The Sunday Times FT - Malaysian entrepreneur's vanilla project

KUALA LUMPUR, (Bernama) -- Vanilla flavoured ice-cream and confectionery are something most of us wouldn't want to miss, but just how many of us are aware that 97 per cent of the vanilla flavouring used in the world for commercial purposes is synthetic?

Definitely not many, and this is why a Malaysian entrepreneur has embarked on the Malaysian Vanilla Project, making him the first producer of natural vanilla flavouring in the country.

Syed Isa Syed Alwi said it took almost three years to conduct research on the wild orchid species that produces the vanilla beans before making a bold decision to set up a company that would manage the project.

Looking at vanilla's potential, Syed Isa who is also the managing director of Rentak Timur Sdn Bhd, forked out his own capital of RM4 million to establish the company.

Research
Syed Isa said previously, he was working with a research company and his task was to evaluate and identify plants that promised high returns.

"Although aloe and sandalwood promise lucrative returns, they take a long time before they can be harvested compared to vanilla which takes only about three years to mature," he told Bernama recently.

Syed Isa then decided to study further the vanilla plant and found out that Indonesia is among the major producing countries.

"I travelled to Indonesia many times to visit the vanilla farms there and also to see the research done by the universities.

"Then, I started a pilot project in Bali and Lombok, in Indonesia, with the cooperation of some producers there. The general perception is that vanilla is only suitable for highland cultivation but my study proved otherwise. In Bali, we planted them on lowlands and they grew well, no problem," he said.

The vanilla planted by his company is from the Vanilla Planifolia Andrews variety, which is suitable for commercial planting in Malaysia and holds good potential.

Mother of all flavours
When asked why he chose vanilla although it is not a local plant, Syed Isa said: "Research has shown that weather and soil factors allow the plant to thrive in Malaysia. "Furthermore, there is not enough natural vanilla flavouring in the local market."

Syed Isa said the project he had embarked would be a platform for strengthening the local vanilla market before going for the world market.

"Natural or not, consumers will still buy vanilla, especially those in the food industry. If we offer natural vanilla in the same quantity and at the same price as the synthetic type, people will surely opt for natural vanilla.

"Vanilla is the mother of all flavours and is widely used in edibles like cakes, cookies, chocolates and ice-cream and also in perfumes," he added.

He said his company would launch its maiden product under the brand name "Malaya Spice" this month for the local and regional market.

The vanilla will be marketed in the form of extracts, syrup, paste and powder.

Contract farming
The Malaysian Vanilla Project also plans to get local farmers and entrepreneurs involved. In this respect, Syed Isa is making an offer to land owners, especially to Felda settlers with idle land, to take up vanilla planting.

"The idea of contract farming came to me as I pondered how to share the profits that I would be making from this plant," he said.

Through contract farming, his company will be supplying vanilla seeds to farmers. It will then buy back the harvest from the farmers for processing.

"One plant costs between RM10 and RM14, depending on quality. If 2,000 vanilla plants can be planted on one acre, they only require a capital of RM20,000 and they can get a net income of RM3,000 to RM5,000 a month," he said. Several Felda schemes such as Felda Air Tawar in Johor and Sungai Koyan in Pahang, besides the National Tobacco Authority areas in Kota Baharu, are already growing vanilla plants under the project. The projects are to assist the farmers gain additional income and at the same time try out other plant species with potential.

Five million seedlings
Syed Isa said his company's plan was to grow five million seedlings and up to now, 50,000 had been planted.

"From now until the end of the year we target to plant one million seedlings, which means in a month we'll be planting about 250,000 to 300,000 until we reach our target of five million."We choose the best seedlings and they have to be quarantined for 30 days before they are allowed into the country," he added.

He said the company was now collaborating with Kolej Universiti Kejuruteraan dan Teknologi Malaysia (KUKTEM) to develop a vanilla-extracting machine besides having a joint venture in research and development related to vanilla.

"We're negotiating with several state governments and are working with the Ministry of Science, Technology and Innovation to seek assistance in building a vanilla-extracting factory," he said, adding that such a set-up would cost between RM20 million and RM50 million. Syed Isa welcomes Bumiputera companies keen to participate in the Malaysian Vanilla Project as it would provide them with the opportunity to explore and become a player in the global vanilla market.