Cinnamon in Yen Bai: Potential and economic value

Update: 7/29/2015

(VEN) - Together with tea which is a major export of Yen Bai Province, cinnamon is also a main product. Cinnamon is currently grown on nearly 30,000ha of Yen Bai including Van Yen District (16,000ha), Tran Yen District (6,600ha) and Van Chan District (nearly 5,000ha). Following the province’s development direction, the cinnamon area will increase to about 40,000ha by 2015 including 24,700 ha in Van Yen District, 8,500ha in Tran Yen District and 6,600ha in Van Chan District.

Annual production reaches about 5,000 tonnes of dry cinnamon bark and 150-200 tonnes of cinnamon oil. Annual cinnamon exports range from 1,000 to 2,000 tonnes, mostly to China, India and Chinese Taipei. Apart from materials for medicine production, cinnamon is also used for production of perfume and food.   Oil which is extracted from cinnamon branches, leaves and roots is mostly used for production of medicine and food flavor which is good for health because Aldehyd Cinnamic accounts for over 85 percent of cinnamon oil.

There are eight big cinnamon oil extracting plants with total capacity of 700 tonnes per year in cinnamon growing areas in Yen Bai Province. The Viet Trung Flavor Ltd. Company in Quy Mong Commune of Tran Yen District, which was constructed with foreign capital, has a production capacity of 100 tonnes per year. The Dat Thanh Exporting Commerce Ltd. Company has two plants in Dong Cuong and Hoang Thang communes in Van Yen District which has total production capacity of 100 tonnes per year. The plant of the Yen Bai Food and Agro-Forest Product Ltd. Company  in Son Luong Commune has a production capacity of 60 tonnes per year. The Truong An Ltd. Company has two plants in Phong Du Ha Commune with total production capacity of 170 tonnes per year. In addition, there are more than 200 household factories in the province, each of which can produce from 300 to 800 kilos of cinnamon oil.

 Wet and dry cinnamon bark is sorted, semi-processed and produced upon customer’s demand including three number shaped cinnamon bark (with grades  A, B and C), cinnamon for oil extraction, cinnamon pieces, fragmented cinnamon, cleaved cinnamon and high-quality cinnamon.

Most cleaved cinnamon is exported to India. The country imports from 3,500 to 4,000 tonnes annually. Most three number shaped cinnamon is sold to Chinese Taipei with an amount from 5 to 10 tonnes per year. Meanwhile cinnamon pieces are sold to the Middle East and West Asia with an amount of about 1,000 tonnes per year. Tube shaped cinnamon is exported to China, and cinnamon oil goes to China, the US, France and Belgium.

With more than 16,000ha of cinnamon Van Yen District is considered as the Kingdom of Cinnamon. Cinnamon is grown in 27 communes, of which 50 percent is ready for exploitation. Van Yen District has sold 4,000-5,000 tonnes of cinnamon bark for billions of Vietnamese dong.   Recently, many enterprises in the district have bought dry cinnamon bark, and hundreds of small cinnamon oil extracting plants in Dai Son, Vien Son and Phong Du Ha communes currently extract oil from cinnamon leaves. In addition, the operation of a cinnamon oil extracting plant is expected to be a new development step of the cinnamon sector in Van Yen District in particular and Yen Bai Province in general./.

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