Why is Vanilla So Expensive?

Wellness with a Wow

Why is Vanilla So Expensive?

Over the holiday I ran to the grocery store to buy vanilla to use in King Arthur Baking Company’s recipe for shortbread cookies using almond flour. The cost for a 2 oz. bottle of Pure Vanilla extract was a surprising $14.99!

Why is vanilla so expensive?

According to Business Insider vanilla is worth more by weight. Why?

Complex Pollination Process

Vanilla is actually a difficult plant to grow. The vines take 2-4 years to mature. The orchid flowers only bloom once a year and must be hand pollination on the same day.  Then it takes several months before the vanilla is ready to harvest.

Limited Quantity 

Additionally, over 80% of the world’s vanilla is grown on the island of Madagascar, which has been recently hit with terrible weather. Failed crop yields have caused the prices of vanilla beans to soar to nearly $600 per kilogram, which is 10 times more expensive than it was a few years ago.

High Demand

The demand for pure vanilla has skyrocketed because of the natural foods movement. Consumers don’t want food products containing artifical ingredients which has triggered many large food and beverage companies such as Nestle, General Mills, and Hershey to eliminate these ingredients from their products. Instead these large manufacturers are replacing cheaper articifial vanilla with real vanilla in the products. The public’s increasing desire for shorter ingredient statements and transparency in production practices and supply chains keeps the price rising and rising as demand continues to grow.

“Clean eating became more prevalent and mainstream with the initial push of plant-based eating several years ago, which began as a health-based trend focusing on whole or unprocessed foods and a back-to-basics view on diets,” said Cali Amos, the research manager for HealthFocus International as reported by Food Business News. “That, along with a major push toward a sustainable planet, crops and food sources, people are tying what they eat to the source of the food and not just how it affects their body but how it affects the world around them.”

Theft

Vanilla beans are now the target for theft because of their increased value. Many farmers have to guard their farms to prevent their beans from being stolen. As the stolen beans move up the supply chain, they get mixed in with legally purchased beans making it difficult for buyers to know which are which. The prevent theft, farmers pick the beans before they’re ripe and unripe beans means lower quality vanilla.

Climate Change

Cyclones are becoming increasingly more common in Madagascar and can easily wipe out vanilla crops. If this happens, it takes a year before new plants start producing beans. The limited supply works to drive prices for vanilla up.

We’re talking about ’Eating Right, Being Bright’ during the holiday season with musical inspiration from Harry Connick, Jr. on Divabetic’s Diabetes Late Nite podcast.  Our guests include Patricia Addie-Gentle RN, CDE, Dan Houdeshell, Pendulum Glucose Control‘s Chief Medical Officer Dr. Orville Kolterman and Diabetes Meal Planning Made Easy, Author Hope Warshaw, MMSc, RD, CDE, and Mama Rose Marie.  Throughout the podcast we will be featuring music from Harry For The Holidays album courtesy of SONY Music.

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