The price of vanilla beans fluctuates annually. We want to provide an explanation in this post.
Why does the cost of vanilla fluctuate?
Vanilla beans are a premium item. If its price per kilogram was 53 euros in 2013, it is now 500 euros per kilogram. And in 2018, the vanilla market has never felt better. In fact, vanilla from Madagascar now costs over $680 per kilogram. Buy Vanille de Madagascar
But why have prices on global marketplaces exploded?
This enormous surge is the consequence of growing demand from agri-food corporations and a shrinking supply. Numerous crops were destroyed by a cyclone that ravaged Madagascar, the world’s leading producer of vanilla. However, the Big Island produces 80% of the world’s vanilla. In 2016, just 1,200 tons were produced, compared to 1,600 in 2014. The previous year had been characterised by a severe drought. The March 2017 cyclone had a significant influence on crops. According to a UN estimate, agricultural losses were $207 million (175 million euros), mostly due to vanilla production.
In 2020, the health crisis affected the development of prices, which decreased little. The cost per kilogram was around $500.
In addition, since the harvest season for the year 2020–2021 began in September 2020, the Malagasy government has established a minimum price of $250 per kilogram for bourbon vanilla.
Current vanilla bourbon price in Madagascar for 2021–2020
The vanilla price has been determined by the government of Madagascar. The price of green vanilla will increase to 75,000 ariary per kilogram (about 17 euros) beginning in May 2022, according to President Andry Rajoelina. The latter acknowledges that “collectors and exporters reap enormous profits at the cost of farmers, who are the greatest losers.” The exporters will be required to provide a list of collectors with whom they operate and who are committed to purchasing green vanilla pods for at least 75,000 ariary. However, no formal punishment is taken against collectors who disregard this pricing.