Around the Mountains of the Moon it takes five-seven years to break even with a vanilla crop. Farmers' plantations are tiny - averaging 250 vines on a half acre - as vanilla thrives best as small scale agro-forestry, needing large amounts of tender loving care in training, pruning, mulching and hand pollinating.
Fairtrade takes all this into consideration when calculating the Fairtrade price: capital costs, annual costs to maintain and harvest the crop and expected yields are analysed to give a price which covers these plus a fair profit margin. This price stability inspires the confidence to produce vanilla of exceptional quality: due to world over-supply in 2007 conventional (standard) vanilla prices were far below break even; for January 2007 the Fairtrade farmgate price paid by Ndali was a hefty five times greater than the conventional price.
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