transformed into fuel, brickets, carbon black or feed stock among others.
 21

The most abundant individual compound in nutmeg is trimyristin. Trimyristin, a triglyceride

(fat) is approximately 75% by weight of the total fixed and essential oils of nutmeg and 40% by
weight of the nutmeg seed. The relative abundance of trimyristin in nutmeg makes it a
potentially desirable target for isolation.

SECTION 5
INNOVATIONS IN THE GRENADA NUTMEG INDUSTRY & IMPACT
ON COMPETITIVENESS

5.1 Innovations in Processing Technology

5.1.1 Drying
Satcunanathan (1977) reported that drying times for nutmeg seeds may be reduced to 3 to 4
weeks using warm, solar heated air at temperatures not exceeding 43°C. McGaw (1979) noted
that if all nutmegs in a dryer were subjected to 40ºC air, the drying time would be 8 to 9 days.
Beyond 45ºC, breakage of seeds occurs. McGaw and Sankat (1984) showed that the drying time
may be halved by simply passing sufficient air through the bed of seeds, and if the air was heated
to 37ºC, the drying time will be about 7 days. Mohammed and Sankat (2002) showed that a deep
bed of nutmeg seeds (5 feet deep) may be dried in less than 5 days but problems of quality did
occur.

5.1.2 Cracking
Cracking is accomplished by two methods, depending upon the scale of operation. At the small
processing stations, it is achieved manually by striking the seeds with a wooden mallet. This is
an effective, but slow and tedious operation. At larger stations, the manual method is replaced
by a mechanical operation. Use of the cracking machine for shelling nutmegs has greatly
improved the rate of shelling but has also increased the number of damaged nutmegs (defectives)
and the number of only partially shelled nutmegs. El-Mohandes and Sammy (1966) suggested
that seeds should be sorted and graded before drying and shelling. Sankat et al. (1983)
investigated the design and performance of a cracking machine, specifically the parameters for
selecting cylindrical rollers in cracking nutmeg seeds. An alternate system consisting of two
operations was proposed, namely, the sorting of seeds into various sizes based upon seed
diameter and the cracking and shelling of seeds by passing seeds through a series of rolls, with
the roll clearances adjusted to maximise perfect shelling. Sankat (1992) described a centrifugal
nutmeg seed cracker with a 0.60M in diameter rotor and a 1.39M in diameter cracker ring
(Figure 5.1). At an optimum speed of 460 rpm, the quantity of perfectly shelled kernels
averaged 49.2%, partially shelled seeds 21.8% and damaged kernels 0.8%. Machine capacity
was estimated at 40kg seeds/min.
 22

Figure 5.1. Centrifugal Nutmeg Cracker

5.1.3 Separating
The most tedious task of nutmeg processing is the separation of whole nutmegs from shells and
defectives. Sankat (1981) described a machine to replace the manual process of separating
whole kernels from shells after the cracking operation (Figure 5.2). The principle of operation is
based upon the difference in rolling instability of nutmeg seeds and broken shells when placed
upon an inclined, roughened, moving belt. Seeds roll down at angle of 19º (14º - 24º) and
broken shells, with convex surface in contact with belt slip when the belt angle averages 47º (35º
- 53º).

Through a series of modifications and testing, this machine can be commercialised with the
following indicators (Pargass, 2002):
• Best operational angle 22.5º
• Best belt speed 0.12 m/s.
• 97.5% of shells separated out of mixture of kernels and shells.
• 100% of whole kernels retained
• Feed rate of approximately 60kg/hr.
 23

Figure 5.2 Separating Machine

 24

5.1.4 Sorting
Sankat and Narayan (1985) described a machine for sorting nutmeg seeds (Figure 5.3). From a
number of alternatives, a design was chosen to reflect simplicity in operation and ease of
fabrication. Seeds are fed from a hopper and passed between a pair of counter rotating, inclined
cylindrical rollers. When the seed diameter is equal to the clearance between the rollers, seeds
can no longer be supported by the rollers and are separated out.

Figure 5.3. Sorting Machine

5.1.5 Material Handling

There is too much manual handling of nutmegs at the processing stations. The use of mechanical
conveyors must be considered. Two viable options are:
a. Belt conveyors for bags and these may be portable with variable angle of inclination.
b. Bucket elevators for moving nutmeg seeds to the top of the receiving stations for placement
in the drying trays.

5.1.6 Conclusion
Research and Development work at the University of the West Indies, St. Augustine has the
potential for positively impacting on the processing of nutmegs in Grenada. Application of this
body of work is recommended and in the following areas:
• Drying of nutmeg seeds to reduce drying time and increase drying capacity.
 25

• Use of centrifugal nutmeg seed crackers at the stations.

• Using a belt separator to separate kernels and shells after cracking.
• Mechanical sizing of kernels to replace finger sorting.
• Belt conveyors and bucket elevators be used in the receiving stations.

5.2 Innovations in Product Development

In Grenada both nutmeg and mace are utilized as spices especially in baking products, dairy
products and alcoholic beverages. In the distinctive tasting Grenadian rum punch, nutmeg is
obligatory and local nutmeg ice cream is unmistakably tasty. Mace is particularly used for
seasoning seafood. Ground nutmeg mixed with "soft candle" or petroleum jelly is warmed and
use as a balm. Similarly the oil diluted is used to massage sore muscles and aching joints. A
highly underutilized by-product of the nutmeg industry is the ripe open pods of the fruit. Locally
the pods are utilized and processed into jams, jellies, syrups, preserved in syrup, "cheese" and
candied pods. The cracked shells are utilized as fuel, for spreading on walks or the floor of
nurseries or green houses and as mulch in the field.

The majority of the production within Grenada’s nutmeg industry can be derived from the
production of four companies, namely:
• Grenada Co-operative Nutmeg Association (GCNA)
• W&W Spices
• Noelville Ltd
• De La Grenada Industries

5.2.1 GCNA
The Grenada Co-operative Nutmeg Association (GCNA) now operates three processing plants -
• Nutmeg and Mace Oil Distillation Plant, Marli, in the parish of St. Patrick
• Nutmeg Reconditioning Plant, St. Georges Lagoon Road, in the parish of St. George
• Organic Nutmeg and Mace Processing Plant, Beaulieu, in the parish of St. George

In 2001 a Distillation Plant was commissioned in the parish of St. Patrick’s, to allow the co-
operative to produce essential oils from both nutmeg and mace. Exports of essential oils however
remain a small proportion of the GCNA’s annual revenues. In October 2003, the GCNA
launched a line of jams, jellies and ground nutmegs under the brand Island Spice. The brand is
currently available only in the local market, but is expected to be exported to the Caribbean
region and then to international markets in the future. In June 2003, the GCNA launched its
website, www.grenadanutmeg.com. Based in Canada, the site currently gives information about
the GCNA and its wholesale products. There are plans to incorporate an online retail store for its
consumer line of products.

5.2.2 W&W Spices

Privately owned W&W Spices opened its modern mechanized plant in the parish of St.
Andrew’s in January 2002, producing wholesale products - essential oils from various spices
(nutmeg and pimento oils) and oleoresin – as well as a line of retail ground and pre-packaged
spices. In July 2002, the retail spice line was discontinued, and the focus was shifted to essential
 26

oils and value added pain-relieving products. Prior to FDA approval the essential oils could only
be marketed as botanical extracts in the US, however with the granting of FDA approval in
August 2003, the company has launched its GNO line of Over the Counter (OTC) products such
as GNOpro (Pain Relieving Oil) sold in 10ml bottles and Oleoresin. The main market is the US.

GNO Pain Relieving oil (GNOpro) is an OTC (Over the Counter) FDA registered drug product.
It is a deep penetrating topical pain reliever, which provides effective relief for most symptoms
of bodily aches and pains. GNO Pain Relieving Oil is formulated with terpines and approved
analgesic compounds which are extracted from organically grown Grenada's nutmeg seeds; and
2% USP menthol, derived from the peppermint plant. The nutmegs seeds used to produce
GNOpro are hand sorted to ensure that the best quality seeds are selected. They are then placed
in climate-controlled drying chambers, where they are monitored for twenty one days, until they
are dried. This is to guarantee that none of the essential pharmaceutical properties are lost. The
proprietary steam extraction process, which takes place after drying, guarantees that all of the
compounds are completely removed from the nutmeg seeds for the formulation of GNOpro take
approximately twenty-two hours.

Table 5.1 lists the major pharmaceutical compounds found in GNOpro. Production figures are
not available at this time, but the current plant capacity can produce up to 100,000 bottles (10ml)
of GNOpro per month. New and Potential Products in 2004 (also for the US market) include:
• GNOplus – a pain relieving cream
• Soaps
• Therapeutic / Aromatherapy Massage Cream
• Insect Repellant

Table 5.1 Major Pharmaceutical Compounds found in GNOpro

Compound % Compound % Compound %

Alpha-Pinene 10.6 Alpha-Terpinene 0.8 Trans- 0.8
Sabinenehydrate
Camphor 0.2 Limonene 3.1 Copaene 0.3
Beta-Pinene 7.8 1,8-Cineole 2.5 Linalol 0.9
Sabinene 50.7 Gamma- 1.9 Cis-Sabinenehydrate 0.7
Terpinene
Myrcene 2.5 P-Cymene 3.2 Menthol 2.4
Alpha- 0.4 Terpinolene 1.7 Terpinen-4-ol 6.1
Phellandrene
Safrole 0.2 Methyl-eugenol 0.2 Eugenol 0.2
Elimicin 1.4 Myristicin 0.5

5.2.3 Noelville Ltd.

Noelville Ltd, a family owned Company was formed in 1978 and had as its main assets farmland
at Balthazar in St. Andrew's, Grenada. Products from the estate include nutmegs, cocoa and
bananas. In 1989, management diversified into the production of tropical cut flowers and a
 27

lucrative export trade began. Over the past 4 years, the Company further diversified into the
manufacturing of agro-based on-farm products. Lemon Grass Tea, Lemon Grass Seasoning and
Passion Fruit Juice (frozen) were produced and sold on the local market. The mission is to
continue with the development of more indigenous agri-based products.

Launched in 20 July 2000, Nut-Med Instant Pain Relieving Spray (NUT-MED™) has sold over
100,000 bottles in the last 3 years. This product is a blend of plant extracts with the refreshing
scent of nutmeg. Nut-Med™ works by having a topical analgesic effect that depresses cutaneous
sensory receptors. When those natural ingredients are combined together in their precise amounts
and dispersed in an alcohol solvent (methyl alcohol) it is claimed to have a synergistic effect that
relieves tight sore joints, arthritic pains, muscle soreness, inflammation and gives instant relief to
back pains.

All ingredients are considered safe to use and unlike other similar products sold on the market
today, Nut-Med is not formulated with waxes, artificial colors and other chemicals. The
ingredients of NutMed are Nutmeg Oil, Mace Oil, Menthol, Wintergreen (Methyl Salicylate) and
Coconut Oil in alcohol base. The majority of ingredients (essential oils, coconut oil and alcohol)
are obtained locally.

The major markets are North America (with FDA approval pending), Europe by Mail Order, and
Website sales. Once FDA approval is granted the company estimates sales in the region of
100,000 bottles per annum. See Table 5.2 for Nut-Med Production.

Table 5.2 Nut-Med Production

Nut-Med Production (10 ml Bottles)

Year Local Overseas Total
2000 7,700 - 7,700
2001 14,500 7,600 22,100
2002 25,500 18,550 44,050
2003* 21,600 9,000 30,600
Total 69,300 35,150 10,4450
Estimated Value (EC $) $850,000 $450,000 $1,300,000
* 2003 Figures are January to August only
Source - Noelville Ltd.

5.2.4 De La Grenade Industries

In 1966, De La Grenade Industries began as a cottage Industry producing these top quality
Nutmeg products as well as La Grenade Liqueur, using a 200 year old family secret formula. In
1990, the Morne Delice Nutmeg Syrup and La Grenade Liqueur were honoured by "Monde
Selection International Institute for Quality Selections". This is the official Institution established
 28

in 1961 by the Belgium government for universally maintaining high standards of beverages and
foods produced for human consumption. Each year, applying quality criteria laid down by the
European Union, and after exhaustive laboratory tests and analyses by experts, Monde Selection
awards three categories of medals Gold, Silver and Bronze. Above these, products of absolutely
superior quality receive the Grand Gold Medal. In 1990, Morne Delice Nutmeg Syrup became
the first Caribbean food product to receive the Grand Gold Medal. In that year also, another La
Grenade product was recognized by these quality experts. Monde Selection presented La
Grenade Liqueur with its Gold Medal. In 1992, the La Grenade and Morne Delice products
passed out of "cottage industry" category when a modern food processing plant was
commissioned.

Products include:
• La Grenade Liqueur - a skillful blend of the finest Grenada spices and the goodness of fresh
mountain citrus fruits in a rum base. In preparing La Grenade Liqueur, the original formula
used by Captain Louis La Grenade since 1773 is adopted. The unique flavor and aroma make
La Grenade Liqueur a favourite after dinner drink. Enjoy straight, on the rocks, in cocktails,
over ice cream and desserts, and in the preparation of sauces of all kinds. A real treat that's
hard to beat.
• Morne Delice Nutmeg Jam and Jelly - Made from freshly picked pericarp of the exotic spice
- nutmeg. Delightful as a spread on toast or bread, in trifles and as a filling for fine pastries
and layer cakes. Create a sensation with nutmeg jelly on roast beef, lamb, pork, turkey and
chicken. Experience the difference of this unique and delicious Morne Delice Nutmeg Jam
and Jelly.
• Morne Delice Nutmeg Syrup - a natural product manufactured from the pericarp of mountain
grown Grenada nutmeg. In preparing the syrup, juices of the nutmeg pericarp are blended
with sugar and water to produce the traditional syrup of the Spice Island. A pale nutmeg
flavour, a soft finish, and a clean taste. Pour it over ice cream, pancakes, fruit salad or even
sweet and sour pork and barbecue chicken. Also delightful in cocktails. Mix with club soda
or milk to create shakes and fizzes of all kinds.
• de La Grenade Guava Jam and Jelly - made from sun ripened Grenada Guava fruits. Fresh
Guava fruits are a good source of Vitamin C, an antioxidant recommended for the prevention
of colds, cancer and other ailments. Delightful in pastries and desserts.
• de la Grenade Pepper Sauce - A delightful hot and spicy blend of scotch bonet peppers,
spices and nutmeg fruit. Add to rice and meat dishes, dips and sauces to induce a truly
Caribbean flavour.
• de la Grenade Pepper Jelly - De La Grenade Pepper Jelly is a tangy savoury-sweet jelly made
with a mixture of hot and sweet peppers in an acid fruit base. Delicious with cold cuts and
various meat dishes, this jelly is fast becoming an essential condiment. Enjoy with roast beef,
turkey, chicken or simply top your cream cheese and bagel with our enticing pepper jelly.
• de la Grenade Orange and Grapefruit Marmalade - Meticulous preparation is a tradition at De
La Grenade Industries and this is manifest in the superb quality of de la Grenade marmalade.
The perfect flavour comes from the precise climate and fertile soil of the lush mountainous
estates where our citrus fruits are grown. De La Grenade marmalades are a great breakfast
treat.
• de la Grenade Seamoss - Seamoss or Irish Moss is a marine plant which grows abundantly
along the shorelines of the Southern Caribbean Islands. It is fan shaped with shapely finger
 29

like prongs and is translucent when first harvested. Seamoss is processed into a nutritious,
invigorating drink, which restores energy and vitality. Grenada folklore abounds with
reference to the powers of Seamoss; how it acts as a romantic stimulant; how it drastically
reduces the effect of alcohol; how a night watch on a sail boat became less tiring after
drinking Seamoss. Fiction apart, de La Grenade Industries has created a delightfully
refreshing and nourishing beverage. Simply add Morne Delice Nutmeg Syrup or sweetened
condensed milk. Chill and serve with cracked ice.
• de la Grenade Rum Punch - A superb rum punch of the Caribbean Spice Isle, Grenada. An
exquisite blend of the finest Caribbean rum, sugar, lime juice and nutmeg. Ready to drink!
Simply add ice cubes, garnish and enjoy.
• de la Grenade Mauby Syrup - Mauby Syrup is a refreshing beverage with a bitter-sweet
flavour. It is made by extracting the Mauby bark and adding sugar and the finest Grenada
Spices. The bark comes from a tree belonging to the Rhamnaceae family, which is abundant
in many Caribbean Islands. Local folklore law abounds with tales of the diuretic and
aphrodisiac qualities of Mauby.

Products are manufactured in various sizes, with the jams and jellies being the most sold product.
The market, local, regional and international split 50-50 between local and overseas. US
Distributors are located in Florida. New products and equipment upgrades are on stream for 2004
but due to the increasing competition cannot be disclosed at this time.

SECTION 6
THREATS TO THE FUTURE PERFORMANCE OF THE INDUSTRY

6.1 SPS: USDA – Chemical Residues and HACCP

The minimum requirement for the importation of ground, whole, crushed, chopped, cut and
flaked spices and spice blends packed for commercial trade in the USA is detailed in the
Commercial Item Description (CID) (USDA, 1988). It specifies packaging requirements, quality
assurance (analytical requirements), classification of goods and manufacturers’/distributors’
USDA certification, Plant Systems Audit & Survey (performed by a Third Party).

Danish importers stress the importance of certification (ISO, HACCP), membership of European
Spice Association (ESA), American Spice Trade Association (ASTA) as indicators of
professionalism, trustworthiness (Export News 42/2003).

India leads the world trade of spices, in quantity 48% with a value of 24%, nutmeg and mace
(collectively) brings in $3.38 M US (850 MT) for the period 2002-2003. Of the estimated
500,000 MT ($1500M US) spices and herbs imported globally, India exports 46% and >50% in
spice extracts. The Spices Board India has accomplished by collective efforts on many plains not
excluding quality assurance. They established a Quality Evaluation & Upgradation Laboratory
which is ISO 9002:1994 certified, adopted the ISO 14001 Environmental Management System
(for the Laboratory) and formulated and implemented a 3 tier quality certification programme
conforming to HACCP (Spices Board, 2003).
 30

6.2 Traceability
Final Bioterrorism Rules for the USA (USFDA) has been announced and all affected facilities
must be registered by December 12th, 2003. This rule applies to all owners, operators, agents in
charge of domestic or foreign facilities that manufacture or process, pack or hold food for human
or animal consumption in the USA. ‘Raw agricultural commodities for use as food or
components of food’ appear on the list of examples. This rule is meant to control and trace food
items which may be contaminated (The Bulletin, 2003). It has now become paramount for an
initiative on product traceability in the industry. The Baking Association of Canada has joined
the Steering Committee of a new national food traceability initiative launched in August of 2003
(The Bulletin, 2003).

6.3 Environmental and Regulatory Measures

Food Law News-EU-1999 is attempting to regulate the level of Aflatoxins in certain spices at the
limits suggested in a lot size of 20 tons: Total Aflatoxins ≤10 mg/kg and Aflatoxins B1 ≤5 mg/kg
(Food Law News, 1999). These measures have not been formally instituted however Grenada
presently tests for aflatoxins and have positions agents in USA and Europe to regulate and
replace rejected stock. While the Indonesian trade is not actively regulating or performing proper
quality control, they are in fact losing market share due to the stricter health regulations being
imposed in Europe (Janssen, 2002). In the USA the following (Table 6.1) quality inspection
regulations apply:

Table 6.1 Analytical Requirements A-A-20001A (USDA, 1988)

Spice Moisture Volatile Oil Total Ash Acid Insolu. Pass through Sieve No.
Max% Min% Acid Max% Ash Particle Size
Max% Min%
Nutmeg 8.0 6.5 3.0 0.5 95 (20) ground
Mace 7.0 12.0 3.5 0.5 95 (20)

The HACCP Committee has proposed the introduction of a Tracing System for nutmegs and
mace coming from the different geographic areas (GCNA Fin Stmt, 2002).

CONCLUSION
World over the nutmeg continues to be a prized spice because of its unique flavour and
pharmaceutical properties. Grenada is the enviable position of supplying one-fourth of the world
demand, which in turn provides a major source of foreign exchange earnings to the country as
well as a major source of income for a large segment of the population. However, the industry
continues to be negatively affected by a declining interest in the crop due to labour issues, lack of
organization with respect to marketing, falling prices and increasingly stringent international
quality regulations. The industry can benefit from innovations in primary processing which can
shorten processing times and improve the quality of the dried nutmeg and mace. The industry
can also benefit from the creativity and innovativeness of the processors which has given rise
 31

several local brands of nutmeg food and pharmaceutical products. Improvements in primary and
secondary processing, coupled with stronger institutional support and the forging of key
international linkages to address the marketing issues can be the key to not only the survival, but
the success of the Grenadian nutmeg industry.

REFERENCES

Business Times. Tanzania: Recognize spice industry potential.

http://www.sacredearth.com/ethnobotany/news/spice.htm. 2003

Claris, C. Ministry of Agriculture. Nutmeg Industry.

www.spiceclassifieds.com/articles/?results=1article=279. 2003

CPAS Agro Indonesia AG-Report. Nutmeg Market Report July 26th, 2001.
www.agroindonesia.com/hotindex.htm. 2003
El-Mohandes, A and Sammy, G. M. Faculty of Engineering, UWI, Trinidad. Nutmeg By-
Products and the Suggested Improvements in the Processing of Nutmeg and Mace. 1966

Export Promotion Bureau Government of Pakistan. Export News 42/2003.

www.epd.gov.pk/epb/jsp/exportnews/web-Bulletin-42.doc. 2003

FAO of the UN Working Paper. Nutmeg and Derivatives. FO: MISC/94/7.

www.fao.org/docrep/v4084e/v4084E00.htm. Rome 1994

Food Law News-EU-1999, www.foodlaw.rdg.ac.uk/news/eu.99.90.htm

Global Commercial Services for the Spice Industry. Falling Nutmeg prices causes Spice Island
to cut its growth rate. www.spizes.com/index.asp. 2003

Global Commercial Services for the Spice Industry. India looking into Nutmeg Tissue
Culture. www.spizes.com/index.asp. 2003

Grenada Cooperative Nutmeg Association. Certified Organic Nutmeg # gcna-

7032/05.02/2745wg. www.travelgrenada.com/gcna.htm. 2003

Grenada Co-operative Nutmeg Association. Financial Statements Trading Summary and

Board Report. 2002.

Hossle, S. Research Data. 2003

James, C. (A-List) Grenada Nutmeg liberalisation. Grenada to Liberalise its Nutmeg Industry.
http://archives.econ.utah.edu/archives/a-list/2002w47/msg00062.htm. 2002
 32

Janssen, P. Indonesia’s 500-Year-Old Nutmeg Trade on the Wanes. RA3212

www.digitaljournal.com/news/?articleID=3212. 2003

Katzer, G. Welcome to Gernot Katzer’s Spice Pages: Nutmeg and Mace (Myristica fragrans
Houtt.). www-ang.kfunigraz.ac.at/~katzer/engl/Myri_fra.html. November 2003

Marcell, G.B. FAO of the UN. Production, Handling and Processing of Nutmeg and Mace
and their culinary uses. www.fao.org/inpho/vlibrary/x0047e/X0047E00.htm. Chile 1995
Mayers, J. M. ISER, UWI, Jamaica. The Nutmeg Industry of Grenada. 1974

McGaw, D., Sankat, C. K. Tropical Agriculture (Trinidad), Vol. 61, No. 3. Effect of Air Flow
rate on the drying of nutmeg. 1984.

McGaw, D. R. Tropical Agriculture (Trinidad). The Drying Characteristics of Nutmeg. 1979.

The Merck Index. Eleventh Edition, 1989, 6749, Merck & Co Inc. NJ.

Mitchell, K. Office of the Prime Minister News Archives. PM Mitchell meets with GCNA.
www.grenadaconsulate.org/News%20Releases/October/pm_mitchell_meets_with_gcna.htm.
2003

NationMaster.com. Central America and the Caribbean: Grenada.

www.nationmaster.com/country/gj/Economy&b_define=1. 2003

Rahim, H. FAO of the UN. Proceedings of the roundtable on the reduction of post-harvest
fruit and vegetable losses through the development of the cottage industry in rural areas in
the Caribbean countries. Grenada Section 3.6. FO: MISC/94/7 RLAC/92/10 AGAIN-11
www.fao.org/inpho/vlibrary/x0046e/X0046E00.htm 1991.

Ridley, H. N. Macmillan and Co. Ltd. (London). Spices. 1912

Sankat, C. K., Peters, E. J., Aryan, C. V. ASAE Paper No. 83-3040. Mechanical Cracking of
nutmeg seeds. 1983

Sankat, C. K., Narayan, C. V. West Indian Journal of Engineering, Vol. 10, No. 2. A Machine
for sorting nutmegs. 1985

Sankat, C. K. Canadian Agricultural Engineering, Vol. 34, No. 2. Mechanical Shelling of

Grenadian nutmeg seeds: Theoretical & Experimental Approaches. 1992.

Sankat, C. K. ASAE Paper No. NAR-81-112. Nutmeg Processing. 1981

Satcunanathan, S. Faculty of Agriculture, UWI, Trinidad. A Preliminary Report on the

Possibilities of Improving the Processing Methods in the Nutmeg Industry of Grenada.
1977.
 33

Singh, R.H., Rankine, L.B., Birla, S.C. Pension Planning for Farmers of the Grenada Co-
Operative Nutmeg Association. Volume One: Background & Philosophy. May 1992.

Singh, R.H., Rankine, L.B., Birla, S.C. Pension Planning for Farmers of the Grenada Co-
Operative Nutmeg Association. Volume Two: Design & Feasibility. May 1992

Singh, R.H., Rankine, L.B., Birla, S.C. Capitalization of Assets of GCNA. 1990

Spices Board India. Trade Highlights. www.indiaspices.com/index.htm. 2003

Tai, E. A. Faculty of Agriculture, UWI, Trinidad. The Nutmeg research Programme, 1966-
1969. 1969.

The Bulletin, Baking Association of Canada Newsletter. Final Bioterrorism Rules Announced.
www.bakingassoccanada.com/pdf/Newletter%20-%202003.11.pdf. 2003

The Bulletin, Baking Association of Canada Newsletter. BAC joins national Food Traceability
Initiative. www.bakingassoccanada.com/pdf/Newletter%20-%202003.11.pdf. 2003
USDA. Caribbean Basin: Business and Marketing Information Resources.
www.nal.usda.gov/atmic/pubs/srb9504.htm 2003.

USDA. Commercial Item Description Spices and Spice Blends.

www.ams.usda.gov/fqa/aa20001a.pdf. 1988.

University of Michigan. The Case of Spices, 1998.

www.personal.umich.edu/~wddrake/1998/mmaster/spice.html. 2003.