Cooperation to bring cinnamon products to the worldEstablished and put into operation in January 2021, Tam Hoi Cooperative (Son Ha commune, Bao Thang district) has promoted its initial effectiveness in linking production, purchasing, and processing cinnamon bark products for people in the province and bringing cinnamon products to the world market.
Production activities at Tam Hoi Cooperative
Ms. Ta Thi Hoi, Director of Tam Hoi Cooperative said that: Many communes of Lao Cai have strengths in developing cinnamon trees, with a large annual output of cinnamon. However, the output of the products depends a lot on the traders, so the price is unstable and there is no advantage in the market.
Based on the above fact, she decided to establish the cooperative to cooperate in purchasing and processing cinnamon bark products and finding outputs for the products, wishing to bring Lao Cai cinnamon products to grow far and wide, creating jobs for local people.
However, when starting on the production of cinnamon products for export, the Covid-19 pandemic caused interruptions in trading with customers. Along with that was the difficulty of factory scale and limited capital, the quality and design of products were not diversified... Ms. Hoi had to go to a number of large companies in Hanoi and Bac Ninh to learn how to produce to suit the needs of the market and seek output for the products. At the same time, she also invested in machinery and equipment for cutting, packing, canning products, actively associated with people in Bao Thang, Bac Ha and Bao Yen districts to build raw material areas, improving the quality of planted cinnamon.
With the methodical production and processing, compliance with the technical process, the products of powdered cinnamon, split cinnamon, cinnamon stick, crushed cinnamon, baled cinnamon...., have gradually been favored and trusted by domestic and foreign customers. Currently, about 80% of the cooperative's cinnamon products are canned and exported to Singapore, Malaysia, India, and Thailand. On average, each month it consumes about 190 tons of dried cinnamon of all kinds.
Thanks to its efficient operation, Tam Hoi Cooperative not only contributes to ensuring stable output for products, increasing income for cinnamon growing households but also creating regular jobs for about 35 local workers, at high peak up to 70 employees with a salary of 6 - 8 million dong/person/month.
Ms. Ban Thi Hoa in Bao Thang district said that: Since the Tam Hoi Cooperative has pledged to purchase cinnamon products, the price of cinnamon has been quite stable, even higher than that of outside traders. As much as the people sell, the cooperative buys it all, so the people are assured to develop the planting area.