Spice is right as Indonesian startups eye value in vanilla

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Spice is right as Indonesian startups eye value in vanilla
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Indonesian Sofa Arbiyanto had a manufacturing job in South Korea two years ago when he learned about the high price of vanilla on the global market, and decided to try his luck at growing it.

Iton Rifa'i, a 74-year-old vanilla farmer, shows dried vanilla beans at Kebon Kakek farm in Serang, Banten province, Indonesia, July 25, 2020. REUTERS/Willy Kurniawan

Arbiyanto is one of a growing number of millennial start-up vanilla farmers in the southeast Asian nation, which is eager to revive spice shipments to diversify its farm exports, now dominated by palm oil. Many have learned farming methods from YouTube, and get tips and guidance from experienced farmers through group chats on messaging platforms such as WhatsApp, said Mahdalena Lubis, the association’s spokeswoman.

After typhoons in 2017 and 2018 in the Indian Ocean island sent prices skyrocketing, buyers are looking for more sources of the spice, used in anything from cakes and cookies to sauces and perfume. The coronavirus pandemic has boosted consumer demand for vanilla, as well as that from packaged food companies, it added.

Despite strong demand, shipments faced delays because of virus-related disruptions in trade, causing an annual drop of 18% for the January to May period, Indonesian trade data showed.“When the new normal begins and trade activities are gradually increased...vanilla exports will become one of the mainstays of trade that will be expanded,” said Kasan, a director-general in Indonesia’s trade ministry.

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