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

FFL Sustainbility

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.

Phase STB

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.

Cinnamon Price Chart

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!

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Preserving the future of Cinnamon through Replanting