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Cinnamon factory and all you need to know

Around the world, more businesses want to import and resell cinnamon products as demand for them rises. Therefore, in their plans, the cinnamon factory has become a vital element, as it provides high-quality and plentiful supplies of goods.

Basic information about cinnamon factory

Before reaching out to a cinnamon factory, business leaders should understand what it is and where they are most likely to find one.

Defining a cinnamon factory 

A cinnamon factory is usually a large facility that has the necessary equipment (such as a dryer, washer, etc) and a team of well-trained workers for turning raw cinnamon parts into added-value products. These products range from cinnamon sticks, cinnamon cigarettes, to oil and fine powder, serving different purposes and various groups of consumers.

Related: Vietnamese cinnamon vs Ceylon: Which is better?

Locations of a cinnamon factory

Most cinnamon factories are located in Asian countries. Since this continent has the most favorable soil and weather for growing cinnamon trees, factories must be built nearby cinnamon plantations. This proximity ensures that the raw materials are delivered shortly after being harvested to the factory, where they will be processed early to ensure the highest possible quality.

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Most cinnamon factories are located in Asian countries.

Additionally, Asian countries are extremely experienced players in the cinnamon market. Therefore, they are extensively trained and prepared for harvesting, processing, and exporting cinnamon products. This means that a cinnamon factory in these countries is likely to be well equipped and standardized, too. Exemplary Asian countries in exporting cinnamon include Vietnam, Indonesia, China, and Sri Lanka. The first three countries wholesale the Cassia variety, while Sri Lanka almost exclusively exports Ceylon products to its clients.

The products and process of manufacturing in a cinnamon factory

The three most popular products usually generated by a cinnamon factory are cinnamon barks, cinnamon oil, and cinnamon powder. They come with specific manufacturing processes.

For processing cinnamon barks

Cinnamon barks are the soft, inner bark of the cinnamon tree. When harvesting, workers of a cinnamon factory tend to remove the rough outer layer and use the inner bark to create added-value products. Depending on the grade and the product type (cinnamon sticks, tube, cigarette, broken, or split), the wholesale price of cinnamon barks can range from below $2,000 to nearly $7,000.

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For processing cinnamon barks

When dealing with cinnamon barks, a cinnamon factory typically will resort to the following steps:

  • Step 1: Rinsing the harvested barks with clean water
  • Step 2: Scraping off partially or peeling off completely the rough external layer
  • Step 3: Cleaning the soft inner barks
  • Step 4: Sorting the inner barks and cutting them into smaller parts, whose widths and lengths correspond to specific product ranges. 
  • Step 5: Drying and letting inner barks curl into a perfect round shape
  • Step 6: Packing the cinnamon barks into carton boxes or PP bags
  • Step 7: Storing the products in a cool, dry, and well-ventilated warehouse 

For processing cinnamon oil

Vietnamese cinnamon oil is a liquid extracted from the barks and other parts of the cinnamon tree. Its color is tan brown or dark brown and it has a unique spicy cinnamon aroma. In a cinnamon factory, producing pure and high-quality Vietnamese cinnamon oil is much more complicated than other cinnamon products. 

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For processing cinnamon oil

In general, the process will go as follow:

  • Step 1: Mincing and grinding raw materials into smaller pieces 
  • Step 2: Distilling the essential oil from the cinnamon parts
  • Step 3: Cooling
  • Step 4: Separating the oil from water
  • Step 5: Refining to remove admixture and impurities
  • Step 6: Packaging into plastic drums or cans.

For processing cinnamon powder 

Vietnamese cinnamon powder is a fine powder that is ground from the inner cinnamon barks. The product’s color is usually dark brown and workers use 40-80 and 100-120 mesh to remove admixture. Its current wholesale price ranges from over $5,200 to $6,500. 

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For processing cinnamon powder

Workers in a cinnamon factory will proceed with the following steps to produce cinnamon powder:

  • Step 1: Removing the outer layer of the cinnamon barks
  • Step 2: Drying the inner barks
  • Step 3: Putting them into a grinder to get the final product, which is a fine, aromatic powder. The common mesh sizes used in this step are 80-100 mesh and 100-120 mesh.
  • Step 4: Packing cinnamon powder into bags
  • Step 5: Storing cinnamon powder in a cool and dry environment.

Factors influencing the product price of a cinnamon factory 

There are several important elements that impact the price of cinnamon that buyers should be aware of. This knowledge is especially important when they work with any cinnamon factory. Wholesalers should pay attention to the following factors that can cause changes in the price of cinnamon: 

  • Supply of cinnamon 

A report by IndexBox indicated that over the 2007-2016 period, the global cinnamon output grew by 1.7% each year. Therefore, it can be concluded that cinnamon factories around the world have plentiful and stable supplies. This helps stabilize trading activities and prevent sudden changes in price. 

  • Demand for cinnamon products

In 2019, the world imported $748M worth of cinnamon products. Compared to the figure of 2018, this value increased by almost 30%. Indeed, the demand for cinnamon is stable and constantly growing, which means customers can pay a higher price for such an excellent and essential product. 

  • Unexpected incidents

Buyers should be aware of unexpected risks during the shipment and trading of cinnamon. For example, under the influence of the Covid-19 pandemic, the production of a cinnamon factory can be disrupted. The pandemic may also cause shipments to be delayed when borders are shut down. These events may cause sudden spikes in cinnamon prices. 

  • Storage and shipment of cinnamon 

To ensure the quality of cinnamon is not affected, a cinnamon factory may need special equipment to ventilate and sterilize the product. It will also need machines to ensure the product is kept at ideal moisture and temperature. These additions will certainly add to the wholesale price of cinnamon

  • Governmental policies

With bilateral and multilateral trade agreements, countries will remove legal barriers like tariffs, which will reduce significantly the price of cinnamon. For example, thanks to the EU-Vietnam Free Trade Agreement, a cinnamon factory from Vietnam can export their products to a European country at a lower price since 99% of all tariffs have been removed. 

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Factors influencing the product price of a cinnamon factory

Choosing a reputable cinnamon factory

With a large amount of available information today, it can be challenging for businesses leaders to choose the right cinnamon factory. There are several commonly used platforms where they can look for famous names. Also, they can look out for signs that indicate a reliable and scam cinnamon factory.

Where you can find information about the cinnamon factory

Search engines, yellow pages, and government offices are places you can trust when looking for names of a good cinnamon factory. 

  • Google: This is a popular option and it is extremely accessible for everyone, both B2B and B2C businesses. However, since the page will come up with an enormous number of results, you should check the cinnamon factory very carefully. You can access their website and read their business information, as well as contact them to confirm their reliability. 
  • Offline and online yellow page: These are directories of companies and organizations which are categorized by the services they offer. Nowadays, they are available in both online and offline forms for people to use. 
  • E-commerce sites: Websites such as Amazon, Taobao, and Alibaba are full of providers of cinnamon products who wish to connect with new clients. By simply typing the name of the cinnamon product you want into the search bar, you can access the profiles of thousands of cinnamon factory.
  • Trade fairs: Trade fairs, either held offline or virtually, are also a great choice. These events attract the attendance of cinnamon providers and cinnamon factory that are likely to be trustworthy. Clients can check their products and profiles easily. Intermediary companies: These companies act as middlemen in connecting importers with cinnamon suppliers and cinnamon factory. They can provide options based on your specific business needs.
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Where you can find information about the cinnamon factory

Characteristics of a trustworthy cinnamon factory

If a cinnamon factory has the following traits, it might be one you can trust and have successful cooperation with.

  • Having a unique, well-designed website with clear business information 
  • Providing contact points that can be reached 
  • Proving that it has registered with the government and is authorized to process cinnamon products 
  • Presenting a good list of product choices
  • Being willing to provide product samples and show videos of the cinnamon factory 
  • Having previously worked with major partners and corporations

Signs of a scam cinnamon factory

You should be aware of the following signs since these indicate that a cinnamon factory may be unreliable and trying to scam you

  • Having a website that is not original and is a copycat of another factory 
  • Offering a price that is too low and too many discounts
  • Demanding you to transfer money immediately before discussing carefully the contract
  • Providing ambiguous business information and contact points that cannot be confirmed

Top 3 renowned cinnamon factory

If you are still baffled by the search for an ideal cinnamon factory, you can check out our list of three famous names that are verified and trusted by clients from across the world.

K-Agriculture

K-Agriculture is one of Vietnam’s most prominent names in the field of processing and wholesaling cinnamon products. The company’s cinnamon factory is fully equipped with state-of-the-art machines and a group of skillful workers. K-Agriculture is delighted to show photos and videos of the manufacturing process to prove its professionalism to its clients. 

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K-Agriculture

If you are interested in working with K-Agriculture – one of the leading suppliers of VIETNAMESE CINNAMON or just want to check out its cinnamon factory, you can contact the company via: 

  • Phone: +84855 555 837 (Whatsapp Available)
  • Website: vietnamesecinnamon84.com
  • Email: sarahnguyen.kagri@gmail.com

Lak Cinnamon

Lak Cinnamon is a famous exporter of Ceylon cinnamon products based in Sri Lanka. Being a family business, since 1991, the company has witnessed tremendous developments to become a major name in the market. With dedicated leaders and a highly professionalized cinnamon factory, the company’s supply is appreciated for its amazing quality.

Jiangxi Baicao Pharmaceutical Co., Ltd

Located in the Jinggangshan Economic & Technological development industrial zone, Jiangxi Baicao Pharmaceutical Co., Ltd is a trusted Chinese facility. Its cinnamon factory has been regarded by customers from the domestic and international markets as an excellent unit, with stable output and high-quality products.

Conclusion

In short, the cinnamon factory is now an important partner of any company wishing to expand their business and start trading cinnamon products. Therefore, choosing a reputable one with the necessary resources is vital to the success of that company.

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