From 2021, Vietnam will become the world’s largest cinnamon exporter. Currently, the cinnamon industry needs an innovative strategy to become a sustainable cinnamon exporting country.
Number 1 position in the world in cinnamon export
Table of Contents
According to the Vietnam Pepper and Spice Association, Vietnam is the world’s leading cinnamon producer with an area of about 180,000 hectares. Since 2021, Vietnam has risen to become the world’s leading country in cinnamon export.
In 2023, Vietnam’s cinnamon export output accounts for about 34.4% of the world’s export market share with main consuming markets such as India, China, Bangladesh, the United States… In 2023, Vietnam exports exported nearly 90,000 tons of cinnamon, total export turnover reached more than 260 million USD, an increase of 14.6% in output but a decrease of 10.7% in value compared to 2022. The average price of cinnamon reached 2,918 USD/ton, a decrease 22.1% compared to 2022.
In 2023, India is the main export market of Vietnamese cinnamon with more than 38,000 tons, accounting for 42.6%. Next are markets such as the United States with more than 10,100 tons, accounting for 11.4%; Bangladesh nearly 6,000 tons, accounting for 6.2%…
In the first 2 months of 2024, Vietnam’s cinnamon exports reached nearly 10,500 tons, total export turnover reached 30 million USD. India is the main export market with nearly 3,200 tons, but over the same period, export volume decreased by 30.3%. The United States, the second largest export market, decreased slightly by 0.8%, reaching 1,274 tons. Meanwhile, cinnamon exports to European countries increased by 12.7%, reaching 1,235 tons, especially exports to the UK increased by 94.4%.
Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association said that the potential of our country’s cinnamon raw material area is very large because of the suitable climate and soil conditions, especially in the mountainous provinces of the North. North like Yen Bai, Lao Cai and some places like Thanh Hoa, Nghe An, Quang Ninh, Quang Nam…
Over the past time, farmers have constantly learned farming experience to improve the quality and productivity of cinnamon trees, with quick adaptation and access to science and technology. In addition, production linkage models are increasingly closely organized between businesses and farmers to gradually expand sustainable raw material areas.
The Ministry of Agriculture and Rural Development and related agencies have issued many policies and regulations to encourage the private sector to participate in agricultural projects, in which the spice and medicinal plant industries have developed and made breakthroughs. in a sustainable, organic direction, with a growing area scale, linking production and consumption to meet quality and traceability requirements.
The world’s demand for spices remains high, not only in the food industry but also continues to be researched and developed for application in the pharmaceutical, cosmetics, functional food industries… Vietnam has dozens of The company invests in modern cinnamon processing lines, producing ground cinnamon and powdered cinnamon products to meet market requirements.
Our country’s raw material areas need to improve quality to meet the increasing requirements of export markets. Photo: Thanh Tien.
In addition, with 16 FTA agreements that Vietnam is participating in, there are many new generation free agreements such as EVFTA, CPTTP, CREP that have helped Vietnam have an advantage over some other countries in terms of tax. This is a very favorable condition and opportunity for Vietnamese cinnamon products to advance further in the international market.
Deep processing to add value
Currently, Vietnamese cinnamon has been exported to nearly 100 countries around the world, accounting for 95% of the market share in the Indian market, 36.5% in the US market and 35% in the European market. Our country’s cinnamon products have dominated most major markets in the world, but the export rate of processed cinnamon only accounts for 18.6%, reaching 18,659 tons, of which 70% is exported to Vietnam. In the United States, the proportion of exports to Europe accounts for only 12%. Therefore, in the future, Vietnam’s cinnamon industry needs to continue to improve post-harvest and processing quality to increase exports to demanding markets in Europe and the United States…
The market is increasingly demanding cinnamon products with some basic requirements such as: Green consumption, reducing carbon emissions; Products ensure traceability and sustainable production, including environmental and social factors; quality assurance, including controlling and meeting MRL requirements (maximum pesticide residue limit in food) according to market regulations; The demand for organic products, value-added products, functional foods to increase immunity, support health… is growing.
Farmers need to change cinnamon farming methods for sustainable, environmentally friendly production. Photo: Thanh Tien.
Therefore, farmers need to change their farming methods, produce sustainably, be environmentally friendly, and use and fertilize properly according to the farming process. Actively participate in cooperative groups and cooperatives to link production with export enterprises, from there you can feel secure in farming according to the procedures set out by enterprises, and pharmaceutical enterprises support training and production. Output products are purchased by businesses at market prices.
On the part of state management agencies, there needs to be a master plan of growing areas and a master plan map of raw material areas so that investors can feel secure in long-term investment with the farmer-exporter linkage model. – end buyer. Planning of raw material areas is associated with building value chains to link farmers with processing enterprises and exporters. Encourage the application of digital technology in production management, traceability and sustainability programs.
Continue to expand the area of production links between businesses and farmers, including the state encouraging and promoting the establishment of cooperatives and production groups in raw material areas to act as partners of exporters in the supply chain. response.
In particular, the role of local authorities in raw material areas is very important in supporting the construction and organization of people participating in groups, teams, and cooperatives to connect with businesses to link production in the area. local. Implement training programs for farmers on sustainable farming processes, reduce carbon emissions, and be environmentally friendly…
To become the world’s leading sustainable cinnamon supplier.
According to Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association, the cinnamon industry in Vietnam in general and Yen Bai in particular needs strong changes to adapt to export market requirements during the period. next. More scientific research is needed to promptly respond to market requirements, especially issues related to regulating maximum residue levels and finding appropriate pest treatment solutions. Encourage farmers to use alternative biological products and have effective measures and sanctions to control illegal pesticides that are not on the state management list.
Building clean raw material areas, deeply processing products and enhancing trade promotion are the optimal solutions to increase cinnamon output and export value. Photo: Thanh Tien.
Strengthening trade promotion and building brand identity on a national scale for Vietnamese spices is extremely necessary. This is indispensable without the coordinating role of the state management agency so that branding is carried out professionally, on a large scale, not fragmented and creates a spillover effect for the entire industry in the market. global school.
The state needs to have financial support policies and preferential loans in a timely and correct manner so that people can feel secure in farming, keeping gardens, and ensuring acreage to have a stable source of raw materials for processing and export. . Have policies to encourage businesses to invest in the application of science and technology, support preferential loans or partially subsidize investment costs in high-tech lines to increase the quality and added value of products.
Strongly promote the public-private partnership model to gather the strength and voices of stakeholders in the Vietnamese cinnamon supply chain. Sharing information, finding support resources and consulting policies in the strategy of building and developing a synchronous industry in the long term helps Vietnam become the leading sustainable cinnamon supplier in the world.
According to Ms. Hoang Thi Lien, businesses need to continue to strengthen and develop their brands, increase deep processing, especially spices processed from farm to table to be able to participate more deeply in the chain. value in the world. E-commerce is one of the options for businesses and exporters to consider investing in, developing product lines, increasing product presence to end consumers through B2C form (a model in which sellers connecting with buyers through e-commerce platforms) is becoming increasingly popular.
According to Nongnghiep.vn
