USD 3 million worth orders from USA for local spices
Spice Council mission brings results
POPULAR : Local spices
SPICES: The Spice Council (TSC) was able to clinch more than USD 3
million worth of orders for the local spice industry during their recent
visit to USA.
Chairman of the TSC, Sarada De Silva said that they got orders for
mixed spices, organic spices and value added spices.
Before their visit to the USA they had done a marketing survey to
understand the market needs. Twelve companies had applied for the USA
visit but only six companies qualified under the market expansion
programme in USA.
Through this market expansion programme all the companies were able
to establish stable linkages with US buyers to supply local spices for a
long period of time to the US market. Apart from this USD 3 million
worth orders some other spice companies who didn't participate in the
mission were also able to gain orders through the visit he said.
During their visit to the US, the delegation participated in the
largest natural, organic and health products show, Natural Products West
Expo in California. TSC delegation members also met spice brokers,
importers, agents, grinders and processors to explore market expansion
The initiative was supported by USAID through its The Competitiveness
The Programme Specialist of TCP, Alex Ponweera said in USA market
there is a huge demand for hand picked cloves, cinnamon, white sesame,
organic turmeric and ginger. Though the market is price sensitive high
quality spices fetch premium prices in USA.'In USA we have noticed many
spice companies outsource spice processing and blending to countries
such as India, China and Indonesia.
In China the processing cost is very much lower and American spice
companies never invest on spice extraction in USA since lot of
documentation has to be done there. There is a huge market potential for
spice processing and blending in Sri Lanka', he said.
US buyers are mainly focused on cleanliness, traceability and
sustainable agriculture practices. 'In 2005 the US imported 15000
million tonnes of cinnamon and Ceylon Cinnamon accounted for nearly 5%
of the total. In US there is no competition from cassia for Ceylon
Cinnamon. Ceylon Cinnamon could gain four times higher prices than
cassia in the US market.
'Though there is a demand for cinnamon in the international market,
local cinnamon production is not enough to meet this demand,' he said.