Lao Cai: Over 30% of the cinnamon area will be certified organic

On August 25, in Bao Yen district, the Lao Cai Provincial People's Committee organized a seminar on investment and trade promotion of the cinnamon industry in Lao Cai province. At the seminar, Mr. Hoang Quoc Khanh, Permanent Vice Chairman of Lao Cai Provincial People's Committee, said that Lao Cai has a large forest planning area with over 417,000 ha, accounting for 65.5% of the total natural area. Of which, over 186,000 ha is the production forest planning area. In 2022, the area of forested land reached 382,000 ha, of which production forest reached 116,000 ha. The coverage rate reached 57.7%, three times higher than when the province was re-established (19% in 1991).

Lao Cai people are industrious in labor, thereby creating many specific cultural identities and rich traditional experiences in agricultural and forestry cultivation and development.

In order to promote this potential and strength, the Lao Cao Provincial Party Committee has issued Resolution No. 10-NQ/TU dated August 26, 2021, on the strategy for the development of commodity agriculture in Lao Cai province to 2030, with a vision to 2050. Of which, cinnamon is identified as one of the province’s six key products and industries to focus on development.

Cinnamon has been planted in Lao Cai province since the 1970s, and so far, it has confirmed its position and role in the development of the province's forestry economy.

With high and stable economic efficiency, over the years, especially from 2012 onwards, the area of growing cinnamon has increased rapidly. Currently, Lao Cai province has over 57,000 ha of cinnamon (8 times higher than that in 2012) and is the province with the second largest cinnamon raw material area in the country (after Yen Bai province). The province now has over 3,600ha of organic-certified cinnamon, and the area of organic cinnamon is continuing to increase.

As expected, the area of cinnamon raw material area in Lao Cai province will continue to increase in the coming time. Along with that, the province’s entire cinnamon area will be gradually shifted towards sustainable production, striving for over 30% of the cinnamon growing area to be certified organic.

It is expected that from 2024 to 2030, each year Lao Cai will have over 4,000 ha of cinnamon reaching the clearcutting age and about 10,000 ha in the thinning phase. The output of cinnamon exploited each year is expected to reach over 40,000 tons of dried bark, 350,000 tons of branches and leaves, and more than 210,000 m3 of wood. The output of cinnamon essential oil is estimated at 1,600–2,000 tons/year.

However, the rapid development of cinnamon also creates a difficult problem in meeting quality standards, price fluctuations, and output markets.

"Therefore, Lao Cai province aims to develop the cinnamon industry in a sustainable and high-value way; associate production with processing and product consumption to form a closed chain; and bring Lao Cai’s cinnamon products meeting quality standards to consumers; turn the potential and strength of the vast cinnamon raw material area into practical value; and determine on developing cinnamon into a commodity that brings high economic value and contributes to improving people's living standards, "emphasized Mr. Hoang Quoc Khanh.

Lao Cai province is committed to always creating the most favorable conditions to encourage businesses and investors to grow, process, and consume cinnamon products in an effective and sustainable manner.

Bao Yen district (Lao Cai province) has the largest cinnamon area in the province, with more than 25,000 ha of cinnamon. Although the current cinnamon area of Bao Yen is relatively large, there is no area of cinnamon that is certified organic or meets other good agricultural standards, so the price of the product is not high and it is not accessible to high-end markets such as the US and EU.

Mr. Nguyen Anh Dung, Vice Chairman of the Bao Yen District People's Committee, said that in order to develop the cinnamon industry sustainably, the locality is promoting solutions to gradually build the Bao Yen organic cinnamon brand. With more than 25,000 ha of existing cinnamon, the district has invited businesses to study and implement the organic cinnamon process, with an orientation from now to 2025 to build 5,000 ha of cinnamon meeting organic standards.