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What Can We Learn from the 2017 Vanilla Beans Crisis?

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Vanilla beans are one of the most expensive spices. A timeline of significant events occurred in 2017 that severely damaged vanilla bean plantations and the global vanilla market. Food and beverage companies in the US (and some aromatherapy) saw a significant spike in the price of vanilla beans in bulk. The business needed vanilla beans in bulk, but not at a price back in 2017. So what happened that made price of bulk vanilla so expensive?

By the end of this article, you will know why the price increase on vanilla beans in bulk and how it affected businesses and even consumer health at some points. We’ll go over the following:

Report of 2017 Vanilla Bean Crisis Worldwide

vanilla beans crisis

There are two main vanilla producers in the world: Indonesia and Madagascar, which both play a key role in the global vanilla bean market. Madagascar accounts for 80 to 85% of the world’s vanilla bean consumption. However, the bulk vanilla bean supply is jeopardized by the frequent natural disasters in Madagascar.

It’s reported that Madagascar tropical cyclone Enawo in 2017 (March 7) was the most significant cause of the 2017 vanilla bean production decline. This 145 mph cyclone instantly destroyed the growing Madagascar vanilla beans, damaging around 30% of the total crops. It further reported that it destroyed 80% of Sambava’s total vanilla beans and Antalaha’s 80-90% total vanilla beans. Unfortunately, this caused a direct impact on farmers. They unexpectedly started to earn less.

The shortage of vanilla production and high demand forced rapid price swings from 2017 to 2018. We all experienced a sharp price increase in terms of bulk vanilla beans. The price ranges from $600 to 800 USD per kilogram (2.2 LBS)!

The domino effect hit farmers as they started to harvest immature wholesale Madagascar vanilla beans to the market. The high prices of low-quality bulk vanilla beans have made food manufacturers and business owners turn to artificial vanilla flavors.

The 2017 Vanilla Beans Crisis: Lessons to Learn

After experiencing a shortage and increased price, it’s worth considering renewing your international channels by adding some new vendors for your business in case of the future possibility of vanilla beans shortage. Where you purchase bulk vanilla beans matters. Maintaining a strong relationship with direct-trade vanilla suppliers (Indonesia, Uganda, Mexico, etc.) will give you access to top-quality ingredients like bulk vanilla beans at the most competitive prices.

For instance, a direct-trade vanilla supplier like Essence Food & Beverage, LLC enables you to supply bulk vanilla beans monthly, quarterly, or yearly without fearing a vanilla bean crisis. Stocking with wholesale purchases from a direct-trade vanilla supplier allows you to get the wholesale price of wholesale vanilla pods. Give you access to inventory planning strategies to deal with shortage risk and price increase.

After the Madagascar vanilla beans crisis in 2017, having other options for bulk vanilla beans from different regions must be your top priority. You can consider other vanilla beans with a similar flavor note that won’t degrade your product’s taste. Whenever you think about a Madagascar vanilla bean substitute, don’t forget to add Indonesian vanilla beans to your list.

Where to Find A Direct-Trade Vanilla Supplier of Vanilla Beans in Bulk in the United States?

After knowing enough about the vanilla bean crisis in 2017, it is wise to not rely only on 1 vanilla supplier. When looking or switching for alternatives, it’s always a good idea to consider a persistent supply and price.

Essence Food & Beverage, LLC is your dependable direct-trade vanilla supplier. Our vanilla beans in bulk are grown year-round and delivered directly from Indonesia. The high supply capability is always guaranteed for wholesale vanilla pods and vanilla bean powder bulk, making the price relatively stable.

Within a shortened supply chain of a direct-trade vanilla supplier, you can expect to get the most competitive prices when buying vanilla beans in bulk. Import vanilla beans in bulk independently without middlemen through our secured online store or request a quote for Indonesian vanilla beans in bulk order here.

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