Madagascar records an increase in the vanilla beans as well as the demand for the product.
Madagascar produces 80% of the world’s vanilla, but demand has outstripped supply. Speculation has pushed prices to triple in the last three years, reaching approximately 600 dollars a kilo this year.
Dealers now hoard the product to sell later at a higher price because of its high demand. The rising price of the product has brought forth a highly lucrative environment.
Madagascar earned about $650 million from vanilla last year equivalent to 5% of the country’s GDP.