Vanilla Exporters of Uganda Urges Brands to Diversify Vanilla Sources to Mitigate Supply Chain Risks

Thursday, May 30, 2024
Uganda vanilla farmer. PHOTO/COURTESY
ISMA TUKAMUHABWA
4 Min Read

Summary:

  • The Association of Vanilla Exporters of Uganda (Vanex) is urging brands to diversify their vanilla sources to avoid supply chain disruptions from relying on Madagascar, which produces 80% of the world’s vanilla. Vanex promotes Ugandan vanilla as a high-quality alternative, highlighting Uganda’s stable production and favorable growing conditions.

KAMPALA, (Examiner) – The Association of Vanilla Exporters of Uganda (Vanex) is urging food and beverage brands to source vanilla from multiple countries to mitigate potential supply chain disruptions. Vanex, which champions Ugandan vanilla as a top-tier alternative to Madagascan vanilla, highlights the need for supply chain diversification to counteract government interference and unexpected weather events.

Madagascar produces around 80% of the world’s vanilla, with the Sava region’s output considered the gold standard. However, Vanex advises brands to diversify their sourcing now to avoid risks tied to single-origin dependence.

“Many brands may not realize the behind-the-scenes challenges vanilla vendors face, including government interventions, catastrophic climate events, and broader global commerce issues,” Prossy Tumushabe, Vanex’s executive director, tells Food Ingredients First. “Although vendors have managed these challenges well so far, the recent years have shown how quickly a seemingly stable supply chain can be disrupted.”

Tumushabe emphasizes that diversifying the vanilla supply chain is a prudent move. “Sourcing vanilla from a single origin is a big risk — and unnecessary — as brands can easily diversify with Ugandan beans and extract.”

Vanex asserts that Uganda offers high-quality vanilla comparable to Madagascan vanilla, meeting various customer requirements. “Uganda exported around 250 MT of vanilla annually over the past few years and has the capacity to increase production to meet global demand,” says Tumushabe. “Uganda has previously exported up to 500 MT annually.”

Vanex is not aiming to replace Madagascar but to complement the global supply. “We believe a healthy global vanilla market has multiple significant suppliers, and Uganda can provide a dependable, high-quality diversification option,” Tumushabe explains.

Ugandan vanilla boasts a unique flavor profile and benefits from an ideal growing climate and supportive government policies. Notably, Uganda is the only place with two annual vanilla crops, ensuring a regular supply. The country’s landlocked position also protects crops from extreme weather events, a significant advantage in the face of climate change.

While some suggest localized production through new technologies as a solution to supply chain vulnerabilities, Tumushabe remains skeptical about its scalability. “Efforts to de-risk the global vanilla supply chain through technology or regional production have yet to prove viable on a large scale,” she says. “Science can’t modify crops to withstand cyclones, one of the biggest threats to the vanilla market.”

Craig Nielsen, VP of sustainability for Nielsen Massey Vanillas, echoes Tumushabe’s sentiments. “Diversifying the origin of vanilla isn’t a priority for most brands because they haven’t experienced a disruption yet, but expanding sources is a great way to future-proof supply. Uganda is emerging as a world-class source,” Nielsen notes.

Vanex recently discussed Ugandan vanilla’s benefits for beauty brands and consumers with Personal Care Insights, emphasizing its potential in the industry.

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