WAUKEGAN, Ill., April 6, 2012 /PRNewswire/ --Nielsen-Massey Vanillas, one of the world's leading vanilla and pure flavor extract producers, issued a statement today debunking a recent media report predicting a global shortage of vanilla beans and higher prices as a result of recent poor vanilla bean harvests in Mexico and India. The company said it does not anticipate any issue with supplies in the near future, and is not projecting near-term price increases.As a result, producers of vanilla ice cream and other food products utilizing its pure vanilla extract should not be impacted by higher prices.
"On average, Mexico and India combined produce approximately 100 tons of vanilla beans each year, or about five percent of the total worldwide harvest of 2,200 tons," said Craig Nielsen, chief executive officer of Nielsen-Massey Vanillas. "The world's leading vanilla producer, Madagascar, accounts for approximately 65 percent of the world crop and its crop yield was normal for 2012."
The company said that recent large shipments of vanilla beans from Madagascar do not represent a surge in bulk sales, but rather normal shipments of the new Madagascan crop. The larger shipments being made from Madagascar in the past few months are simply normal shipments of the new vanilla bean crop for vanilla bean suppliers and vanilla producers in the United States and Europe.
"We do not expect any significant price increases for our products in 2012 nor do we anticipate any near-term issues related to supply," said Nielsen. "While those purchasing vanilla on the spot markets may experience slight price increases, the majority of food producers are insulated by virtue of long-term supply agreements. Consumers should not expect to encounter increases in finished products using vanilla extract. In fact, vanilla bean prices remain at historically low levels and some price correction is expected in the years to come."
Nielsen commented that vanilla's impact on finished goods prices remains minimal. "Based on a normal usage rate of vanilla extract, a 10 percent increase in vanilla extract would only increase the cost to produce a pint of ice cream by $0.0029, less than 3 one hundredths of a penny," he added.
Customers with questions may contact Nielsen-Massey at 800-525-PURE (7873), Monday through Friday, 9:00 AM until 4:00 PM Central Daylight Time.
Media Contact:
Gardi Wilks, gwilks@savoragency.com
Megan Moriarity, mmoriarity@savoragency.com
Savor-The Food Agency
847-556-7511
SOURCE Nielsen-Massey Vanillas
