Market concerns for Tra My cinnamon

For a long time, Tra My cinnamon has not only been a commodity but has also become ingrained in the minds of many as a symbol, a unique cultural feature of Quang Nam province. Tra My cinnamon was once considered "High Mountain Jade Cinnamon," a precious product used as an annual tribute to the king and in longevity celebrations at the Hue imperial court...

Export markets have stalled.

According to statistics from the People's Committee of Bac Tra My district ( Quang Nam province ), the district currently has approximately 2,000 hectares of cinnamon trees, with an annual production of over 400 tons. Within the district, there are 4 cooperatives and 10 business households involved in the production and distribution of more than 70 cinnamon products from Tra My to domestic and international markets.

According to Mr. Nguyen Hong Vuong, Head of the Agriculture and Rural Development Department of Bac Tra My district, the locality has developed a set of procedures for cinnamon tree development according to planting methods, ensuring standards from identifying planting areas, seedlings, care, pest control, harvesting, processing, and product preservation to meet standards for each market segment domestically and internationally. At the same time, several models for cinnamon tree development along the value chain have been developed to serve as a basis for promoting, expanding, and developing sustainable commodity production.

Cinnamon products can be used in dishes and beverages; in the food and beverage industry.

In addition, over the years, the People's Committee of Bac Tra My district has also promoted investment and introduced the potential of cinnamon trees through participation in trade fairs, forums, and product promotion activities. Cinnamon products are also promoted on e-commerce platforms, social media, and online sales websites. The local government also creates conditions for businesses to introduce cinnamon products to markets in Eastern Europe, Russia, Thailand, Singapore, and especially China… With its characteristic aroma, pungent taste, and high essential oil content, Tra My cinnamon is favored by many consumers both domestically and internationally.

However, according to a representative from the Quang Nam Department of Industry and Trade, recently, due to the stagnation of the export market and the decline in the quality of Tra My cinnamon, the consumption market has gradually shrunk, forcing local people to cut down many cinnamon trees to plant other crops with higher economic value. Mr. Pham Minh Sy, representative of the Minh Phuc Tra My Cinnamon Cooperative (Bac Tra My), shared that the unit is considered a young, startup cooperative model with a circular production chain, applying new science and technology to enhance the brand of Tra My cinnamon. However, currently, the output of cinnamon products is fragmented, mainly in the domestic market, and has not yet taken advantage of the FTA market for export. Moreover, there are difficulties related to the harvest season. For Tra My cinnamon, harvesting only takes place from March to May each year, while the August harvest is almost impossible to exploit.

The product needs a brand.

However, in reality, as in other localities, Tra My cinnamon products are currently mainly purchased by traders and exported informally to the Chinese market. The planting area is not concentrated, research and development on product quality is limited; the raw material supply is not highly stable and does not meet the demands of the high-standard export market. In particular, most products have not yet established a brand in the market...

According to Mr. Le Minh Thao, Vice Chairman of the Ngoc Linh Mountain Ginseng and Tra My Cinnamon Association, exporting cinnamon products abroad requires branding. However, geographical indications are currently not registered for protection in key markets... Sharing the same view, Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), believes that businesses still have a "crude" mindset, not focusing on branding; they haven't paid enough attention to sustainable brand development, and lack connection and cooperation among businesses, leading to a failure to take advantage of FTAs ​​to elevate the position of Vietnam's cinnamon industry in major export markets.

Meanwhile, cinnamon products generally have a very wide range of applications, and can be used in food, beverages; food products, the beverage industry, pharmaceuticals, cosmetics, and human health and beauty services... Therefore, to further develop the domestic cinnamon industry in general and Tra My cinnamon in particular in the future, according to Mr. Ngo Chung Khanh, it is necessary to strengthen the search for partners and connect customers for businesses; build an ecosystem for the industry (central and local agencies, associations, main export companies, consulting companies, farmers, input material suppliers, etc.); and strengthen more practical support measures for businesses. Local authorities also need to maintain the indigenous genetic resources to preserve the unique advantages of the cinnamon's aroma and quality.

Meanwhile, businesses must develop marketing strategies that align with the unique characteristics of the product, connecting supply and demand, facilitating distribution, and developing the market. Simultaneously, they must systematically and professionally define and build a long-term market development vision. They should prioritize traceability and promote geographical indications. Efforts should also be made to connect with and export cinnamon products to countries with high demand to increase the value of the cinnamon tree.

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