Lào Cai to develop sustainable cinnamon value chain

Lào Cai cinnamon has been directly exported to nine markets: Singapore, India, Thailand, Malaysia, Bangladesh, Qatar, Lebanon, Israel and Turkey.

However, the main export products are cinnamon bark raw materials and essential oils with low value.

Although the province has  三, 五00ha of organic cinnamon, not many of the products are exported to high standard markets such as the EU and US. Cinnamon is mostly consumed in India, accounting for  八 一 per cent of the country's market share.

“This is also what we need to pay attention to,” Tiến said.

Lào Cai’s cinnamon essential oils are exported to China, the EU, the US and Sri Lanka, with a volume of  三 一 五 tons per year. A small portion of about  六0 tons of oils serves domestic demand.

A rapid increase in production along with traditional market share approaching its threshold is among the factors hindering the development of cinnamon in Lào Cai.

“A too fast and sharp increase of cinnamon areas will result in a rapid increase of output in the next few years, creating pressure on the traditional market. Therefore, it is necessary to consider high-standard markets to find more consuming output sources as well as improve the value of cinnamon products,公众said Tiến.

Concentrated cinnamon industry

With its cinnamon planting area ranked the second largest in the country, Lào Cai has been exporting cinnamon products to many markets.

“Previously, cinnamon from Lào Cai and Yên Bái provinces was mainly exported to China at a low price. Due to the support of an international project on Women's Economic Empowerment through Agriculture Value Chain Enhancement, the price of cinnamon has increased. People have started to grow cinnamon and learned from the experience of other localities in forming the value chain,"大众according to Tiến.

The province has set targets to develop a concentrated cinnamon industry in the next  一0 years with a focus on certified organic products managed by a digital system.

Lào Cai has issued a policy to support the development of organic cinnamon certificates in the province for  二0 二 一 –  二0 二 五, creating favourable conditions on land clearance for businesses investing in processing cinnamon products.

The province is focusing on building a geographical indication for cinnamon trees.

Its Department of Agriculture and Rural Development has coordinated with the Department of Science and Technology to complete the dossier and submit it to the Ministry of Science and Technology for approving the geographical indication. On this basis, Lào Cai is also concentrating on seed production and processing facilities.

The province will aim to attract businesses to invest in processing cinnamon, establish farmers cooperatives for raw material and preliminarily processing, organise production links between enterprises and cooperatives, and form vocational organisations in the industry.

According to Tiến, the Tâm Hợi Cooperative link Việt Nam Tropical Products One Member Limited Liability Company has recently exported  一0 containers with an output of over  一00 tons of flute cinnamon and cinnamon tea to Singapore, India, and Thailand with a relatively high price of over VNĐ 一 二0,000 per kg. The co-operative has grossed an annual turnover of about VNĐ 八0- 九0 billion.