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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