Long-term partnership secures supply of high-quality vanilla and smallholder incomes

A large proportion of the vanilla produced for the food industry comes from Madagascar. Holzminden-based Symrise AG, one of the world's largest manufacturers of fragrances and flavours, also buys vanilla beans here and supplies Unilever, among others, with vanilla for ice cream production. In addition to various global challenges such as climate change, the energy crisis, and reduced global market demand, vanilla cultivation faces other specific challenges. It is very time-consuming, and the plants require careful observation and maintenance all along the year; it takes three years for the climbing plant, which belongs to the orchid family, to produce its first coveted fruit capsules, and after successful pollination, the vanilla pods take around nine months to ripen. Specialised knowledge is therefore required to achieve high productivity. Weather events such as cyclones and disease pose further threats. Strong fluctuations in the quantity and quality of the vanilla produced pose risks to the processing companies, but they also have a strong impact on the living conditions of farming families. Poor income limits their options for a balanced diet and adequate hygiene, which particularly affects children. Inadequate access to medical care and schooling further limits their prospects.

The goal of sustainably developing vanilla cultivation in Madagascar as an important producer country and improving the living conditions of the producer families was addressed in several project steps. The first step was to stabilise and expand productivity, quality and supply chains. Symrise and GIZ developed various training courses on model farms, from 2014 in partnership with Unilever. GIZ's tried-and-tested ‘Farmer Business School’ approach includes both practical and business management skills. In 2016, the focus was expanded to include the living conditions of farming families and community members. Save the Children (STC), a new partner, focused on the career prospects of young people and children's rights in the farming regions. More than ten partner organisations from the agricultural, education, health and financial sectors are helping to implement and disseminate the measures on a broad scale. GIZ is coordinating the local partners, providing advice on environmental and health issues and has facilitated access to financial services. Over the entire project term from 2010 up to and including 2024, the project partners have implemented the following measures, among others, with a total budget of approx. EUR 16 million:

• Training for smallholders on sustainable and climate-resilient farming methods as well as diversification in cultivation
• Financial literacy, health insurance and financial services development, and income diversification
• Environmental education at primary schools and rural colleges; establishment of Farmer Business Schools and rural colleges
• Child safeguarding activities
• Sector wide learning on strengthening smallholder resilience, improving livelihoods, addressing and mitigating child rights issues, and creating jobs and life perspectives for youth

The activities around good agricultural practices and income diversification in the first phase have been well accepted and have had a positive impact. This has allowed the project to be expanded to more areas of cultivation from which Symrise sources vanilla. Agricultural training has enabled many producers to put their newly acquired skills to use in diversifying their incomes. Primary schools have integrated environmental education content into their curricula. This holistic approach was strengthened by the resources, expertise and contacts of other actors such as STC. They were anchored as a partner network of non-governmental organisations and government agencies. Together with the partners, the project actors have established VSLAs (Village Savings and Loan Associations) and CBSGs (Community-Based Saving Groups). Finally, the Mahavelona mutual healthcare insurance provider was developed which offers poorer families an insurance package.

• More than 3,000 smallholders have switched to sustainable and smart climate farming practices
• The target group has increased dramatically from the original 3,000 to over 40,000 beneficiaries
• More than 400 village saving groups (VSLAs and CBSGs) have been established