WAUKEGAN, Ill., Jan. 16, 2017 /PRNewswire/ -- Nielsen-Massey Vanillas, one of the world's leading manufacturers of fine vanillas and natural flavors, recently released a comprehensive report outlining the complex supply/demand dynamics and other factors that have resulted in recent volatility in the global vanilla market. The new report, "Crop Report, The State of the Global Vanilla Market January 2017" can be downloaded at http://www.nielsenmassey.com/main/crop-report.php.
The report focuses on the history of the Madagascar market, the source for 75 to 80 percent of the world's vanilla supply, as well as examines crop forecasts for other growing vanilla growing regions including Mexico and Tahiti, Uganda, India, Tahiti and Papua New Guinea.
"Growing consumer expectations for pure and all-natural foods and ingredients have spurred global food manufacturers to embrace the use of pure vanilla in recent years, which has driven up global demand dramatically and resulted in massive price hikes," said Craig Nielsen, Vice President of Sustainability of Nielsen-Massey Vanillas. "Because it takes several years for vanilla growers to bring on incremental capacity, this pricing volatility has attracted market speculators and created many dynamics that have hurt farmers and negatively affected product quality."
As one of the industry's leaders focused on procuring only the finest quality products, Nielsen-Massey is committed to addressing these issues through its involvement in The Sustainable Vanilla Initiative (SVI) https://www.idhsustainabletrade.com/initiative/sustainable-vanilla-initiative/, a coalition of 20 companies that is implementing solutions to promote long-term stability in the industry and advance production of high quality, natural vanilla. By promoting improved traceability of vanilla, ensuring proper harvesting and curing methods, the SVI can benefit all partners across the supply chain, from farmers to end-use consumers.
Even though 2016 was a challenging year for the vanilla industry, Nielsen-Massey cites reasons for optimism. Farmers have added significant new plantings in Madagascar, increasing their vanilla vine renewal rate from 10-15 percent annually to a rate of 25-30 percent. Other growing regions are also contemplating new capacity, which over time should bring the global supply/demand equation closer to balance and reduce prices.
"Even despite the recent vanilla market disruptions, it's important to reiterate that we have adequate supplies to meet the needs of our customers," said Nielsen.
About Nielsen-Massey Vanillas
Throughout its 110-year history, Nielsen-Massey Vanillas has earned its reputation as a manufacturer of the finest extracts in the world. The full line of Nielsen-Massey's Pure Vanilla products includes: Vanilla Beans and Extracts from Madagascar, Tahiti and Mexico; sugar and alcohol-free Madagascar Bourbon Pure Vanilla Powder; Madagascar Bourbon Pure Vanilla Bean Paste; Madagascar Bourbon Pure Vanilla Sugar, Alcohol Free Madagascar Pure Vanilla, Organic Fairtrade Madagascar Bourbon Pure Vanilla Extract and Organic Madagascar Bourbon Pure Vanilla Beans. Nielsen-Massey Fairtrade products are certified by FLO-CERT.
Nielsen-Massey Vanillas also offers a full line of Pure Flavors: Pure Chocolate Extract, Pure Almond Extract, Pure Orange Extract, Pure Lemon Extract, Pure Coffee Extract, Pure Peppermint Extract, Orange Blossom Water and Rose Water. All Nielsen-Massey products are All-Natural, Allergen-Free, GMO-Free, and certified Kosher and Gluten-Free. The company is headquartered in Waukegan, Illinois, with production facilities in Waukegan and Leeuwarden, The Netherlands.
SOURCE Nielsen-Massey Vanillas