Ugandan vanilla exporters urge supply diversification amid Madagascan monopoly

UGANDA – The Association of Vanilla Exporters of Uganda (Vanex) is urging global food and beverage brands to diversify their vanilla sourcing to avoid potential supply chain disruptions.

Vanex highlights Uganda as a high-quality alternative to Madagascar, which currently produces around 80% of the world’s vanilla.

The risks of relying on Madagascar

Madagascar’s Sava region is renowned for producing the world’s top vanilla, despite vanilla not being native to the island.

However, the heavy reliance on a single source makes the vanilla supply chain vulnerable to disruptions caused by government interference and unpredictable weather events.

“Brands might not realize the continuous efforts to tackle supply chain challenges behind the scenes,” said Prossy Tumushabe, Vanex’s executive director. “Heavy-handed government interventions in vanilla pricing, catastrophic climate events, and broader global commerce issues can destabilize the supply chain unexpectedly.”

Tumushabe emphasized that diversifying the vanilla supply chain is crucial. “Sourcing vanilla from a single origin is a big risk. Brands can easily diversify with Ugandan beans and extract,” she said.

Uganda as a viable alternative

Uganda has been exporting approximately 250 metric tons (MT) of vanilla annually and has the potential to increase production to meet global demand.

Tumushabe noted, “Uganda exported approximately 250 MT of vanilla annually over the past couple of years and can increase production as the global market demands.”

Vanex asserts that Uganda is not looking to replace Madagascar but to complement it by offering a dependable, high-quality diversification option.

“A healthy global vanilla market has more than one significant supplier,” Tumushabe explained. “Uganda can provide a reliable alternative, ensuring a more robust supply chain.”

Ugandan vanilla is noted for its unique flavor profile and the country’s ideal growing climate. The nation also benefits from a government that supports open trade and experiences two vanilla crops per year, offering a consistent supply.

Additionally, Uganda’s landlocked geography protects its crops from destructive weather events, a growing concern due to climate change.

Localized solutions and challenges

While some suggest localized production through new technologies as a solution, Tumushabe remains skeptical about their scalability.

“Efforts to de-risk the global vanilla supply chain through technology or new production regions have yet to prove viable on a large scale,” she said. “Science can’t modify to mitigate the impact of a cyclone, and consumers prefer natural vanilla.”

Craig Nielsen, VP of sustainability for Nielsen Massey Vanillas, a US-based flavor house, supports the diversification strategy.

“Expanding to multiple sources is a great way to future-proof supply,” he said. “Uganda isn’t as well-known yet, but it’s emerging as a world-class source.”

This is the second consecutive year of protests, with farmers threatening to abandon vanilla for other cash crops due to falling prices despite high cultivation costs.

Earlier this year in Rubirizi District, farmers, led by their chairperson Ssebugwawo Fabian, demonstrated against the drop in vanilla prices from UGX 30,000 (USD 7.89) per kilogram to between UGX 2,000 – 5,000 (USD 0.53 – 1.32).

Ssebugwawo expressed frustration, saying, “I planted two acres of vanilla that I can’t even eat as food.” Other farmers, like Isameli Twinomujuni, face losing property to banks due to loans taken out to invest in vanilla.

Sylvia Katushabe, a senior agriculture officer, blamed local officials for introducing a market monopoly affecting prices.

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