Market concerns for Tra My cinnamon

For a long time, Tra My cinnamon has not only been a commodity but has entered the consciousness of many people as a symbol, a unique cultural feature of Quang Nam. Tra My cinnamon was once considered “Cao Son Ngoc Que”, a precious product used to pay tribute to the king every year and used in longevity celebrations at the Hue royal court…

Export market stagnant

Up to now, according to statistics of the People's Committee of Bac Tra My district (Quang Nam), the whole district currently has about 2,000 hectares of cinnamon, with an output of more than 400 tons/year. In the district, there are 4 cooperatives and 10 business households participating in the production and bringing to domestic and foreign markets more than 70 products from Tra My cinnamon.

Mr. Nguyen Hong Vuong, Head of the Department of Agriculture and Rural Development of Bac Tra My district, said that the locality has developed a set of procedures for developing cinnamon trees according to planting methods, ensuring standards from determining planting areas, seedlings, care, pest control, harvesting, processing, and preserving products that meet standards for each domestic and international market segment. At the same time, a number of cinnamon tree development models have been built according to the value chain, to serve as a basis for promoting, replicating, and developing sustainable commodity production.

Cinnamon products can be used in food and beverages; food, beverage industry

In addition, in recent years, the People's Committee of Bac Tra My district has also promoted investment and introduced the potential of cinnamon trees through participation in fairs, forums, and product promotion activities. Cinnamon products are also promoted on e-commerce platforms, social networking sites, and online sales websites. Local authorities also create conditions for businesses to introduce cinnamon products to markets in Eastern Europe, Russia, Thailand, Singapore, and especially China... With its characteristic aroma, spicy taste, and high essential oil content, Tra My cinnamon is favored by many domestic and foreign consumers.

However, according to a representative of the Department of Industry and Trade of Quang Nam, recently, due to the stagnation of the export market and the decline in the quality of Tra My cinnamon, the consumption market has gradually narrowed, and local people have had to cut down many cinnamon areas to plant other trees with higher economic value... Mr. Pham Minh Sy, representative of the Tra My Minh Phuc Cinnamon Cooperative (Bac Tra My) shared that the unit is considered a young cooperative model, starting a business with a circular production chain, applying new science and technology to enhance the Tra My cinnamon brand. However, currently the output of cinnamon products is still fragmented, mainly in the domestic market, not taking advantage of the FTA market for export. Moreover, there are also difficulties in the crop season. For Tra My cinnamon, it is currently only harvested from March to May every year, and the August crop is almost unexploited...

Products need to have a brand

However, in reality, like other localities, Tra My cinnamon products are mainly purchased by traders and exported informally to the Chinese market. The planting area is not yet concentrated, research and development of product quality is still limited; the source of raw materials for production is not yet highly stable, not enough to meet the needs of the export market requiring high standards. In particular, most products have not yet built a brand in the market...

According to Mr. Le Minh Thao, Vice President of Ngoc Linh Mountain Ginseng and Tra My Cinnamon Association, to export cinnamon products to foreign countries, a brand is needed. However, geographical indications have not yet been registered for protection in key markets... Sharing the same view, Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said that businesses still have a "raw" mindset, do not focus on branding; do not pay due attention to sustainable brand development, lack of connection and cooperation between businesses, leading to the failure to take advantage of FTAs ​​to improve the position of the Vietnamese cinnamon industry in major export markets.

Meanwhile, in general, cinnamon products have a very wide range of applications, can be used in food, drinks; food products, beverage industry or pharmaceuticals, cosmetics, health care services and human beauty... Therefore, in order for the domestic cinnamon industry in general and Tra My cinnamon in particular to develop further in the coming time, according to Mr. Ngo Chung Khanh, it is necessary to increase the search for partners, connect customers for businesses; build an ecosystem for the industry (central agencies, localities, associations, major export companies, consulting companies, farmers, input material suppliers...); increase more practical measures to support businesses. Local authorities also need to maintain indigenous genetic resources to maintain the unique advantages of the aroma and quality of cinnamon trees.

Meanwhile, businesses must develop a promotion strategy that is specific, connects supply and demand, and develops the market. At the same time, identify and build a long-term market development vision in a systematic and professional manner. Trace the origin, focus on promoting geographical indications. Make efforts to connect and export cinnamon products to countries with high demand to increase the value of cinnamon trees.

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