Vanilla Report

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VANILLA DEVELOPMENT

“Why vanilla?”

Learning about the significant profit potential ofvanilla was an unexpected benefit stemming fromthe Company’s social and environmentalstewardship policies in Uganda.The Company decided in 2003 to plant vanillaand banana as part of an environmentallyproactive land reclamation project on theNamekara vermiculite mine site. The project wasalso designed to (a) provide paid work for thelocal residents, thus further building goodwill; and(b) act as a field trial to demonstrate theagricultural/horticultural benefits of incorporatingNamekara vermiculite in the planting of fieldcrops.It soon became apparent that the vanilla in thisproject could also be a potentially profitable cashcrop. Management carried out its responsibilitieswith this project by doing significant research onvanilla. The research data convincedmanagement that the Company could participateseriously and profitably in the world vanilla market – with several inherent benefits.Company management believes vanilla satisfies important market entry requirements:

·

Uganda meets all the soil and climatic conditions for growing quality vanilla;

·

In-house expertise for growing, producing, and marketing is available to capitalizeon the vanilla market;

·

Our vanilla experience is hands-on real-time (or should we say “Hans on”), nottheoretical;

·

Vanilla is a boutique or scarce, specialty commodity;

·

It commands a supply-driven, high price;

·

The company can produce vanilla cost-effectively;

·

Participation in the vanilla market is sustainable;

·

Demand for vanilla is growing, and demand exceeds supply;

·

Provides additional paid work for our host country’s residents;

·

Assists Ugandan growers through market stabilization and consulting.

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Processing plant at vermiculite mineUS vermiculite property -

Mica Peak Namekara

vermiculite mine pit

Origin of vanilla

Natural vanilla, the most commonly usedspice in the world, was “discovered” inMexico by Hernán Cortés and the SpanishConquistadors in the early 1500s. Theycame in contact with the flavouring duringtheir conquest of the Aztecs who usedvanilla in their cocoa beverage.Subsequently, vanilla became popular inEurope as a flavouring for chocolate andvanilla’s popularity has continued toincrease every since.

What is vanilla?

Vanilla occurs as a slim, hanging pod approximately eight to twenty centimetres long as thefruit of the vanilla orchid. For some time, Mexico was the only significant source of naturalvanilla, because the Melipona bee, which pollinates the vanilla orchid, is native only to thatregion. Efforts to import the bees into other areas of cultivation failed. Eventually, a manualmethod of pollination was developed and vanilla can now be grown successfully in a numberof areas that have suitable growing conditions and that are within twenty degrees north andsouth of the equator.While there are over 50 species of vanilla orchids, only three have been used commercially ,

vanilla planifolia, vanilla pompona

and

vanilla tahitensis

. Of these, only

vanilla planifolia

and

vanilla tahitensis

are of superior quality.

Vanilla planifolia

is the predominant strain in Mexicanand Bourbon beans. The latter account for the bulk of quality vanilla output and come from avariety of countries ranging from Madagascar to Uganda.

Vanilla tahitensis

is grown mostly inFrench Polynesia, where the distinctive Tahitian vanilla beans are cultivated. Other islands,such as Papua New Guinea, have also emerged in recent years as credible producers of

vanilla tahitensis

strains

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The processing of vanilla

Vanilla beans are harvested green and have novanilla taste or aroma at that stage. Thecharacteristic flavour and fragrance of vanilla isdue to the presence of vanillin, which is producedby an enzymatic reaction when the vanilla beansare cured. The care and expertise applied in thecuring process is one of the key factorsresponsible for the quality of the vanilla after it isharvested.The curing process, which is highly labourintensive, normally takes about three months. Oneof the most common curing methods is “sunningand sweating,” a process in which the beans arelaid out in the sun each day on dark blankets andthen wrapped in the blankets to “sweat” overnight.This procedure is repeated day after day and theprocess eventually brings out the rich taste andaroma of natural vanilla.

The market for vanilla

Vanilla is a high-value crop and is grown on a vanilla plantation known as a “vanillary.” A well-managed vanillary consists of about 10,000 plants per hectare, each plant producing betweentwo and three kilograms of green beans per plant. The green beans have only nominal valueto the farmer. However, cured beans are much more valuable, ranging in price in recent yearsbetween US$100 and US$500 per kilogram. There is an overall weight loss during the processof 30 – 40%.Green vanilla bean “rustling”, or theft, has been a problem in some growing areas and armedguards have been used to protect the crops when they are ready or close to ready forharvesting. This includes a vigilante approach to security and justice.

The uses of vanilla

Next to saffron, vanilla is the second most expensive spice in the world, in part because it isone of the most labour-intensive crops in world agriculture. Used in a wide variety of foodproducts, confectionaries, beverages, pharmaceuticals and perfumes, its largest single useis in vanilla ice cream. It is worth noting that the term “vanilla” as a descriptive adjective canonly be used if the product described incorporates natural vanilla. Otherwise the descriptionmust be “vanilla-flavoured”, or an equivalent term.

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virginia-ann-mcclain-kingen-8588

interesting article on Vanilla plants

reply12 / 02 / 2009