FOOD INGREDIENTS ASIA (FIA) 2012
The Food Ingredients Asia Show is held annually and alternates between major capitals…Thailand, China and Indonesia. This year the FIA Show was held over 3 days (Oct.03-05) at the Jakarta International Expo site, with 296 exhibitors participating from many countries and 9361 food professionals attending.
Tripper's participation as an exhibitor was focused on expanding on the increasing opportunities on its doorstep of an expanding Asian market. The FIA statistics indicates that 85% of visitors have an involvement in the purchasing process.
  Our participation brought positive results establishing new contacts with traders, distributors and end users from across the Asian region, hopefully leading to new sales and expanding our global presence beyond our established markets in Northern America and Europe. The show provided the opportunity to increase our knowledge of the big players in the region and to focus on finding local agents or distributors to assist in market penetration. Most exhibitors at the show concentrated on the sale of chemically produced flavoring.

  Tripper's expertise lies in dealing exclusively in the production of all natural products with a quality policy aimed in meeting or exceeding customer expectation, and this was the prime message we hoped visitors walked away with. Samples of our spices were made in cookies & candy which met with the approval of our visitors who appreciated the natural taste, free of chemical flavorings. Many visitors to our booth also remarked it was the first time they had ever actually seen a vanilla bean or the bark of unprocessed cinnamon straight from the tree.
  Our first experience participating in the show was extremely positive, with face to face contact enabling the effective promotion of our product to many new potential customers. We updated our knowledge of the latest technology available and shared local & global market information with other spice companies as well. Tripper will definitely be present at the even larger FIA China Show, to be held from June 25-27 in Shanghai, 2013.
 
During September and October, large cinnamon buyers in Padang, Sumatra are demonstrating their need to fulfill future contracts by doing a "buka gudang" (opening their warehouse). Word quickly gets around to cinnamon suppliers in the Kerinci region that company "X" is seeking 1,000MT of bark. This sudden seasonal demand, combined with the onset of the rainy season are the reasoning behind a slight price increase at origin. Buyers quickly reach their quota, and again "tutup gudang" (closing their warehouse) and the buying stops usually before the new year.   SPICE REPORT:CINNAMON
Prices at source drop again. Tripper's purchase model is different, as we continuously buy non-stop 52 weeks a year.
  Unlike those large buyers who store their inventory for months on end, TRIPPER has a policy of keeping bark no more than one month, to prevent any significant reduction in the volatile oil which can quickly diminish in storage. We buy, store, and process immediately. Using fresh cinnamon bark ensures our DRAGON cinnamon has the unique sweet and spicy profile that our customers enjoy.
 
  SPICE REPORT:VANILLA
Increasing demand is likely the underlying factor in this year's price rise with exporters pushed to meet their orders. I'm not about to attempt to predict quantity or price into 2013.
Indonesia has been consistently producing around 100MT for the past 5 years, mainly from the islands of Northern Sulawesi and Flores (north & east of our processing facilities in Bali). The quality of the beans is spread across a good mix of grades, with 50% of the crop having a vanillin content averaging apx 1.5%. The remaining crop is premature material.
  Stubborn traders hoping or expecting unreasonable prices hold an estimated 100MT of very poor stock, dry and contaminated by other spices transmitted through trader warehouses over the years. Carry-over stock of quality vanilla is very limited.
Papua's vanilla output remains close to zero with a minimal output for more than 4 years, however the vines are still healthy. A fast recovery of output could occur if prices rise sufficiently to encourage renewed production.

Any article on Indonesia and PNG vanilla has to first address Madagascar's crop, which for 2012 appears to be good in terms of quality, with the initial crop analysis expected shortly and an estimated output between 1500-1800MT for the year. Prices are going up every week, and will prove to be 50% or more expensive than last year's crop, although prices remain historically low.

If prices in Madagascar keep increasing, Indonesian farmers will likely be slow in reverting back to vanilla production with a lot of producing areas having moved on to alternative crops such as cacao, ginger, and chili. Indonesia's smaller crop coupled with increasing demand pressures means Indonesian vanilla still gains a slight premium in price over its African counterpart.  
 
NEW PRODUCT
MEET & GREET
and ‘ISLAND OF THE GODS’
LAUNCHING
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Jan 20 - 22, 2013
MOSCONE CENTER
Booth #2533
747 Howard Street
San Francisco, CA 94103
ISLAND OF THE GODS
TRIPPER INTRODUCES A NEW LINE OF PREMIUM PASTES
Tripper has recently added a line of 4 new premium pastes under its newly created “ISLAND OF THE GODS” brand line. This new line includes Vanilla, Chili, Cinnamon and Ginger and comes as a thick liquid texture (paste) with a strong aroma and taste. The pastes are all natural and without any preservatives, emulsifiers or antioxidants.

ISLAND OF THE GODS pastes have a shelf life of 1 year and come packaged in a quart bottle (0.946 L) with a case containing 12 quarts. The new line, suitable for application in syrups, confectionery, bakery and seasoning, is targeted at the food service industry but we hope will find its way into both the retail and wholesale markets.

This new line of pastes pays homage to the production source here in Bali, where the religious and daily life of the Balinese people is intricately entwined. The paste forms a key ingredient in the characteristic Balinese flavor in foods such as Lawar and is traditionally ground using a mortar and pestle.

  Balinese beliefs focus on their gods and goddesses, and maintaining harmony with good and bad spirits. The island is well known for its creativity evidenced in its distinctive arts and culture. One outlet of this creative flair is displayed in the hours spent preparing flowers and food offerings presented in their many religious ceremonies, the food being eaten once the gods have taken the essence of the offering.  
 
INDONESIAN ECONOMIC UPDATE
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IS INDONESIA ASIA'S BEST KEPT SECRET?

When investors talk about Asia, they seldom mention Indonesia. But with China's economy cooling down and India facing some serious structural problems many companies are waking up to the idea that between these two new powerhouses lies a country with formidable potential: Indonesia.

With a population of over 250 million people, Indonesia today is the 16th largest economy in the world, with a current growth rate of 6.5 % p.a., maintaining that rate would see it become the world's 7th largest economy by 2030.

 

Many nearby countries such as Singapore, China, Korea and Japan who have been investing in Indonesia for decades understand the potential growth in this emerging market and are increasing their investments in this expansive archipelago.

In Q3 of 2012, FDI (Foreign Direct Investment) was up 25 % compared to 2011, with foreign capital mainly directed towards the mining, chemical, pharmaceutical and telecommunication sectors.
Living in Indonesia, the evidence that the economy is growing fast is undeniable: hotel occupancy is high, airports and shops are packed, and allotments in new industrial areas are sold out prior to completion.
Assuming a smooth 2014 presidential election and continued politically stability, there is little doubt that Indonesia is set to become one of the world's key economic players.