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Cinnamon in short supply

20 May 2014

Following heavy rainfall in South East Asia, which has had an adverse effect on crops there has been a global surge in process for cassia cinnamon.

EHL Ingredients reports that the wholesale cost of cassia cinnamon has risen by around 20% year-on-year, which it attributes to heavy rainfall in Indonesia. In addition, customer demand for cinnamon, both in ground format and in whole quills, has also increased among UK food manufacturers, bakers, wholesalers and retailers.
Tasneem Backhouse, sales director at EHL Ingredients, said: “Faced with increasing demand for this popular and versatile spice, we are working to ensure that prices remain as stable as possible at EHL. Predictions show that the wet weather in Indonesia is due to peter out in the next couple of months, which should ensure optimum conditions for the drying process and a stabilisation of prices.”
Cassia cinnamon is extracted from the bark of a Laurel tree, being harvested immediately after the rainy season, when the bark is soft and easy to strip. 
The heavy rainfall has led to disruptions in the crucial drying stage of the harvesting process, meaning that much of the raw bark was left with over 35% of moisture, which is unusually high. The spike in prices can therefore be attributed to the extra work involved in drying the cinnamon and a decrease in supply of suitable raw materials used to make the spice.

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