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In July last year, in order to stabilize vanilla prices and ensure a fair income, the government decided to use price fixing for the second time in a row by introducing a minimum selling price of USD 250. the kilo of vanilla ready for export. Ten days ago, despite the prayer of many historical exporters, who in the face of the lack of sales hoped that this tariff would be abandoned, the Prime Minister confirmed that this floor price is maintained.
as reported from Antananarivo, Sarah Tétaud
Questioned about the floor price maintained, the Minister of Trade Lantosoa Rakotomalala answers lacically: “We are in a strategic sector in the country (second currency provider, editor’s note). We are in a strategy that is going well and is bearing fruit. And we, our fruits, are the statistics. “She does not say more and will suddenly stop the interview. The subject is hot.
The information she talks about is the 550 tonnes of vanilla that have been exported since mid-September, when the campaign was opened. A very honorable figure. But many exporters, who have all wanted to maintain their anonymity for fear of reprisals, condemn a catastrophic situation.
“The state takes buyers for fools. Vanilla is worth $ 150 per kilo in the world today, and we are the only country that sells it for 250. All my longtime customers have refused that price. I have not sold anything yet, I had to put my guys on technical unemployment. Here we are killed as we are in the process of killing the sector, ”this historical exporter of the island doubts pessimistically.
Other exporters, in the industry for decades, explain the techniques used by some of their competitors to sell their vanilla, regardless of cost: “Arrangements with offshore companies, rebalancing with other spices sold to the same customer, discounts … To put the right price on the invoices shows nothing, they say.
A price over the market
A version confirmed by one of the largest European buyers who also requested anonymity: “The problem with this $ 250 price is that it is above the market price and that the supply on the Big Island is very plentiful. Today we get offers for Madagascar vanilla for $ 100, or even less, from local exporters. No one offers it to us at the lowest price, because everyone knows that at 250 no one will buy, not even 200 grams. We as traders are forced to follow the market price and therefore buy at prices below 250. It bothers us that we ban ourselves in relation to Madagascar, but this is an open secret. I am convinced that the Malagasy government knows very well that if the vanillas come out on $ 250 on the invoice, they will be redistributed through Mauritian companies at prices well below 250. That is obvious.
Given this tense situation, Georges Geeraerts, chairman of the Madagascar Vanilla Exporters Group, tames: “In my opinion, it is after the first quarter of 2021 and the quantities that will have been exchanged by the time we will know the reality of global demand.”
In other words, it is not until May 31, the last day of the current campaign, that we will be able to know if buyers will really avoid the expensive Madagascan podcast. Last year, the country exported 980 tons of vanilla.
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