• The government seeks to restore vanilla as a key export through a national strategy.

• Prices have plunged over 80% since 2019, hurting producers and exporters.

• New measures include debt relief, market diversification, and an IGP label.

The Union of the Comoros is seeking to reestablish vanilla as its main export product. To achieve this, the government organized National Consultations from October 24 to 26, bringing together producers, exporters, institutional representatives, and technical partners to define the foundation of a national strategy to revive the sector.

A market hit by a global crisis

The meeting took place amid a global vanilla market crisis, marked by a sharp drop in prices over the past five years, which has weakened the competitiveness of industry players.

According to data from the International Trade Centre (ITC), the international price per kilogram of vanilla fell by more than 80%, from $650 in 2019 to under $100 FOB in 2023. The ITC attributes this fall to two key factors: the Covid-19 pandemic, which slowed global economic activity and reduced demand, and the floor price set by Madagascar—the world’s top producer with over 80% of global supply—between 2021 and 2023, which led to market saturation.

An ITC report published in 2024 noted that around 23 tons of vanilla from the 2022 and 2023 harvests remained unsold as of January 2024 due to unfavorable market prices, particularly affecting preparers who took bank loans to buy green vanilla.

The report noted that the export cost of Comoros vanilla, estimated at 191 €/kg (about $204/kg), was significantly higher than the international market price of $120/kg FOB, adding financial pressure on preparers.

As a result, vanilla export revenues have fallen sharply since 2022, affected by both lower volumes and weak prices. Data from the Central Bank show that the sector generated only 300 million Comorian francs ($700,000) in 2024, about seven times less than the 2 billion francs ($4.7 million) recorded in 2022.

New reforms to improve sector governance

In a statement issued on October 26, the Ministry of Agriculture said the consultations resulted in recommendations structured around seven priority areas for the new recovery strategy.

Key measures include centralizing vanilla stocks under the Comorian Cash Crops Office (OCPR) to ensure better traceability and tighter export control. The stakeholders also agreed on a debt moratorium, with losses shared among the State (50%), banks (25%), and industry players (25%).

The reforms also call for diversifying export markets toward the African Continental Free Trade Area (AfCFTA), the Arab world, and Asia, as well as promoting local processing to capture more added value.

The government plans to strengthen producer training in international production and storage standards and establish a national “Vanilla of the Comoros” label with a protected geographical indication (PGI).

“A multisectoral monitoring committee will soon be established to ensure the effective implementation of these recommendations,” the ministry said.

Untapped export potential

According to the ITC, the Comoros has an estimated vanilla export potential of $11.3 million per year. However, due to the sector’s ongoing structural crisis, it currently uses only about 6% of that potential ($700,000 in 2024).

Traditional markets such as France, the United States, and Germany remain the most promising, though the country faces competition from Madagascar, Uganda, and Papua New Guinea, which benefit from higher production and more reliable supply chains.

The ITC adds that part of the unrealized export potential stems from non-tariff trade barriers, such as limited market research, regulatory compliance issues, weak business networks, and a lack of knowledge of consumer preferences. It remains to be seen whether the new reforms will help the authorities put the sector back on track.