Vanilla prices shoot up, near $500 per kilogram

by Jeff Gelski
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Vanilla beans
 Export prices for vanilla from Madagascar have broached the level of $500 per kilogram after a disappointing 2016 crop.

POINTE-CLAIRE, QUE. — The vanilla crisis in Madagascar, the world’s top producer, is getting worse, according to a Feb. 21 report from Aust & Hachmann, a vanilla supplier based in Pointe-Claire. Export prices for vanilla from Madagascar have breached the level of $500 per kilogram after a disappointing 2016 crop, according to the report, and prices almost certainly will eclipse the high prices of 2003.

Six years ago the vanilla market was more of a bear, as prices for vanilla beans were about $20 per kilogram.

At the beginning of 2016 vanilla prices from Madagascar were in the range of $200 to $250 per kilogram. A projected 2016 crop of 1,800 to 2,200 tonnes of vanilla beans in Madagascar was expected to bring down prices. Now, Aust & Hachmann expects the 2016 crop probably was no larger than 1,200 tonnes.

Vanilla beans
Aside from Madagascar, no country comes close to a vanilla crop of 1,000 tonnes.

While a decent vanilla crop in Madagascar may reach 2,000 tonnes, no other country comes close to a crop of 1,000 tonnes. Indonesia probably contributed more than 500 tonnes to worldwide trade in 2016, but the majority of that was from previous crops, and now inventories in Indonesia are down, according to Aust & Hachmann. Production in Uganda is below 100 tonnes. Papua New Guinea may provide some relief as production there should be significant in 2017. 

“It is very difficult to predict when the current vanilla crisis will end,” the report said.

The complete report from Aust & Hachmann, which offers vanilla as a raw material and as a finished product, may be found here.

The report added green vanilla bean extraction and quick-cured product in Madagascar are hurting vanilla quality in Madagascar. About 300 to 400 tonnes of vanilla beans were removed from the 2016 crop as a result of green vanilla extraction.

Green vanilla beans
Green vanilla bean extraction and quick-cured product in Madagascar are hurting vanilla quality in Madagascar.

Through quick-curing, harvested green vanilla beans are cured and available for export in weeks instead of months.

Quick-curing degrades vanilla quality, however, according to the report. If the market continues to move to more quick-cured product, it will become increasingly difficult to find traditional gourmet (black) vanilla, red splits, European grades or classical cuts.

“In effect, quick-curing commoditizes vanilla into one grade,” the report said.
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READER COMMENTS (14)

By M Talagi 6/15/2017 6:04:46 PM
I have a small amount of organically grown vanilla from the 2016 bloom in the curing process now.

By Andotiana 6/15/2017 7:55:58 AM
we are looking for buyers,we have a lot of green vanilla beans of Madagascar it's a very good quality of vanilla and price is negociable but the buyer have to buy it here in Madagascar.

By Ram 6/11/2017 10:37:13 AM
We have looking for investores for vanilla plantation in India.we have man power to work and land and water.

By sam wilbert 6/7/2017 2:06:59 AM
I am highly interested in doing buisness with your buisness firm.

By sam wilbert 6/7/2017 2:04:07 AM
I am now currently searching vanilla buyers around the world to purchase my " cured derived vanilla beans on higher market prices.

By sam wilbert 6/7/2017 1:56:40 AM
I am highly interested in doing buisness with your buisness firm.

By sam wilbert 6/7/2017 1:56:39 AM
I am highly interested in doing buisness with your buisness firm.

By C. Oak M. 6/1/2017 6:18:22 PM
Hello, this is a fascinating article and the comments are interesting. I'm currently researching about the industry in hopes be actively involved for a new generation of vanilla producers, suppliers, and buyers. With the scarcity of resources and information, I think it is crucial to develop relations and outlets of communication such as this platform. What are the trends in the Vanilla industry and the prospects for the future generation?

By Kasasira Abduladiru 5/21/2017 5:49:38 AM
I am ugandan looking for market for vanilla in our country i need ur help

By Robert Horris 5/11/2017 7:43:46 PM
I think we have some quality vanilla in Papua new Guinea north of Australia and we can contribute an 100 to 200kg quaterly to the food but business.

By Richard Magumbie 5/4/2017 9:50:40 PM
Looking for interested overseas buyer I supply 2tons of vanilla beans per month all supper black 25,26,27and 28 centimeters I can be reach on the above email address or Mobile # +67579371091

By Elizah Jim Lavatu 5/3/2017 8:20:29 PM
Wana sell some kilos of Vanilla Beans

By Justin Kipa 4/5/2017 1:23:17 AM
Now that Madagascar drop in vanilla produce so price market increase. This increase of price will last for how long for Madagascar to come back, one or two year lets say now 2017 so they come back 2018. Help please advice us because we grow and sell vanilla in small town of Maprik in East Sepik Province of Papua New Guinea. Also wants to chat/email with one you help guide to export my vanilla to overseas higher market prices. Regards, Justin Kipa Buyer and Grower Maprik Town East Sepik Province Papua New Guinea

By Nason Klembasa 4/3/2017 6:29:13 AM
I am from Papua New Guinea looking for the oversea market to sell my vanilla beans.