CINNAMON OR TRUE CINNAMON - Intercom Exports

Quillings are less highly priced than top quality fine grade quills,as would be
expected, although they may infact be broken fragments of highest grade quills. In
Chinese cassia the ‘broken,no.1’ grade is not normally very much less expensive than the
whole grade, although there is always a differential.there is no obvious relationship
between the prices of Chinese, Indonasian and Vietnamese cassia and supply and demand
are the main determinants of the relative price levels, although major differences
normally disappear quickly as buyers temporarily turned to the cheapest variety. In 1974
prices were very high and this reflected the speculative pressures arising from the
worldwide commodity boom rather than any real scarcity. As previously
Indicated, however, cassia has occasion been very scarse, primarily on account of
variations in the quantities available for export from main land china; cinnamon has been
much less affected by shortages of such magnitude.
Future price levels for both cinnamon and cassia could be markedly affected if
Chinese and Vietnamese production were to reexpand. In case of china, a small increase
in production could bring about a very large increase in exports, owing to the
relationship between local consumption and export. World demand is likely to increase
only very slowly, and is unlikely to be influenced by a sharp fall in prices, it can only be
concluded that an expansion in supply from one source could, thourgh price mechanism,
bring about an eventual cut back in production in other countries as a result of
unfavourable prices.
EXPORT/IMPORT TRADE REGULATIONS OF DIFFERENT COUNTRIES
EUROPEAN REGULATION ON SPICES
The spice industry in Europe thrives mainly on the trade in ground spices which are
used mainly as food ingredients and hence all the horizontal regulations concerning food
processing and sale are of direct relevance to spices. Product specific vertical regulations
have not yet been formulated for spices and herbs, but codes of practices and standards
relevant to spices and herbs are in existence in many European countries. Presently, the
European Spice Association, in collaboration with the Spice Trade Association of various
European countries is attempting to lay down uniform standards and code of practices,