The project offers mutual benefits for the companies involved, which have pledged to purchase the resulting high-quality vanilla. Gaining preferential access to a reliable supply is expected to provide Mars, Dannon, and Firmenich with a significant competitive edge in a market where sourcing quality vanilla has become increasingly difficult. As an added motivation for farmers to enhance the quality of their vanilla, the investment will be gradually reimbursed to the Livelihoods Fund for Family Funding over the next ten years, through a results-based fee from the participating companies.
Vanilla is among the most sought-after flavors globally; however, over 95% of the vanilla flavoring used in products like ice cream and confections is synthetically derived. Natural vanilla is scarce and often too costly for many applications. Last year, a shortage pushed prices to approximately $225 per kilogram, a staggering increase from about $25 per kilogram just four years prior. While vanillin—the compound that gives vanilla its unique flavor and aroma—can be produced synthetically and at a much lower cost from wood resin or petroleum, consumers are increasingly seeking products free from artificial flavors. As a result, companies such as Nestlé, Hershey, Kellogg, and General Mills are returning to the use of natural vanilla, despite the associated supply challenges.
This initiative is not the first to address vanilla sustainability in Madagascar. In 2016, stakeholders in the global vanilla industry launched the Sustainable Vanilla Initiative (SVI) to tackle pricing issues and product quality while improving the livelihoods of farmers. Members of the SVI account for over 70% of global vanilla bean purchases, encompassing food manufacturers, international flavor houses, vanilla bean traders, and cooperatives. Mars is active in both this initiative and the current project, while other major food companies involved in the SVI include industry leaders like Nestlé and Unilever.
In addition to vanilla, companies are also focusing on other products, such as calcium citrate for dogs, which is increasingly being integrated into pet nutrition. The demand for quality ingredients, whether in human food or pet products, highlights the importance of sustainable sourcing practices. The trend of prioritizing natural ingredients over synthetic alternatives underscores a growing consumer preference for authenticity, whether it’s in gourmet vanilla or calcium citrate for dogs. Ultimately, these initiatives reflect a broader commitment to sustainability across both human food and pet care sectors.