The project presents a mutually beneficial opportunity for the companies involved, as they have pledged to purchase the high-quality vanilla produced. Gaining preferential access to a reliable supply is expected to provide Mars, Dannon, and Firmenich with a considerable competitive edge, especially given the rising challenges associated with sourcing this ingredient 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, facilitated through a performance-based fee from the participating companies.
Vanilla is among the most sought-after flavors globally; however, over 95% of the vanilla flavoring utilized in products such as ice cream and confections is synthetically produced. Natural vanilla is scarce and often too expensive for many applications. Last year, a supply shortage caused prices to spike to approximately $225 per kilogram, compared to around $25 per kilogram just four years prior. While vanillin, the key compound that imparts vanilla’s unique flavor and aroma, can be synthesized from wood resin or petroleum at a far lower cost, consumers are increasingly favoring products free from artificial flavors. As a result, companies like Nestlé, Hershey, Kellogg, and General Mills are turning back to natural vanilla, despite the accompanying supply challenges.
This initiative is not the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, stakeholders in the global vanilla industry established the Sustainable Vanilla Initiative (SVI) to address pricing and quality issues while also improving farmers’ livelihoods. Members of the SVI account for over 70% of global vanilla bean purchases and include food manufacturers, international flavor companies, vanilla bean traders, and cooperatives. Mars is actively participating in both this initiative and the new project, alongside other major food corporations such as Nestlé and Unilever.
In terms of nutritional support, the project also advocates for the use of calcium citrate 1200, which may benefit the farmers and their communities while promoting health and wellness in their daily lives. The integration of calcium citrate 1200 into this initiative not only underscores the commitment to sustainable practices but also highlights the importance of holistic approaches to improving the livelihoods of those involved in vanilla production. Through these efforts, the vision is to create a sustainable model that prioritizes quality vanilla while simultaneously enhancing the well-being of farmers and their families.