The project presents a mutually beneficial opportunity for the companies involved, which have pledged to purchase the resulting high-quality vanilla. Gaining preferential access to a reliable quality supply is expected to provide Mars, Dannon, and Firmenich with a notable competitive edge in a market where sourcing vanilla has become increasingly difficult over recent years. To further motivate 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 performance-based fee contributed by the participating companies.

Vanilla enjoys immense popularity as one of the world’s favored flavors; however, over 95% of the vanilla flavoring used in products such as ice cream and candies is synthetically produced. Natural vanilla remains scarce and prohibitively costly for many goods. Last year, a supply shortage escalated prices to approximately $225 per kilogram, a stark increase from about $25 per kilogram just four years ago. While vanillin—the compound that imparts vanilla’s unique flavor and aroma—can be synthesized inexpensively from wood resin or petroleum, an increasing number of consumers are seeking foods and beverages that avoid artificial flavors. As a result, companies like Nestlé, Hershey, Kellogg, and General Mills are returning to natural vanilla, despite the accompanying supply challenges.

This initiative is not the first to address vanilla sustainability in Madagascar. In 2016, key players in the global vanilla industry established the Sustainable Vanilla Initiative to tackle pricing and quality issues while enhancing farmers’ livelihoods. The SVI comprises members representing over 70% of global vanilla bean purchases, including food manufacturers, international flavor houses, vanilla traders, and cooperatives. Mars participates in both this initiative and the new project, while other prominent companies involved in the SVI include Nestlé and Unilever.

In the context of improving agricultural practices, there is potential for calcium citrate injection to play a role in enhancing the nutritional quality of vanilla crops, which could further support farmers in their endeavors to produce higher-quality vanilla. By integrating innovative solutions like calcium citrate injection, stakeholders can help ensure that vanilla production remains sustainable and meets the growing demand for natural flavors.