Vanilla Conference 2025 summary

🔍 Insights from Vanilla2025 – The Current Vanilla Market Situation

We participated in the Vanilla2025 conference in New Jersey, where experts, exporters, and policymakers discussed the rapidly evolving vanilla market. Here are the key takeaways:

📊 1. Oversupply: As of March 2025, global vanilla supply reached 7,700 MT, while demand is only 3,000 MT.

Oversupply is driving price declines and long-term instability.

📦 2. 2024 – A Record Year: Madagascar exported 4,400 MT – more than twice the usual volume.

➡️ Prices fell in Q1, rose in Q2–Q3, and dropped again in Q4.

📉 3. Madagascar’s Economy: GDP growth was 4.2% in 2024, with 4.7% projected for 2025, but:

• 75% of the population lives below the poverty line

• Inflation is 7.6%, interest rates around 15.6%

• Low energy access and productivity

➡️ Falling export value weakens the country’s economic balance.

🇺🇸 4. U.S. Tariff Policy: Negotiations are stalled; action must come from governments.

➡️ The most affected are U.S. extract manufacturers and low-income countries.

📋 5. Strategic Proposals:

A. Minimum purchase price: there’s a lack of a unified system – digitalization is essential.

⚖️ 6. Politics vs. Market Realities:

• Politicians aim to support prices and farmers (especially in the SAVA region)

• Economically, market liberalization is necessary to maintain buyer trust.

📌 Conclusion: The vanilla sector is at a crossroads. Oversupply, tariffs, and lack of infrastructure intersect with broader socio-economic challenges. Collaboration and responsibility are key.

🙏 Thanks to the conference organizers and speakers:

Daphna Havkin Frenkel, Henry Todd, Krishna Bala, Dr. James White, Alfred Yau, Manuata Martin, Dr. Martin Cherkes, Dr. Ron Mittler, Filip van Noort, Sabrina Hand, Rick Brownell, Michael Reese, Juan G., Alan H Chambers, Spencer Sheehan, Dr. Richard A. Dixon, Dr. Gerbin Zylstra, Maria Galeas.