Barry Callebaut and Prova Enter Sustainable Cocoa and Vanilla Partnership

21 Sep 2016 --- The volatile vanilla industry in Madagascar has been given a huge boost by a joint partnership between world leader in cocoa and chocolate production Barry Callebaut and premier manufacturers of vanilla extract, Prova. The two big players are joining forces to launch a novel project in Madagascar, a key producer country of vanilla.

The idea is to diversify and help stabilize revenues of vanilla farmers in the small district of Bemanevika and the SAVA region through cocoa farming and create sustainable sourcing and practices as well as improve the lives of farmers and their communities. 

Running over the next five years, the project is funded by both Barry Callebaut and Prova who will also support through social, health and educational programs. In addition, IDH the Sustainable Trade Initiative will partly fund and be involved in consulting. 

The International Cocoa organization (ICCO) certifies Madagascan cocoa as “fine or flavor cocoa” because of its particular flavor profile which makes it interesting for users of premium cocoa. Madagascan cocoa is also more expensive.

Barry Callebaut uses high volumes of vanilla extracts and flavors for its worldwide chocolate factories and operations, whilst Prova has been a trusted vanilla supplier to Barry Callebaut for many years. Both companies are supporting the Sustainable Vanilla Initiative (SVI), a platform bringing together all the stakeholders of the vanilla sector. 

"Vanilla is a key ingredient of chocolate, present in most of our recipes. It is also an ingredient produced 80% in Madagascar which is one of the poorest countries in the world. At the same time the sector is in a difficult situation and it is the right time to get more involved," Björn Emde at Barry Callebaut told FoodIngredientsFirst. 

"We are developing projects in all key raw materials besides vanilla. But the design of the project in Madagascar is specific to the raw material and therefore the approach in vanilla is unique," he adds.

After three years, the first results of the new initiative are expected to show and there will be additional services where the project will increase levels of vanilla curing at farm level and support the adoption of Good Agricultural Practices (GAP). Barry Callebaut will apply its long-standing cocoa expertise in association with Prova’s local vanilla know-how, creating synergies on the ground for the benefit of the local vanilla farmers.

Alessandra Ognibene-Lerouvillois, Chief Sustainability Officer at Prova, says the project will reinvigorate the age-old relationship between cocoa and vanilla. 

“The cocoa and vanilla synergy is an ancient love-story that dates back to the Aztecs, thousands of years ago. Witnessing this marriage in the field, helping farmers to improve their livelihoods is a big achievement. We are excited to embark on this journey with Barry Callebaut,” she says.

“Together, we will initiate the cultivation of cocoa. Our objective is to enable the planters to become stakeholders in their own development, take ownership of these projects and ensure their long-term sustainability. All our efforts are working towards this goal.”

Vanilla is one of the world’s most popular and expensive spices and Madagascar has a long producer history, but this has often been hampered by unsustainable practices, volatile markets and a lack of financial support. Madagascar has approximately 80,000 vanilla producers, the vast majority of which are smallholder farmers located in the SAVA region in the northern part of the country. 

The crop is harvested and marketed from July to December which leaves an income gap of five months, another burden that producers and vanilla planters have to bear. Meanwhile cocoa can be harvested throughout the year, helping vanilla farmers to diversify and stabilize their income situation while reducing the dependency on the extremely volatile vanilla market. Through the new project, the involved parties also aim to anticipate future phases with lower vanilla market prices and protect the economic situation of the local vanilla producers.

Alessandra Ognibene-Lerouvillois at Prova tells FoodIngredientsFirst: “Long-term sustainability is a key point of our commitment. The cocoa crops will be small at first since we are starting from scratch. We will only see the results in a few years, but we are fine with the whole process and everything that is going to be achieved along the road before harvesting our first cocoa beans. We are sowing seeds for the future.”

She notes that the vanilla market has been experiencing a major crisis resulting in an ongoing deterioration in quality and sky-rocketing prices. “2016 has seen all the bad predictions come true and prices have surpassed US$400.00/kg, making this year the worst crisis ever experienced on the market,” says Ognibene-Lerouvillois. “In this frantic context, Prova believes that its long lasting investment to secure a healthier supply chain benefitting all stakeholders, from the small farmers to the end users and the consumers is a solution. Thus ensuring fair prices, good quality and protecting the legacy of the ‘queen of spices,’ and ensuring that the next generation will enjoy sustainable vanilla and chocolate.”

“Both companies are family-owned and share similar sets of values. We know that behind our raw materials there are people, and we care about them,” she says. “The program is intrinsically altruistic, in that it is designed to improve livelihoods of vanilla  farmers by giving them access to a second crop. We think this is a unique approach to the challenging circumstances of the current market,” she adds. 

“A tangible benefit to Prova’s vanilla business is that with a second source of income, vanilla farmers will be less likely to harvest the vanilla prematurely, which yields less than ideal quality vanilla. So the market has a chance to rebound,” she adds.

“We are very happy to partner with Prova on this exceptional project. Vanilla is a key ingredient for us when making chocolate. This project will support farmers in being prepared for a less favorable future vanilla market. It also helps us as a company, securing a significant amount of our vanilla needs from a sustainable source. We are also very pleased that IDH fully supports our intentions and work on the ground. Altogether, this will complement and strengthen the efforts of the Sustainable Vanilla Initiative where we also are an active member,” says sustainability manager global sourcing at Barry Callebaut, Oliver von Hagen. 

Only a small amount of farmers are cultivating cocoa in the SAVA region and a recent study found the Sambava area was also suitable for growing the crop. Although Barry Callebaut does not own cocoa farms, the company has a vast knowledge and is a specialist in cocoa farming, bringing its long-standing cocoa expertise into the project to reinforce farmers’ GAP knowledge and to grow cocoa efficiently and sustainably.

“This is a unique and promising collaboration of experienced supply chain partners, bringing joint investments and technical knowledge on two distinct and valuable commodities together in the promotion of farm income diversification and sustainable farming,” adds senior program manager at IDH, Jan Gilhuis.

by Gaynor Selby