COVER STORY Since our first harvest of vanilla Vanilla is one of the most popular flavours in the world, but as the demand for it has grown, so have the challenges facing the industry, says Heilala Vanilla chief executive Jennifer Boggiss. beans 12 years ago, Heilala Vanilla has grown into a world-class food business, winning customers with its range of organically grown, bourbon variety pure vanilla products. Demand for vanilla has grown incrementally since the early 2000s and we have seen a shift as companies have switched from artificial and synthetic flavours to pure vanilla…an essential ingredient in premium ice cream, yoghurt and dairy products along with baked goods. It’s often the difference between a great product and an average one. It is no secret that vanilla is a difficult crop to grow, and typically the bean is grown only in countries that fall in a narrow 20-degree Celsius band on either side of the equator. Weather conditions, early picking and unsustainable growing practices are some of the issues facing the vanilla industry. Price stability is a new challenge we now need to manage. For the second year in a row, international prices have skyrocketed as demand outstrips supply and in April this year, Cyclone Enawo damaged around 30% of Madagascar’s vanilla crops. This had an immediate and significant impact, reducing global supplies as Madagascar produces 80 to 85% of the world’s vanilla beans. Consequently, vanilla prices have risen to more than $US700 per kg. The cost of vanilla had already surged over the past year due to speculative hoarding and rising demand. Prices for vanilla extract, which is made from vanilla beans, has more than doubled, becoming a challenge for food manufacturers who rely on vanilla as a staple for flavour. Paying a high price for vanilla does not reflect the product’s quality, with a tendency for farmers to increase production by harvesting vanilla prematurely and fast-tracking the drying process through artificial ways. Green vanilla beans near roads or populated areas have been harvested as immature beans to reduce the risk of theft. When the vanilla Jennifer Boggiss T A U R A N G A is picked before it is ripe, or if it is stored improperly, the quality deteriorates…resulting in minimal vanilla flavour and aroma. The 2017 Madagascar crop is likely to be the worst quality crop delivered to the market in decades. Vanilla supply can’t be increased overnight to meet demand and when a vanilla orchid is planted, it takes three years before it is mature enough to flower and produce vanilla. It’s a labour-intensive process – with each plant being pollinated by hand within four hours of the flower opening. We source most of our vanilla beans from growers throughout the Kingdom of Tonga, after establishing our own farm in 2002. The relationships we have with our partner growers ensures that we have control over the entire growing, harvesting, curing and drying operation. Our vertically integrated supply chain from ‘plantation to pantry’ guarantees quality and consistency for our customers. Heilala Vanilla beans are cured and dried through a traditional method. It begins when the harvested green vanilla beans are submerged in hot water and slow-fermented to develop the 200-plus flavour compounds. The vanilla is dried in the sun during the day and wrapped up at night for several weeks until the beans turn dark brown. While Tonga is somewhat removed from the volatility of Madagascar, our vanilla harvest has also been affected by climatic events and fluctuations such as Cyclone Winston in February 2016 and El Nino weather pattern. We have watched the market volatility over the past 18 months and recognised that vanilla will continually be faced with external forces which are out of our control, as vanilla is sensitive to climate fluctuations. Last year, we started research and development into our new Naturals product range to protect customers from supply shortages and price volatility. The higher cost of pure vanilla is more often than not absorbed in home baking and cooking as it’s used by the teaspoon. This is not always the case for food manufacturers, and the increase in price can become a challenge for customers who are adding it by the litre. Our Naturals range blends pure vanilla extract with natural, plant based, vanilla flavour, producing a flavour similar to the Heilala 100% pure vanilla product range, and allows customers to continue using a high-quality vanilla throughout the current volatile global vanilla market, if not permanently, at least temporarily. C O - F O U N D E R A N D C H I E F E X E C U T I V E : Heilala Vanilla B A C K G R O U N D : Accountant before transforming aid project Heilala Vanilla (established in 2002) into international company in 2008 C O M PA N Y : Vanilla grown in partnership with Tongan growers, brought to Tauranga for processing into range of award-winning products, and exported to eight countries including the US, Japan and Australia. 14 AUGUST 2017
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