We are all aware of the crisis facing the vanilla industry in Madagascar. The purpose of this newsletter is not to add arguments to the debate but to present some of the Fundamentals that should govern any decision to be taken by the stakeholders.
1/ The demands by the Malagasy Government...
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...
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. These re-exports essentially concern vanilla pods originating in Madagascar, as clearly shown by the quantities re-exported, particularly by the countries of North America and Europe. ("tons") appear clearly in the table below.
Madagascar
The Ministry of Commerce (Ministère de l’Industrialisation, du Commerce et de la Consomma-tion) is in charge in Madagascar of giving vanilla export licenses to a list of applicants whether from “Industry” or “Artisanat”...
In between Vanilla Reports , we propose to edit regularly those newsletters that will be sent automatically to our registered subscribers and inform them in real time of events, and new analysis and data as they
are available:
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: ...
Madagascar
The Ministry of Commerce (Ministère de l’Industrialisation, du Commerce et de la Consomma-tion) is in charge in Madagascar of giving vanilla export licenses to a list of applicants whether from “Industry” or “Artisanat”...
April 13, 2022
As the 2020/2021* crop is being sold and exported, as the 2021/2022* crop is getting
close to maturity, this report will reflect on the events and results concerning the vanilla
world, and how they may affect this coming crop...
Prices have been rising since December 2021 particularly and exports have been important (crop to crop June 21 March 2022 1 809 tons) . See Demeter Vanilla Field Surveys...
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