Why Is Vanilla So Expensive?

The Economist has not been one of our go-to sources for stories because it has an ideology that sometimes gets in the way of deeper investigation. Their stories and explanations are extremely thorough and very compelling, but we can usually guess the answer before the question is even asked.  Every now and then they surprise us, and here is a good example:

The bitter truth behind Madagascar’s roaring vanilla trade

How did hunger for the humble pod lead to greed, crime and riches? Wendell Steavenson travels to Madagascar to meet the new spice barons

In pods we trust
A quality-control chief in a co-operative in Belambo

I follow Felicité Raminisoa and her father, Romain Randiambololona, up a narrow track along the forested slopes of her family’s farm in southern Madagascar. It is lychee season and, as we walk, we break off branches of fruit and peel off the pink, spiky shells. Large yellow jackfruit grow like Chinese lanterns among loquat and clove trees, pepper vines and coffee plants. Sapphire dragonflies flash by as they chase each other over ponds of tilapia dammed into the valley. The air is muggy under the banana leaves but grows fresher as we climb. In all directions we can see vanilla vines winding around tree trunks. Each zigzag stem has been trained so that it grows no higher than Raminisoa can reach. Every so often she stops at a pale-yellow bloom and parts its waxy petals. With a spike snapped from an orange tree, she delicately scrapes away the membrane separating the anther from the stigma in order to pollinate the flower. This is a task that requires perfect timing. Each flower must be pollinated by hand on the morning it blooms or the beans won’t sprout.

Blooming marvellous
A vanilla flower is pollinated by hand

The family began to plant vanilla vines about 20 years ago mostly as “decoration”, says Randiambololona, his big grin punctuated by a missing tooth. At first the family sold fresh green vanilla pods to tourists, surprised that they would pay anything for them. But in 2014 the price of vanilla began to rise. Over the next three years it went from less than $40 per kilogram to more than $600 per kilogram. It felt like money was growing on their trees. In 2016 Raminisoa travelled to the northern region of Sava, where vanilla has been grown for generations, to learn how to cure the green pods into the commodity that was in such demand: pungent and wizened black beans. Continue reading