PM Mitchell proposes changes to Grenada's nutmeg and chocolate export policy

Prime Minister Dickon Mitchell is looking to transform Grenada’s agricultural sector and is pushing for changes in policies pertaining to the export of raw products, focusing specifically on chocolate and nutmeg as of now.

The government of Grenada, under the leadership of PM Mitchell, is looking to initiate policy changes with the next two and a half decades in mind.

The initiative has been dubbed “Vision 75” and is looking to align Grenada’s developmental efforts with the nation’s agricultural sector, to bring it to the forefront. This is being done to solidify the nation’s position in terms of food security and rebuild the agricultural sector in a manner in which it can play an important role in Grenada’s economic progress.

One of the most important questions raised by Prime Minister Dickon Mitchell, looks to analyze what the nation has achieved after having exported nutmeg for over a century.

He has stated that the nutmeg industry and the practices that it abides by, have failed to produce an adequate number of jobs for Grenada for it to be a meaningful proposition. Additionally, even though nutmeg has been a key export product for the nation, the nutmeg industry has had a hard time dealing with the challenges it has been subjected to.

One example of this is the devastation caused by Hurricane Ivan, which wreaked havoc on the nutmeg industry after it ruined 90% of the nutmeg planted in the nation.

Such conditions, paired with the fact that Grenada has been unable to compete effectively with larger player in the nutmeg industry, have raised questions as the volumes being produced do not match the market requirements.

Prime Minister Mitchell is looking at using a different approach and ceasing the export of raw nutmeg, in favour of setting up processing and production facilities in the nation itself.

By doing so, Grenada will be able to make use of the many different applications of nutmeg, which is a key ingredient in food, medicines and cosmetic products.

With this new approach, Grenada is looking to develop the ability and infrastructure to break into these key industries, thus gaining a competitive edge in the way in which the nation puts its produce to use.

A similar situation in the cocoa sector of Grenada has prompted Prime Minister Mitchell to propose an identical shift in the chocolate industry as well.

He also cited the approach taken by Ivory Coast and Ghana in this regard, highlighting the changes that those two cocoa producers have managed to make to their respective chocolate industries.

By focusing more on the processing and production of goods, both those nations have managed to introduce a degree of economic resilience and stability to the industry, thus ensuring that they can prosper in the market sustainably.

Prime Minister Mitchell used the Belmont Estate as an example to highlight the potential of Grenada’s chocolate industry, proving that the nation has the capacity to produce chocolate products and build a sustainable manufacturing model.

By investing in the infrastructure necessary to bolster the manufacturing sector with in the nation Grenada is looking to transition into a new era for the agricultural sector, based on value driven practices and self-sufficiency.

Mitchell is adamant in the belief that the agricultural sector of Grenada is and must remain, a major part of Grenada’s economic and social progress, adding that it is the only means by which Grenada can look to feed itself.

He went on to state the following, “We produce hands down the finest nutmegs. But after 100 years, we still export our raw nutmegs. And it begs the question does exporting our raw nutmeg create one single additional job in Grenada? The answer is no.”

While Mitchell continues to push for the cessation of raw nutmeg exports to the Grenada Cooperative Nutmeg Association (GCNA), the organisation is unsure of how it will pay the farmers of the nation, if that comes to pass.

Prime Minister Mitchell has countered the narrative by saying that the government is looking to collaborate with the GCNA to secure financing for two years at the very least, during which time, they can stockpile raw nutmeg and focus on creating processing and manufacturing facilities for products like nutmeg oil, syrups and fat.

The manufacture of such products locally, would allow Grenada to expand into the market of finished goods made out of nutmeg, thus securing a more profitable and sustainable facet of the market for the nation.

This is an important step for Grenada according to Mitchell, as the nation does not have the ability to compete with the likes of India and Indonesia, which beat Grenada soundly in terms of the volumes of nutmeg they produce.

He also stated the following, “We cannot compete for volume, therefore we must compete for value added. It is not that difficult, we do not have to wait 25 years to take decisions like this.”