Study on Application Potential of Ultra Modern Technology for Profit Maximization in Ceylon Cinnamon Industry
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Date
2011
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Publisher
Uva Wellassa University of Srilanka
Abstract
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Cinnamon at present is the dominant spice in Sri Lanka in terms of the foreign exchange earnings. Further, Sri Lanka is the major and also the only true or genuine Cinnamon (Cinnamomum zeylanicum) producer and exporter to the world market. However, the Sri Lanka is still earning high foreign exchange from Cinnamon industry exporting traditional Cinnamon products with little or without any value addition. The major export product out of Cinnamon is the Cinnamon Quills which was accounted for about 8,468 million rupees during year 2009 and bark and leaf oil exports were comparatively insignificant as only income of 133 and 143 million rupees, respectively generated in the same year. Since the attention to extract Cinnamon bark oil is less, a large portion of the Cinnamon tree is being discarded without any economical use.
In the current practice, use of technology is very low and very primitive. Traditional methods and equipment are being used in this industry. In the attempt of promoting the value addition in the Ceylon Cinnamon industry, technology has been the major stumbling block. There have been some important technologies and modern machineries developed around the world which have potential use in the Cinnamon industry. Therefore, it is vital to introduce those technologies if it is needed to promote the value addition in the Cinnamon industry. The Selected ultra modern technology for this study is extraction of water soluble Polyphenolic type A compound from oil extracted Cinnamon bark which has anti diabetic effect.
Polyphenol type A polymer is a water soluble compound and it is not found in the spice oils sold as food additives. It is believed that Cinnamon makes fat cells much more responsive to insulin, the hormone that regulates sugar metabolism and thus controls the level of glucose in the blood (Anderson, 2004).
This compound can be extracted from oil extracted Cinnamon bark leading to the production of value added product of Cinnamon. This study determines the possibility of applying that ultra modern technology for profit maximization in Ceylon Cinnamon industry.
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Keywords
Agriculture, Environmental Engineering, Economics, Business Management, Export Agriculture