Friday, October 9, 2020

The Cinnamon Learning Academy is expanding the cinnamon industry in Sri Lanka with new distribution centres

 


Recently, the Cinnamon Training Academy (CTA) started building a cinnamon processing centre at Kosgoda called the Bought Tree Factory (BTF). By adding a cinnamon processing centre to improve its efficiency and financial sustainability, the CTA extends its current training premises.

The processing centre would buy cinnamon trees at the farm gate, eliminating the need for a middleman, allowing actors in the upstream value chain, particularly smallholders in Balapitiya, Karandeniya and Ambalangoda, to achieve a higher margin on their goods. The cinnamon processing centre is to be fully operational by the end of the year, creating 20 new openings and more than 100 indirect work opportunities. In two harvesting seasons, the cinnamon processing centre will have a production capability of 24,000 cinnamon trees with a harvest of 1,350 kilos of processed cinnamon per month.

The cinnamon processing centre at its maximum capacity will produce additional sales revenue for the CTA of Rs. 2.7 m per month. In his welcome speech, Sarada de Silva congratulated the Chief Guest, former Minister of Plantation Industries and Export Agriculture Dr Ramesh Pathirana on his recent reappointment to Parliament, and honoured him for his service and commitment to strengthening Sri Lankan agricultural exports, particularly for the cinnamon industry.

Then de Silva also recognised the EU's financial support and UNIDO's technical support to develop the cinnamon processing centre under the EU-Sri Lanka Trade-Related Assistance project co-implemented by UNIDO and the International Trade Centre. As the Guest of Honor, Frank Hess highlighted other achievements for the CTA sponsored by the programme, such as the achievement by the Tertiary and Vocational Education Commission (TVEC) of accreditation of National Vocational Qualification (NVQ) for providing NVQ Level 3 and Level 4 training services to the cinnamon industry.

NVQ-certified trainees usually see an improvement in the efficiency of 20-30 per cent, which eventually reduces manufacturing costs and encourages the achievement of higher education as a globally accepted programme for tertiary education. In addition to the CTA, the project also sponsored the growth of the spice sector's value chain, writing big, including the pursuit of Ceylon Cinnamon, Sri Lanka's anticipated first-ever geographical indication (GI). The project submitted a GI application to the EU under UNIDO's technical guidance and the Sri Lankan Export Development Board's collaboration.

The CTA, based in Kosgoda, was founded in 2013 to meet the need for technically competent cinnamon processors for the cinnamon industry. The CTA was the result of a public-private collaboration between UNIDO, Sri Lanka's Spice Council (TSC), and, through the EDB, Sri Lankan Government. The CTA is improving technical skills and competencies for the processing and development of cinnamon. It trains actors in the value chain of cinnamon to improve production efficiency, promote compliance with international food safety requirements and stimulate job growth in the cinnamon industry.

OSL Take: Sri Lanka's CTA is involved in many programmes to uplift the country's export sector through the introduction of innovative methods and diversification. It also explores new avenues to reap the maximum benefits from Sri Lanka's free trade agreements and trade privileges from foreign countries. Receiving GI for Ceylon Cinnamon by the EU would help improve cinnamon exports to the EU and other countries. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka's exports sector and look at forming partnerships with local export companies.

VBS/AT/09/10/2020/Z_TB2

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