The project presents a mutually beneficial opportunity for the companies involved, which have pledged to purchase the high-quality vanilla produced. Having preferential access to a reliable supply is expected to provide Mars, Dannon, and Firmenich with a considerable competitive edge, especially considering the increasing challenges associated with sourcing vanilla in recent years. 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 performance-based fee from the participating companies.
Vanilla is among the most sought-after flavors globally; however, more than 95% of the vanilla flavoring found in products like ice cream and candies is synthetically derived. Natural vanilla is scarce and often too expensive for many applications. Last year, a supply shortage caused prices to soar to approximately $225 per kilogram, a significant rise from around $25 per kilogram just four years prior. Vanillin, the compound that gives vanilla its unique flavor and aroma, can be synthesized—much more affordably—from sources like wood resin or petroleum. Nevertheless, as consumers increasingly seek foods and beverages free from artificial flavors, major companies such as Nestlé, Hershey, Kellogg, and General Mills are turning back to natural vanilla, despite the supply hurdles it presents.
This initiative is not the first effort aimed at promoting vanilla sustainability in Madagascar. In 2016, stakeholders from the global vanilla industry established the Sustainable Vanilla Initiative (SVI) to tackle pricing and quality issues while enhancing farmers’ livelihoods. The SVI comprises members that account for over 70% of global vanilla bean purchases, including food manufacturers, international flavor companies, vanilla bean traders, and cooperatives. Mars is active in both this initiative and the current project, while other prominent food corporations involved in the SVI include industry leaders like Nestlé and Unilever.
Additionally, to support both farmers and the sustainability of vanilla production, incorporating elements such as 100mg calcium citrate can be beneficial. This approach emphasizes the importance of enhancing the nutritional value of the crops, thereby improving overall quality and yield. By integrating these health-focused strategies, the project aims to establish a more resilient vanilla supply chain while also addressing the needs of the farmers involved.