National Working Party on Vanilla in Antananarivo - Madagascar

Dear Friends, Customers

The National Working Party on Vanilla in Madagascar took place, as indicated before, on Monday, August 22nd, 2005.

The Working Party was warming up in presence of all concerned operators in vanilla channel: farmers, curers, collectors, exporters, representatives of the government departments (Security, Finance, Commerce, Foreign Affairs), Chief of Provinces, Chief of the concerned regions, Financial Institutions Representatives, deputies, senators and the Prime Minister.

Four Commissions worked during the day in order to:

- Rise up all the matters meet on vanilla channel: from farmers to exporters

- Find common solutions to solve the matters: Actions that the government has to do, actions for the private sector and actions to do together by the two entities.

- These solutions will be formalized by the Ministry of Commerce in order to get a STANDARD in vanilla activities in Madagascar.

Here as follow the solutions decided by each commission:

Commission 1: “STANDARDS UPDATING AND VANILLA QUALITY (GREEN & CURED BEANS)

- Updating of the kinds of vanilla qualities “designation” in order to follow the usual customers’ designation.

E.g: Gourmet beans for the Non Split Black beans but the actual Standard says EXTRA

- Fixing a minimum vanillin content (1.5%) for export

- Creation of a special board to follow and to control quality

- Prohibiting the export of replung beans

- Standard updating on exporters, curers and collectors approval

- Defining of the crop opening: placing “observation office” per Communal land who decides the harvesting time. The beginning of the harvest must be 8 or 9 months after the pollinization.

- Any restriction regarding the opening and the close of export date

Commission 2: “TAXES AND RULES REGARDING VANILLA PROFESSION"

- The amount of taxes (green and cured beans) are defined on the beginning of the crop and depending on the price on the international market and the national production.

- Taxes collection: The tax defined for the Communals is paid to the concerned communal directly but all the other taxes will be paid directly to the public treasure materialized by crossed cheque.

- All operators must be registered with the Ministry of Commerce and will get their Tax Identification Number; otherwise anyone can’t apply in vanilla business

Commission 3: “SECURITY AND JURIDICAL”

- Applying for farmers card in order that the state police force may identify and record the vanilla circulation

- Facilitation of farmers access into the credits in order to avoid the sale of the crop still yet in feet which incites the pick of immature beans.

- Placing a special commission to sensibilize and inform the farmers

- Strengthening the shortage of manpower (actually: only one manpower per 100 m²)

- For a long term, creation of a Detachment specialized in vanilla security

Commission 4: “INTERNATIONAL MARKETING AND RELATIONS WITH INSTITUTIONS”

- The Ministry of the Foreign Affairs is looking for the laws regarding the use of natural vanilla design on the packaging over the importers countries.

- Depending on these laws, the private sectors with the government support will do necessary lobbying in order to defend “Madagascar Bourbon Vanilla”

- Asking to the Ministry of Finance to extend the currencies repatriation to 150 days instead of 90 days actually; because must of shipment from Madagascar aren't yet sold but shipped abroad in order that the customers may check the goods in their warehouse before payment.

- Sending samples:

For Private individual (Tourists, Travellers): allow to bring 2kg maximum – No documents required

For Exporters:allow to send 5 kg maximum – No documents required except the Phytosanitary certificate.

From Now, two representatives per commission is working on these decisions with the Ministry of Commerce in order to get them as laws and to apply as quick as possible