Business incentives for organic cinnamon producers

Enterprises collaborate with producers to establish organic cinnamon regions

The organic cinnamon production movement in Van Yen district of Yen Bai province, which is the largest "cinnamon market" in Vietnam, has been in full swing for some time. The district has established a concentrated cinnamon planting area in the organic orientation on a 35,000 ha area. The cinnamon area with international organic certification has reached 11,000 ha and is expected to increase to 15,000 ha by the end of 2024.

In addition to the significant involvement of local authorities, scientists, and active support from enterprises, farmers' mindsets regarding organic cinnamon production have evolved.

The company conducts regular training courses for farmers on cultivation practices, the creation of high-quality products, and the enhancement of the value of the products, according to Le Van Long, the project manager of Son Ha Spice Flavorings.

In addition, the organization implements a distribution system in each village to facilitate the trading environment for the populace, as well as offering producers training in the area of quality evaluation. In addition to trading, they also provide direct communication and guidance to producers to ensure the production of high-quality products.

The company invests in infrastructure facilities and contemporary equipment systems at the processing plant to improve the quality of the products. Van Yen cinnamon material areas that are underwritten by the company are currently certified under the American Standard Organic and sustainable agriculture standards. These are relatively high standards in the agriculture sector. Son Ha Spice Flavorings has presently established a large organic cinnamon area, collaborating with approximately 11,600 farming households. 6,000 ha of this area have been certified to meet US and EU standards.

The company ensures sustainable development by establishing a linking chain that extends from agricultural households to local authorities and enterprises, as well as the distributor system. Initially, the organization provides farmers with training and guidance on the principles of organic cinnamon production, from the hills to the processing plants. This includes instruction on the harvest, preservation, and transportation of the product to prevent cross-contamination and the occurrence of mixed organic standard and organic substandard products during the harvest, transportation, and preliminary processing.

In particular, the organization offers farmers incentives for producing high-quality products that can be sold to the facility. The company distributes reward cash to producers in the project area on an annual basis, with a range of 3 to 5 billion USD.

Additionally, some initiatives provide producers with the essential resources to produce high-quality products. For instance, each agricultural household will receive a complimentary supply of chemical-free packaging and white fasteners to facilitate the production of cinnamon without the risk of chemical cross-contamination. They also conduct social welfare activities regularly, provide free check-ups and medicine distributions to farmers, and support pure water tanks.

The company dispatches its trade staff to each household and provides training to all distributors. Additionally, the company conducts an annual internal assessment to determine whether they can inspect product quality.

Making efforts to cultivate 35,000 hectares of organic cinnamon by 2025

The current cinnamon export market has been more stringent, particularly in demanding markets such as the United States and the European Union, according to Le Van Long. The input quality criteria for lower markets, including the Middle East, India, and China, have become more stringent.

The cinnamon production industry is currently confronted with two primary concerns: the heavy metal content in the products and the residual compounds. As a result, businesses must work in close collaboration with local authorities to provide farmers with regular guidance on pest management and to prevent the use of banned pesticides when using pesticides and other chemicals on cinnamon. It is imperative to organize the raw material areas to prevent cross-contamination between households that engage in organic production and those that do not.

This is a substantial concern for both local authorities and enterprises to heavy metal residue. Therefore, it is imperative to collaborate in the development of a comprehensive research project that will reduce the presence of heavy metals in cinnamon products. This will result in the development of technical solutions that will assist and instruct farmers in the implementation of production processes that adhere to industry standards. Sustainability in the export of the products can only be accomplished through this method.

Mr. Pham Trung Kien, Vice Chairman of the People's Committee of Van Yen District, stated that the district's objective is to further enhance the quality and quantity of cinnamon products by progressively focusing on high-demand markets to increase the income value for the population.

According to Mr. Kien, the expansion of the organic cinnamon material area to comply with international standards and certifications is a long-term process that involves the selection of varieties, intensive cultivation, care, and preliminary processing. Households and production areas that have been granted organic certification are required to undergo a rigorous sampling and testing procedure for buffer zones, soil, water, cinnamon bark, and leaves.

An independent unit will conduct testing to issue certifications, and the province of Yen Bai will completely support the costs of hiring a consulting unit to handle this process. Furthermore, certain organizations have entered into agreements with residents to cultivate organic cinnamon material areas for export.

At present, households are directly granted organic certification. Nevertheless, collective certification is required for organic cinnamon that is introduced into the US and EU markets by 2025. Consequently, the demands for cinnamon material areas will be greater, necessitating the collaborative coordination of all households in a production area rather than individual households.

Van Yen District will persist in developing and expanding the organic cinnamon material area in the district by utilizing programs and policies such as Resolution No. 69 of the Yen Bai Provincial People's Council and national target programs in the future. This will establish advantageous circumstances for cooperatives and businesses to survey and construct organic cinnamon material areas for export.