The video below from The Economist looks at the supply and demand that impacts the price of vanilla. 80% of the world’s vanilla is grown in the perfectly suited climate of the north-east region of Madagascar. It’s the country’s primary export crop.
In 2014 vanilla was $80 a kilo.
In 2017 was $600.
Today it’s around $500.
The price rise is due in part to global demand. The trend of eating naturally means that food companies have shunned synthetic flavouring in favour of the real deal. Companies have started to look elsewhere for their natural vanilla. Indonesia, Uganda and even the Netherlands are growing the crop. For a century Madagascar has enjoyed a near-monopoly on vanilla. But this industry may be in line for a radical overhaul.