What is the price of Madagascar Vanilla?

What is the price of Madagascar Vanilla?

The price of the vanilla bean changes every year. We propose to explain it to you in this article.

Why does the price of vanilla change?
The vanilla bean is a luxury product. If its price was 53€ per kilo in 2013, it has increased considerably in 2017, to 500€ per kilo. And in 2018, the vanilla market has never felt better. In fact, the price of Madagascar vanilla has reached over $680 per kilo. 

But why this price explosion on the world markets?

This increase is unprecedented, it results from an increased demand by the agri-food giants and a decreasing supply. Madagascar, the main vanilla producing country, has experienced a cyclonic period that has devastated many crops. Yet, the Big Island accounts for 80% of vanilla production. In 2016, production amounted to only 1,200 tons, compared to 1,600 in 2014. The year had been marked by a significant drought. The cyclone of March 2017 hugely impacted yields. According to a UN report, the losses for agriculture amounted to $207 million (175 million euros), mainly in vanilla production. 

In 2020, the health crisis had an impact on the evolution of prices, which fell slightly. The price per kilo was around $500.

Moreover, as the harvest season for the year 2020-2021 started in September 2020, the Malagasy government has set the price of bourbon vanilla at a minimum of $250 per kilo. 

Current price of bourbon vanilla in Madagascar 2021-2022
The Malagasy government has set the price of vanilla. From May 2022, "the price of green vanilla will be set at 75,000 ariary per kilo (about 17€) and not less", says President Andry Rajoelina. The latter recognizes that "collectors and exporters earn exorbitant profits at the expense of farmers who are the big losers. The exporters will have to fill out a schedule of conditions indicating the collectors with whom they work and who are committed to buying green vanilla pods at no less than 75,000 ariary. However, there is no official action against collectors who do not respect this price.

Acheter de la vanille