Fair For Life and For Life
audits are under way for TRIPPER
facilities and Cinnamon
suppliers in Sumatra. We are
adding two new suppliers to
these projects.
The For Life certification reflects
our concern for environmental
impact, not only during raw material
production but at TRIPPER
facilities.
NEWSLETTER ISSUE XXII: JUNE 2017
Fair For Life and For Life
audits are under way for TRIPPER
facilities and Cinnamon
suppliers in Sumatra. We are
adding two new suppliers to
these projects.
The For Life certification reflects
our concern for environmental
impact, not only during raw material
production but at TRIPPER
facilities.
Tripper Environmental
Policy "Waste Management"
Building on the sustainability concepts we
already use, like our internal standard NFC and
Fair for Life, we have been working on defining
a clear environmental policy here at TRIPPER.
Part of developing our environmental policy includes
creating an efficient waste management system. This
requires us to understand how waste is managed
throughout the production supply chain and then
create educational materials based on our findings,
to help inform the TRIPPER team so they can most
effectively apply these principles.
There are many different kinds of waste from
production ranging from cardboard boxes and plastic,
to liquids and organic solids. While we are still in
the first two phases of creating our policy, TRIPPER
has already started several initiatives regarding
waste management.
We have partnered with ECO Bali,
a local recycling operation, to
help process our solid waste.
The For Life certification reflects
our concern for our environmental
impact during production and
throughout our facilities.
To improve work environment conditions in our
extraction and grinding facilities, we built an
exhaust system to remove fumes and fine dust
particles. We are also in the process of creating a
conventional filtration system to address runoff
into local water sources. We always try to upcycle
materials, when equipment is upgraded or no longer
functions. In the past, we even used an
uncommissioned blending container to fabricate
shelving units.
We are currently exploring the potential of using
waste and by products to create bio-gas as an energy
source to power our operation. We expect to find new
areas for potential improvement as we continue to
work through our process for developing policy.
The process we are using to identify problems and
make improvements is a reflection of our core values
and our commitment to striving for better. We look
forward to reaching the action plan and follow-up
phases of our project and sharing our results with
you.
An Inside Look at the Changing Cinnamon
Market
In recent months the
cost of Cinnamon has been steadily creeping higher worldwide. It is
causing many buyers to ask, why the price hike and when can we see
market stability?
The answers to these questions are not so simple. A series of events
ranging from windfall of the devastating Cyclone Enawo in Madagascar to
low yields coming from Sri Lanka, Vietnam, and China are driving buyers
to look to other origins such as Indonesia.
Short term changes leave lasting impacts on Cinnamon
market
It is important to consider the ongoing issue of sustainability in
the Cinnamon market. It takes 15-20 years for a Cinnamon tree to
mature for harvest and producers often prioritize other crops or
abandon the industry altogether in favor of work that provides them
with quicker economic returns.
This is apparent in Indonesia
especially as the Coffee harvesting season nears. Many
farmers will begin to focus their attention on the
Coffee crop. Cinnamon can be harvested year round, as
long as the tree is mature, but Coffee must be harvested
as soon as the beans are ready or the crop will rot.
It is even more difficult for farmers
to put effort into replanting trees when market prices are low. Short
term market changes have lasting effects on the future availability of
Cinnamon because the trees take so long to mature. The trees` pace of
growth can`t keep up with market fluctuations in the same way that
Vanilla can, for example, which has the potential to correct itself from
crop to crop. By the time farmers decide prices are high enough for them
to start replanting, it is too late.
What about other markets?
The majority of Cinnamon found in the U.S. is
cassia Cinnamon, of which Indonesia is the chief supplier. Its
characteristic spice and bite is heavily sought after for baking,
desserts, and traditional cuisine. Vietnam, China, and Sri Lanka
offer a different quality Cinnamon with different flavor profiles
and it isn`t necessarily cheaper. Regardless of this, the overall
price of Cinnamon is increasing globally.
In
addition to this, Cinnamon
forests and plantations are competing for land with oil
palm and pulp and paper commodities. This is expected to
decrease global supplies further while demand is
predicted to increase. The health benefits of Cinnamon
are widely known and its use in the rapidly expanding
health and wellness industry will only continue to grow.
Market impact a driving force behind TRIPPER`s focus on
sustainability
Beyond helping to preserve our environment and
protect the livelihoods of farmers, sustainable production practices
are essential to the global Cinnamon market. Whether through our
seedling programs or our efforts to teach farmers about
intercropping techniques to help improve soil quality and provide
additional income, TRIPPER is working at origin to help sustain the
Cinnamon market for the long term.
In
2016 we distributed 25,000
cinnamon seedling to farmers belonging to our Fair for
Life program, in 2017 we plan to offer 35,000. By 2017,
we hope to replant 100% of what we consume. We continue
to offer A+ quality Dragon Cinnamon through these market
changes.
Under normal
circumstances, Indonesian Vanilla generates little interest from
outside buyers who traditionally focus their attention on
Bourbon Vanilla from Madagascar. However, with the nation caught
in ongoing crisis, Indonesian Vanilla is gaining attention.
In the last 6 months, the number of Vanilla buyers travelling to
Indonesia has surged, which obviously puts additional pressure on
prices that are already at an all time high.
The only Vanilla being offered today is theVanilla tahitensis variety
from Papua New Guinea and currently, the lots we are seeing are of quite
poor quality. The Vanilla is half-cured at origin and then shipped
across the border for the process to be completed in Indonesia.
Harvesting of the Indonesian crop should begin in July. Sulawesi and
Flores are the main producing areas but in all likelihood, output
will be small (below 100 MT) and of poor quality from improper
curing.
The local price in Indonesia has passed the USD$500 mark, mirroring
what Madagascar offered for its crop last year. All eyes are now
turned to Madagascar where a heavy pre-cyclone harvest -in which
farmers hastily picked and stored beans in anticipation of cyclone
damage- has certainly resulted in very poor quality.
Local trading is already hinting at prices over USD$600. Let`s see how the market
will bear such poor news.
Overall, global demand is
growing, Indonesian exports are
expected to increase, and there
has been an increase in both
foreign and domestic investment.
The controversial defeat and
imprisonment of progressive Jakartan
Governor, Basuki `Ahok` Tjahaja
Purnama, is expected to have little
impact on the economy.
There are signs that the Indonesian
economy is becoming more resilient
as it has fared relatively well
despite the global economic hiccups
of the last decade.
Let’s welcome the new family
member of our Ginger selections.NATURAL GINGER EXTRACT POWDER comes from the
plant Zingiber officinale Roscoe. Our Ginger is sourced from Java and it is
among the healthiest spices on the planet.
Ginger is uniquely characterized by Gingerol. It is the main bioactive compound
responsible for much of its powerful anti-inflammatory and antioxidant effects. Not
only that, Gingerol also gives the particular fragrance and flavor of Ginger.
Our NATURAL GINGER EXTRACT POWDER is so highly concentrated that a dosage as low as
0.5% can give a boost to your favorites smoothies, tea and snacks.
Find us at booth
#5004 at the Institute of Food Technologists Annual Meeting &
Food Expo 26-28 Junewhere the TRIPPER team will be showcasing
our premium vanilla and meeting with industry professionals to
discuss the latest trends in food science and innovation!
