Farmers in the vanilla belt of Wewak have benefited from an international initiative to digitize vanilla farming in Papua New Guinea (PNG).

The EU-STREIT PNG initiative began as a vanilla quality sensitization program before it finally oriented farmers to digital marketing. The program is a sponsorship of the Food and Agricultural Organization (FAO) and the International Telecommunication Union (ITU).

By April 2024, EU-STREIT PNG had already mapped hundreds of individual farmers’ spice on a dedicated webpage. Here, rural growers can market their vanilla beans to lucrative international markets, a fete unknown before. 

This digital marketing has also enabled youthful farmers from Mandi, a village in Wewak, find direct market in Australia. Their second export since they launched a webpage has earned them 21,000 kino ($5,500) from 70 kg of vanilla.

Hitherto, the nearest local farmers could sell their spice in a foreign market was in neighboring Indonesia at uncompetitive domestic rates.

Hence, PNG’s Minister for International Trade and Investment, Richard Maru in March 2024 proposed the establishment of an international price-setting association. 

If formed, the association will set and maintain prices that reflect the quality and sustainability of vanilla beans.

World Price Volatility 

Vanilla is perhaps the most volatile spice globally and its price can shuttle from $20 to $600 per kilogram, seasonally. 

Governments often set a price benchmark for export that is often higher than market prices (wholesale or retail). For instance, between 2020 and 2023, Madagascar set an export minimum price of $250 per kg to maintain farmers’ earnings.

PNG, unlike Madagascar, does not set minimum export prices but rather depends on those of international markets. In May 2023, for example, PNG’s vanilla sold at the world average of 1200 kino ($400) against Madagascar’s $550 a kilo.

10% of the World’s Supplies

PNG produces 10% of the world’s vanilla beans per year, according to early 2024 statistics by FAO.

This is all the more reason for starting digital marketing platforms to ensure that farmers benefit from this high production.

In 2023,  the country produced 495 tonnes of raw vanilla beans with a market value of K29.9 million ($7.61 million).

Vanilla farming in Papua New Guinea supports 17,000 small-scale farmers based mostly in East and West Sepik provinces.