Cinnamon is a spice that has been used in Indonesian culture for generations, and it holds a significant place in the history, economy and cuisine of the country. In this blog post, we’ll take a closer look at cinnamon in Indonesia and give wholesale buyers a guide on how to buy cinnamon in bulk.
Contents
Overview of Cinnamon in Indonesia
Let’s take a closer look at an overview of cinnamon in Indonesia with K-Agriculture.
What is cinnamon?
Cinnamon is a popular spice both in the East and in the West. Cinnamon is made from the bark of the Cinnamomum tree. The cinnamon stick is a dried cinnamon roll formed from the inner skin of the cinnamon plants which are mostly found in Vietnam, China, India, and Indonesia. There are actually hundreds of types of Cinnamon, but only four varieties are used for commercial purposes, which are: Ceylon Cinnamon (Sri Lanka), Cassia (China), Saigon Cinnamon (Vietnam) and Korintje Cinnamon (Indonesia).
Types of cinnamon
Characteristics of cinnamon in Indonesia
Korintje cinnamon, or Indonesian cinnamon, has a flavor profile that is similar to other types of cinnamon, but it is bitter and astringent. In ground form, it has a sweet and smooth flavor with a distinct woodsy flavor. Its aroma can be stronger than that of other varieties of cinnamon. However, among the cinnamon family, Indonesian cinnamon is usually the one with milder taste and aroma.
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Korintje cinnamon is frequently high in the essential oil that gives it its taste, however, the amount of oil varies depending on the quality of cinnamon. There are three categories of Korintje cinnamon: A, B, and C. While A-grade cinnamon has a more pungent flavor than other types of cinnamon, C-grade can be slightly bitter. The finest Korintje cinnamon is believed to have a smooth, sweet flavor with less of a strong taste seen in other cassia kinds.
Growing areas of cinnamon in Indonesia
The best Indonesian cinnamon comes from light, fertile sandy loam soil. Cinnamon of lower quality may be cultivated on andosol, latosol, and organosol soil, as well as on steep hillsides with rocky and laterite soil. The optimal growth temperature for cinnamon in Indonesia is 18° – 25°C, with an annual rainfall of 200 to 260 cm. Cinnamon does not grow well near the sea because the bark is thinner and of lower quality. Cinnamon flourishes on and around the boundaries of the forest at elevations ranging from 500 to 1300 meters above sea level.
Growing areas of cinnamon in Indonesia
Cinnamon trees can be cultivated in the wild or on estates that resemble forest plantations. The trees may grow to be 20 meters tall. The scarlet tint on the tips of the leaves and the white-grey trunk of the tree make it easy to identify. This tree thrives in the Bukit Barisan Mountain range in Indonesia, from Aceh in North Sumatra to West Sumatra, Jambi, Bengkulu, and Lampung. Three regions in Kerinci regency, Jambi province, provide a large amount of cinnamon bark.
Quality of cinnamon in Indonesia
Quality is a very important criterion just as price is when buying cinnamon in bulk. You don’t want to waste money buying poor-quality products and receiving complaints from customers. So, K-Agriculture will share with you some knowledge you need to consider when choosing to buy cinnamon in Indonesia.
Cinnamon in Indonesia normally comes in 2 forms: Stick cinnamon and Broken cinnamon. You will purchase:
1/ Stick cinnamon or cigarette cinnamon: They have a high oil essential content of 3-5% and are often used in cooking and culinary decorating. In Indonesia, cinnamon sticks are processed into two types dependent on length: long-stick cinnamon and cigarette cinnamon. Cigarette cinnamon is 5-15 cm long, whereas long-stick cinnamon is 30-45 cm long. In reality, suppliers can trim the cinnamon stick to the customer’s desired length.
Cinnamon sticks in Indonesia
The price of cinnamon stick in Indonesia varies according on the roll rate. The higher the roll percentage, the higher the cost. The consistency of the cinnamon roll is represented by the roll rate. A roll rate of 90% suggests that there are 90 rolled sticks and 10 spread sticks in every 100 cinnamon sticks. Cinnamon sticks with a 100% roll rate cost roughly $500-700 USD/ton more than cinnamon sticks with a 90% roll rate.
2/ Broken cinnamon: They have the lowest essential oil content of 1-3% and is used to manufacture powdered cinnamon or oil extraction. The price of broken cinnamon is determined by its oil content. Broken cinnamon is classified into two types:
KABC Broken Cinnamon is made from cigarette cinnamon that has been broken apart. The outer layer has been peeled, and the amount of oil has increased (by around 2.5-4%).
KBBC Broken cinnamon is made from split cinnamon that has been broken apart. The exterior layer is not peeled, and the oil level is 1-2.5% lower than KABC.
Broken cinnamon in Indonesia
KABC will be more expensive than KBBC, by around 1000 USD per ton.
7 steps to import Indonesian cinnamon
This section will walk you through the whole process of importing cinnamon from Indonesia.
Know your product
Have you researched about the type of cinnamon you’re importing? Different varieties of cinnamon will be used for various purposes. You will need:
Stick cinnamon if you want your cinnamon has high oil content with a spicy taste and pungent smell. You may want it in cooking or decorating the food.
Broken cinnamon if you want low-cost product for your cooking, low oil content is just fine for you. Or you may want it to produce cinnamon powder.
Research the import procedure in your country
Following the identification of the sorts of cinnamon that you have an interest in, you should research the import regulations in your nation.
There are three sorts of conditions that you must consider:
1/ Cinnamon quality requirements: Your imported cinnamon must be produced, processed, stored, packed, and labeled under hygienic circumstances. Depending on your nation, imported cinnamon will be under to different regulations.
2/ Document requirements: When importing cinnamon, you must be understanding of and prepare the papers necessary by customs authorities.
3/ Import tax: Import taxes will vary depending on the kind of products. When you import cinnamon from Indonesia and resell it in your country, you must first calculate the right cost and estimate your revenues by determining the import tax that your country pays on these commodities.
Below are the HS codes of some cinnamon products:
- 090611: Whole stick cinnamon, broken cinnamon
- 090620: Crushed or Ground cinnamon
Find your cinnamon suppliers
There are several ways to find reputable cinnamon wholesalers. Here are a few suggestions:
Online directories: You can search for cinnamon wholesalers on online directories such as ThomasNet, Alibaba, and Global Sources. These directories provide a list of verified suppliers, along with their contact information and product offerings.
Trade shows: Attending trade shows that specialize in spices and herbs can be an effective way to meet with cinnamon wholesalers face-to-face. These events allow you to see the products firsthand and network with potential suppliers.
Industry associations: Joining a trade association such as the American Spice Trade Association can be a great way to connect with reputable cinnamon wholesalers. These associations often have member directories and can provide recommendations based on your specific needs.
Referrals: Ask for referrals from other businesses in the spice industry or related fields. Word-of-mouth recommendations can be a reliable way to find reputable suppliers.
Before committing to a supplier, make sure to do your due diligence by verifying their credentials, checking their references, and requesting samples of their products.
Visit your suppliers in Indonesia
This is a completely optional step. You have spare time and can afford to pay for the business trip to Indonesia? You want to ensure that the providers are completely dependable and capable of meeting your needs. Yes, you may travel directly to Indonesia and tour the factories that produce cinnamon!
Negotiation of contract terms
Shipment
Agricultural products like cinnamon are regularly carried by water. Low prices and product quality control are two advantages of sea transportation. A 20-foot dry container can carry 7 tons of cinnamon, whereas a 40-foot dry container can hold 16 tons. The following delivery terms must be agreed upon by both sellers and buyers:
- Time of shipment: ETD (estimated time of departure), ETA (estimated time of arrival at destination).
- The loading port
- The destination port
Payment
In terms of payment, importers and exporters should keep the following considerations in mind:
Payment methods include L/C, T/T, D/P, D/A, and others.
- Payment schedule
- Amount of payment
- Currency
- Documents
If you want to import cinnamon, you need to first verify your country’s legislation to see if an import license is required.
The following is a list of key documents for the cargo that Indonesian exporters would provide to importers:
- Marine cargo insurance
- Bill of lading.
- Packing list
- C/O
- Quality Certificate
- Fumigation Certificate
- Phytosanitary Certificate
- Other documents if needed
Monitoring the shipment’s progress and getting the items
The exporter will oversee and manage the whole packing process in order to keep importers informed throughout the entire process of importing goods by sea. An Arrival Notice will be sent to you by the shipping company or forwarder no later than one day before the ship’s arrival date.
After that, you will receive delivery orders (D/O) for the cinnamon shipment. The transporter or forwarder issues a D/O to importers so that they can acquire the products. D/O will reveal who is keeping and who will receive the things.
Customs clearance for imported products
Each product imported into your country must be inspected and evaluated at customs. This allows customs officials to assess the proper customs tax and check the product to prevent illegal imports. Each country will require different papers for the customs clearance procedure. You should research the customs clearance process in your country and how to compile the relevant documentation on the internet. This is a challenging procedure. If you are unable to accomplish it yourself, you can seek the assistance of a logistics agency or a broker.
Indonesian cinnamon vs Vietnamese cinnamon
There are some differences between Indonesian and Vietnamese cinnamon.
Appearance: Indonesian cinnamon has a thick, dark brown bark with deep ridges, while Vietnamese cinnamon has a thinner, reddish-brown bark that is more brittle and flaky.
Flavor and oil content: Indonesian cinnamon stick- is fairly nice, but it has a low oil essential concentration (only 0.215%), although the benchmark for a truly good cinnamon stick should be about 2% to make it more aromatic, have a stronger fiery taste, and sweeter flavor. Vietnamese cinnamon sticks, on the other hand, can contain up to 3-4% oil essential, which is double or even treble the amount found in Indonesian cinnamon.
Price: Price of cinnamon stick depend a lot on roll rate and oil content. Price of cinnamon in Vietnam is around 4500 – 5000 USD per ton, while price of cinnamon in Indonesia is much higher, at around 6000 – 7000 USD per ton.
Below is the table to compare Vietnamese cinnamon and Indonesian cinnamon:
Indonesian cinnamon vs Vietnamese cinnamon
If you are also interested in cinnamon from Vietnam, don’t hesitate to contact K-Agriculture Factory. We are a leading cinnamon factory in Vietnam. We commit:
- Direct factory
- High quality
- Competitive price
- Fast delivery
Contact us via WhatsApp +84 85 5555 837 or fill in the form below:
