After a long period of limited production, the factory is now operating at full capacity. On average, the company purchases 100-150 tons of cinnamon raw materials per day, producing about 500 liters of essential oil. The selling price has gradually improved and the consumption market has become easier, helping the company gradually overcome the difficult period.
Mr. Le Van Dung - Director of Minh An Import-Export Trading Company Limited said: "Purchasing is easier, more imported goods than the same period last year. Export is favorable, prices are higher. Capacity has doubled compared to the same period last year. I hope the domestic and foreign markets will be stable to create favorable conditions for people and businesses."
Cinnamon branches, leaves and wood are all purchased by traders.
The favorable consumption of cinnamon essential oil is a very encouraging sign, helping thousands of cinnamon growers not only in Lao Cai , but also other localities in the raw material area to be extremely excited, because they have temporarily reduced the worry of consumption. Currently, cinnamon products such as: branches, leaves, cinnamon wood are all being purchased by traders, not to mention the selling price is higher than at the beginning of the year.
Mr. Dang Van Thong, Na Do village, Tan Duong commune, Bao Yen district shared: "At the beginning of this year, the factory started purchasing again, people were very excited and happy because they were able to sell their products to the market."
Having “hit rock bottom” at the end of last year, in the past month, the price of cinnamon essential oil has started to increase again. Currently, the export price of 1 ton of essential oil is from 360 to 380 million VND/ton (50 million VND higher than at the end of last year). According to forecasts, this price will continue to improve as the difficulties in regulations on export codes continue to be actively resolved by the relevant authorities.
People harvest cinnamon.
Ms. Trinh Thi Duyen, Head of the Department of Agriculture and Rural Development of Bao Yen district said: “With the current good news, people are excited to harvest cinnamon. Businesses are in the season to purchase and process cinnamon products. The price of cinnamon branches is currently being sold at 1,800 VND/kg, a slight increase compared to last year. People are focusing on taking care of and processing cinnamon products.”
It is estimated that Lao Cai's cinnamon essential oil output reaches more than 450 tons/year, of which 85% is exported to China, India, and Japan; 15% serves the domestic market demand. It is expected that the province's cinnamon essential oil output will increase sharply as many raw material areas in localities are reaching the exploitation period. Along with expanding organic cinnamon growing areas, the province is also prioritizing the deep processing of products to enhance the value and sustainability of this key product line.
Trung Kien - Xuan Anh
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