Vanilla trade glossary

Grade A vanilla beans are fully cured pods kept at a high moisture content, selected for length, appearance and flexibility. They are bought where the bean itself is seen or split at the pass.

Why it matters. You pay a premium for appearance. If the bean is destined for extraction, that premium buys nothing.

Grade B vanilla beans are cured to a lower moisture content than Grade A, which concentrates vanillin per kilogram and makes them the standard input for extract and flavour production.

Why it matters. For an extractor, more usable matter per kilogram at a lower price.

TK is an intermediate commercial grade between gourmet and extraction beans: drier than Grade A, more presentable than Grade B. The definition varies between exporters and is not standardised.

Cuts are short or split vanilla pods that carry the same aromatic value as whole beans but fall below the length grading used for gourmet sales.

Why it matters. Lower price for identical extraction performance when appearance is irrelevant.

Spent vanilla is the residue of beans already used in an extraction, retaining a small share of their original aromatic content.

Why it matters. Extractors routinely discard a by-product that still has a market in cosmetics and second extraction.

Vanilla planifolia is the orchid species that produces the overwhelming majority of the world’s vanilla, including all Madagascar production. Vanilla grown in the south-west Indian Ocean is commercially called Bourbon vanilla.

Vanilla tahitensis is a distinct species with a floral, anisic profile and lower vanillin content than planifolia. It is bought for its aroma, not for its vanillin.

Vanillin content is the proportion of vanillin in a cured bean, normally expressed as a percentage on a dry basis and measured by HPLC. It is the principal contractual quality marker in the vanilla trade.

Why it matters. A figure without a stated basis, method and lot reference cannot be compared with any other figure.

Moisture content is the proportion of water in a cured bean, typically ranging from 15 % to 35 % depending on grade and curing.

Why it matters. You buy by weight, so moisture determines how much actual bean you receive per kilogram. It is the first correction to make before comparing two prices.

Comparing offers on a dry-matter basis means dividing the quoted price by one minus the moisture content, so that two lots with different water content become directly comparable.

Why it matters. This single conversion regularly reverses which of two offers is cheaper.

HPLC is the laboratory method used to measure vanillin and related compounds in cured vanilla. It is the expected method when a vanillin figure is stated contractually.

A certificate of analysis is a laboratory report stating the measured characteristics of a specific lot — vanillin, moisture, and usually microbiological and pesticide results. It is issued against a lot reference, not against a supplier.

Why it matters. Without a lot reference matching your offer, the report describes some vanilla somewhere.

Curing is the process that turns odourless green vanilla pods into aromatic cured beans: killing, sweating, slow drying and conditioning, over roughly nine months. It is where vanilla acquires its aroma.

Why it matters. It is also where the expertise sits, and it happens at origin, not in Europe.

The green-to-cured ratio expresses how much green vanilla is needed to obtain one kilogram of cured beans. It is commonly cited at around 4:1 for Madagascar production.

Fold expresses the concentration of a vanilla extract as a multiple of the legal single-fold standard. Two-fold extract uses twice the beans for the same finished volume.

In the US standard of identity for vanilla extract, one unit weight is 13.35 ounces (378 g) of vanilla beans containing no more than 25 % moisture, per gallon of extract.

Why it matters. Below it, a product cannot legally be sold as vanilla extract in the United States.

An Incoterm is a standard three-letter trade term defining where responsibility, cost and risk pass from seller to buyer in an international sale. It does not define who owns the goods.

Why it matters. Two quotes under different Incoterms are not comparable prices.

Under FOB, the seller delivers the goods on board the vessel at the named port of shipment; from that point, cost and risk pass to the buyer.

Why it matters. The Incoterm most US importers ask for, because they have their own freight forwarders and negotiated rates.

Under CIF, the seller pays freight and insurance to the named destination port, but risk still passes to the buyer once the goods are loaded.

Why it matters. The split between who pays and who carries the risk surprises first-time importers.

Under DDP, the seller delivers to the buyer’s premises with all duties and taxes paid. It is the most complete obligation on the seller and the simplest arrangement for the buyer.

Under EXW, the buyer takes charge of everything from the seller’s premises onward, including export clearance. It places the maximum obligation on the buyer.

The MOQ is the smallest quantity a supplier will sell in a single order. In the vanilla trade it commonly ranges from 1 to 25 kg depending on the exporter and the grade.

Landed cost is the total cost of goods delivered to your door: purchase price, freight, insurance, duties, taxes, clearance and handling.

Why it matters. The only figure worth comparing between suppliers in different countries.

A letter of credit is a bank undertaking to pay the seller once conforming documents are presented. It protects both parties in a first transaction between counterparties who do not know each other.

Why it matters. Costly and administratively heavy — and the standard for large first orders.

Madagascar operates an official minimum export price for cured vanilla, set by the government to stabilise producer income. Offers well below prevailing market levels warrant scrutiny.

A lot reference identifies a specific homogeneous batch of vanilla through processing, analysis and shipment. It is what links a laboratory report to the goods you actually receive.

Why it matters. It should appear on the analysis, the packing list and the phytosanitary certificate.

Blending is the practice of combining several lots, often of different origins or qualities, to fulfil a large order. It makes single-lot traceability impossible.

Why it matters. The main structural drawback of buying from a stockholding wholesaler.

SAVA is the region of north-east Madagascar named after its four main towns — Sambava, Antalaha, Vohemar and Andapa — and it produces the majority of the world’s vanilla.

A phytosanitary certificate is an official document issued by the exporting country’s plant protection authority, attesting that a consignment meets the importing country’s plant health requirements.

A certificate of origin attests the country in which the goods were produced. It is usually issued by a chamber of commerce and may determine the customs duty applied on arrival.

A packing list details the contents of each package in a shipment: net and gross weights, dimensions and lot references. Customs and your goods-in team both work from it.

A pre-shipment inspection is a verification by an independent third party, before shipment, that the goods exist in the stated quantity and match the agreed specification.

Why it matters. The single most effective protection on a first order with an unknown counterparty, at a fraction of the order value.