Posted on

Spice Isle to cash in on nutmeg shortage


rhondathompson, [email protected]

Social Share

ST GEORGE’S, Grenada – The Grenada Co-Operative Nutmeg Association says it intends to cash in on increased prices for nutmegs on the world market as a result of an international shortage.
Association chairman Denis Felix said that the industry was now in the process of negotiating a new round of contract prices with the buyers, and all indicators were that the island would receive higher prices for the commodity.
Grenada and Indonesia dominate the world nutmeg industry but declines in production plus the prospects of new rivals on the market have conspired to push up prices, local officials have said.
“There is a shortage of supply. We are unable to meet the demand for our nutmegs, the supply cannot match the demand and prices are likely to be a bit higher than ordinary,” Felix said.
“That’s why it is so important for us to place emphasis on production, because the more nutmegs we produce now the more revenue we can generate for the association and the more foreign exchange we can generate.”
He said that there were indications that even in Indonesia, which is the world’s largest producer, was experiencing some difficulties as well in terms of production.
“We believe that the nutmegs produced in Grenada have a competitive advantage on the international market in terms of its quality level and therefore even though nutmegs are available from other areas the demand for Grenada nutmeg continues to be high.”
Grenada, which sells its nutmegs mostly to buyers in Europe and North America, is currently producing 1.5 million pounds of nutmegs compared to 12 million pounds before the passage of Hurricane Ivan six years ago, while revenues have dropped from EC$15 million (BDS$11 million) to $2 million (BDS$1 481 400) a month. (CMC)

LAST NEWS