A cyclone in Madagascar has made vanilla four times more expensive
In March, Cyclone Enawo wreaked havoc on Madagascar. Now global vanilla prices have increased 300% to a record-high of over $600 per kilogram.
Published| Photo by Reuters/Antony Njuguna
Madagascar is the world’s biggest vanilla producer, and the storm’s impact is a big reminder of how disruptive major weather events can be to global supply chains.
Before the storm hit, vanilla traders expected this year’s harvest from Madagascar to be 30% bigger than in 2016, but that estimate was cut in half post-cyclone.
These kinds of disruptions impact the bottom lines of global firms that sell flavoring to food companies.