Why is vanilla so expensive?

In recent years, natural vanilla has sometimes been more expensive than silver by weight. Vanilla farmers in Madagascar are cashing in—but violence, theft and volatile markets are threatening their prospects.

From ice cream to cakes and even perfume, vanilla is the go-to flavour the world over. In recent years the price of natural vanilla has shot up. At one point it was more expensive than silver by weight.

80% of the world’s vanilla is grown in the perfectly suited climate of the north-east region of Madagascar. It’s the country’s primary export crop. For the farmers, like Beni Odon, life is far sweeter when the vanilla price is high.

In 2014 vanilla was $80 a kilo. Three years later it was $600. Today it’s around $500. The price rise is due in part to global demand. The trend of eating naturally means that food companies have shunned synthetic flavouring in favour of the real deal. Beni and the other farmers are cashing in.

But things can change very quickly. Price fluctuations affect producers of agricultural commodities everywhere but vanilla is particularly volatile. In just a few weeks the price can jump, or plummet, by over 20%

Liberalisation is one reason for such movements. The Malagasy government once regulated the vanilla industry and its price. But now the price is negotiated at the point of sale which makes for a freer market but a more volatile one. It’s also a tiny industry. A single cyclone can knock out the entire crop within Madagascar. It’s also a difficult and delicate crop to grow.

The growers have to contend with another problem. Thieves are targeting the vanilla crops. Some farmers have resorted to harvesting the beans before they’re ripe but this produces a poorer quality vanilla and ultimately pushes down the price.

The combination of deteriorating quality and high prices is having an effect. The vanilla price bubble may burst. Big buyers that provide vanilla for the likes of Häagen-Dazs and Ben & Jerry’s are now working directly with farmers in a bid to gain greater control over quality. Other companies have started to look elsewhere for their natural vanilla. Indonesia, Uganda and even the Netherlands are growing the crop. For a century Madagascar has enjoyed a near-monopoly on vanilla. But this industry may be in line for a radical overhaul.

[StackFreedom]

I dont mind paying a few extra bucks if it means these farmers are living a happy life and aren't under the tyranny of mega corporations that pay them peanuts for hours of hard work

[ksbaddicted]

If the price is high, these people can afford to buy solar panels and have nice homes.

Okay, it's okay for vanilla to be so expensive if it means giving them a good livelihood.

[radimilahyambinintsoa]

Hello everyone :) I'm from Madagascar and for your information people from Madagascar are called Malagasy...no madagascarian or madagascan
Have a nice day ;)

[keriti]

If my money is going to hard workers, and not some big company for vanilla, im happy paying for it :)

[ahoosifoou]

As a kid id walk back home afterschool and pass the vanilla farmers houses who would sun dry the vanilla on their front yard. Gosh the SMELL is so strong and yummy it permeates through the whole area, good memories.

[demonsrexis]

"The farmers are cashing in."

Doesn't look like they are the people who cash in the most in this documentary.

[khushboopidiyar]

The price isn't an issue as long as the quality isn't compromised. Those companies would pay any amount for top quality vanilla. That's a fact.

[Just_a_passer_by]

For the first time in my life Im happy for something to go up in price.

[Kikigreentea]

I was literally searching Amazon yesterday to buy Vanilla extract and thought why is Vanilla is so pricey, only to wake up to this video😯?

[dockmaster]

I didnt know that vanilla is an orchid. Just now

[laurentdrozin]

Fun fact: the manual pollination for vanilla was discovered by a slave called Edmond Albius who lived on my home island of Réunion. At the time Réunion was called Bourbon Island after the French royal dynasty, and to this day Vanille Bourbon is reputed to be the best quality vanilla, so much so that Madagascar likes to call its vanilla for Bourbon. As fas as I understand, a lot of the difference in quality has to do with the processing after harvest, as the vanilla has to be very carefully fermented and dried. Different bacteria strands for the fermentation play a role and that makes the whole thing as much an art as a science, a bit like cheese.

[-lr]

I'm a vanilla dude. I see vanilla.
I clicked.

[legionmaniac-]

If you're good at something, never do it for free
-the joker

[linda-fysg]

Wait that means Vanilla is more expensive than my house

[AaronBowley]

I bet it smells so good in Madagascar 🤤🤤🤤

[craigm.]

....yum. My wife makes homemade vanilla extract...by purchasing 2 raw strands and placing them in 500 ml of Vodka...2 weeks later...greatness for cookies, and cooking

[Romirazer]

In South India, the prices of vanilla dropped heavily a couple of years ago and a large number of farmers committed suicide.

Some of them invested a lot of their time and money (loans) and when the price suddenly dropped by more than half, they just didn't know what to do.

[max_spartaspectre]

As long as farmers of the world are getting their proper price, everything is affordable.

[The_A_Cast]

There are people out there literally risking their lives, just so we can enjoy a scoop of vanilla ice cream.
*I’ll GLADLY spend whatever the price becomes to help them and their families!* ❤️

[whiteknight]

Wow. I never knew how hard it truly is for growing vanilla. A nice information for me cause Im currently am taking agriculture course. I appreciate the infor in the vid. :)