"Farmers, I am pleased to inform you today that the Commonwealth has submitted its final report which has significantly informed the proposed plan for rehabilitating the nutmeg industry.

Nutmeg Farmers

According to the Commonwealth report, the revitalization of the nutmeg industry must be centered on four (4) main pillars - Replanting, Value Addition, Marketing and Export Promotion and Institutional Reform.

For the replanting effort, two approaches are proposed - first, the propagation of seedlings and grafts from existing trees and secondly, the introduction of new varieties.

Farmers, it is important that in replanting of nutmegs we must select trees that are of high quality and those that will increase farmers income. By that I mean, we must identify the qualities of the nutmeg for which the market is willing to pay a high price.

Therefore farmers, replanting material must be selected from plants that yield about 1500 fruits or more per year, disease free, large nuts, thick heavy mace, good quality fruits and low saffrole and high myristicin.

The GCNA in collaboration with the Ministry of Agriculture is currently developing grafted plants using the epicotyl grafting method. These plants it is believed will have a stronger root system and can come into production within three to four years.

Farmers must also be willing to introduce new varieties. The Indian Institute of Species Research has released a very high yielding, high quality nutmeg variety which we can plant.

There is nothing to fear about new varieties. We are always introducing new germplasm materials, be it in fruits or vegetables. Once the market is demanding the product and it can give us a competitive edge on the market then we must not fail to grasp the opportunities.

In addition, the spice scientists have assured us that there is nothing to fear since nutmeg is a very versatile crop that can adapt to the particular soil on which it is grown. Therefore, every effort will be made to ensure that the industry is rebuilt based on what the market demands.

The second major area on which the resuscitation of the nutmeg industry should focus is value addition. The Government will seek to work with the GCNA to encourage joint venture initiatives with the private sector and the promotion of small to medium size enterprises to develop products such as jams, jelly, liqueur, brickettes, seasonings, syrup, oils, oleoresins and nutmeg fat for the export market.

Already, the FAO through the Government of Grenada has provided support including an expensive shipment of equipment (approximately US$100,000) for the establishment of a modern food laboratory to ensure that high quality products are supplied to the market.

May I impress upon the Board of Directors of the GCNA to ensure that the laboratory is completed on time to start the training of the laboratory technicians that is being offered by the FAO.

Failure to take advantage of this opportunity at this time to establish and properly staff the laboratory will contribute to the further demise of the industry. It is this type of infrastructure that will enable the GCNA to stop the shipment of defective and high aflatoxin nutmegs which normally result in significant losses to farmers.

Though Grenada have been supplying nutmegs to the world market for decades now, the industry lacks a forward looking market development and export promotion strategy for nutmeg and by-products. Strategies must be developed to maximize export earnings.

The need to recruit the necessary expertise to promote Grenada's product as a superior brands and the establishment of a market information system to support all marketing efforts are long overdue.

Notwithstanding the importance of the three major areas mentioned above, the successfully implementation of the plan to rehabilitate the nutmeg industry involves the making of new institutional arrangements.

First, the new business approach to replanting nutmegs will require the strengthening and reorientation of the Extension Service to provide the technical expertise necessary.

Currently the Ministry of Agriculture is in the process of training thirty young persons from which some can be selected and further trained to become extension officers.

Secondly farmers it is obvious to all of us that there are certain provisions of the GCNA Act that is preventing it from achieving greater efficiency and to operate like a full-fledge commercial entity engaged in profit maximization.

With increased competition that is brought about by globalization and trade liberalization, if GCNA is not reformed to conduct business in the most efficient and strategic manner, farmers your nutmeg business will disappear.

We must therefore relook at the strategy for bonus payment, and the legislative framework for private sector participation. This is the opportune time as we replant to put structures in place.