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MARKET OPPORTUNITY

Vanilla is the second most expensive spice traded on the world market next only to saffron. Aggregate global demand for vanilla is estimated at about 4,000 to 5,000 MT a year. In the USA, over 95% of the vanilla beans are processed in to extracts sold to flavour manufacturers or to the retail trade. Vanilla is an important essence in the preparation of ice creams, chocolates, bakery products, puddings, pharmaceuticals, liquors and perfumes.

The total area of vanilla cultivation in the world during the year 2001 was 40,846 ha (the metric unit for 100 acres) and production was 5,583 MT. There has been no appreciable increase in area under vanilla cultivation in the traditional vanilla growing countries.

The major vanilla producing countries are Madagascar, Comoro, Indonesia, Mexico and the Reunion. Among these countries, Madagascar holds prominent position having a cultivated area of 25,550 ha under vanilla. Of late, Indonesia has started to produce more with a production of 2,102 MT from 9,700 ha

The world market for vanilla beans is highly concentrated in a few developed countries. Three countries, USA, France and Germany alone account for about 80% of world imports, the US absorbs 50-60%, France and Germany between 10-15% each. These three countries are also major re-exporters of both vanilla beans and processed vanilla products.

Only a small proportion of vanilla beans is consumed directly, except in France where the proportion is about 20%.

The import of vanillin and ethyl vanillin together to India during 2000-01 was 404 tonnes. Even if only 10% of import of these synthetic substitutes is to be replaced with natural product, the requirement of vanilla beans would be 2020 tonnes @ 2 % vanillin content. This is almost one half of entire global production of vanilla beans. The present Indian production is only 65 tonnes. This indicates the great potential for vanilla development in India.




INTERNATIONAL PRICES


 

There was an export floor price under the vanilla marketing agreement among the major suppliers from Madagascar, Comoro and Reunion (the Bourbon countries) and major American and European Importers. As per this agreement, the price of vanilla was kept at US$ 74 per kg for the period from March 1990 to February 1991. This price was only US $72 per kg previously. The price was revised upward later and in 1992 it was US $82 per kg.


Vanilla is the second most expensive spice traded on the world market next only to saffron. Aggregate global demand for vanilla is estimated at about 4,000 to 5,000 MT a year. In the USA, over 95% of the vanilla beans are processed in to extracts sold to flavour manufacturers or to the retail trade. Vanilla is an important essence in the preparation of ice creams, chocolates, bakery products, puddings, pharmaceuticals, liquors and perfumes.

The total area of vanilla cultivation in the world during the year 2001 was 40,846 ha (the metric unit for 100 acres) and production was 5,583 MT. There has been no appreciable increase in area under vanilla cultivation in the traditional vanilla growing countries.

The major vanilla producing countries are Madagascar, Comoro, Indonesia, Mexico and the Reunion. Among these countries, Madagascar holds prominent position having a cultivated area of 25,550 ha under vanilla. Of late, Indonesia has started to produce more with a production of 2,102 MT from 9,700 ha

The world market for vanilla beans is highly concentrated in a few developed countries. Three countries, USA, France and Germany alone account for about 80% of world imports, the US absorbs 50-60%, France and Germany between 10-15% each. These three countries are also major re-exporters of both vanilla beans and processed vanilla products.

Only a small proportion of vanilla beans is consumed directly, except in France where the proportion is about 20%.

The import of vanillin and ethyl vanillin together to India during 2000-01 was 404 tonnes. Even if only 10% of import of these synthetic substitutes is to be replaced with natural product, the requirement of vanilla beans would be 2020 tonnes @ 2 % vanillin content. This is almost one half of entire global production of vanilla beans. The present Indian production is only 65 tonnes. This indicates the great potential for vanilla development in India.




INTERNATIONAL PRICES


 

There was an export floor price under the vanilla marketing agreement among the major suppliers from Madagascar, Comoro and Reunion (the Bourbon countries) and major American and European Importers. As per this agreement, the price of vanilla was kept at US$ 74 per kg for the period from March 1990 to February 1991. This price was only US $72 per kg previously. The price was revised upward later and in 1992 it was US $82 per kg.

 
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