As prices again double, we are clearly now in the throes of a second vanilla crisis this young century. Vanilla Extract is set to reach $100 gallon. How much of the increase is due to actual shortages versus hoarding or speculation is presently unknown. However, the principle causes involve longer-term, underlying market forces. Overwhelming demand is pushing the crop to its absolute limits. Reliant on few producers, poor farmers and distorted market incentives, there’s little wonder vanilla remains prone to cost shocks and supply imbalances.

Consider our Natural Vanillas or brace for $200 gallon Vanilla Extract if trends continue as they did 15 years ago.