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  NEWSLETTER ISSUE XIX: JUNE 2016  
   
     
 

“Fair For Life” Certified
1st Anniversary

 
     
 

Saddened by the recent passing of our Cinnamon supplier and primary FFL project leader, Pak Haji Tjap, 2016 was off to a difficult start. We continue to work closely with his family through this challenging time to ensure a future for the Sumatran program. After one year of certification, the sons of Pak Haji Tjap and TRIPPER are proud of the updated results granted by “Fair for Life”. The complex supply chain of Cinnamon production did not ease the certifying process, but several areas were modified for improvement. Documentation to ensure traceability of Cinnamon lots and the working conditions of worker in both field and warehouse were revised and transformed.

We are expanding our network of Organic and “Fair for Life” certified farmers...  Mr. Asnil in West Sumatra is working with us to certify Cinnamon sticks through the FFL Social and Fair Trade program! We also recently completed an interview with Pak Aris regarding his organic Vanilla plantation in Manado. Vanilla and Clove suppliers prepare for harvest season, we continue to support them and identify methods for social development among our program members and supply chain actors.

Nature-Future-Culture Certification – New crops under study!
Our team is reviewing new spices for NFC certification, TRIPPER’S internal standard for quality ethical and sustainable production. Turmeric and the Ginger will be soon available NFC certified! We look forward to testing our standard with our supplier in Java, Pak Adip.

 
     
 
 
 
 
     
 
 
 
 
   
   
 
 
 

VANILLA UPDATE. The first two months of 2016 were quiet for the Vanilla trade, but news of Madagascan shortages and quality defects travelled quickly.
Some Vanilla holders are delaying sales in anticipation of price hikes. Why sell now when one can sell later at potentially higher price? Other suppliers will try and push old stock because of inflated prices, so expect to see a mix of old and new beans on the market this year.

Previously, Indonesian Vanilla production was on the decline as farmers were repelled by the low prices of 2004-2005. A steep price increase in 2015 led to renewed interest in Vanilla crops and farmers were motivated to plant new vines. The results from the 2015 planting won’t be seen for a minimum of 2 years but buyers can count on Indonesia further securing its foothold in the market. Over 300MT were exported from Indonesia to U.S. alone in 2015 and Indonesia is expected to be a key player in 2016 vanilla exports. Indonesian crops with be available June-July. Prices will remain unstable with a probability of increase until the Madagascan crop is ready around September, directing the global market price.

CINNAMON UPDATE. A continued reluctance to plant has led to price increases in certain areas because of limited supply. However, the market has been relatively stable from October 2015 to April 2016.
Idul Fitri takes place from June - July 2016, commodity prices generally soar during this time as people gather supplies in preparation for a month of prayer and fasting. The coffee harvest starts in May and ends August of 2016. We can expect price hikes during these months but anticipate the market to stabilize from September 2016 onward.

Indonesia suffered from one of the most severe El Nino’s in two decades. We saw reduced rainfall this wet season and parts of Indonesia experienced drought. Historically, a powerful El Nino is followed by a strong La Nina associated with heavy rain. La Nina is estimated to last anywhere from 9-12 months. Fortunately, Cinnamon is harvested year round and is dependent on the maturity of the tree as opposed to season.


 
     
   
     
 
 

Best remedy to a Vanilla crisis? mixing origins

 
Sensory Result. Seven key taste/ flavor characteristics are used as parameters

 

 

We all know the definition of insanity: doing the same thing again and again, expecting a different outcome. The Vanilla crisis we are going through now shows the same symptoms as the previous one in 2003 and is certainly influenced by similar market demands. The vast majority of formulas (ice cream, beverage, desserts, bakery, etc) that have been developed over the years exclusively use Bourbon Vanilla from Madagascar and reject beans from other origins such as Indonesia, PNG & India. This would be fine in a perfect world if Madagascar always offered stable quality at stable prices but history has proven just the opposite.

So why keep sticking to one source? It’s time to diversify and use equally flavorful Vanilla from different origins.

At TRIPPER we like to make extracts using a blend of Indonesian and PNG beans.
The Indonesian beans have a chocolaty, sweet profile with some woody smoky notes, while the PNG beans have a floral fruity top note with hints of aniseed. It makes for a very exciting blend which consumers love.

Our PNG Gourmet vanilla beans are also wonderful for chefs making crème caramel, custards, cakes and much more.

 
 

 

 

Bright Future Ahead for Indonesian Economy

According to the IMF, Indonesia is among the world’s highest emerging markets with growth at 5%. President Jokowi is making moves to ensure Indonesia’s presence in the global economy is known. He sought inspiration for the direction of Indonesia’s digital economy in the Silicon Valley this February and last month he met with David Cameron, Prime Minister of Britain, Indonesia’s fifth biggest investor nation. Indonesia set to become the world’s seventh largest economy by 2030. Consequently, an EU-Indonesia Free Trade deal may become a reality as other countries recognize investment opportunity. Finally, President Jokowi is the first president to visit the Netherlands in 16 years. The visit was arranged in order to foster economic relations with the former colonizers.

In order to maintain economic stability, investment interest, and continue growth Indonesia has much to implement. It must continue reforms to open trade, diversify revenue streams, and realize social programs. As nations turn inward with their fiscal policies, it is especially important that Indonesia eradicate complicated laws responsible for decreasing foreign direct investment appeal. Indonesia has a particularly large infrastructure gap when compared to other emerging markets. In January 2016 dwell time (loading and unloading) at Indonesian ports stood at 4.6 days. This is a significant improvement from the 6.0 days of a year ago but high compared to dwell times in Singapore or Malaysia.
The nation’s ability to compete is drastically curbed by the high cost of transportation and logistics. Fortunately, capital from successful oil subsidy reform has been redirected to infrastructure projects.
 
 
 

 

 

World's Largest Natural Product Expo

Natural Products Expo West is now the world’s largest natural products event with over 77,000 attendees. This year the TRIPPER booth was located front and center surrounded by other inspiring and innovative minds in the natural health food industry.
The smell of our Cinnamon sticks drew people from all over the exhibit hall. Our ice cream and cookies made from each of our aromatic spices were offered as an excellent way for attendees and potential buyers to taste our products.

We noticed a blossoming demand for products featuring Turmeric and were spot on trend in presenting our version of Jamu, a traditional Indonesian Turmeric health beverage. It’s an ideal product to showcase the health benefits of all natural and organic spices in beverage application. We were excited to hear people comment that scent and flavor were perfectly tied together. TRIPPER looks forward to seeing what next year’s exposition will bring!
 
 
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Food Ingredients Asia 2016 JIEXPO, Jakarta

This September we will be attending the annual Food Ingredients Asia show in Jakarta… 17,000 visitors are expected to attend South East Asia's leading food and beverage event. Attendees from across the region and globe will be looking to secure new partnerships with exhibitors who are offering premium products and our R&D team have been hard at work preparing for the event. Expect to see new innovation in product development from the TRIPPER group at this years FIA!

 
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Singaporean engineers, D.G.S, designed our latest processing facility to meet our eco-friendly needs. The bamboo structure was constructed to stand the test of time and underwent a special organic pesticide treatment in order to keep the wood strong and safe from deterioration. Indonesian builders, Asali Bali, made sure to keep sustainability at the forefront by focusing on waste management, energy and materials conservation during construction. TRIPPER is happy to share that the new environmentally friendly design will now be implemented in projects for other companies!

 
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Obituary: Bapak Haji Tjap Solar Eclipse + Hari Raya Nyepi + Kartini Day
   

Our friend and colleague Haji Tjap, born Syafrizal Nurdin, 14 April 1955 in Padang, Sumatra, has recently passed... Mr. Tjap, inherited and successfully operated his family’s Cinnamon business for over 40 years. During our two decades of partnership with Mr.Tjap we knew him to be a kind visionary and passionate advocate of natural farming practices. Mr. Tjap is survived by his wife, daughter and two sons who will continue his legacy as proud stewards of their family land.

 

 

Photo credit: Sondra Houghton from One Degree Organics

Here in Bali we celebrated Hari Raya Nyepi. a day the entire island is closed in respect of this special Balinese Hindu tradition. It is a full day of silence and reflection in which all inhabitants are required to remain indoors. With the absence of vehicles on the road, it is quiet and the ocean can be heard from far inland. Stars shine brightly at night as the holiday prohibits the use of lights and electronics. A strange sight for tourists on the island, all shops and even the airport is closed!
March 8-9, a total solar eclipse took place with some of the best views over the Indonesian island of Sumatra. Thousands of people gathered across Asia to witness one of nature's most spectacular shows!
This April, Indonesia celebrated Kartini Day and the life of Raden Ajeng Kartini. She is widely regarded as one of Indonesia’s first feminists and was a vocal advocate for gender equality and women’s access to education.
 
   
 
 
 
 
 
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