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Vanilla Prices Soar



Washington DC (April 20, 2002)
- Vanilla growers, processors and exporters in Uganda are benefiting from high world market prices for vanilla. This year, processors/exporters are selling vanilla for US$80-US$200 per kilogram depending on quality and order quantity, substantially up from prices of US$20 per kilogram received in the last several years.

In Uganda, the farmers sell green vanilla beans to processors who cure and dry them to 24-28 percent moisture content over a three-month period. The ratio of green to processed bean is about six to one. This year the farmers will receive $5-10 per kilo, depending on quality.

"We expect prices may hold for the rest of the year, but will eventually fall over the next two years to about 25 percent of the current level," stated Steve New, Fintrac's High-Value Crop Advisor based in Uganda. Nevertheless, even at these levels, vanilla beans are an attractive cash crop for small farmers.

The Ugandan vanilla industry is relatively young. Before 1996, annual exports of cured vanilla beans were generally well under 5 MTs. However, since 1996 production and exports have been increasing rapidly.

Vanilla in Uganda is produced primarily by small farmers in the districts of Mukono, Iganga, Jinja, Mbale, Kabarole, Bundibugyo, Masaka, Kasese and Mpigi. Technical assistance from the USAID-funded Agribusiness Development Center has led to a rapid increase in the number of small farmers producing vanilla, as well as an improvement in quality and yields.

Vanilla has proved to be an excellent supplemental income source for the poor farmers in Uganda. It is often interplanted with other crops such as coffee and bananas.

Most of Ugandan vanilla is produced organically, using organic composts for fertilizer. The USAID-funded Agribusiness Development Center is assisting with the certification of organically produced vanilla through collaboration with specific growers and exporters.

Because there are two annual dry seasons in Ugandan growing regions, two harvests are possible per year. Flowering and pollination for the major season occurs around September and October, with harvesting in June and July of the following year. Flowering and pollination for the minor season occurs around May and June, with harvesting in January and February of the following year.

Ugandan vanilla growers have received extensive training in the last several years from the Agribusiness Development Centre in proper spacing, shade control, pollination, pruning, looping of vines, and selection of mature beans. The result has been increased yields and harvesting of excellent quality mature beans.