Vanilla sector in Madagascar: "We have entered a new era"

Text by: Sarah Tétaud Follow

A wind of change is blowing on the vanilla sector in Madagascar. This Wednesday, the government must take a series of decrees and circulars supposed to perpetuate the sector, purify it of its speculators and bring quality to the center of concerns. Only, in a liberalized sector, state interventionism disturbs, and certain actors do not see these measures in a good light.

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With our correspondent in Madagascar,

May 31 will mark the complete closure of the 2019-2020 vanilla campaign in Madagascar. Clearly, it will now be prohibited to sell and export the precious black pod, until the next campaign opening date.

A decision regretted by this exporter from Sava, the largest vanilla producing region on the island: " The problem is that we have orders all year round and this decree will prevent us from being able to export our vanilla to our clients. It will favor other origins such as Indonesia, Papua, Uganda, which they will be able to continue to export all year round. "

Another innovation is the fixing of a minimum selling price : $ 350 per kilo for loose vanilla. A heresy for this same exporter: “ Since the beginning of 2020, impossible to sell at more than 300 dollars per kilo. On paper, this type of pricing is interesting for all players in the Madagascan sector, because it ensures everyone a minimum remuneration. But in reality, if there are no buyers, it is a decision that is counterproductive. Suddenly, the question is to know today why this type of decision is taken at the state level and who benefits? "

First world exporter of vanilla

Georges Geeraerts, the president of the GEVM, the Grouping of exporters of vanilla from Madagascar, welcomes him these decisions which should encourage the return to a certain quality. Lantosoa Rakotomalala, the Minister of Industry and Trade behind the various decrees, assures that these decisions have no other purpose than to limit price volatility to ultimately ensure the sustainability of the sector.

“ Our industry has experienced too much instability in recent years. Buyers want predictability, ”she says. “ And the majority of the 200,000 players in our vanilla sector (Editor's note producers, collectors, exporters) want it too. The state must play a regulatory role when chaos can happen quickly, even if it is a liberalized sector. We have entered a new era , ”said the Minister.

Despite the jagged seasons, with 80% market share, Madagascar remains the world's leading exporter of vanilla.

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• Madagascar
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