October 26, 2022
Subject: Vanilla sector in Madagascar
Allow me to draw your attention to the critical situation in which the vanilla sector in Madagascar has been immersed since July.
For a decade, it has never happened that in the month of October bulk vanilla in producing areas such as SAVA, ANALANJIROFO, SOFIA does not yet find buyers at the level of producers as well as large and small collectors.
But alas in the last week of October, it appears that no clear perspective has emerged for this sector either on the side of exporters, importers or members of the CNV.
Companies in the sector are the first victims of the situation.
Having no visibility on the opening date of exports, on the names of verified importers, on the names of approved exporters, on export and import methods, the Madagascan vanilla sector is impoverished and is on the verge of disaster.
Operators experience day by day increasingly serious problems such as threats of seizure by financial partners, banking incidents, problems related to fixed charges and in particular wage charges, not to mention the loss of credibility and the inability to ensure the safety and maintenance of the quality of their products (many Products are damaged in storage warehouses and the time that elapses is fatally unfavorable); in summary these operators are mostly on the verge of bankruptcy and whether we like it or not the social impacts of this situation are catastrophic and bordering on explosion in all these regions living from the vanilla sector;
Moreover, at the macroeconomic level, the cataclysm is looming, because the banks that support our companies are worried about the delay caused by the implementation (or not) of the AMI and several are already provisioning their the current year. More than ever, banks and industry customers are demanding precise answers with immediate effect.
And even more, the credibility of vanilla from Madagascar in itself is called into question because currently, international customers are turning to alternative sources of supply (PNG, Uganda among others) and are asking manufacturers to reformulate their flavors with origins other than Madagascar.
Minister, given the situation, it is imperative to take a position before the end of this month of October to reassure all stakeholders and to save the sector.
Each passing day seriously aggravates the situation and weakens the Madagascan vanilla industry.
Counting on your immediate reaction to save our companies and the vanilla sector, receive Mr. Minister, the expression of my distinguished consideration.
Le Vice-Président NORD du Senat
Membre du CNV
BESOA ERICK LAMBERT