Fiji pouncing on world vanilla shortage

The Fijian Government is encouraging a major vanilla development on the Pacific nation’s main island of Viti Levu that will add a structure to Fiji’s diverse vanilla growing operations at a time of world scarcity and record high prices which have not been altered by the COVID-19 pandemic issues.

The Managing Director of Vanilla Plantations Pte Limited based in Suva, Fiji, Mr Frederick Gulson said the company will contribute to a sustainable supply of quality vanilla beans to meet the continuing strong demand from the world food and perfume industries for natural vanilla which Fiji has supplied since 1887.

Mr Gulson said food and confectionery magazines have reported that in the time of the COVID-19 pandemic, consumers have continued to buy comfort foods, such as chocolate and iced foods that are major users of vanilla, although demand for chocolate has shifted to the lower cost, manufactured end of the chocolate market due to a larger proportion of household spending initially targeting the stockpiling of staple foods and household products.

The Fijian Government has stated that new plantings are likely to generate major overseas export income for my country while contributing to significant employment and upskilling opportunities for Fijians.

In addition to investors benefiting from the escalating prices, the Government of Fiji provides investment, tax and revenue incentives to encourage vanilla bean industry expansion, including a tax holiday for the life of the vanilla project coupled with an export income exemption.

“Vanilla Plantation Fiji’s proposed large vanilla plantings near Lautoka will ensure sufficient regular extra supply to stabilise the world vanilla industry and smooth out the boom-bust cycle that has proven harmful over the years,” Mr Gulson said.

The United States is the world’s largest consumer of vanilla, followed by Europe.

The dairy processing industry uses a large percentage of the world’s vanilla in ice creams, yoghurt (fresh and frozen) and other flavoured dairy products. The largest vanilla users include Unilever and Nestle.

Mr Gulson said the Fijian vanilla industry, as in other producer countries, is based on small family run enterprises, but with the world price at record levels there is room for substantial expansion, led by Vanilla Plantations Fiji, without the extra supplies affecting vanilla prices.

Mr Gulson pointed out that the supply of vanilla is so under the level of demand that farmers in Madagascar, the industry’s largest producer and exporter, guard their crops at night against theft due the high value of vanilla beans. 

“Thieves not allowing vanilla beans to mature drastically cuts the amount of produced vanillin that gives the vanilla flavour. Sadly, with farmers also forced to harvest early to beat the thieves, the vanillin levels and income are reduced and quality levels compromised.”

“Fiji was chosen for the vanilla project as world financial and government entities such as the World Bank and the US State Department see lower “country risk” or “sovereign risk” due to the recent years of political stability in Fiji and the International Ratings Agency, Moodys, 2019 upgraded Fiji’s credit rating,” Mr Gulson said.

Media Contact: Fred Gulson  +61 408 440 816, Bob Lawrence +61 412 280 222

GPO Box 16348 Suva Fiji Islands          

investor@vanillaplantationsfiji.com

Coy No. RCBS2019L4631