Madagascar, an Island nation off the southeastern coast of Africa in the Indian ocean.
In 2006 Madagascar produced 6,200 tonnes of Vanilla which accounted for approximately 59% of the world crop.
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Vanilla is grown in Mexico, The Caribbean, Madagascar, The Cormoro Islands, Indonesia and Tahiti along with smaller islands. (Like a belt near the Equator)
They say Mexico is the birthplace of vanilla, and if you venture into any of the border towns every one of them seems to have it for sale at huge savings compared to Canadian or US prices.
Indonesia produces the most vanilla, followed by Madagascar. China and Mexico are huge producers of vanilla. The United States is not one of the top producers.