The Vanilla Report

Welcome

November 15, 2022

The system to be implemented by Malagasy authorities and the Conseil National de la Vanille for the year 2022/2023 was presented to vanilla operators in Antalaha on November the 11th.

 

The export season will extend from November 15th to May 31. Licensed exporters are required to follow the rules established in the “Manuel de Procédure” to be distributed and which includes the respect of official prices and particularly the minimum export price of USD 250 a kilo of vanilla beans.

 

Simultaneously, 74 international buyers have filled a request to import Malagasy vanilla beans.

 

Other exporters and other importers may be authorized by the Malagasy authorities and the Ministry is open to new requests each Thursday between 11 am and 1pm, 

but this concerns particularly private Associations of exporters, which the authorities are particularly in favor of.

 

Other requirements are expected to be respected by exporters, including:

 

  • The payment of a tax of USD 4 per kilo which will finance the activities of the Conseil National de la Vanille
  • The control of quality (probably to be established in Tamatave in a year’s time) which will allow the authorities to control samples of export lots to be analyzed prior to their export.

The Vanilla Report will report regularly on the implementation of these measures.

The Vanilla Reports & Newsletters (NEW)

The Malagasy government is experiencing hiccups in its communication concerning the internal and external marketing of its vanilla: 1. Trying to enforce minimum prices at the three farm gate price levels for green beans (75,000 Ar) then dry beans (500,000 Ar) and FOB (250 USD), the government had to face some difficulties (or realities): - If on paper most of the exports made in 2021/2022 were invoiced at 250 USD, all kinds of legal or illegal tricks have taken place which have allowed certain internal or external operators to still sell on international markets at a price much lower than that theoretically paid.

Demeter Vanilla Field Survey (NEW)

Main Results:

(harvest 21/22 refers to vanilla flowers pollinated in fall 2021 and pods harvested in 2022)

1. Our field survey indicated that the 2021/2022 harvest of vanilla in Madagascar could be well below 2,000 tons but for once this report prefers to correct these results and opt for a harvest at around 1,800 tons.

2. The internal marketing of this harvest showed a significant difference between the official price of 75,000 Ariary per kilo to be paid at the edge of the farm and the real price paid by the collectors (between 35,000 Ar and 50,000 Ar).

3. A similar discrepancy occurs between the price of dried vanilla recommended/imposed by the Malagasy authorities (Ar 500,000) and the actual price offered by the collectors.

4. The consequence is that in terms of income, farmers can cover their cost of living at official prices but not at actual prices.

5. As for the new crop (2022/2023), and due to climate change, pollination has barely started in early November. A large number of inflorescences present for later pollination could still allow an average harvest to occur...

Demeter Vanilla Price Index

Evidenced in the early Ambanja sales of green beans, the minimum farmgate price imposed by government is not really implemenetd. if it was, it would bring the FOB price at USD 200 as appears in the following tables:

Documents, Regulations,..

Madagascar The Ministry of Commerce (Ministère de l’Industrialisation, du Commerce et de la Consummation) has declared in a « Official Notice to International Buyers of vanilla » signed on September 9 2022, following a Government Council Meeting “Conseil de Gouvernement » that the Conseil National de la Vanille”, calls International buyers of vanilla to declare officially their Intention to buy Malagasy Vanilla in order to prepare a list“verified international buyers” The applications from international buyers should be sent before the 30th September 2022. In practical terms, potential buyers are required to fill the forms presented hereunder and comply with the conditions presented in the documents issued by the “Conseil National de la vanilla” We present herunder the different texts , requirements and application form. As one of these requirements are for the applicant to present a “K Bis” which is a “certificate of incorporation used strictly in France, we provide an English adaptation of the information listed in this “KBis”. We shall in the coming days also give clarifications as to the implementation of these procedures and provide subscribers with practical advice as to how to apply.

Q&A, Soon to come

As this research has been conducted since 2003 and as we have in stock a lot of unpublished material, we shall be happy to present our subscribers with answers to their queries, in the limit of our knowledge...

Climate and Agronomy

Climate warming is affecting the SAVA region which produces most of Madagascar’s vanilla: Cyclones are stronger than ever but appear to be hitting this year the middle of the island. The Vanilla Report will investigate further that evolution and determine whether it is durable or not...