NEWSLETTER ISSUE XXI: MARCH 2017  
     
 
 

 
 

Certification programs such as IMO Fair for Life and ISO 22000 are important for showing our dedication to increasing quality and enhancing our sustainability efforts but we believe in taking it one step further. We have developed an internal standard, NFC (Nature- Future-Culture). TRIPPER is in a unique position because of its proximity to origin. We are able to evaluate every aspect of the supply chain including quality, traceability, and social and environmental accountability, resulting in superior products.

 
 

 
 

NFC is a series of crop specific policies that represent our commitment to protecting nature, practicing business in a way that considers long term effects, and spreading a culture of quality and sustainability. We regularly visit our farmers for NFC inspection and also use the standard as a tool for knowledge exchange. Because NFC is crop specific, it allows us to create more effective case by case criteria that addresses the unique circumstances found in each relationship we maintain.

Furthermore, NFC creates a supportive avenue for conventional farmers to transition to natural and organic farming. It is an extension of our values and allows us to better serve our farmers, the environment and our customers.

Read more info about what our farmers need to become NFC certified on our new website

 
 
 
 
   
     
 
   
 

Demand for Cinnamon bark has been high for the last three months which explains why prices have shot up. Despite the price hike, most of the Padang exporters are still actively buying to fulfill their yearly contracts and according to our farmers, buyers are not picky on quality.

Although we are in the rainy season, there is an unusually large amount of rainfall in Indonesia- likely due to the effects of La Nina that we predicted in June. Weather in West Sumatra and Kerinci is currently rain, rain and more rain. This makes it very difficult for the farmers to do a proper job of drying the bark. Most shipments we receive in our Bekasi factory produce barks with a moisture level nearing 20% or more!

 
 

This forces us to hold the bark until the moisture drops and they are ready for grinding, which requires extra labor and time. The rainy season should last three more months at which time the Coffee harvesting season will begin (April through June). Farmers will then shift their focus from Cinnamon to Coffee. In terms of Cinnamon prices, we do not expect a price correction before June ends.

 
     
 
   
 

We anticipated that Vanilla prices would decrease by the end of 2016, instead, they took a sharp increase. There is no significant stock available in Madagascar and Indonesian inventories that helped relieve the market gap are beginning to thin.

Price per kilo is expected to continue rising until the new Madagascar crop can bring some relief in early summer this year. A few things need to happen for alleviation, most notably, producers must implement restrictions on early picking. Green Vanilla prices in Indonesia are over $30/kg, 10 times more expensive than three years ago, but not nearly as much as the Madagascan price of $80/kg. The pressure is on the farmer to keep green beans on the vine as long as possible.

Quality is fluctuating and we are seeing vanillin rich lots mixed with old moldy lots that have been poorly stored or improperly cured. Therefore, all beans received at TRIPPER undergo a very long grading process. We hope to see stability by the end of the summer but we also must consider the long-term sustainability of the market.

In the past, it made sense for Madagascar to dictate the market value of Vanilla. Even with premium pricing, the quality of Madagascan beans justified the cost. However, with the proliferation of vacuum packaging and the increase of early picking and quick curing, the `Madagascar standard` has lost its bearing.

Indonesia, on the other hand, has much to offer the Vanilla market. The expansive archipelago is rich in biodiversity and has more extensive banking and infrastructure compared to Madagascar. If consumers are looking to stop Madagascan price manipulation and soaring prices, supporting the Indonesian market is key.

 
   
 
   
 

INDONESIAN ECONOMY OUTLOOK 2017

In our last issue, we touched on the 2016 tax amnesty launched by President Joko Widodo. Under the program, Indonesians pay a tax rate of 4% for repatriated assets, with the tariff increasing in phases up to 10% until the program ends in March 2017. The policy was enacted to incentivize repatriation of assets held offshore. Results are already showing with almost US$ 8 billion collected on behalf of the initiative.

The government has also partially reversed a 2014 ban on the export of unprocessed ore. According to Citi analyst David Wilson, a potential 250,000t of nickel alone will be introduced to the world market. These policies should support the endeavor to increase infrastructure spending to 20% in 2017 and offset low export demand caused by a global drop in trade.

Regarding the decrease in trade worldwide, it is important to consider that unlike countries such as South Korea or China who greatly depend on export, Indonesia’s economy is driven mostly by the domestic consumption of its 260 million people.

 
 

 
   
 
   
 

Kaffir Lime is traditionally known as a natural healing remedy for the flu, digestion, weight loss, and blood circulation. It is also frequently found in Thai cooking. The leaves exude a piquant citrus hint and provide a notable flavor that is virtually impossible to substitute. An inclusion of KAFFIR LIME EXTRACT POWDER in dosages as low as 1% will bring forth an aromatic and astringent note in your ice cream, jelly, custard and smoothies.

 
 
Make sure to visit our Expo West 2017 booth #1786 to savor TRIPPER Kaffir Lime Ice Cream
     
 
 
 
   
 
 

Under the Global Food Safety Initiative (GFSI) TRIPPER`s Jakarta facility has received FSSC 22000 certification. GFSI is a private group managed by the Consumer Goods Forum and has developed schemes to ensure food safety and farm quality standards. TRIPPER already has technical certifications like ISO 22000 in place to ensure global standards of quality.

FSSC 22000 differs from ISO 22000 in that it adds additional layers of quality assurance such as detailed assessments of documentation, infrastructure, and authentication of Good Manufacturing Practices (GMP).

 
 
 
     
 
 

March 10th rings in the big day for Natural Products Expo West. We are looking forward to taking note of new products and trends for inspiration as we expand our selection wellness ingredients. We are excited to share the story behind some of our products and this element will be incorporated into our booth design this year.

 
     
 
 
 
 
 

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For more information, please visit: www.tripper.com. For pricing or other sales related inquiries: info@tripper.com