Market Pointer for Furniture to Haiti

INVESTMENT PROFILE FOR

TURMERIC APRIL
2019

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 TABLE OF CONTENTS
TABLE OF CONTENTS………………………………………………………………………..2
LIST OF TABLES………………………………………………………………………….…….3
LIST OF FIGURES………………………………………………………………………………4
LIST OF ACRONYMS………………………………………………………………………….5
PRODUCT PROFILE………..……….………………………………………..……………….6

CROP PRODUCTION…….……………………………………....…………..……….……..7

MARKET CHALLENGES AND OPPORTUNITIES…………………………………….….....9

MARKET ANALYSIS………..………………….………………..………………..…………..12

FINANCIAL OPPORTUNITIES FOR INVESTMENT…..……..……………..……….…....16

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 LIST OF TABLES

Table 1: Product Profile for Turmeric..……..……………..…..……………...……..……....6

Table 2: Estimated Cost of Production for a one acre Turmeric Farm……………………7
Table 3: Cleanliness Specifications for Turmeric ………………..…..……..………….…...11
Table 4: Tariffs applied by the U.S to Jamaica…..…………..……………..………..….....12
Table 5: List of Top 14 Exporters of Turmeric in 2018……………………………...……..13
Table 6: Jamaica’s Export of Turmeric in 2017 (Preliminary)……………………………..13
Table 7: List of Top 10 importers of Turmeric in 2018…..…………………..………..…..14
Table 8: Jamaica’s Total Turmeric Imports in 2017…..……..………………..…….…......15
Table 9: List of Top 5 Countries that Exported turmeric to the U.S. in 2018……………15
Table 10: Financial Opportunities for Investment in Agriculture in Jamaica……..…..….16

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 LIST OF FIGURES

Figure 1: Markets with the Greatest Potential for Jamaica’s Exports of Turmeric…..….9

Figure 2: Markets with the Greatest Ease of Trade for Jamaica’s Exports of Turmeric...9

Figure 3: Countries with potential to export Turmeric to the World…………………..10

Figure 4: Evolution of Prices for Turmeric …..…….…..……………….……................12

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 LIST OF ACRONYMS

COP - Cost of Production

FAO - Food and Agriculture Organization of the United Nations

GOJ - Government of Jamaica

ITC - International Trade Center

JMD - Jamaican Dollars

MICAF - Ministry of Industry, Commerce, Agriculture and Fisheries

STATIN - Statistical Institute of Jamaica

U.K. - United Kingdom

USA/U.S. - United States of America

USD - United States Dollars

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 Product Profile
Table 1: Product Profile for Turmeric
Turmeric Botanical Name and Origin: The turmeric (Curcuma
longa) has its origins in South East Asia.

Species and Description: It is an herb of the ginger

family and like ginger has a thick, round rhizome with
short "fingers". As many as 133 species of Curcuma
have been identified worldwide.

Nutritional Value:
Nutrient Unit 1Value per 100 g
Water g 12.85
Energy kcal 312
Protein g 9.68
Total lipid (fat) g 3.25
Carbohydrate, by g 67.14
difference
Fiber, total dietary g 22.7
Sugars, total g 3.21
Calcium, Ca mg 168
Iron, Fe mg 55
Magnesium, Mg mg 208
Phosphorus, P mg 299
Potassium, K mg 2080
Sodium, Na mg 27
Zinc, Zn mg 4.5
Vitamin C, total mg 0.7
ascorbic acid
Thiamin mg 0.058
Riboflavin mg 0.15
Niacin mg 1.35
Vitamin B-6 mg 0.107
Folate, DFE µg 20
Vitamin B-12 µg 0
Vitamin A, RAE µg 0
Vitamin A, IU IU 0
Vitamin E (alpha- mg 4.43
tocopherol)
Vitamin D (D2 + D3) µg 0
Vitamin D IU
Vitamin K µg 13.4
(phylloquinone)
Fatty acids, total g 1.838
saturated
Fatty acids, total g 0.449
monounsaturated
Fatty acids, total g 0.756
polyunsaturated
Fatty acids, total trans g 0.056

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 Source: USDA 2019

Medicinal Uses: Turmeric may be used for the

treatment of rheumatoid arthritis, conjunctivitis,
urinary tract infections, and liver ailments (Dixit, Jain,
and Joshi 1988). It is also used for digestive disorders;
for abdominal pain and distension (Bundy et al.
2004).

By-Products: Before turmeric can be used, the

turmeric rhizomes must be processed. Rhizomes are
boiled or steamed to remove the raw odor, gelatinize
the starch, and produce a more uniformly colored
product. Turmeric is also used in manufactured food
products such as canned beverages, dairy products,
baked products, ice cream, yellow cakes, yogurt,
orange juice, biscuits, popcorn, sweets, cake icings,
cereals, sauces, and gelatins. It is a significant
ingredient in most commercial curry powders.

Crop Production
Cost of Production: A one acre turmeric farm is a highly viable proposition. The projected
marketable yield for a one (1) acre turmeric farm is 8000kg. The farm-gate price for 1kg of
Turmeric is estimated to cost $88.00 JMD. A summary is given in table 2 below.
Table 2: Estimated Cost of Production for a one acre Turmeric Farm

Item Unit Quantity Rate/Unit Total ($)

Land Preparation

Land Cleaning man day 5 2000 10,000.00

Ploughing acre 1 9000 9,000.00

Harrowing acre 1 6000 6,000.00

Furrowing acre 1 5000 5,000.00

Buildings and Structures

Irrigation Equipment rolls 10 20000 200,000.00

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 Subtotal 230,000.00

Equipment and Material

Planting Material kg 1,000.00 77 77,000.00

Fertilizer 24,000.00

Fungicide 10,000.00

Herbicide 4,800.00

Water month 7 3000 21,000.00

Subtotal 136,800.00

Works

Installing Irrigation equipment man day 2.00 2000 4,000.00

Prepare Planting Material man day 3.00 2000 6,000.00

Planting man day 10.00 2000 20,000.00

Fertilizer Application man day 3.00 2000 6,000.00

Weed Control man day 24.00 2000 48,000.00

Harvesting man day 20.00 2000 40,000.00

Subtotal 124,000.00

Total 490,800.00

Crop Maturity: 7 months

Reaping Period: 2 months
Project Viability: Investment in the production and exportation of the Jamaican Turmeric
is lucrative as supported by financial projections.
Gross Revenue: Under favourable conditions, investors can expect a gross revenue of
$704,000 JMD.
Net Income: Investors can expect a net income of$213,200 JMD over a period of 1 year.
Return on Investment: Turmeric farming guarantees a ROI of 43.44%.
Suitable Locations: Suitable locations for commercial turmeric production are in the
parishes of Hanover, Westmoreland, St. Elizabeth, St. James, Clarendon, St. Catherine, St.
Mary and St. Thomas.
Drainage: It requires a well-drained soil with sufficient nutrient supply.

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Harvesting Methods: Turmeric readiness for harvest is indicated by the drying of the plant
and stem. The rhizome bunches should be carefully dug out by hand-picking, manually
dug with a spade. It is recommended to first cut the leaves before lifting the rhizomes.
Rhizomes are then cleaned by soaking in water. (FAO 2004).

Market Opportunities and Challenges

Export Potential: Turmeric falls under the International Harmonised System code 091030,
comprising of “Turmeric ‘curcuma’”. The total untapped export potential of Turmeric
"curcuma" globally stands at US$ 185.3 million.
The markets with greatest potential for Jamaica’s exports of Turmeric are the Netherlands,
United Kingdom and Germany. Netherlands shows the largest absolute difference between
potential and actual exports in value terms, leaving room to realize additional exports
worth US$ 159.7 k (See Figure 1).
Figure 1: Markets with the Greatest Potential for Jamaica’s Exports of Turmeric

Source: ITC (2019)

Figure 2: Markets with the Greatest Ease of Trade for Jamaica’s Exports of Turmeric
Based on data from the ITC (2019), Jamaica has closest export links with Guyana based
on the Treaty of Chaguaramas.

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 Source: ITC (2019)
Figure 3: Countries with potential to export Turmeric to the World

Source: ITC (2019)

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The United States of America is the market with the highest demand potential for 091030
Turmeric "curcuma" worldwide. For investors to successfully take advantage of this market
it requires several key components: pricing to remain competitive and profitable, good
sales and marketing strategy, using attractive packaging similar other exporting countries
and having a nearly all year-round presence in the market.
With the U.S. representing a potential share of 100% of Jamaica’s exports of Turmeric,
U.S. Imports of Turmeric, Investors would face rigorous competition from India as they
are the biggest exporter of Turmeric to the U.S. representing US$ 22 million (ITC 2019).
Jamaica ranks number 17 with the greatest potential to supply turmeric in the world out
of a total of 23 countries.
Standards: Turmeric must be produced and handled under the necessary sanitary and
hygienic processes. These sanitary and phytosanitary measures therefore requires pest and
disease free Turmeric. Investors must ensure that Turmeric produced are of the highest
quality. While wild harvesting is acceptable in some markets, in most target markets,
turmeric is cultivated under controlled conditions, which meet and satisfy international
requirements.
In the U.S., weighed samples are usually passed through a sieve (U.S. Standard No 8 or 9)
with a white paper underneath to observe foreign matter, insects and mammalian excreta.
Rhizomes are then examined for mold and defiling insects. Foreign matter is reported by
count (insects) or by weight (FAO 2004).

Table 3: Cleanliness Specifications for Turmeric

Whole insects, Excreta, Excreta, Mold Insect Extraneous Foreign

dead Mammalian Other Defiled/Infested Matter

by count by mg/kg by mg/kg % by weight by weight % by weight

%

3 11.1 11.1 3 2.5 0.5

*extraneous matter includes but is not restricted to: stones, dirt, wire, string, stems, sticks, non-toxic foreign seeds, excreta,
manure, and animal contamination

Source: FAO (2004)

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Tariffs applied by United States of America:
Table 4: Tariffs applied by the U.S to Jamaica
Product description Tariff regime Applied tariff (as Applied tariff Total ad
reported) (converted) valorem
equivalent
tariff
Turmeric (curcuma) MFN duties 0 0 0
(Applied)

Source: ITC (MAcMap) 2018

Market Analysis
Market Prices
According to MICAF (2012), at 4% curcumin content, Jamaican turmeric is valued in the
higher end of the turmeric trade and is particularly desired as a food additive and for curry
manufacturing. In 2017, data from STATIN revealed that the average market price (export)
for turmeric was sold at an average of 2.35 USD/kg with the lowest price being 1.46
USD/kg and highest at 4.28 USD/kg.
According to ITC (2019), the average retail price for turmeric in the U.S. is 7.42 USD/kg
with the lowest price being 4.96 USD/kg and highest at 11.41 USD/kg.
Figure 4: Evolution of Prices for Turmeric

Source: ITC (2019)

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World Export Characteristics
India, Vietnam and Indonesia accounted for over 80% of the world’s export of Turmeric
in 2018. Jamaica accounted for 0.6% of the world export of Turmeric.
Table 5: List of Top 14 Exporters of Turmeric in 2018

Value exported in Quantity Share in Ease of doing

Quantity Concentration of
Exporters 2018 (USD exported in world business
Unit importing countries
thousand) 2018 exports (%) ranking
World 337,665 172,796 Tons 100 0.09
India 236,473 122,151 Tons 70 0.12 77
Viet Nam 23,391 15,962 Tons 6.9 0.86 69
Indonesia 12,958 9,541 Tons 3.8 0.68 73
Netherlands 8,966 2,873 Tons 2.7 0.11 36
Myanmar 6,416 4,841 Tons 1.9 0.53 171
Ethiopia 5,306 4,826 Tons 1.6 0.55 159
Germany 5,008 1,157 Tons 1.5 0.08 24
United Kingdom 4,568 748 Tons 1.4 0.11 9
Peru 3,142 1,510 Tons 0.9 0.21 68
United States of America 2,849 509 Tons 0.8 0.27 8
China 2,779 917 Tons 0.8 0.45 46
Fiji 2,116 981 Tons 0.6 0.91 101
France 2,061 291 Tons 0.6 0.18 32
Jamaica 1,901 754 Tons 0.6 0.91 75

Source: ITC (2019)

Jamaica Exports to the World
The total exports of Turmeric for 2017 was 1,023,426kg and was valued at US$1,766,815
with the U.S. being the largest importer of Turmeric from Jamaica. (See Table 6). The U.S.
imported US$1,749,522 worth of turmeric.
Table 6: Jamaica’s Export of Turmeric in 2017 (Preliminary)
Kg J$ US$ Country
9,227 1,878,272 14,683 Canada
436 151,628 1,184 Cayman Islands
7 3,888 30 Dominican Republic
954 178,197 1,395 United Kingdom

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 1,012,802 224,154,031 1,749,522 United States of America

Source: STATIN (2017)

World Import Characteristics
The turmeric trade is relatively concentrated, with seven countries accounting for 52.1%
of imports. Major importers of Turmeric are India, U.S., Iran, U.K. and Morocco. These
importing countries represent 44% of the turmeric world trade. India imports most of
the world turmeric 15% share (US$44,417) in word imports with the U.S. accounting for
13% share (US$37,964) of the world imports.
Table 7: List of Top 10 importers of Turmeric in 2018

Value Ease of
Share in Concentration of Number of non-tariff
imported Quantity Quantity doing
Importers world supplying requirements applied
(USD imported Unit business
imports (%) countries by the country
thousand) ranking

World 298,686 171,382 Tons 100 0.45

India 44,417 31,393 Tons 14.9 0.31 77 26

United States
37,964 9,655 Tons 12.7 0.52 8
of America

Iran, Islamic
22,034 18,563 Tons 7.4 1 128
Republic of

United
14,357 7,315 Tons 4.8 0.48 9 15
Kingdom

Morocco 12,894 9,723 Tons 4.3 0.94 60 16

Germany 12,212 4,530 Tons 4.1 0.4 24 15

Malaysia 11,694 7,962 Tons 3.9 0.76 15

Japan 9,383 4,143 Tons 3.1 0.58 39 13

United Arab
9,017 6,931 Tons 3 0.99 11 25
Emirates

Netherlands 8,427 3,852 Tons 2.8 0.48 36 15

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 Source: ITC (2019)
Table 8 below shows the total turmeric imports for the period of 2017. The total imports
for this period was 358,610kg. Jamaica’s largest import partner of Turmeric was the U.S.
totaling US$749,796.
Table 8: Jamaica’s Total Turmeric Imports in 2017
kg J$ US$ Country
5,204 2,648,768 20,702 Canada
77,468 17,425,937 136,259 China
50,000 10,533,278 81,170 Hong Kong (Special Administrative Region of China)
2,300 4,595,386 35,689 India
223,638 60,895,020 475,976 United States of America

Source: STATIN (2017)

USA Imports from World
In 2018, The U.S. imported 9,655 tons of turmeric across the world which amounted to
US$37,964. A majority of the U.S’s imports of turmeric come from India at 70.5% while
Jamaica supplies the U.S. with Turmeric at a share of 4.8%.
Table 9: List of Top 5 Countries that Exported turmeric to the U.S. in 2018

Value imported in 2018 (USD Share in United States of Quantity imported in

Importers Quantity unit
thousand) America's imports (%) 2018

World 37,964 100 9,655 Tons

India 26,754 70.5 7,088 Tons

China 4,095 10.8 238 Tons

Fiji 2,421 6.4 874 Tons

Jamaica 1,815 4.8 741 Tons

Indonesia 614 1.6 197 Tons

Source: ITC (TradeMap) (2019)

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 Financial Opportunities for Investment
Table 10: Financial Opportunities for Investment in Agriculture in Jamaica
Provider Finance Type Amount Lower Limit Amount Upper Limit Currency

Development Bank Of Grant Not Specified $300,000.00 USD

Ja Ltd
Development Bank Of Loan Commercial Not Specified Not Specified USD
Ja Ltd
Development Bank Of Loan Commercial Not Specified Not Specified USD
Ja Ltd
First Global Bank Ltd Loan Commercial Not Specified Not Specified USD

U W I Credit Union Co- Loan Commercial Not Specified Not Specified USD
operative Society
Inter-American Dev Equity Not Specified $5,000,000.00 USD
Bank
Inter-American Dev Loan Commercial Not Specified $5,000,000.00 USD
Bank
EXIM Bank Loan Commercial $8,455.22 $500,000.00 USD

St Catherine Co-Op Loan Commercial Not Specified $200,000.00 USD

Credit Union Ltd
Access Financial Loan Commercial Not Specified $150,000.00 USD
Services Ltd
Access Financial Loan Commercial $30,000.00 Not Specified USD
Services Ltd
Access Financial Loan Commercial $10,000.00 $100,000.00 USD
Services Ltd
Development Bank Of Loan Government Not Specified $15,000,000.00 JMD
Ja Ltd
Development Bank Of Loan Government Not Specified $15,000,000.00 JMD
Ja Ltd
Development Bank Of Loan Government Not Specified $5,000,000.00 JMD
Ja Ltd
Development Bank Of Loan Government Not Specified $500,000.00 JMD
Ja Ltd
Development Bank Of Loan Government Not Specified $5,000,000.00 JMD
Ja Ltd
Development Bank Of Loan Government Not Specified $2,500,000.00 JMD
Ja Ltd
Development Bank Of Loan Government Not Specified $5,000,000.00 JMD
Ja Ltd
Development Bank Of Grant Not Specified $300,000.00 JMD
Ja Ltd
Development Bank Of Loan Government $50,000,000.00 $500,000,000.00 JMD
Ja Ltd
EXIM Bank Loan Government Not Specified $2,000,000.00 JMD

EXIM Bank Loan Government Not Specified $62,000.00 JMD

First Global Bank Ltd Loan Commercial Not Specified $30,000,000.00 JMD

National Commercial Loan Commercial Not Specified $30,000,000.00 JMD

Bank Ja Ltd
National Commercial Loan Commercial Not Specified $7,500,000.00 JMD
Bank Ja Ltd

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National Commercial Loan Commercial Not Specified $5,000,000.00 JMD
Bank Ja Ltd
JN Small Business Loan Commercial Not Specified $5,000,000.00 JMD
Loans Ltd
JN Small Business Loan Commercial $30,000.00 $1,000,000.00 JMD
Loans Ltd
JN Small Business Loan Commercial Not Specified $150,000.00 JMD
Loans Ltd
JN Small Business Loan Commercial $30,000.00 $1,000,000.00 JMD
Loans Ltd
JN Small Business Loan Commercial $1,000,000.00 $5,000,000.00 JMD
Loans Ltd
Scotia Ja Microfinance Loan Commercial $60,000.00 Not Specified JMD
Co Ltd
Access Financial Loan Commercial Not Specified $100,000.00 JMD
Services Ltd
Access Financial Loan Commercial $100,000.00 $500,000.00 JMD
Services Ltd
Access Financial Loan Commercial $500,000.00 $1,000,000.00 JMD
Services Ltd
Access Financial Loan Commercial Not Specified $30,000.00 JMD
Services Ltd
Bank Of Nova Scotia Ja Loan Commercial Not Specified $500,000.00 JMD
Ltd The
Bank Of Nova Scotia Ja Loan Commercial $500,000.00 $5,000,000.00 JMD
Ltd The

Contact our Investment Team today for more information on available Investment
Opportunities!
AGRO INVESTMENT CORPORATION

AMC Complex, 188 Spanish

Town Road Kingston 11

PO Box 144, Jamaica, West Indies

Telephone: 1 876 764 8071

Telephone: 1 876 923 9268

Telephone: 1 876 923 0086

Telephone: 1 876 923 9261

Fascimile: 1 876 758 7160

E-mail: info@agroinvest.gov.jm

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