Madagascar produces over 80% of the world's vanilla. In 2024, the country set an all-time record with 4,300 tonnes exported for $233 million in revenue. But this quantitative performance masks a severe price crisis: the price per kilo collapsed 75.6%, from $206 in 2023 to just $50 in 2024. Between overproduction, the US tariff threat and ongoing reforms, the industry is searching for a way out.
A production record that turned against the industry
Madagascar's production growth has been spectacular: +26% per year on average between 2020 (1,700 tonnes) and 2024 (4,300 tonnes). But the global market has not kept pace — global demand stands at approximately 2,500 tonnes per year. Madagascar's supply alone exceeds worldwide demand. Stocks accumulate, prices collapse.
The US tariff threat: 47% on Malagasy vanilla
The Trump administration proposed imposing a 47% tariff on Malagasy vanilla — versus 10% for Uganda and 32% for Indonesia. The United States is the second-largest export market with $67 million in 2024 sales. This tariff differential directly threatens Malagasy competitiveness on its second-largest global outlet.
The National Vanilla Council facing the challenge
Created in July 2020, the National Vanilla Council (CNV) implemented minimum export pricing, licensing systems and quality control laboratories. A $4 per kilogram export levy funds sector support initiatives. The Vanilla Exporters Group is actively exploring new destination markets and value-added transformation strategies to reduce exposure to tariffs and price volatility.
Why it matters
Vanilla is one of Madagascar's main sources of foreign currency. The combination of overproduction, price collapse and the US tariff threat weakens tens of thousands of rural producers in the north of the island. Two levers remain available: diversifying destination markets and moving upmarket into processing (extracts, finished products). But these transitions take time — and producers are suffering now.