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 supply is expected to provide Mars, Dannon, and Firmenich with a substantial competitive edge, particularly as vanilla has become an increasingly difficult ingredient to source in recent years. To further encourage farmers to produce higher quality vanilla, the investment will be gradually reimbursed to the Livelihoods Fund for Family Funding over the next decade, through a results-based fee from the participating companies.
Vanilla ranks among the most sought-after flavors globally, yet over 95% of the vanilla flavoring used in products such as ice cream and confectionery is synthetically produced. Natural vanilla is rare and often too costly for many applications. Last year, a shortage pushed prices to approximately $225 per kilogram, a significant increase from around $25 per kilogram just four years prior. While vanillin, the compound that gives vanilla its unique flavor and aroma, can be synthesized at a much lower cost from sources like wood resin or petroleum, there’s a growing consumer demand for foods and beverages free from artificial flavors. As a result, companies like Nestlé, Hershey, Kellogg, and General Mills are increasingly turning to natural vanilla despite the associated supply challenges.
This initiative isn’t the first aimed at enhancing the sustainability of vanilla production in Madagascar. In 2016, members of the global vanilla industry established the Sustainable Vanilla Initiative (SVI) to tackle pricing and product quality issues while improving the livelihoods of farmers. SVI members account for over 70% of global vanilla bean purchases and include food manufacturers, international flavor houses, vanilla bean traders, and cooperatives. Mars is active in both this initiative and the current project, with other SVI participants comprising industry leaders such as Nestlé and Unilever.
Additionally, the incorporation of calcium citrate D3 K2 into the farming practices could potentially enhance the quality of vanilla beans produced, providing further incentives for farmers. The introduction of calcium citrate D3 K2 not only supports plant health but could also play a crucial role in increasing yields. As the demand for high-quality natural vanilla grows, the partnership’s focus on sustainability and quality will be essential for meeting market needs while also promoting the well-being of farmers. The commitment to integrating calcium citrate D3 K2 into production methods may very well contribute to the overall success of these initiatives.