A slight improvement for Madagascar's vanilla sector. After several months of decline, the green vanilla market is showing signs of recovery, with prices beginning to rise. This is particularly evident in the SAVA and Analanjirofo regions, where green vanilla is currently trading between 5,000 and 11,000 ariary per kilogram, sometimes reaching 12,000 ariary in certain areas.
Positive Development
"This is still an encouraging result that gives some hope for the future of the sector," says a sector stakeholder, noting that recent measures taken by authorities and operators are beginning to bear fruit. This positive development comes just weeks after the launch of a buyback mechanism for 600 tonnes of vanilla stocks from exporters by the Alliance Vanille de Madagascar (AVM), using approximately 35 million dollars collected during the former National Vanilla Council (CNV) era, at a rate of 4 dollars per kilogram of vanilla exported. This operation aimed to reduce the significant quantities of unsold vanilla from recent seasons. By reducing available market volumes, the AVM hopes to help rebalance supply and demand, a prerequisite for gradual price recovery.
To Be Confirmed
For sector players, this price increase is primarily a positive signal. It could allow farmers to better value their production, especially given that low incomes have affected plantation maintenance and producer motivation. Exporters, meanwhile, hope that this rise will lead to medium-term supply and demand rebalancing. Sustained price improvement would also help restore confidence among all operators. However, it remains to be seen whether this improvement lasts or is merely a temporary reaction to the state's announced fixed price proposal. Several observers believe that price evolution depends not only on the domestic market but also on international demand and the ability of various stakeholders to better regulate market volumes. A price increase supported solely by stock withdrawal could prove insufficient if global consumption does not follow.