Vanilla Shortage Could Drive Up Ice Cream Prices

A shortage in vanilla could lead to soaring ice cream prices this summer, say analysts

Ice cream lovers, beware: America's favorite dessert could become a luxury item after this year's poor vanilla crop harvest.

Already, the vanilla pod shortage has resulted in some stockpiling and a surge in vanilla prices, according to the Telegraph.

Perhaps worst of all, the shortage could push the price of ice cream up by around 10 percent. Over the past two months, the global price of vanilla jumped from $25 per kilo (2.2 lbs) to between $35 and $40 per kilo, Management Today reports.

"It is the most expensive ingredient in ice cream production per kilogram, so it is highly likely that some producers will not be able to absorb the extra cost," Nick Peska, business development director at Mintec told Management Today.

A bulk of the world's vanilla is grown in Madagascar, Indonesia, India and Mexico, with the latter two countries having seen a drop in production over the past year, according to the Daily Mail.

According to the International Dairy Foods Association, ice cream and other frozen desserts are consumed by more than 90 percent of households in the United States.

Also on HuffPost:

Comments

[Ranaldo]

02:18 PM on 05/06/2013

The price of real quality vanilla HAS gone through the roof, vanilla not watered down or had sugar added.
It is obvious that many people have not ever had the joy of tasting quality vanilla. Many people are starting to prefer the taste of vanillin because that is what they are most exposed to and think real vanilla is medicinal-tasting. Vanillin is manufactured from wood pulp, so by buying fake vanilla you are probably putting more money in the pockets of the Koch Bros.
Real vanilla comes from a tropical orchid and is sometimes farmed, sometimes wildcrafted from the jungle. Sadly those who gather the pods make little more than a subsistence wage. Then comes a lengthy and labor-intensive process preparing the beans for export. The annual global supply is only a few thousand metric tons, so as a product it is ripe for exploitation from a few investors who seek to corner and control the market. Most of the astronomical price increase comes from the brokers and importers between the overseas processors and the manufacturers at home. A shortage on the supply side will be greatly magnified on the consumer's end.
For those of you who think "vanilla" is synonymous with "plain," once the price comes down, I would recommend testing your palate with real vanilla and see if you don't think it is one of the most exquisite flavors out there. If not, then I guess that leaves more for me.

[rocland99]

11:09 AM on 04/06/2012

A grocer could simply knock over a box of vanilla extract and huffpost would act as if vanilla beans were becoming extinct.

[ChickEpoo]

07:31 AM on 04/06/2012

Ummm......for some of us.....ice cream IS a "luxury"......period.

[imanormalalien]

01:07 PM on 04/06/2012

$1 ice cream bar... so luxurious

[2crudedudes]

02:30 PM on 04/05/2012

It's not called the Daily F­ail for nothing.

[Happy Kine]

11:22 PM on 04/04/2012

I have beans, paste, extract and vanillin and never touch any off them, with the exception of vanilla sugar on delicate crisp butter cookies. The strengths of my cooking are technique and ingredients ,and like cinnamon, i find vanilla masks more then it adds.

[Tamela Murphy]

09:00 PM on 04/04/2012

I would not have guessed that vanilla is more expensive than heavy cream. You practically have to get financed to buy the stuff. Also, will this drive up the price of artificial vanilla flavoring, which is used in even moderately priced brands? Not a well-written article, btw. Sorry.

[DavidVDW]

05:03 PM on 04/04/2012

Unfortunately your article on vanilla is erroneous and poorly researched. There is ample supply of vanilla beans and vanilla flavorings on the market today. The production in Madagascar, who supply about 85% of the global vanilla trade, is healthy and is epxected to remain that way throughout 2012 and 2013. Major ice cream manufacturers contract thier ingredient requirements years in advance so any price increase in vanilla beans today would not have an immediate impact on consumers.

Vanilla bean prices have been at histroical lows for the past 6 years. Even if the price were to double immediately, it would still be very low by histrorical standards. Demand for industrial grade vanilla beans has actually fallen over the past 10 years due to the rampant and questionable usage of natural simulated vanilla flavors such as vanillin in many food formulations including ice cream.

It is certainly possible that vanilla bean prices rise in the near future and that would be welcome news to the vanilla farmers of the world, most of whom live in impoverished conditions. However, there is simply no current threat to the ice cream trade as your rather alarmist article suggests.

Thank you
David
A&H

[Melissa Nof]

07:01 PM on 04/04/2012

Thanks David for clearing that up. I clicked on the article title and had expected a little more information that what hp offered. Very poorly written. I thank you for your insight.

[Eclipse-girl]

08:10 PM on 04/04/2012

Thank you for the info. I agree that most growers live in 3rd world or 2nd world conditions. I don't mind paying more. I just want to be able to obtain it

[Lassitofi]

02:48 PM on 04/04/2012

has there ever been a better example of 'First World Problems'?

[RichardKarns]

02:43 PM on 04/04/2012

Oh No!

[ChairmanLMAO]

01:29 PM on 04/04/2012

Isn't anyone curious as to why the vanilla harvest was poor?

[edejan]

07:52 PM on 04/05/2012

Maybe global warming? But, no, can't be...there is no such thing as global warming.

[Middle of the road mikey]

08:40 AM on 04/06/2012

No, it's Bush's fault.

[sabelmouse]

10:40 AM on 04/04/2012

i didn't know that real vanilla is even used in most things these days.

[Eclipse-girl]

08:06 PM on 04/04/2012

real vanilla = vanilla pods or beans, or vanilla pods soaked in a good cognac or brandy(if you choose to make your own)

[sabelmouse]

06:12 AM on 04/05/2012

in store bought ice cream though ?

[edejan]

07:53 PM on 04/05/2012

I'm sure it's NOT used in anything commonly sold in regular grocery stores. Especially ice cream.

[sabelmouse]

07:31 AM on 04/06/2012

as far as i know it's usually vanilin ie synthetic.

[grailknight]

12:48 AM on 04/04/2012

Bad news for us who prefer frozen custard!

[California Beach Bum]

11:43 PM on 04/03/2012

This is another reason to tax ice cream by the greedy politicians. Anything to gouge the people. Don't be surprised the politicians will have a bill to be signed to tax ice cream like they have with tobacco related products.

[wingsabre]

10:58 PM on 04/03/2012

Eat sorbet. Even Chocolate ice cream has some vanilla in it.

[VitoIncognito]

10:45 PM on 04/03/2012

vanilla is boring anyway!

[sabelmouse]

10:41 AM on 04/04/2012

real vanilla isn't.

[Eclipse-girl]

08:07 PM on 04/04/2012

I am a vaniila-wort. You cannot beat the delicacy of good vanilla.

[edejan]

07:54 PM on 04/05/2012

I love vanilla. It's my favorite flavoring by far.