Why big brands are turning to vanilla from Uganda

Vanilla is highly valuable and has been called “green gold.” Prices peaked in 2017 at nearly $600 per kilo, then fell by 2024 to about $50 per kilo. The volatility is driven by heavy reliance on Madagascar, which has historically supplied around 80% of natural vanilla. Disruptions such as storms, theft, early harvesting, and policy changes in Madagascar affect global supply and prices. Buyers are seeking additional sources, and Uganda is emerging as a major producer. Uganda has two harvest seasons per year, improved quality controls, and rising demand from major brands such as Ben & Jerry’s and Nielsen-Massey, which could help stabilize and lower prices for natural vanilla.

"Vanilla is so valuable that it's been called “green gold.” At its peak in 2017, prices reached nearly $600 per kilo, making it the second-most expensive spice in the world. But by 2024, prices had crashed to roughly $50 per kilo."

"The world depends heavily on Madagascar, which has historically supplied about 80% of natural vanilla. When storms, theft, early harvesting, or policy changes hit Madagascar's crop, the entire global market feels it."

"Now, buyers are looking for another source - and Uganda is quickly emerging as vanilla's next big player. With two harvest seasons a year, improved quality controls, and growing demand from major brands like Ben & Jerry's and Nielsen-Massey, Uganda could help stabilize and make natural vanilla more affordable."

Read at Business Insider