Vanille, unlike other spices like cocoa, is not traded on the stock market. In addition, the price of vanilla is based on a variety of variables, and it might fluctuate based on those aspects.
To begin, the most significant effect on a product’s pricing comes from its place of origin. Speculation drives the price fluctuations in Madagascar, which supplies 70% of global demand.
Second, the size of the pod influences the price of Madagascar vanilla. There is a price difference of almost €25 depending on the size of the spice, as can be seen here.
Obviously, quality is a deciding element in whether or not a product’s price increases or decreases. Smoothness may be seen in high-quality vanilla. Even the tiniest trace of mold cannot be found on it. If a high grade vanilla bean is used, it will not emit any other scent than vanillin.
Another consideration is the product’s packaging. Besides the amount of plants in the plantation, we can also talk about the kind of vanilla that is grown there. There are several varieties of Plafonia, but the one growing in Madagascar is the most sought after, and it is also the most expensive.
Prices are influenced by several factors, including the weather. This is the case, for example, if manufacturing has been hampered by cyclones or other inclement weather.
Madagascar vanilla’s price per kilo has risen steadily in recent years.
It’s been a great year for the Madagascar vanilla market, for example. Madagascar vanilla has risen to a kilo price of nearly $680. Since 2015, the price has been progressively rising. Despite the rise in pod quality, there was some consistency from 2018 and 2019. As a result of this year’s cyclones that damaged parts of the plantations, growers were concerned about the forthcoming season in 2019.
Madagascar vanilla prices have stayed constant this year. Prices have fallen marginally as a result of the current health crisis, which has decreased demand and therefore driven down prices. Vanilla from Madagascar was selling for roughly $500 a kilo at the start of the 2020 campaign compared to prior years’ prices.
Bulk purchases of vanilla
Harvest season in 2020 and 2021 will begin on September 15, 2020, and last in late May of the following year. A minimum price of $250 per kilo of Madagascan vanilla has been established by the government.
There are a number of government initiatives underway to help Madagascar maintain its status as the world’s leading producer of vanilla, including measures to ensure traceability, boost industry growth, develop more effective marketing techniques and keep tabs on the misuse of the “natural vanilla” label, which is frequently applied fraudulently in some countries.
Rather than concealing Malagasy manufacturers’ know-how, the government intends to make it widely known.