Kilogram of Vanilla More Expensive Than a Kilogram of Silver

Vanilla prices have surged significantly over the past two years, making this sweet ingredient in a range of products, including ice cream, currently more expensive than silver, reported the BBC.

A kilogram of vanilla now costs around 600 US dollars, which is more than a kilogram of silver, notes the BBC. The vast majority of vanilla – over 75 percent – is grown on the tropical island of Madagascar off the southeast coast of Africa.

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– The main reason for the high price is the cyclone that devastated Madagascar last March and destroyed many plantations. And despite hopes that the price increases would have calmed down by now, they remain at high levels because demand is so strong, said Julian Gale, a commodity market analyst at IEG Vu.

It is a spice that is difficult to cultivate; vanilla is the fruit of a climbing orchid, in pods. For this reason, vanilla is the second most expensive spice in the world, after saffron.

– Other major producers are Papua New Guinea, India, and Uganda. It is exported worldwide, with a large portion going to the United States considering its large ice cream industry, added analyst Gale.

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In addition to ice cream, vanilla is popular in various desserts, alcoholic beverages, as well as in cosmetics and perfumes. The natural vanilla extract is a strong brown liqueur with an intense aroma. Food manufacturers also purchase vanilla powder obtained by grinding the pods previously used to obtain the extract. Its price has also tripled.

The synthetic flavor known as vanillin is derived from wood and sometimes from oil, and it is expected to be used in many industries that will try to avoid sharply rising costs, writes the BBC.

At least one British ice cream manufacturer has stopped offering vanilla due to the high price. Julie Fisher, who started the confectionery business Ruby Violet seven years ago, told the BBC that she will soon remove vanilla from the menu in her London shops because she cannot afford the thousands of British pounds that vanilla would cost.