Since 1995 in Madagascar
Official exporter of vanilla with a government export license.
In process of developing our own Vanilla plantation on 15 hectares (covered greenhouses) in the area of Tamatave/Toamasina.
Learning about the significant profit potential of vanilla was an unexpected benefit stemming from the social and environmental policies in Madagascar.
One of our current company directors participated (in 2013) in vanilla planting as part of an environmentally proactive land reclamation project on the Tamatave/Toamasina region (Hereinafter referred to as “Tamatave”). The project was also designed to:
(a) Provide paid work for the local residents, thus further building goodwill;
(b) Act as a field trial to demonstrate the agricultural/horticultural benefits of incorporating Vanilla Plantation.
It soon became apparent that the vanilla in this project could also be a potentially profitable cash crop.
Based on the experience from 2013, some unexpected facts (such as the unexpected development of a relatively new region Tamatave for vanilla plantations in 2016) and the known price situation of vanilla, we decided to start our own vanilla plantation in 2018/2019.
Our Management carried out its responsibilities with this project by doing significant research on vanilla. The research data convinced management that the Company could participate seriously and profitably in the world vanilla market – with several inherent benefits.
What led us to the decision to start with this development investment?
Company management believes our project satisfies important market entry requirements:
We are sure to work with the best team in the whole world. All of our leading experts have the highest professional qualifications and have been working in this field (vanilla) for many years.
Madagascar meets all the soil and climatic conditions for growing quality vanilla;
In-house expertise for growing, producing, and marketing is available to capitalize on the vanilla market;
Our vanilla experience is hands-on real-time, not theoretical;
Vanilla is a boutique or scarce, specialty commodity;
The company can produce vanilla cost-effectively;
Participation in the vanilla market is sustainable;
Demand for vanilla is growing, and demand exceeds supply;
Provides additional paid work for our host country’s residents;
Assists Madagascar growers through market stabilization and consulting.
Area (Tamatave) has started to develop vanilla plantations, with incredible financial results,
We have excellent local (business and political) acquaintances, because we are very active in the region, and we consider this investment reliable and secure.
The whole region of Tamatave has a road infrastructure, and Madagascar principal seaport.
Market share factors.
Preferred flavoring for many applications is natural vanilla. Natural vanilla currently represents about 15% of the overall market for vanilla flavoring. If quality natural vanilla became more plentiful and therefore a less expensive product, the use of artificial vanilla would drop, producing a corresponding upswing in the use of natural vanilla. Once somewhat of a “cottage” industry involving small farmers, vanilla in recent years has attracted the attention of serious large-scale growers. Testifying to the importance and attention given to vanilla in world agriculture, the First International Vanilla Conference held in 2003 in the United States. It featured a wide variety of scholarly and expert papers, presentations, panels and seminars.
Vanilla price ratio is approximately 1:20 (the wholesale price is ten and/or twenty times more than the production cost).
Company will increase their systematic plantings of vanilla (starting with 15 hectares covered greenhouse plantation) – on the understanding that local farmers would be hired to work in the vanillary.
The company’s vanilla operations should be profitable in the relatively near-term. For years one and two, when there is no harvest, the balance sheet will show costs only. As early as in the third year of operation, with the first harvest, we expect future vanillary operations to be commercially viable and profitable. This is notable considering that, in the third year after planting, the vanilla harvest will be at only a fraction of the eventual potential realized as the plants mature. Management expertise in other agriculture fields have extensive experience as either owners or managers of major farming operations in different areas in Madagascar. These farms produced a variety of different crops. Hands-on involvement on the ground, and working closely with the Madagascar laborers, is essential for success in any endeavor in Madagascar and hence the company is well positioned to proceed.
The economy of Madagascar is comprised of approximately 75% subsistence or non-cash farming. The government is frequently outspoken in encouraging the population to become more involved in growing cash crops, in creating cash income, and in helping to develop a more diversified economy for Madagascar. Everything we are doing in the vanilla marketplace is supported by the Government of Madagascar and is proactively consistent with that government’s policies.
Quality of final product »CURED VANILLA«. We can produce guaranteed (based on our previous experience) vanilla that has concentration of vanillin from 2,0% to 2.2%.