Beyond the bean: value-added vanilla bean products in Madagascar
From the Field Trading Company, Inc. (FTF) sources high-quality vanilla beans from rural farmer cooperatives in Madagascar, linking them to US and European markets through sales of vanilla-based products. By working across the entire vanilla supply chain, FTF aims to ensure its clients a consistent supply of vanilla products while also offering a socially and environmentally sustainable alternative to existing trade models.
FTF developed a diverse vanilla product line under FTF’s LAFAZA label, which includes vanilla beans, extracts, pure ground powder, and paste for food industry and retail use, allowing for a higher profit margin than vanilla beans sold in large bulk quantities. By being able to offer high-quality products at lower rates through direct sourcing, FTF increased their market share and included additional Malagasy farmers and communities in their sourcing model. The project allows FTF to source all qualities of vanilla beans equally, thereby increasing farmers’ opportunities to sell their crops.
Working directly with vanilla growers and industry and retail customers enables FTF to offer low-income farmers premium prices for their vanilla beans, often up to 20% over market prices. FTF also works to link farmers associations with training and capacity-building opportunities. This model helps to increase farmer incomes and also offers many direct avenues to collaborate with famer associations on community development and environmental conservation initiatives.