INVESTMENT OPPORTUNITIES IN THE HERBS AND SPICES INDUSTRY

INVESTMENT OPPORTUNITIES IN THE HERBS AND SPICES INDUSTRY Presented by CARIBBEAN AGRIBUSINESS ASSOCIATION

Our definition of the Industry FOOD CATEGORY MEDICINAL CATEGORY COSMETICS & PERFUMERY CATEGORY LANDSCAPING AND DECORATIONS Fresh and dried seasoning and spices Basic herbal remedies and homeopathic drugs Perfumes Outdoor (parks and gardens) Cosmetics Indoor (potted plants and floral arrangements) Oils and oleoresin Unlicensed medicinal extracts products (nutraceuticals and dietary supplements) Functional foods and drinks Licensed medicines (phytomedicines) Aromatherapy

WHY THIS IS A PRIORITY INDUSTRY � Exceptional scope for economic development and comparative advantage & structure of the Caribbean agricultural sector. � Extensive range of markets in food & Beverages, medicinal, cosmetics and perfumery, landscaping and decorations; � Caribbean World leader in the quality of ginger, hot pepper, nutmeg, pimento, vetiver and wide range of herbal plants. � Highly suitable for small farmers, young people and

CARICOM Market Size Imports � Food, Medicinals, Cosmetics & Toiletries, Ornamentals (Data for all categories is not available) � Spices, Herbs & Condiments = $ US 76 M � Intra-regional - 16 M and Extra-regional – 60 M � Excludes onion and garlic and other food categories such as beverages and teas � Data for Cosmetics& Toiletries, & Ornamentals ■ Currently not accessed

International Market Size � WHO Global Industry report: Medicinal plants is estimated at more than Euro 45 billion and growing steadily � 80% (4 Bn) of the worlds’ population presently use herbal medicine for some aspects of primary health care. � � ITC By 2015, the international herb supplement and remedies market is expected to reach $93 billion ■ Global Industry Analysts ch: Functional beverages -7. 6 Bn litres consumed Valued US $25 Bn in 2012 and expected to reach US $ 38 Bn by 2017 � � Farm gate value of herbs in the United States is estimated to be more than US$ 1 billion and is growing at more than 10% per annum

GROWTH IN HOT PEPPER BASED PRODUCTS 1 in every 4 persons in the world consume hot & spicy food everyday. (History Channel documentary

CARICOM Trends Cont’d � Growing market in the region for use of herbs and spices for preventative and curative reasons. � Non-traditional medicine shops � Extensive range of herbal products (e. g. Mother Nature; ) Households increasing use of technology (e. g Nutribullet) to make vegetable, fruit and herb mixes � � � Coffee shops and retail stores have expanded their product offering to include a wide range of herbal and fruit teas Non traditional medical service providers � � Extensive range of herbal remedies, treatments and programmes based food choices, lifestyle and herbs & spices (e. g. Eden heights, Livet Wellness Clinic, Customised Health solutions) Spas and aromotherapy centres � Features use of the essential oils and oleoresins, creams, soaps, as topical treatments, (Chere Mere, Jencare, Luxury spas)

USA & EU Market Drivers Top health concerns driving demand include; � Heart Health/Circulation � Cancer � Brain/Memory/Mental Sharpness � Immune System (Immunity) � Liver/Detox, � Weight Management � Appearance/Skin/Anti-aging � Joint Health/Arthritis � Vision � Digestion ■ Health Focus, 2012

Options for CARICOM � � Turmeric between 2010 and 2011, India exported nearly 70 million kilograms Stevia (Natural sweetener) In 2008 was approximately US $21 M and was forecasted growth in 2014 is US $ 1 -2 Bn � � � � � Hot Pepper Ginger Oregano Lemongrass; Seamoss; Sorrel Shadon beni; Noni Pimento

USA WHOLESALE PRICES PRODUCT Mint Cilantro Lemon Grass Basil Ginger Thyme Culantro (Shado beni) Sorrel Oregano Hot Pepper Tumeric Mint Rosemary Chive Bay Leaves PRICE RANGE/LB SOURCES 4. 50 -5. 50 Colombia, Mexico 4. 00 -5. 00 USA, Israel 0. 90 -1. 20 Guatemala 3. 00 -5. 00 Colombia, Mexico, USA 0. 45 -0. 95 China, Hawaii, Costa Rica, Thailand 3. 00 -8. 00 Colombia, Mexico, USA, Peru 0. 85 -1. 20 Costa Rica 5. 50 -9. 00 3. 50 -7. 00 1. 50 -2. 25 1. 20 -1. 80 4. 50 -5. 00 4. 00 -8. 00 2. 00 -6. 00 13. 00 -22. 00 Costa Rica, Mexico, Israel Colombia, Mexico, USA Caribbean, Mexico, USA, Dominica Rep. Jamaica Colombia, Mexico, USA Colombia, Israel, Peru Mexico, USA, Colombia

SRC R&D PRODUCT FOCUS � Soursop � Ginger � Guinea hen weed � June plum leaf � French thyme � Tumeric � Lemongrass � Cinnamon � Sasparilla � Rosemary

UWI– Natural Products Institute in 2000 To engage in market driven research activities in local biodiversity to develop commercial opportunities. � Extract active ingredient from wood chips (used in alcoholic beverages, candies pesticide medicinal preparations, cattle feed ) 2 patents received ■ Seeking investment partners to exploit this technology Develop pesticides using essential oil from citrus to treat pests that affect citrus plants. ■ � � International Awards received: � � � UNESCO International Union of Pure and Applied Chemistry Areas of focus: � � Pharmacological toxicological interactions Bio-prospecting

INVESTMENT OPPORTUNITY � Investment profiles for fresh and valueadded products including Technology Packages for; � Primary production � Dried herbs and spices � Exotic beverages � Essential oils and oleoresins � Cosmeceuticals ■ Funded by IICA ; Researchers - INTEAG AND CARIRI

PRIMARY PRODUCTION VARIABLE COST PRODUCT Shadon Beni Oregano lemon grass sorrel Ginger Tumeric VARIABLE COST/ YIELD HECTARE /ACRE US$ COST/KG 20 3120 0. 16 15 3310 0. 22 17 1454 0. 09 12 7042 0. 59 17 3822 0. 22 17 4158 0. 24

DRIED PRODUCT-Machinery and Equipment Cost BATCH SIZE MACHINERY COST PRODUCT FRESH Kgs US$ DRIED GINGER 500 116650 GINGER CRYSTALS 100 56650 DRIED SORREL 100 85, 200 SHADON BENI/OREGANO 100 43600 LEMON GRASS 100 68100 SARSAPARILLA 100 61000 SEAMOSS 500 49100 MULTI-PURPOSE ALL OF THE ABOVE 100 220, 000

Beverages/Gels – Machinery and Equipment Cost PRODUCT BATCH SIZE MACHINERY COST US$ ALOE VERA GEL/powder NONI JUICE SEAMOSS GEL 100 gallons 50 gallons 413, 550 82, 650 91, 500 MAUBY extract 50 gallons 86, 250 LEMON GRASS extract 50 gallons 82, 350 SARSAPARILLA WINE SORREL CONC. (continuous operation 50 gallons 52, 800 70 lbs/hr 213, 000 MULTIPURPOSE 50 gallons 212, 000