Vanilla Prices Will Spike
Many ice-cream fans might take vanilla for granted, but the beans are actually bold aromatics that are becoming increasingly popular in the health movement for natural and organic ingredients in food.
The problem is not with the demand for Vanilla, but for the lack of supply. Believe it or not, Madagascar, the African island nation is one of the world’s leading vanilla-bean producers. In Madagascar last year, a very poor harvest has led us to believe that Vanilla prices will rise this upcoming Summer ’16.
The price of vanilla beans has more than tripled in the last year. Quality vanilla now goes for $250/kilogram versus $80/kilogram a year ago.
The price boost is attributed not only to lower supply, but poorer quality. Some growers harvested the beans prematurely.
That means cakes, ice cream or even perfume could face rising prices, Some companies are even going as far as searching for alternatives to avoid sourcing the more expensive vanilla.