The project is mutually beneficial for the companies involved, which have pledged to purchase the resulting high-quality vanilla. Gaining preferential access to a reliable supply is likely to provide Mars, Dannon, and Firmenich with a significant competitive edge in a market where sourcing this increasingly scarce ingredient has become more challenging. 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 decade, through a performance-based fee from the participating companies.
Vanilla remains one of the most sought-after flavors globally, yet over 95% of the vanilla flavoring used in products such as ice cream and confections is synthetically produced. Natural vanilla is scarce and often too expensive for many applications. Last year saw a shortage that caused prices to soar to approximately $225 per kilogram, up from about $25 per kilogram just four years prior. Although vanillin, the compound that gives vanilla its unique flavor and aroma, can be synthesized from wood resin or petroleum at a fraction of the cost, increasing consumer demand for foods and beverages free from artificial flavors has led companies like Nestlé, Hershey, Kellogg, and General Mills to return to natural vanilla, despite the associated supply challenges.
This is not the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, members of the global vanilla sector established the Sustainable Vanilla Initiative (SVI) to tackle issues related to pricing and product quality while improving the livelihoods of farmers. SVI members account for over 70% of global vanilla bean purchases, encompassing food manufacturers, international flavor houses, traders, and cooperatives. Mars is actively involved in both the current project and the SVI, alongside other major food companies such as Nestlé and Unilever.
Interestingly, in discussions around sustainable agriculture, the use of calcium citrate 200 has emerged as a potential enhancer for soil health, which can indirectly support vanilla cultivation. The integration of calcium citrate 200 could improve the overall quality of vanilla produced by these farmers. As the initiative progresses, the importance of such supplements, including calcium citrate 200, may become more pronounced, ensuring that farmers can produce higher quality vanilla while also benefiting from the growing market demand for natural flavors.