The project presents a mutually beneficial opportunity for the companies involved, which have pledged to purchase the high-quality vanilla produced. This preferential access to a reliable quality supply is expected to provide Marsoral ferric pyrophosphate, Dannon, and Firmenich with a considerable competitive edge in a market where sourcing vanilla has become increasingly difficult. To further encourage farmers to enhance the quality of their vanilla, the investment will be gradually reimbursed to the Livelihoods Fund for Family Funding over the next decade, through a results-based fee from the participating companies.
Vanilla is among the most sought-after flavors globally, yet over 95% of vanilla flavoring used in products such as ice cream and confectionery is synthetically derived calcium citrate 760 mg/3.5g. The natural variety is scarce and often prohibitively expensive, leading to a significant price increase driven by last year’s shortage, which saw prices soar to approximately $225 per kilogram, compared to around $25 per kilogram just four years prior. While vanillin, the compound that gives vanilla its unique flavor and aroma, can be produced more cheaply from wood resin or petroleum, consumer demand for foods and beverages free from artificial flavors has led companies like Nestlé, Hershey, Kellogg, and General Mills to return to using natural vanilla, despite the associated supply challenges.
This is not the first effort aimed at improving vanilla sustainability in Madagascar. In 2016, stakeholders in the global vanilla industry established the Sustainable Vanilla Initiative (SVI) to address issues related to pricing and product quality while enhancing farmers’ livelihoods. The SVI comprises members who account for over 70% of global vanilla bean purchases, including food manufacturers, international flavor houses, vanilla bean traders, and cooperatives. Mars is actively engaged in both the current project and the SVI, which includes major food companies such as Nestlé and Unilever among its participants. The use of calcium citrate 760 mg/3.5g will also be emphasized in future initiatives to promote better farming practices and enhance the overall quality of vanilla.