cinnamon value chain - institute of policy studies
TRANSCRIPT
Outline
• Objectives of the study
• Methodology & Data analysis
• Overview of the cinnamon industry
• Cinnamon value chain
• Quality standards: product and process
• Quality constraints in each value chain level
• Recommendations
Objectives of the study
• Identify levels, actors, functions and relationships in the cinnamon value chain
• Identify and map cinnamon value chain
• Identify product and process quality standards
• Identify specific quality constraints in each levels of the value chain
• To provide recommendations to improve quality of the products at each levels
Methodology and Data analysis
• Focus Group Discussions (FGDs) with small and medium scale producers and collectors in Galle and Matara districts – using a FGD guide
• Key Informant Interviews (KIIs) with exporters, wholesalers, village collectors, government officials in ITI, SLSI, Department of Export Agriculture, MPI, etc. –using a KII guide
• Short questionnaire survey amongst producers and collectors
• Desk Research : existing literature was reviewed on cinnamon industry in Sri Lanka
Methodology and Data analysis
Data Analysis
• All the discussions/interviews were digitally audio-recorded
• Content analysis was used for analyzing qualitative data using NVivo-10 software
• Quantitative analysis of survey data collected was done in excel spread sheet analysis
• Qualitative and quantitative analysis used for mapping of actors, their functions and relationships and to identify quality constraints
Overview of the cinnamon industry cont..
30 % of the Overall world cinnamon market
(Indonesia, China, Vietnam)
Emerging true cinnamon markets : Seychelles,
Madagascar
90 % of the true cinnamon
Cinnamon value chain ACTIVITIES STAKEHOLDERS SUPPORTING
Cultivation/
Production
Collection
Wholesale
Processing/
Exporting
Retailing
Input Supply
Smallholders/Medium
Scale
Large Plantations
(RPCs)
Town Level / CMB/ Collecting
Centers
Village Level Collectors
Processors / Exporters
Inputs
Domestic
Market/Hotels,
Restaurants, Boutique
International
Markets
MPI
DEA
Private
Sector
Farmer
Org.
Spice
Council
CTA SAPPTA
SLSI
ITI
EDB
Product and process standards
Product Standards
Sri Lanka Standard Specification for Ceylon
Cinnamon – SLS 81 : 2010
Process Standards
GAP
GMP
ISO 22000:2005
HACCP
Product standards • Sri Lanka Standard Specification for Ceylon Cinnamon – SLS 81 : 2010
Commercial designation of grades and qualities
Diameter of quills
Max mm
Number of whole
quills (1050mm)
per kg min
Extent of foxing1 % max 2
Minimum length of quills in a
bale mm
Pieces of tube and broken
pieces of the same quality per bale max
% (m/m)
Alba 6 45 Nil 200 1
Continental C 0000special
C 00000 C 0000 C 000
C 0
6
10 13 16 17 19
35 31 24 22 20 18
10 10 10 15 20 25
200
1
Mexican M 00000special
M 00000 M 0000
16 16 16
22 22 18
50 60 60
200
2
Hamburg H 1 H 2 H 3
23 25 38
| 11 9 7
25 40 60
150
3
• Classification for quills (ISO 6535:1997) (SLS 81:2000)
• Quills are graded on the basis of the diameter of the quill and the level of foxing.
Source : ISO 6535:1997(SLS 81:2000)
• GAP
Production and farm level approaches to ensure the safety of fresh produce
for human consumption
• ISO 22000:2005 –
It specifies the requirements an organizations food safety management system has to meet
To obtain ISO 22000:2005 the company has to demonstrate its ability to control food safety
hazards
• HACCP –
HACCP stands for 'Hazard Analysis and Critical Control Points'
HACCP is a food safety management system based on 7 principles to ensure that
potential hazardous products do not reach the end customer
• GMP Certified Company –
GMP stands for 'Good Manufacturing Process'
Process standards
At producer level
34.21
31.58
2.37
15.79
Land Extent-Cinnamon Cultivation
<2
2 to 5
5 to 10
10 to 50
27.1
0.0
2.1
66.7
4.2
Input Suppliers
Government
Exporters
Collectors
Sales Center
Other
At producer level
• Tendency towards in making coarse grades except fine grades
– Insufficient skilled labor (peelers)
– High labor cost
– No price differences
• Lack of proper production infrastructure and technology
– No separate processing place (in-house)
– No use of an uniform, cap etc…
At producer level
• Use of traditional methods for processing
– Use of primitive equipments (ko-keththa)
• Lack of storage facilities
• Lack of awareness of quality standards
At collector level
• Lack of awareness of international standards and specification
– Less concern to assure the quality
– Use very primary tools to measure quality (only
moisture meter)
• Poor hygienic, sanitary in storage and transport facilities
• High competition amongst collectors
– Tendency towards collect less quality products
At exporter level
• Finding quality products is the main constraint
– Limited linkages with producers, depend on collectors
– Collectors provide bales which are a mix of several grades
• High cost of obtaining and maintaining standard certificates
– Renewal of certificates in every three years
• Lack of interest on international buyers
– More than 50 % goes to Mexio as cuts/bales
At producer level
•Conduct awareness programmes on the importance of meeting quality standards •Introduce techniques, methods or equipment to make peeling, rolling and quilling job easy •Attract new labour and provide proper training on quality standards •Provide stable farm-gate prices (guaranteed price scheme as in paddy)
Pro
mo
te makin
g fine grad
es
At producer level
•Disseminate newly developed technologies to grass root level producers •Extend government subsidy on “in-house processing sheds” to less than 5 acres plantations •Establish central processing units •Promote organic fertilizer and encourage producers using organic fertilizer and also promote adoption of Good Agriculture Practices (GAP) for cinnamon
Imp
rove p
rod
uctio
n
infrastru
cture an
d
techn
olo
gy
At collector level
• Promote sound storage and transport system for cinnamon. Warehouse should be a covered premise, well protected from rain, sun and excessive heat
• Strengthen and introduce new technologies for quality assurance and improvement of cinnamon
• Make them aware on collecting quality products
• Introduce a support scheme to cinnamon collectors
Imp
rove in
frastructu
re facilities an
d aw
areness
At exporter level
• Develop appropriate methods and technology programs for processing
• Make linkages with producers
• Conduct market research to identify new markets and expand existing markets for cinnamon
• Provide intensive scheme for exporters who wish to achieve quality standards
Imp
rove in
frastructu
re facilities an
d assu
re qu
ality in
pro
du
cts