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  • Publication | 2019

Value chain analysis of vanilla in Papua New Guinea

Global Food and Nutrition Security

The vanilla world market is a small niche market with an annual global demand of between 2 000 to 3 000 tonnes, of which 80% is normally produced in Madagascar. Smaller producing countries include India, Indonesia, Uganda, Mexico and Papua New Guinea (PNG). Vanilla is the world’s second most expensive spice (after saffron), but its prices are highly volatile due to the impact of supply-side shocks - particularly cyclones in Madagascar.The main markets for PNG vanilla are Indonesia, followed by Australia, by volume; and Switzerland, France, Germany and the USA, by value. The highest unit value per tonne in 2018 was paid by Switzerland at US$ 500/tonne (CIF value). The average unit value of exports to Indonesia was US$ 75/tonne (CIF value).Vanilla in PNG was promoted as a smallholder crop by the Department of Agriculture and Livestock, development projects and private individuals from the early to mid-1990s. Annual exports of vanilla in PNG increased rapidly from an estimated one tonne in 1999 to a recorded amount of 202 tonnes in 2003. Within five years PNG had become the third largest vanilla producer in the world, contributing around 10% of world production between 2003 and 2004.