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  NEWSLETTER ISSUE XX: NOVEMBER 2016  
   
     
 

Sustainability: Yayasan T.E.A distributes funds

 
     
 

Through a collaborative effort, Yayasan T.E.A (TRIPPER Environmental Awareness) has allocated funds it has raised since its conception in 2015. With every fair trade purchase, TRIPPER invests an additional 5% to help positively impact farmers and the local community.

TRIPPER utilized the funds to purchase approximately 12,000 Cinnamon seedlings that were distributed to the beneficiaries of the program. A total of 67 Cinnamon collectors & harvesters gathered to receive the seedlings. The group, mainly women (more than 70%), primarily used the money to pay for their children’s school fees and materials. A second distribution is scheduled for October and will bring us closer to our goal of replanting 20,000 trees by the end of the year!

Replanting is not only important in minimizing our environmental footprint, but essential in the effort to keep the traditional Cinnamon industry alive. Cinnamon trees can take up to 20 years to mature, making it a major investment for a family to rely on the crop as their primary source of income. Keeping seedlings in rotation and replacing what has been harvested are key components in ensuring Cinnamon farming is practiced sustainably. One tree produces an average of 35kg of dried Cinnamon bark & 20,000 trees will produce 700MT of bark in the next 20 years.

A purchase from TRIPPER not only helps to encourage transparent and sustainable agriculture, but also helps fund projects that support local communities. Yayasan T.E.A is open to receiving external funds to help finance projects with Cinnamon harvesters and other producers in our community!

 
     
 
 
 
 
   
 
Fair for Life Social & Fair Trade certifications have received another layer of quality assurance through the Global Social Exchange Programme Equivalence Process. GSCP companies show commitment to a global standard of best practices regarding socially and environmentally sustainable business.
 
   
 

Understanding recent increase of CINNAMON prices


 
  cinnamon farmer  
 

Over the last few weeks we have witnessed a sudden increase in Cinnamon bark prices. The Cinnamon farmers in Kerinci, Sumatra have raised their prices by a minimum of 30% with potential for increase. They explained that there are multiple reasons for the price spike. Indonesia's rainy season has begun which makes sourcing, processing and drying of the barks a lengthy undertaking. The poor weather conditions increase an already labor intensive process.

In addition, many of the farmers have placed their attention and resources on coffee crops as it is currently harvest season. Finally, there is an overall scarcity in raw material. This final point is paramount to remembering the importance of supporting sustainable Cinnamon production. There is a clear connection with the Cinnamon price surge and low inventory of raw material at origin.

 
     
 
 
Kretek Cigarette speculation directs CLOVE market   VANILLA crisis continues
 

Recent rumors about a significant rise in Kretek Cigarette prices have affected Clove prices. The issue has raised concerns that the cigarette production will be cut by 50%, meaning that the Clove production may also be cut by 50%. Of course this is all speculative, but the government has failed to communicate clearly on this topic. As a result, many farmers have resorted to dumping their Clove inventories. In Indonesia, over 1 million Clove farmers produce between 50-120,000 tons per year and 97% is utilized by the cigarette industry.

Pesky stem borers are proving to be a problem with Clove production and natural pesticides are being implemented to help avoid further infestation. Indonesia is responsible for approximately 80% of the worlds Clove production and the government is researching other ways to address the issue which has affected more than 1 million trees.

News of soaring Vanilla prices in Madagascar has obviously affected Indonesian vendors trying to cash in on this crisis. Prices are at an all-time high since 2003.
Indonesia’s current crop is hard to read, but from all the surveys we have made we are certain it will be a small one (maximum 100 MT). Farmers have replanted many vines but it will take 2-3 years to see the yields. In the meantime, we are offered lots of old inventory, sometimes more than 10 years old. Needless to say, the higher the prices the lower the quality (poor vanillin content, mold presence, foreign materials …), so we need to be extremely careful when accepting any new lots. During times of market volatility, it is especially important to note that TRIPPER Vanilla stands apart from others, that are a result of quick curing & rushed extraction which leads to lower quality. Speculation has been a huge catalyst to the price fluctuations we are seeing now. We hope the Madagascar chaos soon disappear and we can reestablish a normal Vanilla quality at standard prices.

 
     
   
     
 

FAIR FOR LIFE score improvement

 
 

Our field team just came back from our annual Fair for Life & organic audits at our Clove and Vanilla plantations. TRIPPER continues to improve its partnership with farmers and this is reflected in an increase of our scores from Fair for Life. The next step is to support the beneficiaries in getting organized as a farmer group so that they have more power in setting fair prices.

Although the Vanilla farmers planted new vines, they lack confidence about their 2017 crop due to the poor quality of Vanilla seedlings they managed to get a hold of during the shortage. Only time can reveal how the new crop will fare.

In other news, we continue to shorten our supply chain in Indonesia and seek to move Ginger & Vanilla networks as close to processing facilities as possible.

 
 


 

 

Economy:
Rebuilding confidence after economic hiccup

In Asia it is commonly said that when China sneezes neighboring countries catch the flu. This perfectly describes Indonesia’s current economic situation. Indonesia is heavily dependent on its Chinese counterpart for export of commodities such as coal, palm oil, nickel. Naturally, when China’s growth slowed, so did Indonesia’s.

Various economic statistics show that a slowdown is happening in Southeast Asia’s largest economy. Indonesia’s central bank slashed GDP projection to 4.9% from 5.3%. Domestic consumption is responsible for 60% of economic activity and with the average Indonesian worried about the future, we are witnessing a drop in sales of consumer goods.

The government is doing its utmost to rebuild confidence for the Indonesian middle class and boost foreign investment. The recent appointment of a finance minister known for her fiscal discipline has increased confidence in the government’s ability to tackle its short and long-term economic challenges. The government hopes a new tax amnesty will generate inflows from wealthy Indonesians who have long held their money in offshore havens. An end to oil exploration taxes is meant to help revive the Indonesian oil industry, which suffered heavily from a max exodus of foreign operators. It takes time to see the effects of new regulation, so there is unlikely to be drastic immediate change to the current economic climate. The result of policies implemented in 2015 aren’t expected to show until the end of 2017.

President Jokowi still has high hopes of executing his goal of 7% growth by the end of his term. He has the support of both the people and the majority of the Indonesian parliament. After meetings for an Indonesian/United States economic initiative, the US Chamber of Commerce Executive VP also believes his goal is still attainable.

 
 

 
 

Product Feature: Banana spray-dried

Our natural spray-dried extract powder captures all the flavor of perfectly ripe bananas. We use Pisang Raja, a local Indonesian variety of banana that has a stronger flavor than the Cavendish variety most commonly used in typical banana powders. You won’t find any imitation flavors or synthetic additives here. We only use water, bananas, and organic rice maltodextrin. Spray-dried banana powder is excellent for use in deserts, baked goods, blended drinks and makes an excellent natural sweetener. Banana extract powder is particularly attractive because of its lower microbial count, resulting in a longer shelf life.

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Independence Day & Company outing

 
  vdsv  
 

All over Indonesia homes and businesses where draped in red & white flags for the celebration of Indonesia’s 71st Independence Day. On August 17th, TRIPPER’s friends and family mobilized to show their national pride and honored their heritage with games, traditional dances and classic Indonesian food for the annual company outing at Silas Adventure Camp in Bedugul, Bali.


 
 
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MEET AND GREET
     
 
     
FOOD INGREDIENTS ASIA 2016
Jakarta International Expo, Indonesia
  INTERNATIONAL BAKING INDUSTRY EXPOSITION
Las Vegas Convention Center USA
     
This year’s Food Ingredients Asia was off to a slow pace but we still acquired several great leads and gathered information about the latest trends in Asia's food production. The bulk of our visitors were from South East Asia and were interested in the fact that we add another layer of value beyond superior taste & innovation with complete traceability. Overall, the event was successful and we have already booked our slot for 2018!   The International Baking Industry Exposition took place October 8-11 in Las Vegas. It is the largest baking exposition in the United States and the perfect opportunity to showcase our traceable and sustainable baking ingredients. In line with food trends overall, natural, organic and non-GMO products were sought-after. Featured seminars included topics such as clean labeling and best practices for maximum return on investment. Inspired by IBIE, we are excited to head into the holiday season with a few new tricks up our sleeve.
     
 
   
 

Upcoming event: Chicago IFT Annual Supplier's Night

 
  IFT2016  
 

Chicago IFT's (Institute of Food Technologists) annual supplier's night takes place November 9th in Rosemont, IL. IFT is the perfect opportunity for networking & education regarding state of the art food technologies.
Find us at the TRIPPER booth # 610.

 
 
 
 
 
 
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