CTA. the queen of Sri Lankan spices, The bride around whom we danced..
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1 CTA the queen of Sri Lankan spices, The bride around whom we danced..
2 Ceylon Cinnamon Value Chain The travelling or Small mobile wholesalers collector can who be purchases found close to the production Exporters Commission sell through brokers agents only or cinnamon from locations small holders and larger and wholesalers sells to larger are usually operating commission from mediate agents between located in buyers the collectors or to local trader/ the dealer larger or towns buyers within districts importing and country sellers The collectors freely buy Ceylon cinnamon at the farm gate, irrespective of its quality or grading. Farmers are remunerated based on weight and not based on grade. Thus they focus onmobile producing and Large more cinnamon instead of higher grades. buyers, who operate from a small shop in the village and sell cinnamon to the wholesale buyers. Collectors and exporters tend to pay the price Small and for Largethe lowest grade in the bundle and profit from the high quality quills within the same bundle once they un bail, grade and package later in their warehouses Buyers, operate from a small shop in the village and sell cinnamon to the wholesale buyers (Master Plan for the Ceylon Cinnamon Value Chain, 2016) The importer sells the cinnamon to processors who resell to food The long supply chain with numerous actors manufacturers, decreases food traceability, service companies monitoring and manufacturers and of controllability. lifestyle products Therefore, throughout the industry a climate of mistrust can be observed.
3 Market Landscape for Broader Strategies Facilitate decision making process: Decide optimal market access strategy (critical analysis of production environment, economic environment, unmet industry needs, burdens; skilled labor scarcity, inconvenience and inefficiencies of traditional methods, loss of goodwill of customers due to poor quality exports, cost effectiveness of competing products/cassia) Market mapping: Production system mapping, stakeholder and institutional mapping, brand mapping, competitor mapping and influencer mapping
4 Methods to Collect Industry Intelligence The significant lack of reliable and consistent data on the cinnamon sector, poses big challenge... (Master Plan for the Ceylon Cinnamon Value Chain, 2016) Study stakeholder websites Subscribe to stakeholder mailing lists Follow stakeholders on social media Perform internet searches on industry keywords Set up Google alerts Use online surveys Purchase competitive products Discussions with sales force/distribution partners Field and factory visits Attend trade shows, exhibitions
5 Competitive Market Landscape Analysis Niche Market Participant Challenger Participantwhoaims to tries satisfy to the expand needsthe of a specific market market, share by in view aggressively of the flooding product quality, the market price range with and products Market the demographics Leader at competitive Participant that is prices intended withunder the to impact Contender his/her largest brand marketnames share Participant in the industry, who isand a traditional who can use processor, its dominance with no/less to affect product the diversification competitive landscape different and from market a competitor direction Emerging Participant who takes Participant on every who unexpected has a blend challenge of characteristics of Niche Participants and Market Leaders, but does not meet the standards to become a Niche Participant or a Market Leader
6 Stakeholder Map (Upstream) Advisory/Extension Cinnamon Research Institute Cinnamon Training Academy Dept. of Agriculture Dept. of Export Agriculture Dept. of Agrarian Services Ceylon Cinnamon Association Agriculture Research Institute Farmer Based Associations Extension & Inputs Advisory & Finance Advisory Insurance Subsidiary Finance Ministry of Primary Industries Banks (Both Public and Pvt.) Financial Institutes Money Lenders Finance & Subsidies Hayles PLC CIC Agribusiness (Pvt) Ltd A Baurs and Company Ltd Input/Subsidies Dept. of Agriculture Dept. of Export Agriculture Dept. of Agrarian Services Dept. of Agrarian Services Dept. of Agriculture Dept. of Export Agriculture National Chamber of Exports
7 National Chamber of Exports Export Development Board Dept. of Export Agriculture Material, Machinery and Supportive Service Providers National Engineering Research and Development Centre Dept. of Export Agriculture The Spice Council Agricultural Insurance Board Udaya Industries (Pvt) Ltd Supportive services & Regulatory Support & Logistics Support Logistic Regulatory Legal/ Regulatory Ministry of Primary Industries Export Development Board Inland Revenue Department Industrial Technology Institute Sri Lanka Standards Institution Ministry of Health Plant Quarantine Service Sri Lanka Accreditation Board Consumer Affairs Authority SGS Lanka Logistic Logistic Providers Expolanka Freight (Pvt) Ltd Scanwell Logistics (Pvt ) Ltd Foreway Logistics (Pvt ) Ltd Colombo Cargo Express (PVT) Ltd Freight Forwarders Expolanka Freight (Pvt) Ltd Freight Line International (Pvt) Ltd Aramex Lanka (Pvt) Ltd Aramex Lanka (Pvt) Ltd BTL Lanka (PVT) Ltd Logistic & Regulatory Stakeholder Map (Downstream) Sri Lanka Customs Sri Lanka Ports Authority
8 Influencer Mapping for Ceylon Cinnamon Government Institutions/Authorities Ministry of Primary Industries Department of Agriculture Department of Export Agriculture National Chamber of Exports The Spice Council Cinnamon Research Institute Ceylon Chamber of Commerce Ceylon Cinnamon Association Spices & Allied Products Producers & Traders Association (SAPPTA) H Intergovernmental organizations WTO, FAO, EU, UNIDO, SAARC, ACD, ITC, ASTA and STDF International nonprofit organizations Rainforest Alliance, Fair Trade Legal/Regulatory Bodies Industrial Technology Institute Sri Lanka Standards Institution Sri Lanka Accreditation board Export Development Board Inland Revenue Department Ministry of Health Plant Quarantine Service Sri Lanka Customs Consumer Affairs Authority Organic Certification Bodies Ex: Control Union, IMO etc.
9 Brand Landscape Ceylon Cinnamon C U G A M I J
10 Strategic Recommendations Non invasive Pharmaceutical Industry Cinnamon for weight loss, diabetes, stomach flu, cancers, arthritis, to reduce brain damage etc. Cinnamon to produce High anti oxidant, Investment Upfront anti viral, antibacterial, anti fungus, anti septic, anti parasitic substances. Cinnamon bark oil and cinnamon leaf oil France, Germany, Italy, Netherlands, UK Alba and C5 Special Cinnamon grades EU and USA Organic Cinnamon Product Driven Germany, Markets Netherlands, Denmark M5 Special, M5,M4 Cinnamon grades Mexican Market Super Fine Cinnamon Powder North American Countries Low Volume H High Volume Cinnamon tea, soft drinks, carbonated drinks, confectionaries, bakery products, skin care products, hair care products, sanitary Ultra processed products, lifestyle Products products etc. Quills Quills cut pieces Quillings Poorly Processed/Non Featherings Certified Products Chips Crushed Ground Powder etc. Invasive
11 Additional Potentials for Cinnamon Value Additions Spice gift packs: Gift packs containing a variety of spices packaged in attractive packages Crafts: Walking sticks, furniture or picture frames from peeled cinnamon stick Cinnamon paper: Cinnamonwoodpapercanbeusedforgiftcards,letters,serviettes, corporate gifts or notebooks Peeling knife: Similar to the Swiss knife, the small, handy versions of the peeling knife can be developed and sold to tourists as souvenirs Filling material: Remaining scrapples could be utilized to fill pillows, mattresses and similar items which would emit a benevolent smell of cinnamon Toothpicks/Chopsticks: Wooden items such as toothpicks, chop sticks from peeled cinnamon stick Eco friendly wood products: Substituting rainforest timber with cinnamon wood Cleaner production: Peeled cinnamon sticks as biomass, to generate electricity or hot water Guided tours: visits to cinnamon factories, estates and cinnamon small holders can be included into touristic programs
12 Functions Input Supply Production Collecting and Trading Exporting & Value Addition Consumption Actors Input Suppliers Fertilizer Agrochemicals Planting Materials Subsidies Equipment Machinery Packing Materials Planters Producers Fulltime Growers Small, Medium, Large (GMP Certified, non Certified) Part time Growers (Rent, Lease) Processing Factory (Broad Tree) Plantation Companies Producer Societies Collectors/ Traders Mobile collectors Ballers Collectors of poor quality & with export license Exporters & Value Added Producers Value Added product Exporter Quills Exporter Individuals Retail Chains B2B Bakery & Confectionary Pharmaceuticals Life style Products Cosmetics & Perfumes Products Fertilizer Planting Materials Agrochemicals Equipment Machines Quills(Graded) Alba,C5 Special,C5,M1,M2,H1,H2 Quilling's Featherings Quills(Graded) Alba,C5 Special,C5,M1,M2,H1,H2 Quilling's Featherings Unprocessed Processed Semi Processed Ultra Processed Inbound Logistics Out Bound Logistics
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