NDB pioneered national initiative to spice up local industry and achieve international brand recognition synonymous with ‘Ceylon’ identity
Ceylon Cinnamon, also known as ‘True Cinnamon,’ may be the finest in the world, but despite its excellence, long history and the extensive list of benefits, it has failed to reach its deserved top spot on the international scale.
Even though a national branding attempt was made in 2011 with the launch of ‘Pure Ceylon Cinnamon’ along with its very own Lion logo, going down in history as the second national brand launched by the state for an agricultural product after the famed ‘Ceylon Tea,’ the cinnamon industry still has a long climb to the top.
With the Government setting a target of achieving US$ 1 billion in foreign exchange along with other spices and allied products by 2020, the industry is now looking at aggressive growth with the support of the state organisations and private sector collaborations. Records note that in 2012, the cinnamon industry has brought approximately US$ 12,630 million in revenue.
An initiative by NDB
To support this journey, National Development Bank (NDB) recently launched a national initiative titled ‘Cinnamon to the World’ aiming to empower industry stakeholders and achieve recognition as an international brand synonymous with Sri Lanka’s unique identitA long-term strategy which is likely to be a five-year commitment, ‘Cinnamon to the World’ was rolled out to partner the industry, supporting cinnamon growers, exporters and cinnamon related product manufacturers in the country, with a vision to stimulate the growth of cinnamon exports in Sri Lanka. EDB, Spice Council of Sri Lanka and Ceylon Chamber of Commerce are strategic partners of the initiative.
“NDB is delighted to support and spearhead a project to realise the full potential of the product to become a world class, value added industry,” NDB CEO Rajendra Theagarajah said. “Through the bank, we provide for close to 40% of the cinnamon exporters. Opportunity now exists to expand and strengthen this area. We will give the industry renewed life.”
Through the initiative, NDB will facilitate industry growth both directly and indirectly. While playing its role as a financier, it will also facilitate industry linkages enabling knowledge sharing and development of minor stakeholders of the industry.
Theagarajah added: “We will also ease global market access for Ceylon Cinnamon by generating greater exposure through a robust international branding campaign.”
Overview of the cinnamon industry
The Spice Council Chairman Sarada De Silva revealing some statistical data on families and hectares – noted that cinnamon plantation happens across an extent of 39,000 hectares, with the involvement of over 350,000 families. Total beneficiaries are said to be at 1.5 million persons. Total production of cinnamon was mentioned as 16,000 metric tons.
Dominating 90% of the world market with exports to over 70 countries, cinnamon contributes to over 55% to the spice industry of the country. “Export growth in the first six-nine months has been around 6%,” De Silva said.
In terms of extent of cinnamon cultivation by districts, Galle has the highest number with 35%, Matara district has 27%, Ratnapura 12%, and Kalutara 5-6%. In areas like Matale and Badulla, some of the uneconomic teas are being uprooted and cinnamon is being planted in their place as well.
The key competitor to cinnamon is cassia. Even though most prefer the local product, affordability and supply has limited the demand for the product in the global market. The products biggest market is in Mexico, followed by Columbia, Peru and the lower part of USA.
As every part of cinnamon can be utilised, there is a range of products such as cinnamon quills, cut cinnamon, cinnamon quelling, chips, feathering, powder, bark oil, leaf oil, oleoresin, flavours, tablets, perfumes, candles, etc., that is on offer for consumers.
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