Timor-Leste has the potential to develop its emerging vanilla industry into a sustainable source of jobs, rural livelihoods and economic diversification, according to a new study by the International Labour Organization (ILO).
The study, Development of the Timor-Leste vanilla value chain roadmap, including associated skills needs and stocktaking of working conditions, identifies opportunities and challenges facing the sector and proposes a three-phase roadmap to strengthen production, skills, value addition and market access.
Vanilla is one of the world's most widely used flavours and aromas, with applications ranging from food and beverages to cosmetics and perfumes. As a high-value spice that can only be cultivated in certain parts of the world, it presents an opportunity for Timor-Leste to diversify agricultural production and increase income opportunities for rural communities.
Vanilla cultivation in Timor-Leste dates back to around 1989, but recorded trade only began in 2020 and export volumes remain limited. In 2025, the country exported 6.3 metric tonnes of dried and cured vanilla to Indonesia. Timor-Leste has yet to establish a strong position in international vanilla markets, with a limited number of processors, buyers and regular trading partners.
Despite its small scale, the study identifies several characteristics that could help Timor-Leste differentiate its vanilla in international markets. Vanilla cultivation in the country is integrated into agroforestry systems and largely uses organic farming practices without synthetic fertilizers or chemical pesticides. These characteristics align with growing international consumer demand for sustainably produced, minimally processed and naturally cultivated products.
"Timor-Leste's vanilla industry has the potential to create decent work and strengthen rural livelihoods, particularly for young people and women. Investing in skills, sustainable production and better market access will be key to realizing this potential," said Simrin Singh, ILO Country Director for Indonesia and Timor-Leste.
To capitalize on these opportunities, the study highlights the need to address constraints throughout the vanilla value chain. At the farm level, the consistent application of good cultivation practices - including vine management, manual pollination, pest and disease control and appropriate harvesting techniques - will be essential to increasing productivity and improving product quality.
Vanilla also remains a secondary crop for most farmers. Low production volumes, inadequate infrastructure and the small number of processors and buyers limit market development, weaken farmers' bargaining power and reduce incentives to invest in product quality.
To address these challenges, the study proposes a three-phase roadmap. The first phase focuses on strengthening the foundations of the industry through farmer training on Good Agricultural Practices, the establishment of nurseries, improvements to supporting infrastructure and stronger national data collection.
The second phase calls for greater coordination among actors across the value chain, including through farmer cooperatives. Better organization could facilitate knowledge sharing, improve access to certification and financing, and strengthen farmers' bargaining power when dealing with processors and buyers.
The third phase focuses on value addition and market expansion. It recommends increasing domestic processing capacity, developing higher-value products such as vanilla extract, improving compliance with international quality standards and expanding access to export markets through trade promotion and international partnerships.
The study also examines occupations and skills needs across the vanilla value chain and identifies priority areas for workforce development. It highlights the importance of creating opportunities for women and young people through targeted skills development and more inclusive participation in the sector.
Working conditions are another important component of the roadmap. The study identifies occupational safety and health risks across the vanilla value chain, including biological, physical, chemical, psychosocial, ergonomic, safety-related and natural hazards.
Addressing these challenges while strengthening production, skills, value addition and market access could help Timor-Leste develop vanilla as a strategic commodity that contributes to decent work, stronger rural livelihoods and sustainable economic diversification.
