General name :Cassia/Cinnamon
Botanical name : Cinnamomum Cassia
1. Cultivation
Type: Cassia
Origin: Vietnam
Cassia seeds are incubator in February every yepar. The seedlings are put on potting soils in furrows on well-drained soil. Each furrow is 20cm high and 120cm wide. After a year, Cassia seedlings will be moved to grow on the hill. The distance between each plant in the first year on the hill is about 1 meter.
After each year, Cassia plants will be pruned gradually until 10 years old, the whole tree will be cut down at the age of 10 - 15. The farmers collect Cassia leaves, branches, and barks to sell to essential oil factories. Besides, Cassia bark is also collected to sell as raw materials for spice factories.
The plants are harvested 2 times per year. The first one starts in April and finishes at the end of June. The second time starts 30 days after that and lasts until the end of December or early next January. In 3 recent years, the gap between 2 harvests is getting smaller. Currently, the farmers usually harvest from April to December.
2. Market information
Cassia oil has been produced in Vietnam for many years, and Cinnamic Aldehyde business has been running for about 5 - 7 recent years. The farmers now know the value of cassia trees and keep planting and expanding the raw material area annually. The volume and price of the materials has been changing throughout the years. Below are some charts showing the variation in recent years.
In the past, most of the Vietnamese Cassia Oil volume came to China via border trade. From 2015, there were some volumes exporting to other markets like Europe, USA,…, and it gradually increasing during these recent years. However, the volume coming to China every year is still big and the price of the oil is depending on the Chinese traders’ offers. The first and second harvests in 2023 finished last week. The next one as well as the biggest one will start in the next 1 month. We have collected this crop information and would like to summarize here:
- Crop: The factories are having good volumes of raw materials and oil now.
- Yield: The harvest’s yield is about 0.55% – 0.58%, which is less than the normal yield of the first harvest (usually at 0.6%). However, the Cinnamic Aldehyde content in the oil is higher than normal:
81% - 83% compared to 79% - 80% in the previous years.
- Volume: The volume this year is estimated to reach 1,300 – 1,400 tons thanks to the plantation expansion and favorable weather.
- Price: Due to the economic decline, the demand of cassia oil and cinnamic aldehyde in Q2/2023 was very slow. However, the market is coming back and the trader in China starting sourcing to keep stock at a low cost. The price has signal is inching up now.
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