By: Kate James
They say variety is the spice of life, and what better way to spice up your portfolio than with a unique agriculture investment unlike any other? At Harvest Returns, our mission is to connect you with offerings you can’t find anywhere else. You may be seeking something a little different than the typical row crop or farmland investment to grow your wealth.
Enter vanilla.
She’s subtle, she’s sweet, yet she packs a bold punch when it comes to diversifying your portfolio.
Mature Commodity
You may already know that agriculture is one of the oldest and most profitable investments available, but vanilla is really old. Vanilla cultivation dates back to the 15th century, grown by the Totonac people of Mexico’s east-central coast. Though Mexico is said to be the “birthplace of vanilla,” vanilla production has expanded to Madagascar, Indonesia and China.
Today, it remains one of the most popular flavors, aromas and household items amongst culinary professionals and everyday consumers. Investing in a commodity that has consistently remained at the top of the staple “must-haves” list is a smart option for capitalizing on consumer demand.
Bold Flavor
Vanilla may be used to accent other flavors, but it also offers bold nutritional benefits that often get overlooked. According to Organic Facts, “Research on the cardiovascular impact of vanilla, particularly its active ingredient, vanillin, has shown that it can measurably reduce cholesterol levels in the body.” Rich with antioxidants that reduce inflammation, vanilla can also help stimulate cell and tissue regrowth.
These value-added benefits of vanilla make it appealing to the health, cooking and aromatherapy industries, meaning it has the potential to grow your wealth because of its widespread demand.
Watch Your Wealth Grow
According to Mordor Intelligence, “The global vanilla market is projected to register a CAGR of 5.64% during the forecast period (2021-2026).” Vanilla is the second most expensive spice behind saffron, and it’s no surprise.
Vanilla pollination is done by hand.
It takes an average of three to four years for each vanilla vine to mature. Once they reach maturity, the orchids remain in flower for only 24 hours, during which time the growers must pollinate each bloom by hand. Due to the intense time and labor requirements, consumer preference for natural ingredients and Madagascar accounting for 87% of production, the vanilla market can be volatile.
To combat this concentration risk, other countries such as Indonesia, Papua New Guinea, India, Uganda, Mexico, Réunion and Comoros, are working to increase market share to diversify the supply network.
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