Firmenich, together with Danone and Mars, through the Livelihoods Fund for Family Farming (Livelihoods 3F), is investing in a large-scale, innovative vanilla farming model in Madagascar. Together with Prova and NGOs, Firmenich, Danone and Mars are building a resilient vanilla supply chain in Madagascar involving 3,000 vanilla producers. The project aims to increase farmer’s food security and triple their revenues, while providing high-quality, sustainable and fully traceable vanilla over a 10-year span.
The Livelihoods Fund for Family Farming, an impact investment fund created by Danone, Firmenich, Mars and Veolia to foster sustainability and poverty reduction in supply chains, is investing in a large-scale vanilla project with an innovative model where farmers and industry players share benefits and risks. Prova, a supplier to Mars, is a partner in the project. The latter will be implemented by Fanamby, a Madagascan NGO with an extensive experience working with vanilla producers.
“Vanilla is one of the most popular flavors in the world, and Madagascar represents 80 percent of its supply,” said Gilbert Ghostine, CEO Firmenich. “That’s why Firmenich has been working with smallholder farming communities in Madagascar for many years to support their sustainable livelihoods by driving the most ethical and traceable value chain. Taking our commitment to the next level, with Livelihoods 3F, we are innovating with a new vanilla farming model, based on diversifying farmers’ crops for more balance and security.”
“In light of the recent rising vanilla prices and today’s market scarcity, it is critical for us to invest in innovative solutions if we are to continue protecting the best that nature has to offer,” says Eric Nicolas, Board Member of Livelihoods 3F and Chief Financial Officer, Firmenich. “This investment secures the livelihoods of local farmers for the long-term, ensuring they receive approximately 60 percent of cured vanilla’s value.”
Alessandra Ognibene-Lerouvillois, Chief Sustainability Officer of Prova, also commented: “Prova has for many years been supporting an economically viable approach to vanilla production that helps to improve producers’ livelihoods in Madagascar, while respecting resources and perpetuating good practices. We are deeply committed to the Livelihoods-Vanilla project and very happy to partner with Mars, Danone and Firmenich in this unique initiative. We believe that the multi-stakeholder collaboration will drive a real impact on the ground, by bringing joint investments and knowledge while integrating a global approach.”
“We believe the Livelihoods-Vanilla project can make a difference because it enables farmers to regain control of their vanilla production, and vanilla users of their sourcing,” says Bernard Giraud, Cofounder & President of Livelihoods Venture. “Through the Livelihoods Fund, private companies, NGOs and public authorities can combine their commitments and efforts to support a mutually beneficial model over the long term in the economic, social and environmental spaces.”
Fanamby, a Madagascan NGO will implement the project as a cooperative, owned-directly by the farmers. Projected to train 3,000 local farmers on both sustainable practices and crop diversification over 5 years, the project aims to not only increase vanilla productivity and quality but also enable farmers to have a more balanced daily food intake.
Launched in February 2015, Livelihoods 3F aims to help companies sustainably source the materials they need from smallholder farmers while improving their productivity, incomes, and living conditions. It will convert 200,000 farms to sustainable farming practices. The fund will invest €120 million (US$138.2 million) by 2025, providing upfront financing and technical support to NGOs and farmers’ cooperatives across Africa, Asia and Latin America.
