Vanilla is one of the world’s most labor-intensive crops: Each orchid flower blooms for just one day and must be pollinated by hand to produce a single bean. This intricacy makes industrial-scale farming difficult, meaning the majority of the world’s vanilla is grown by smallholder farmers, carefully cultivating vanilla alongside other crops on family farms. Most of that work happens in Madagascar, where over 80% of the world’s vanilla originates. Here, the family-owned exporter MC Ingredients (MCI), part of Concordia Group, connects more than 2,000 farmers to international markets for vanilla. MCI specializes in certified organic and Fairtrade products while supporting quality standards, traceability, and long-term market access.
Starting in 2015, mounting climate pressures in Madagascar led the price of vanilla to skyrocket. Prices peaked in 2017 when Cyclone Enawo hit the island, damaging 35% of the crop and sending prices above $600/kg. The contraction of supply and resulting price volatility created significant challenges for MCI and other local businesses as they worked to meet international demand and fulfill contracts. These market fluctuations reinforced the importance of building resilient business models capable of supporting farmers through changing economic conditions.
With working capital, SIDI has contributed to the Concordia Group’s ongoing diversification strategy in the face of these threats to the vanilla sector. In addition to vanilla, the Group has expanded its activities into pulses, chili peppers, and other agricultural value chains, working with different producer groups and production zones throughout Madagascar. This diversification strategy has strengthened the company’s resilience while expanding market opportunities for Malagasy agricultural producers. Today, MCI’s operations support rural farmers while also providing formal job opportunities through its sourcing, processing, and export activities, employing 60 full-time staff members and 200 seasonal workers.
Looking ahead, MCI is continuing to develop new opportunities. Building on its role in agricultural sourcing and exports, the team has constructed a candied fruits processing plant to increase local value addition and retain a greater share of the product’s value within the country. This investment reflects years of strategic planning and supports MCI’s ambition to move beyond the export of raw agricultural products toward greater long-term economic value creation in Madagascar.