Due to the current crisis in Madagascar, the price of vanilla bean has risen by over 500% in the last two years.
Madagascar is the world’s top producer of vanilla bean, and home to 75-80% of global supply. Other countries producing vanilla include Indonesia, Papua New Guinea, India and Uganda, but these countries see a smaller harvest. As the market leader, Madagascar sets the global prices and standards of vanilla production.
Several factors have amounted to a poor vanilla harvest in the last couple of years. There is a very limited supply of beans as crop sizes have fallen short of expectations, at only 1,200 tonnes, instead of the expected 1,800-2,000 tonnes. A lot of devastation also occurred when Cyclone Enawo hit Madagascar in March, damaging many crops. As well as this, the overall quality of vanilla beans has fallen dramatically due to green vanilla bean extraction and quick-cured product in Madagascar.
At the start of 2016, the price of vanilla bean increased dramatically, hovering around $200 per kilogram. In 2017, the price of vanilla bean is at an all-time high of around $600 USD per kilogram.
These prices have had a devastating effect on food industries across the world, especially with the increase in demand for companies to use real vanilla bean instead of natural flavours.
Unfortunately, a lot of companies who have always used real vanilla bean in their products are now being forced into using “natural vanilla flavour”.
At Bare Blends, we’re staying true to our values and continuing to use organically grown vanilla bean in our blends.