Production and marketing of vanilla

Abstract

The present study on the economics of production and marketing of vanilla aims to estimate the costs and returns in vanilla cultivation, identify the marketing channels and marketing costs along with the analysis of the price behaviour and trade competitiveness of vanilla in Kerala The cost of cultivation was worked out using operation wise approach and input wise approach by employing the ABC cost concepts in farm management. Small sized, medium sized and large sized vanilla plantations behaved differently in incurring costs during the establishment, steady yield and declining yield periods. The total cost of establishment at the aggregate level was Rs.1, 45,102 per hectare and it ranged from Rs. 1,37,445 per hectare in small holdings to Rs. 1,54,776 per hectare in medium sized holdings. The annual maintenance cost during the stabilized yield period worked out to Rs.57829 per hectare at the aggregate level and it was Rs. 55456,Rs.58343 and Rs.58577 per hectare for small, medium and large holdings respectively. The annual maintenance cost during the declining yield period worked out to Rs57313 at the aggregate level and it was Rs. 56042, Rs. 58158, and Rs. 58507 for small, medium and large holdings. Input wise analysis of costs for establishment stage showed that cost C3 at the aggregate level worked out to Rs. 193205. The total Cost C3 for steady yield stage worked out to Rs. 81057 at the aggregate level and it was Rs 77508, Rs. 83444 and Rs. 83466 for small, medium and large holdings respectively. During the declining yield stage cost C3 at the aggregate level worked out to Rs.79407, and it was Rs. 77320,Rs. 819175and Rs. 81354 for Small, medium and large farmers respectively. The returns from green beans started from third year and it remained stable from fourth to seventh year and declined during eighth to fifteenth year. . The returns from the by product commenced from the third year onwards and increased during the steady yield stage and declining yield stage. It was observed that cost of production was more during the later stages of growth than the beginning stages of vanilla production. A higher benefit cost ratio and high NPW for small holdings pointed out its higher profitability compared to medium and large holdings. The major marketing channels identified were Producer-Local agent –exporter, Producer Exporter, Producer - vanilla growers association- exporter. It was found that it was highly beneficial for the vanilla grower to go for on farm processing of the beans instead of selling as raw beans, if they could maintain the required international quality of the beans. The major constraints faced by the farmers were price fluctuations, lack of marketing facilities, lack of knowledge on processing