Weekly Market Reports of International Spice Commodities – Ugandan Vanilla
Increased production from local farmers plays a key role in determining of price for vanilla this season. Many Ugandan farmers had ceased production of vanilla 5 years ago and some had even cut down the plantations due to very low prices which had gone as low as Sh1500 ($0.60, €0.44, £0.38) per kilogram for uncured vanilla.
However, with the recent increase in prices, there has been an increase in the production of vanilla in the last two years. On the international market, the price of uncured vanilla at the beginning of December rose to Sh5500 ($2.18, €1.61, £1.39) and that of cured vanilla topped off at Sh 50,400 ($20.00, €14.80, £12.73) per kilogram. These prices are subject to the dynamics of the international vanilla market that is characterized by speculation, stiff competition and inconsistent quality and quantity.
In 2011, Uganda has had favorable weather conditions compared to last year which was characterized by a long drought. The good weather conditions have contributed high yields and in turn an increase of vanilla on the global market. Statistics show that the global vanilla supply was 700 tonnes in 2010 (150 tonnes to the USA) and this is predicted to shoot up by the end of 2011 due to a carryover from the 2010 crop.
For more information regarding Ugandan Vanilla and other spice commodities, please contact Keres Consulting.