[A-List] Grenada: nutmeg "liberalisation"

["Michael Keaney" <michael.keaney@xxxxxx>]

Grenada to liberalise its nutmeg industry
By Canute James in Kingston
Financial Times: November 20 2002

The nutmeg industry in Grenada, the world's second-biggest producer after
Indonesia, is to be restructured to allow involvement of the private sector,
according to the government of the eastern Caribbean island.

The industry has traditionally been run by a co-operative that has resisted
private participation. However, producers on the island say new private
investment will increase productivity, production volumes and allow
downstream production of derivatives for the food and pharmaceuticals
industries.

"In this era of trade liberalisation, the existing monopoly arrangements for
Grenada's nutmeg industry are not sustainable," said Anthony Boatswain,
finance minister.

"The full potential of this industry will only be realised when Grenada is
directly involved in secondary and tertiary processing of nutmegs. Private
sector participation in the industry is not only inevitable, it is
unavoidable."

The Grenada Co-operative Nutmeg Association, the marketing agency that has
monopolised the industry for the past 55 years, earlier this year attacked
plans by a private investor to become a partner in the industry.

Nutmegs account for 80 per cent of Grenada's agricultural exports.

The island exports more than 5m pounds of nutmegs per year - one third of
global consumption - and earns more than $20m per year from the industry,
which employs a third of the working population.

The Nutmeg Association is unlikely to welcome Mr Boatswain's declaration
that the Association should become more competitive to survive in the
changing environment.

"A joint-venture approach, involving farmers, private investors and
Government is the preferred strategy, and would provide maximum benefits to
the farmers, and the nation, by way of higher real income, employment, and
technology transfer."