Ten years after the Asian tsunami devastated Sarath Kumara’s cinnamon plantation in Sri Lanka, forcing him to start over with nothing, the farmer faces a new threat from further afield.
Sri Lanka is the world’s leading cinnamon supplier thanks to its centuries-old industry, whose lush, green plantations are strung along the island’s southern coast where European colonists and Arab traders once flocked.
However, the industry says its product — known the world over as “Ceylon cinnamon” — is being undermined by a cheaper rival called “cassia cinnamon” grown mostly in China, Southeast Asia and neighboring India.
Photo: AFP
“It took about four years before I could get any crops from new trees and it is only now they are giving a full yield,” Kumara, 54, said at his ancestral farm in Hikkaduwa, 100km south of Colombo. “I have not seen cassia, but we know that some people [abroad] adulterate our cinnamon with cassia or sell cassia as Ceylon cinnamon.”
Kumara lost a brother and a sister-in-law, while half of his 9,000 trees were uprooted, when walls of water destroyed plantations in the 2004 tsunami and left 31,000 people dead and a million homeless across the country.
The industry eventually recovered to become stronger than ever thanks to international donors and a herculean effort by its farmers who replanted half a million cinnamon trees in Hikkaduwa and adjoining Balapitiya area.
Photo: AFP
With cinnamon prices now soaring, the Sri Lankan industry fears wholesalers will increasingly turn to the cheaper product, which is darker in color and according to purists leaves a bitter aftertaste — but still label it “Ceylon cinnamon” or simply cinnamon.
The Spice Council of Sri Lanka wants to protect the brand “Ceylon cinnamon,” and has approached the WTO and the EU about gaining copyright or a patent.
“In many Western countries, cassia is passed off as Ceylon cinnamon [in supermarkets and other shops],” council head Sarada de Silva said. “The true cinnamon is Ceylon cinnamon.”
The council wants the WTO to declare “Celyon cinnamon” a specific product based on a “geographical indication” along the same lines as Champagne, which comes from the region with the same name in northern France.
Under Portuguese, Dutch and finally British colonial rule from the 1500s, the Indian Ocean island was called Celyon and switched to Sri Lanka upon becoming a republic in 1972.
The aromatic spice — used in savory dishes and desserts — grew naturally in Sri Lanka for centuries before Dutch invaders started commercial crops in the 17th century. Sri Lanka’s industry, which supplies 80 percent of the world market, is enjoying record export earnings for the island. High-grade cinnamon oil, extracted from the bark, has been fetching up to 65,000 rupees (US$510) a kilogram.
Cinnamon earned Sri Lanka a record US$135 million from 13,866 tonnes exported last year compared with US$47 million from 12,000 tonnes in 2005, with Mexico, Colombia, Peru and the US the major buyers.
“Prices have never been so good,” De Silva said. “The challenge is to get our geographical indication recognized [by the WTO and others]. That is the best way to deal with cassia.”
The tsunami tragedy pushed devastated cinnamon farmers to invest in better technology upon rebuilding their farms and oil mills and are now reaping the rewards.
“After replanting, it took me four years to make money again,” said farmer Upul Asanka, who lost his farm in the tsunami.
“Initially there was salinity in the soil, but it is better now,” the 38-year-old said.
Kumara said he harvests his 9,000 trees every eight months, compared with every 18 months before the tragedy.
“Since the tsunami our agricultural practice has improved,” Kumara said.
“I notice that the replanted trees give a better crop,” he added.
Improved productivity has also allowed farmers to produce more of the lower-grade oil extracted from cinnamon tree leaves for use in balms, disinfectants, detergents and soap. The more expensive bark oil, meanwhile, is being sold for addition to high-end perfumes and even fizzy drinks.
The council has commissioned a study into the perceived health effects of cinnamon, which some have long claimed lowers blood sugar levels and cholesterol.
Chef Dell’Ascenza Riccardo of Sri Lanka’s biggest luxury hotel chain, also known as “Cinnamon,” said he has started using the famed local product in his Italian dishes.
“I use it for my red wine sauce and many other dishes,” Riccardo said. “The diners feel something different and it makes a good impression.”
Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Monday introduced the company’s latest supercomputer platform, featuring six new chips made by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), saying that it is now “in full production.” “If Vera Rubin is going to be in time for this year, it must be in production by now, and so, today I can tell you that Vera Rubin is in full production,” Huang said during his keynote speech at CES in Las Vegas. The rollout of six concurrent chips for Vera Rubin — the company’s next-generation artificial intelligence (AI) computing platform — marks a strategic
REVENUE PERFORMANCE: Cloud and network products, and electronic components saw strong increases, while smart consumer electronics and computing products fell Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors. On an annual basis, revenue last quarter grew 22.07 percent, the company said. Analysts on average estimated about NT$2.4 trillion increase. Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses. This
Garment maker Makalot Industrial Co (聚陽) yesterday reported lower-than-expected fourth-quarter revenue of NT$7.93 billion (US$251.44 million), down 9.48 percent from NT$8.76 billion a year earlier. On a quarterly basis, revenue fell 10.83 percent from NT$8.89 billion, company data showed. The figure was also lower than market expectations of NT$8.05 billion, according to data compiled by Yuanta Securities Investment and Consulting Co (元大投顧), which had projected NT$8.22 billion. Makalot’s revenue this quarter would likely increase by a mid-teens percentage as the industry is entering its high season, Yuanta said. Overall, Makalot’s revenue last year totaled NT$34.43 billion, down 3.08 percent from its record NT$35.52
PRECEDENTED TIMES: In news that surely does not shock, AI and tech exports drove a banner for exports last year as Taiwan’s economic growth experienced a flood tide Taiwan’s exports delivered a blockbuster finish to last year with last month’s shipments rising at the second-highest pace on record as demand for artificial intelligence (AI) hardware and advanced computing remained strong, the Ministry of Finance said yesterday. Exports surged 43.4 percent from a year earlier to US$62.48 billion last month, extending growth to 26 consecutive months. Imports climbed 14.9 percent to US$43.04 billion, the second-highest monthly level historically, resulting in a trade surplus of US$19.43 billion — more than double that of the year before. Department of Statistics Director-General Beatrice Tsai (蔡美娜) described the performance as “surprisingly outstanding,” forecasting export growth