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The Leading Countries In Vanilla Production In The World

Vanilla is a flavor or extract derived from or related to the flavor of vanilla bean, primarily used for flavoring food and beverages. The world’s leading producers of the vanillin derivative are Mexico, Madagascar, Indonesia, New Caledonia and India. This article will highlight some of the leading countries in vanilla production as well as what they contribute to the general global market share.

The global vanilla market share is still dominated by Mexico, with 37% holding over 28 million tons in 2016-2017. However its overall share has declined steadily since it was first recorded at 42% in 2011-2012 when its gross vanilla crop reached 13 million tons out of a total 38 million tons worldwide.

In 2012-2013 Mexico’s net vanilla production of 11 million tons and exports of 9 million tons (2 million tons alone to the U.S.) made it the world’s top producer by far. Mexico had registered an even bigger surplus in 2011-2012, but this was down to a deficit after a huge decline in the price of vanilla beans, which then led to a shortfall in its crop.

New Caledonia produces about 0.24 tons per year for itself.

Malagasy farmers produce about 0.08 tons per year for themselves.

Indonesia produces almost 4 million tons of vanilla beans per year and 2 million tons of vanilla extract from processing. The Indonesian vanilla market is dominated by small farmers with no more than 150 plantings. Indonesia has 3 main processing plants which produce over 90% of the country’s total output: PT Citra Mandiri Tbk, PT Kalimantan Mandiri Tbk and PT Surya Mandiri. Indonesia also exports about 70% of its production.

Eni Group was awarded a contract for 40,000 tons in 2012 and a second one for 45,000 tons in 2013, which are expected to be exploited over 5 years starting January 1, 2016. This article lists the top 10 leading countries in vanilla production.

There are a number of methods used in vanilla farming, including hand pollination, chemical pollination and hybridization. Vanilla is produced from the orchid Vanilla planifolia and the fruit of the vine Vanilla planifolia. The main varieties are Bourbon, classic (French) and true (Madagascar). Over 50 varieties of vanilla beans have been named over time.

Vanilla plants can be grown from seeds or cuttings to produce vanilla pods, which are dried to create vanilla extract. The vines are grown under a variety of conditions, and the earliest recorded references to vanilla cultivation date to Aztec times. It is believed that vanilla was first cultivated by the Aztecs.

Many species of orchids in the genus “Vanilla” are native to Mexico, and are very common there. The most important species come from “V. planifolia”. The Aztecs called them tecomates and used their seeds for religious rituals, spices and medicine. Today the plant is one of only three commercially grown sources of vanillin (the primary chemical in vanilla), along with musk-deer musk and kauri gum from New Zealand.

The Totonac people, who inhabit the eastern coast of Mexico in the state of Veracruz, are thought to have been the first people to produce vanilla. The word “vanilla” is derived from the word “vainilla”, meaning “little pod”. Most historians agree that the Totonacas were the first to domesticate and use vanilla, with evidence pointing to both use and cultivation in Mesoamerica by 6000 BCE.

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Mexico is said to be the birthplace of the vanilla bean, which belongs to the orchid family. This plant family (Orchidaceae) is said to be among the largest of all flowering plant families. The original inhabitants of Mesoamerica have cultivated vanilla since ancient times and after European contact and colonization.

Mexico was said to be the first locale to send vanilla’s delicate flavors and fragrances to all the corners of the world.

For quite some time thereafter they remained to be the leading vanilla supplier in the world, until around the middle of the 19th century. Though they still remain among the top global producers of vanilla, Mexican producers have been unable to reclaim a position at the very top as African and Asian countries have claimed larger and larger stakes in the global vanilla market.

World Vanilla Leaders

In 2016, the world’s largest vanilla-producing country was Madagascar with an output of 2,926 tons of vanilla followed by Indonesia at 2,304 tons, showcasing an increasing trend in production of vanilla across much of Asia and Africa.

Both countries are far above the 885 tons from China and the 513 tons from Mexico. This further highlights that the Mexican vanilla industry, relative to the global market, will have a long way to go to reverse their fortunes in market share, despite their long proud history of producing vanilla.

A Risky Spice For Investors

Natural vanilla is said to be the 2nd most expensive spice in the globe, second only to saffron. This is due to its intensively-involved methods of cultivation, which also makes the vanilla industry one of the world’s most volatile markets. For instance, a few years back in 2003, the price of vanilla rose to record highs of $500 per kilogram, which led to a rush of new market entrants with hopes of taking advantage of this lucrative crop.

By 2010, however, prices had plummeted from that high point to less than $25 a kilogram. Such swinging of prices, and drought and fungal attack incidents, are driving growers and processors in different countries, including Mexico, out of the market today and looking for more stable opportunities elsewhere.

Are Poor Job Markets Conducive To High Vanilla Output

Due to the fact that vanilla production is highly labor-intensive in nature, countries with the lowest labor costs are favored. Countries such as China may struggle to gain much ground in the market because workers there are most likely going to demand higher incomes as the Chinese economy continues to grow.

Ironically, countries with low growth rates, like Uganda (who produced 211 tons of vanilla in 2016), will have a long-term labor cost advantage within the vanilla market leading to increasingly better production and rankings. Comoros remains a prospect to become listed among the top producers of vanilla in the world because, just like Madagascar, their major labor force component is found within the agricultural sector. It is estimated that at least 70% of the working population active in Comoros’s rural areas is involved in vanilla production.

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The Rise Of Synthetic Vanilla

Other countries like Papua New Guinea (502 tons), Turkey (303 tons), and Tonga (180 tons) make up most of the rest of the world largest vanilla production. Vanilla production can still be increased further by new methods of curing vanilla and exporting finished products, thereby eliminating the risks associated with the primary production of vanilla.

Since the market may be affected by ‘synthetic vanilla’, which is being used in the majority of vanilla products on the market today, countries that are seeing a downward trend in natural production may be able to take advantage of synthetic vanilla, which is cheaper to produce and less volatile.

How economies benefit from vanilla production?

Vanilla has a rich history, one that goes back thousands of years to when it was a highly prized and rare commodity that was used as currency.

It is now the second most expensive spice in the world behind saffron. Vanilla is also grown in several countries around the world, and is mainly produced for vanillin, which can be used for pharmaceuticals and flavoring food, beverages and cosmetics. However; it is illegal to grow vanilla in the United States because all vanilla sold on the market must be synthetic vanillin produced by manufacturing companies.

What is the vanilla industry outlook for 2017, 2018 & 2019?

Malaysia, Singapore and Indonesia impose import taxes on imported natural vanilla with the exception of: Philippines, Thailand, India and North Korea. The European Union also imposes further taxes on non-EU natural vanillin. These moves have been taken since 2003. The aim of such actions is to protect local producers from foreign competition by eliminating their ability to compete on price alone. Consequently, the final consumer is paying more for less product.

What country makes the best vanilla extract?

Vanilla extract is made by extracting natural vanilla with water and alcohol. The most popular of these extracts is produced in the United States and comes in sizes ranging from a dime-to-quarter teaspoon. One can also make their own extracts by using a vanilla bean pod; however, it takes a more time to produce.

What are some of the world’s largest producers of vanilla?

Though Mexico is still a very large producer, the country’s output has decreased recently as climatic factors have diminished their ability to produce product. Madagascar is now the world’s largest producer of natural vanilla, and it has been steadily increasing its output. In some years, the country produces as much as 80% of the world’s natural vanilla. Indonesia and China are currently in second and third place respectively, while others like Papua New Guinea, Jamaica and Uganda have been producing more and more vanilla each year.

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Where has synthetic vanilla been used?

Synthetic vanillin is used to produce a wide variety of foods and beverages including diet colas, meats, dairy products and even cookies. Vanilla cannisters that are labeled as “pure” or “natural” likely contain either synthetics or natural extracts with synthetic flavoring. Vanilla is used to produce the vast majority of alcohol and foods that are labeled as “vanilla”.

Where can you find vanilla ice cream made with natural vanilla?

Companies that label their products as “natural” or “pure” almost always contain synthetic vanillin or other ingredients. Natural flavors in a product cannot be identified, which is why companies label their products as containing a certain flavor when they are inserting synthetic vanillin into their products and labeling them as “all-natural”, but not necessarily because they contain any vanilla.

Where is the vanilla capital of the world?

Mexico City is the capital of Mexico, and it is where most vanilla beans are produced. The large plantations that pop up in the country are located near the capital, which gives them an advantage over small boutique vanilla farmers who operate on a smaller scale.

What do you mean by ‘synthetic vanillin’ and why can it be used?

Vanillin in foods, pharmaceuticals, flavors and cosmetics has become increasingly difficult to find due to more stringent regulation of agricultural products around the globe. Synthetic vanillin, which is both an artificial and natural form of vanillin, is a common ingredient found in many foods, beverages and pharmaceuticals.

Who regulates synthetic vanilla? Why are they regulating it?

The United States Food and Drug Administration has taken the lead in regulating synthetics according to the Federal Food, Drug, and Cosmetic Act. The FDA currently regulates four synthetic vanillins that have been approved for use in nearly 200 different types of foods, beverages and cosmetics. Other countries with regulations similar to those in the United States include Mexico, Japan, South Korea and Europe. Each country must meet specific legal requirements before they are able to manufacture or regulate these chemicals.

Why do people like vanilla flavor?

Vanilla available on the market today is either synthetic or natural in origin. It’s difficult to determine which type of vanillin goes into a product because most products are placed into a category with its artificial flavor counterparts. For example, products labeled as “vanilla” will be marked as “natural vanilla flavour” if they contain natural vanillin or labeled as “artificial vanilla flavour” if they contain synthetic vanillin.

Vanillin is used in a diverse number of products and is likely to be for many years to come as long as it’s placed under the right regulations. However, to add spice to this, vanillin that comes from natural sources has been getting more expensive, which raises the question: Will market demand and production thus decrease in countries where they are more difficult to grow? There’s no clear answer that’s been provided yet by any major organization.

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