Vanilla Prices Plunge 40% To $120
Nov 14, 2002
WORLD prices for vanilla have dropped by 40%, as buyers switched to synthetic vanilla when prices spiralled upwards.
By Macrines Nyapendi
WORLD prices for vanilla have dropped by 40%, as buyers switched to synthetic vanilla when prices spiralled upwards.
Prices dropped to $120 a kilogramme from $200/kg, for the first time in two years.
Henry Kibuuka, the National Co-ordinator of the Uganda National Vanilla Association (UNVA) told The New Vision that, vanilla prices shot up in 2000, when the market was flooded with big volumes of poor quality vanilla.
“Standard grade vanilla was bought highly and poor grade was rejected, this sparked of competition amongst the buyers hiking the prices. Though the prices drop to less than $100, local farmers will still earn good money compared to what coffee farmers are earning,†Kibuuka said.
However, the local farmgate price for vanilla has not dropped that much. A kilo is sold at sh22,000 down by sh3000 from last season’s price. Bundibugyo district is harvesting now and the rest of the country will be harvesting in mid-December.
“Buyers began using synthetic vanilla when the prices shot up after a poor 2000 crop, traders feared to lose their clients as Madagascan suppliers refused to lower their prices,†said one US buyer.
However 60% to 70% of the new crop harvested by Madagascar, a few weeks ago, has been sold. The extract vanilla grade could be bought at between $120 and $125/kg with black bean at $150/kg, although the latter is in short supply this season.
Market watchers say the price will fall further due to increased supply.
Ends
WORLD prices for vanilla have dropped by 40%, as buyers switched to synthetic vanilla when prices spiralled upwards.
Prices dropped to $120 a kilogramme from $200/kg, for the first time in two years.
Henry Kibuuka, the National Co-ordinator of the Uganda National Vanilla Association (UNVA) told The New Vision that, vanilla prices shot up in 2000, when the market was flooded with big volumes of poor quality vanilla.
“Standard grade vanilla was bought highly and poor grade was rejected, this sparked of competition amongst the buyers hiking the prices. Though the prices drop to less than $100, local farmers will still earn good money compared to what coffee farmers are earning,†Kibuuka said.
However, the local farmgate price for vanilla has not dropped that much. A kilo is sold at sh22,000 down by sh3000 from last season’s price. Bundibugyo district is harvesting now and the rest of the country will be harvesting in mid-December.
“Buyers began using synthetic vanilla when the prices shot up after a poor 2000 crop, traders feared to lose their clients as Madagascan suppliers refused to lower their prices,†said one US buyer.
However 60% to 70% of the new crop harvested by Madagascar, a few weeks ago, has been sold. The extract vanilla grade could be bought at between $120 and $125/kg with black bean at $150/kg, although the latter is in short supply this season.
Market watchers say the price will fall further due to increased supply.
Ends