The Vanilla Bean Problem

In the past 12 Months, the price for vanilla has more than tripled. This price spike should be a fantastic boost to Madagascar's economy, but is in fact threatening the entire agricultural sector. Agriculture drives approximately one fourth of the Madagascar's GDP, and accounts for nearly 70% of the labor force. The threat to the agriculture of Madagascar comes in when farmers try to meet the growing demand by cutting corners in vanilla production. In an attempt to increase the number of harvests, some farmers are harvesting vanilla beans before they are fully ripe. In addition, some farmers have been harvesting unripe vanilla and then vacuum sealing the produce in order to sell it when other supplies run low and prices soar. In order to protect the brand of Madagascar vanilla, the government has clamped down on vanilla sales and prevents the export of unripe or vacuum-sealed vanilla. A surprising facet to the growing issue of the vanilla price rise is the use of vanilla to launder money smugglers get for selling rosewood. Rosewood is a highly desirable wood used in furniture and musical instruments, and after smugglers sell a load of rosewood, they can transform it into a legitimate income by purchasing and reselling vanilla. The battle over vanilla in Madagascar is far from over, and the next few months in solving the problems of the trade will have long-lasting consequences for the economy of Madagascar.

 -MadaMike (Michael)

Most information from this article was sourced from : http://www.commodities-now.com/news/agriculture-and-softs/21351-vanilla-bean-shortage-leaves-a-bitter-taste.html

e (Michael)