By Meyta Aini – Vanilla exports from Madagascar became considerably diverse in 2020 which was mostly supported by German demand, escalated by 4087.75% shifting the United States position in world import market. The United States used to be the foremost sole market of Madagascar vanilla exports which caused a significant reduction in total export as the total imports form US are diminishing. However, Madagascar’s export value appeared to rebound as the importers in Europe (Denmark, Switzerland and Germany) boosted their demand particularly in the first and fourth quarter of 2020.
Entering 2020, the export destinations for Madagascar vanilla became diversified in Europe
For the fifth year in a row since 2015, vanilla exports from Madagascar were heavily reliant on the United States demand which dominated almost all of the export share. In general, Madagascar vanilla exports, however, showed notable deterioration after reaching their highest point in 2017 (USD 25.93 Million), abruptly plunged by 80.37% into the most tipping point in 2019 (USD 5.09 Million). However, in 2020, Madagascar vanilla export value showed a pronounced growth with an increase of 313.8% year-on-year (YoY) amounted to USD 15.97 Million particularly traded value in the first and fourth quarter of 2020. This increase was majorly supported by the most prominent demand from Germany and Madagascar vanilla export destinations became diverse ever since which indicated a vigorous sign after previously targeted single market only.
While other major vanilla importers boosted their yearly imports in 2020, the United States appeared to resume its gradual downward trend since 2017, diminishing by 18.8%. In November 2020, the United States demand for Madagascar vanilla reduced the most by 23.1% compared to the same period in the previous year which diminished from USD 4 Million in 2019 to USD 3.08 Million in 2020.
Recent trends of the United States’ vanilla imports in 2020
Taking a closer look at the vanilla trade data in 2020, vanilla imports into the United States plunged modestly to USD 6.017 Million, down 20.5% against 2019. As reflected in the graphic, the United States import market was heavily reliant on the supply of Madagascar (USD 3.08 Million, -23.1% YoY), Germany (USD 1.26 Million, +348.87% YoY), and Indonesia (USD 555,610, -71.09% YoY) for their vanilla exports.
In 2019, the United States indicated a sudden drop by 70.6% in terms of vanilla import value, seeing that the total imports were only USD 7.25 Million while the value in 2018 recorded USD 24.6 Million, the drop still occurring until 2020. This import shrinkage was influenced by the United States’ local consumption pattern as reflected in the difference between its import and export values, which can be concluded that the majority of vanilla imported into the United States is intended for local consumption, although in 2020 the ratio of its import and export values amounted to 14.5 : 13.4 which indicates the United States focused more on re-export activities as the local demand diminished.