Impact of Cyclone in Madagascar

Early on Tuesday, March 7th, a powerful cyclone hit the northeastern corner of Madagascar, the country's primary vanilla-producing region. In the weeks since the storm, we have been assessing the extent of the damage to the region. While damage in certain areas has been severe, it remains too early to speculate about the overall impact on the 2017/2018 crop.

The immediate impact has been higher world prices, which may increase further. Additionally, product quality may suffer as low-quality green vanilla beans salvaged from the storm will be immediately processed and brought to market. We are encouraged that the Malagasy government is working to prevent this early picking. However, until we can sort the situation out further, with more conclusive information from the field, we will continue to impose all allocation on customers, which means we will hold your orders to previously agreed-upon quantities and frequencies. In the meantime, rest assured that we are still processing your orders for our products and will continue to deliver as expected.

Additionally, because the storm inflicted significant damage to Madagascar's food crops and infrastructure, food insecurity has become a growing problem for people on the island. To help mitigate this issue, we will be making a donation to help provide necessary relief to the affected Malagasy people once these needs have been fully identified.

For additional reference, please visit the links below for news articles about the situation:

As always, we invite you to send us your questions, and promise to continue to update you about what's going on in the global vanilla sector. We are committed to serving the needs of our customers across the food manufacturing, food service and retail sectors, and to upholding our reputation as the world's leading supplier of high-quality pure vanilla products during this challenging period for the industry.

If you have any questions or concerns, please contact us at sales@nielsenmassey.com.



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