When it comes to vanilla, people often think of it as a basic flavor used in many dishes, not as luxurious as chocolate or other flavors. This is because we are so accustomed to the tubes of vanilla sold in markets and supermarkets for just a few thousand dong. Therefore, many might be surprised to learn that vanilla is one of the most expensive flavorings in the world, second only to saffron. Indeed, the value of vanilla has been rising rapidly, and in some places, it is even worth more than silver, with prices sometimes reaching up to 600 USD/kg (over 13 million VND/kg).
The price of vanilla ranks just after saffron.
Not Grown Everywhere
The primary reason for such exorbitant prices is that very few places can grow this type of plant. A vanilla orchid typically only grows in Mexico, because only one type of bee can pollinate vanilla flowers, specifically the Melipona bee, which exists only in that region. This means that over 99% of vanilla in the world is pollinated by hand. As a result, workers use a specialized stick or a small sterilized instrument to carry out the pollination process.
Specifically, in 1837, Belgian botanist Charles François Antoine Morren pioneered the artificial pollination method for this type of vanilla. However, his method was not commercially viable. By 1841, Edmond Albius, a 12-year-old slave living on Réunion Island in the Indian Ocean, discovered how to manually pollinate the plant. From then on, this method enabled the cultivation and harvesting of vanilla on a global scale.
99% of vanilla in the world is pollinated by hand.
Vanilla orchids are hermaphroditic, containing both male and female parts. They take about two to four years to fully mature, and their flowers only bloom on one specific day each year. Workers must carry out the pollination within 24 hours after the flower blooms; otherwise, the vanilla will not set. Although vanilla originates from Mexico, deforestation there has significantly reduced the number of vanilla plants in recent years.
Time-Consuming and Labor-Intensive
The total time for a vanilla harvest can take up to one year.
Experts state that vanilla plants typically climb on other trees like a vine, and then bloom, bear fruit, and ultimately produce the natural vanilla flavor. Unlike cheap artificial vanilla, vanilla extracted from natural vanilla beans will have a unique, pure aroma. The scent of vanilla also depends on the region where the plants are grown. In particular, vanilla harvested in Madagascar has a characteristic rum-like and sweet flavor. Madagascar provides over 80% of the world’s vanilla supply, which is why ice cream manufacturers globally prefer the vanilla from this region over others.
Supply Shortages
The price of vanilla is greatly affected by changes in the vanilla market.
However, this is not the only reason for the high price of vanilla. In fact, the price of vanilla is heavily influenced by fluctuations in the vanilla market. In the 1980s, the price of artificial vanilla was very low, leading to many vanilla farms closing due to insufficient income to sustain their livelihoods. However, around 2011, when the demand for pure vanilla suddenly increased, large companies began entering the vanilla production industry, and the trend of committing to provide completely natural, non-artificial vanilla became a sensation. Nevertheless, it took a long time for the farmers who had previously grown artificial vanilla to return to this business.
A Risky and Volatile Business
Growing vanilla is a business filled with pressure, risks, and volatility. The price of vanilla can surge from 30 USD/kg to 500 USD/kg in just three years. With such high prices and demand in the market, vanilla theft is a common occurrence. After months of hard work, the loss of crops due to theft has forced many vanilla farms to shut down. The stolen vanilla beans are often mixed with legally purchased beans, making it challenging to distinguish and manage.
Vanilla crops are also heavily affected by natural disasters.
To prevent theft, farmers often pick the beans before they ripen, even though this compromises quality, but it is better than risking complete loss. The beans are then stored and waited until they turn black and shrivel. There are also other methods to deter thieves; for instance, farmers engrave their brand names on the beans. This not only helps buyers identify which farm the vanilla comes from but also makes it harder for thieves to sell the stolen vanilla.
In addition to human factors, vanilla crops are significantly affected by natural disasters, from the common tornadoes in Madagascar to the ongoing impacts of climate change. For example, at the end of 2016, a major storm swept through Madagascar, destroying many vanilla farms and causing severe losses, requiring several years for recovery. With such high risks, the cultivation of vanilla is gradually declining today.
According to Dân Việt newspaper, in Vietnam, Mr. Trần Minh Trung in Bình Dương has successfully cultivated vanilla. After more than three years of experimentation, he is now regularly harvesting the fruits of this plant. Fresh vanilla beans sell for 1 – 1.5 million VND/kg, while processed vanilla prices in Vietnam currently range from 10 – 20 million VND/kg (depending on quality).
