Commodity chain : VANILLA, CLOVE & PEPPER

Background history of the project

During the vanilla crisis of 2001/2003, many small producers planted vanilla in the above mentioned region. Two years later, overproduction and collapse of prices occurred. The Manakara, Mananjary region is not a traditional vanilla region and buyers disappeared.

GOLGEMMA was already buying cloves and essential oils in this region and most of the clove growers were also growing vanilla. ARCADIE came with the proposal to organise the commodity chain for the production of organic vanilla, clove and pepper (the latter was dropped). The export company, managed by young "Vazas" well accustomed to certification, allowed to reference this extremely complicated channel stretching over 200 km of the Pangalenes canal. Quality criteria were difficult to set and a partnership with the Pasteur Institute was implemented.

Local Partners

Two companies: A main collector and processor (partial drying and partial storage) and a processing (extracts, essential oils) and export company.

A micro credit desk from which part of the payments made to growers are processed (financing of premises with the 1% refund).

Context

Political life in Madagascar is largely unstable. The population is getting poorer all the time. Farmers organisations are rare and difficult to organise. NGO's such as VSF (Vétérinaires Sans Frontières) try to help, but things have not been easy so far.

Stakes

Stakes are to develop the channel by selling more vanilla under the ORGANIC FAIR TRADE label. The context, however, is not very favourable:

Vanilla is an important product in many countries (mainly the US) and the visibility of ORGANIC FAIR TRADE does not exist in this country. We are not achieving the expected increase in sales. Moreover and for the past two years, over production was high around the world and prices are very low. We find it very difficult to sell at a reasonable price.

The trend is in a reduction of areas and in the increase of quality criteria among producers. Respect of organic criteria is now well implemented and avoided seeing some NGO's offer such insecticides as Gaucho on various vanilla and clove plantations.

Program Description

Hygienic guidelines on the production of vanilla and clove.

Implementation of organic crops and training on the production criteria.

Partnership with TIAVO, a micro credit group, to finance the premises of two agencies in remote areas.

Companies being engaged in this commodity chain

GOLGEMMA, ARCADIE, KAOKA, NATURE & ALIMENTS.