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Commercialization of korintji cinnamon that meets the sustainability criteria
1. Commercialization of Korintji cinnamon that meets the sustainability criteria
Abstract
Cinnamomum burmannii (Nees & T. Nees) Blume is an endemic tree that grows in the forest of
Indonesia. The bark is cultivated, dried, packed, and later on exported overseas commonly to
become food ingredients in the international market, especially in Europe and the US. Cinnamon
bark is a valuable source of export specialty and used in confectionery production and for baking
bakery products. It also fits well with sweet, including spicy dishes. Cinnamon nowadays became
a favorite mixture for medicine, cosmetology, and pharmacology. The increasing demand and
price cause the harvesters' to cultivate on a massive scale in production areas of cinnamon in
Indonesia, especially where its most famous for as the production center, which is Kerinci regency.
For centuries the Kerinci regency has profited from its location by the cinnamon tree richness.
However, this very same cinnamon tree that grows near the Kerinci Seblat National Park (Taman
Nasional Kerinci Seblat, TNKS) and wildlife habitat has also always been a constant source of
danger. It can have a devastating effect on clear-cutting and has been going on since the increasing
cinnamon price in 2015.
The role of extension service is necessary to support the improvement skills of the farmers in
developing the sustainable harvest and post-harvest system, farmers' management, and
organization. The presence of the international standards for improving the practice of cinnamon
harvesting, are commonly used as a guideline and tutorial.
Introduction
Indonesia is one of the leading countries in terms of biodiversity, with more than 28,000 unique
plant species. The archipelago's vast tropical forests are suitable to grow forest trees and plants,
including spices. One primary Non-Timber Forest Products (NTFPs) product from Indonesia is
cinnamon, which is sold in stick, broken, and powder forms. The Indonesian Ministry of
Environment and Forestry in the decree on 2008 grouped cinnamon as NTFP that can support the
livelihood of forest communities and villages. Cosyns et al. (2011) stated that more than 45 % live
in a rural area, and it has been acknowledged that Non-Timber Forest Products (NTFPs) play an
essential role in their daily life.
2. The country's largest cinnamon production regions that have been sourced from the forest areas
are located in West Sumatra and Jambi, particularly Kerinci Regency, which accounts for 80% of
total cinnamon production from Indonesia. The mountainous area 800 meters above sea level,
including the fertile volcanic valley and an average temperature of 20 – 22 degrees Celcius daily,
is suitable for the cinnamon tree to grow massively. Another factor is also related to the high fertile
soil because of the erupted volcanic mountain that was located in Kerinci regency.
The regency is located Jambi province between 01°40' 02°26' south latitude, 101°08' and 101°50'
east longitude with a size of 332,814 hectare or 3,328,14 km2
. The regency is divided into 16
(sixteen) subdistricts. Batang Merangin is the largest subdistrict, while Air Hangat Barat is the
smallest subdistrict in Kerinci Regency. More than half from this Regency area or 1,990,890 km2
is TNKS, and only 1,337,15 km2
is used as an agricultural and residential area. The total plantation
area of Kerinci regency is 40,944 ha, more than half (23,997 ha) of which is used for the production
of cinnamon cultivation. The Kerinci people are specialized in smallholder cinnamon and coffee
for decades and developing to other favorable cash crops such as tea and garlic. The remote
location of the sub-district, its mountainous terrain are difficult to access. Other challenges include
poorly developed infrastructure, poor access to ports that connect the district to other parts of
Indonesia, and the ever-present competition between development and conservation.
In 2017, approximately 53,546 tons of cinnamon were produced in the region, accounting for 2,231
kg/ha, in with involved 12,830 smallholder farmers' (Office of Forestry and Plantation, 2017). In
the present time, farmers' organizations created cinnamon tea and cinnamon syrups as an added
value of the community to have additional income; moreover, cinnamon production is a significant
driver in the local economy in many of the regency villages; for example, in the Talang Kemuning
village.
3. The processing of the cinnamon tree started by planting seeds in the owned land, commonly 1 -2
hectares. Then, the farmers' nursed the tree up to 5 years, including cleaning the bushes and tall
grass that grows in the surrounding tree. They often intercrop cinnamon with coffee plants, oranges
as an additional income during the waiting period. A group consisting of 3 to 5 men starts to peel
the bark when the trees reach the age of 5 up to 7 years. This process can take up 1 to 2 weeks, and
commonly they set camp near the cultivation site. The stack of cinnamon is then carried with
motorcycles, foot, or water buffaloes to the drying site. The work continues with the cleaning
process of the outer layer of the bark using a traditional blunted knife. The workers are different
from the peelers; usually, this cleaning process is conducted by females and youngsters. After the
bark had been scrubbed clean, trying to remove the moss in the cleaning process. The work is then
continued with sun-drying. The sun-drying process can take up to 3 days long depending on the
weather and sunlight. The workers separate the bark based on their grades and classes, and their
goals significantly reduce the water contaminants to 15%, which are preferable by the buyers.
Another important thing during the sun-drying process is to get the double coil shape of the sticks
that are valued higher prices than the average stick. The farmers understand that the less cleaning
process of peeling and drying will cause the bark to mold, which has an impact on product quality
and lower the prices. For some farmers' organization that has been assisted or guided by the
Cinnamon tree
Bark
Powder
Sticks
Broken
Oil
Stem
(wood)
Furniture
Fruit
crates
Building
materials
Particle
board
Leaf Oil
4. extension agencies know how to differentiate and keep the cleanness of the commodity. Sadly only
a few of them are guided, which can be counted 10% of the total smallholder farmers. The rest of
them do not concern the grading process, so they mix all the dried skin during the transaction.
The methods of cultivation and cutting for the other 90% are usually unsustainable, which
endangers the natural habitat in the surrounding areas. The clear-cutting and slash and burn is
common practice for the traditional cinnamon farmers in Kerinci, and according to them, in which
that the tree function only as a saving bank or cash-crop. The smallholders depend their livelihood
on the forest-based goods. In terms of NTFP's contribution to the household, Ingram (2014)
reported that 47 % of the household economy in rural areas relies on the exploitation of NTFPs,
including barks, leaves, nuts, fruits, and roots.
Methodology
The research location took place in 2 (two) different locations of the subdistrict, with a qualitative
method and purposive samples. The first sample of farmers' organization is located in Talang
Kemuning village, and the research subject was the Taktik cinnamon farmers group consisting of
50 active members. The second research subject is the Kwao Karangbening farmers organization
at the Masgo village, which has an active member of 26 smallholder farmers. The goal of the
sampling process is to understand their harvesting either meets the sustainable criteria based on
the guidance of the extension service.
Problem statement
An agricultural production system is said to be sustainable if it enhances or maintains the
productivity and profitability of the farming system in a region over the years and conserves the
integrity and diversity of both the agricultural production systems and the surrounding natural
ecosystems, and also enhances health, safety and aesthetic satisfaction of the consumers and
producers (Rao, 2002). Sustainable agriculture is thus a system of farming having its roots in a set
of values that reflect an awareness of both ecological and social realities. The cause of increasing
prices in the global market did not impact nor improved the economic condition of the farmers'
groups. The reason massive cultivation that occurs in Kerinci is due to securing their livelihood
while the price is high, according to Kerinci Agricultural Agency (2018).
5. Since the increasing price of cinnamon that had started in 2015, these farmers group had cultivated
the bark twice and earned a small profit, which can only support their monthly needs, and
continuously continues until no cinnamon trees could not be harvested and only the rotted stems
in the forest are left behind.
Results
Korintji cinnamon is exported all around the world in with its global consumer rising constantly.
The United States is the largest importer of Indonesian cinnamon, followed by India, Mexico, the
Netherlands, Middle Eastern countries, namely the United Arab Emirates, Singapore, South Korea,
Brazil, and Japan. The yearly progress had shown an amount of transaction that occurs for
cinnamon trade. The global trade in 2014 had a transaction value of USD 450.30 million, which
increases up 18.01% from 2013 at USD 381.58 million. Within the years to come, the cinnamon
price-worth had increased significantly. In 2018 the import value of cinnamon to the global market
amounted to 638,452 million USD in comparison to the 2017 year, which totaled USD 580,896
million. The exports of cinnamon plant products continue to increase. In the last few years (2012
- 2016, the increase reached 3.12% per year, with a value of 20,979 million USD. Efforts to
increase prices include improving product quality such as appropriate harvesting age, proper
processing, organic cinnamon & Rainforest alliance certification, GI, and shortening of the chain
of trade.
Although Korintji cinnamon has secured its place in the international market for a decade and
occupies 45% of the global market, new competitors are emerging rapidly from China, India, Sri
Lanka, Madagascar, Vietnam, and the Philippines. Few of these cinnamon producing countries
developed the harvesting process that is acceptable according to the sustainability criteria.
Vietnamese cinnamon (Cinnamomum loureiroi) with the support of extension agencies such as
Forest and Farm Facilities (FFF) in Lao Cai province sets the target that Lao Cai cinnamon will
become a national product by 2020. Therefore, it is necessary for the province now to expand the
cinnamon growing area and develop the processing factories. In addition, the province encourages
farmers to grow cinnamon following the plan, which is sustainable and climate-friendly.
6. The action-development and willingness of the smallholders in Vietnam show an enormous
interest in meeting the needs of sustainability criteria from the global consumer. The question now,
"are the farmers' in Kerinci valley are willing to change their practice to become sustainability?".
Based on the interview with some of farmers' group leader in Talang Kemuning and Kwo
Karangbening explained that the Kerinci people are never separated from the presence of forests.
According to them, the clear-cutting and slash and burn are conducted by non-Kerinci people that
work based on contract and volumes. The waves of immigrants originating from more populated
areas of the island, but also neighboring Java, have been taking parts in the clearance of the forest,
to transform it into agricultural lands. The main reason is that immigrants from other islands are
coming to this area to start with doing agriculture, encroaching into the state forest TNKS,
threatening agroforestry systems by conversion to agriculture.
Based on the field observation, the conditions speak differently. The cinnamon rush had increased
significantly, even up to 400% since the year 2000. More and more non-educated farmers abundant
the indigenous belief and are oriented for cash that can be generated from the bark. Farmers who
possess tree crops that grow again naturally, such as cinnamon trees, are also less likely to burn
the land because with burning the land, they are destroying the roots and ruining the habitat of
wildlife. As informed, farmers nowadays use the area of the national park for planting cinnamon
trees. It is illegal to plant these at National park, but if profit it is what they are pursuing on, then
it can become a challenge for development nor the legal action to take.
The clear-cutting and slash-and-burn farming practice caused deforestation and forest degradation
in Kerinci. The practice of clear-cutting and slash and burn causes the forest to lose 30% to 40%
of the cinnamon tree that will not grow again. According to the interviewed farmers', they had
mentioned that it is necessary to cut down the whole tree during harvest to get the bark cultivated
at the top branch of the tree. However, cinnamon farmers are now less likely to replant the
cinnamon trees. The mindset of the farmers is that the waiting period of five to seven years before
being ready for harvest is too much to wait. The picture nowadays is that the harvest is carried out
continuously, causing the availability of cinnamon bark is primarily reduced, and even scarcity of
7. the product. Many cinnamon collectors are currently taking goods not only from Kerinci but also
from other regions and claim that the commodity is native to that area.
Specifically, there are two problems identified in Kerinci regency regarding sustaining the tree for
future production. The first problem is related to government support for seeds. The unfavorable
forest-based commodity and support by the relevant ministry in Indonesia make it difficult for
farmers to get seeds and post-harvest tools, in which they need, like a sun-drying mat.
The second problem is related to the farmers' behavior that has not consisted of the cinnamon
industry. Hence the cinnamon price increase, the young cinnamon seedling can be seen growing
around Kerinci regency, but when the price drops, the farmers' change it to coffee and other
favorable commodities, even though it means cutting the whole tree down. Nowadays, the uprising
price of Kerinci coffee makes some of the cinnamon producers shifts immediately to this seasonal
commodity. All of this occurs due to the unpredicted increased demand and sell-price. Without a
sustainable approach, the cinnamon market will eventually fall apart. It is, therefore, essential to
see a long-term practice for production. Although cinnamon is not the primary income for the
farmer, its function is essential as a reserve fund to meet the needs of daily life. The increasing
demand for spices as a flavoring agent in various food products has strengthened the growth of the
global cinnamon market and hence is projected to significantly expand the revenue contribution
of the market over the forecast period. The condition without the willingness of replanting and
the government support for seeds urge cinnamon farmers’ to go deeper into TNKS to cut down
illegally cinnamon trees. Based on the discussion with KPHP, Kerinci stated that; “hence the trees'
are getting rare in their private domain; it makes the peelers them illegally cultivate in the state
national park.” The government should play a vital role and also the involvement of private sector,
processing and export companies to work with farmers to create a sustainable and profitable
cinnamon industry that progresses beyond the raw commodities that made Kerinci famous as the
center of cinnamon production.
The struggle for sustainable harvesting practices becomes a challenge for the extension service to
reach out and educate them to become better. In 2019, new agroforestry and social forestry
schemes were in operation by the Kerinci Forest Management Unit (KPHP) in the buffer zone of
8. the TNKS, in an attempt to reduce encroachment on the park. Together with forest villager leaders
and forest police, the KPHP works restlessly to this operation.
Conclusion
Awono et al. (2016) stated that most NTFPs had been recognized as capable of meeting essential
livelihood options, especially in rural areas. Beyond their market supply role, these products
contribute directly to food security in households, especially when other activities like cinnamon
cultivation fail to generate enough cash. This appears to be in direct line with our findings where
the commercialization of cinnamon can help in achieving significant solutions (send children to
school, feed the family, secure money for daily needs and in case of illness, etc.) in the household
economy improvement.
Production and commercialization of NTFPs, in general, were restricted to households or
individuals. According to Awono et al. (2009), producers decided to regroup themselves in
collective initiative groups in order to sell their products better.
The purposive sample of farmers' group is aware that their ancestors have been present in the area
long before the existence of indigenous forests and TNKS. It is, therefore, the protection and the
continuity of the forest trees, including cinnamon in the forests, are the souls of the Kerinci
community itself.
An opportunity arises here for foreign-based spice companies and extension services, which can
help local cinnamon farmers’ leverage modern technology and know-how, meet global standards,
and acquire international certification. Joint coop and partnership with existing established players
in the spice industry is a further avenue to explore as farmers’ seek to improve their technological
capacity as well as undertake research. Alliances between government and industry could bring
forth the Korintji cinnamon as a sustainable product in the global market.