Media Release
January 20-21, 2020
Fiji pounces on vanilla scarcity opportunity
The Fijian Government has welcomed a major vanilla development on the 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.
The Managing Director of Vanilla Plantations Pte Limited based in Suva, Fiji, Mr Frederick Gulson said the company aims to 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 over artificial vanilla.
Mr Gulson said the recent public support of the Fijian Minister for Agriculture and Rural Development, Dr Mahendra Reddy for the project was crucial at a time of this world vanilla bean shortage and the escalating prices.
Dr Reddy said the Fijian Government was equally excited about the project and convinced of the positive economic impact on the country from vanilla exports at a time when vanilla had become the second most expensive spice after saffron.
“The new plantings are likely to generate major overseas export income for my country while contributing to significant employment and upskilling opportunities for Fijians,” Dr Reddy said.
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. A tax holiday is available for the life of the vanilla project coupled with an export income exemption.
Dr Reddy said the vanilla project could be the rebirth of Fiji ‘s involvement in the world-wide commodity trade for this important spice that dates back to 1887.
Mr Gulson said Vanilla Plantation Fiji’s proposed large vanilla plantings near Lautoka would 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.
The United States is the world’s largest consumer of vanilla, followed by Europe, notably France.
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 that currently the vanilla industry in Fiji, 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 affecting vanilla prices.
Mr Gulson pointed out that the supply of vanilla is so under the level of demand that farmers in Madagascar, guard their crops at night against theft due the resulting higher value.
“Thieves not allowing vanilla beans to mature drastically cuts the amount of produced vanillin that gives the vanilla flavour. With farmers also forced to harvest early to beat the thieves, the vanillin levels and income are reduced and quality levels compromised.”
Mr Gulson said 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, recently upgraded Fiji’s credit rating.
Media Contact: Fred Gulson +61 408 440 816, Bob Lawrence +61 412 280 222