Capturing Wealth from Upstream Human Resources in Ceylon Cinnamon Industry

Abstract

Ceylon cinnamon is apivotal minor export crop in SriLanka which cognizance from the ancient times. To sustain the dominating position of the cinnamon industry, it is necessary to overcome the barriers of the industry. The most compelling one is the human resource issue due to the labour intensity nature of the cinnamon industry. In this context, this study aims to assess the upstream human resource management of the Ceylon cinnamon value chain. 300 cinnamon processors and growers were selected randomly from Galle, Matara, Rathnapura and Kalutara districts using stratified random sampling technique. Data were collected through interviewer administered pre-tested questionnaires, focus group discussions and personal observations. Data were analysed using descriptive analysis, chi-square analysis, principal component analysis, regression analysis and Garret ranking technique. Results revealed that there was a relationship between socio-economics of cinnamon growers and value chain productivity, while in cinnamon processors there was no relationship between socio-economics and value chain productivity. According to the findings in cinnamon processing, there were two systems known as, Kalli and factory system. Results showed that there was no relationship between the knowledge, knowledge flow, decision-making ability, power and governance and value chain productivity of both cinnamon growers and processors. Lack of skilled cinnamon processors and lack of job security became the prime issue among the cinnamon growers and processors respectively. Recommendations were originated to overcome the identified issues to ameliorate the Sri-Lankan cinnamon industry.