Expanding the Vanilla Value Chain – Tanzania

Natural Extracts Industries (NEI) is a for-profit social enterprise that produces, processes, and exports green vanilla into vanilla pods and extracts for international traders and retailers in the flavour industry. Since 2011, NEI has developed a vertically integrated vanilla value chain by sourcing directly from 5,000 smallholder farmers. Its team of agronomists and field officers assists farmers through training in good agricultural practices and the provision of other support services throughout the entire production cycle, from vine planting and flower pollination to the harvesting of green vanilla. To date, NEI has planted more than 200,000 vines and uses mobile-based technologies to reliably trace the quality and origin of vanilla at the farmer level. 

The CFC extended a USD 500,000 working capital loan to ensure farmers’ direct access to markets amid the challenges posed by COVID-19 and declining global vanilla prices. More than 5,000 farmers were expected to benefit from NEI’s inclusive sourcing model over the facility’s five-year tenor. The investment is expected to catalyse the further expansion of NEI’s supply chain by increasing green vanilla production by approximately 90 MT per annum. It is also anticipated to enhance farmer livelihoods, with around 10,000 vanilla growers expected to benefit from an increase in net income of approximately USD 350 per year, alongside the creation of 50 new full-time jobs and additional income gains of approximately USD 1,680 per job

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