Peru Becoming Top Quinoa Exporter
WASHINGTON - Jan 9/15 - SNS -- Peru will likely become the world's largest quinoa exported this year, believes the U.S. agricultural attache for the country.
Production should jump 17% to 108,000 metric tons (MT) this year, making it possible for the country to boost exports from an estimated 32,000 MT in 2014 to over 40,000 this year, with over half the product destined for the United States.
Quinoa in Peru is traditionally produced in the Southern highlands, particularly in the regions of Puno, Arequipa and Cusco, which account for 66%, 8% and 7% of total production respectively. However, producers have begun adapting it to lower altitudes and planting quinoa in the arid desert of the Peruvian coast.
Rising international prices as result of stronger demand have encouraged producers on the lower lands to switch other crops to quinoa. The government is particularly interested in replacing rice production in the northern coast since quinoa demands only 30% of the water rice requires. New quinoa growers in the Southern coast of Peru have successfully adapted this Andean crop to the coastal environment. Improved cultural practices and better pest control have resulted in extraordinary yield increases. Quinoa yields in the highlands average about 1 MT per hectare with peaks of 1.2 MT per hectare, while on the lower lands of Arequipa yields average about 5 MT per hectare with peaks of 8 MT per hectare.
Adapting quinoa to lower lands is not exempt from new challenges. Higher humidity and warmer temperatures have resulted in new pests that were not an issue in the Highlands such as Nysiux sp, Nezara viridula and mildue. The first is particularly important since it attacks the plant when the grain is maturing. Apparently, the pesticide treatment can only be applied at that time.
Around 90% of quinoa produced in Peru is conventional and only 10% is certified organic, mostly grown in the Highlands. Conventional quinoa prices at farm gate range between $4,000 and $4,500 per MT, while organic quinoa is $5,200 per MT. The cost of production for conventional quinoa is $2,200 per MT.
Domestic Market Consumes 36,000 MT
Quinoa consumption in Peru in 2014 is expected at 36,000 MT. Quinoa was traditionally produced for the local market. Over 80% of Peruvian population consumes quinoa regularly, usually in stews, soups, drinks and desserts. Per capita quinoa consumption in 2014 is estimated at 1.2 kilograms. It remains to be seen how is international demand, with the consequent higher prices, will affect local consumption. So far, higher demand has resulted in more area planted, higher yields and more quinoa for all markets.
Peruvian quinoa exporters to the United States experienced seven shipment rejections by FDA during 2014 upon arrival at U.S. ports due to the detection of unapproved agricultural chemicals such as pesticides. The issue of meeting all U.S. regulatory requirements has brought some trade uncertainty, causing the Peruvian industry to hold larger stocks of quinoa.
Peruvian officials communicated with the FDA their concerns about the FDA rejections of quinoa due to agricultural chemical residues. There are 29 products approved by the EPA for quinoa, while the FDA is charged with testing quinoa at the ports. Representatives from FDA were in Peru on December 16 and met with Peruvian officials from the Ministry of Agricultural and the Ministry of Health and discussed how the Government of Peru can support the Peruvian quinoa industry in meeting U.S. regulatory requirements concerning agricultural chemicals.
The Peruvian government through the Ministry of Agriculture and the Agricultural Bank (Agrobanco) is encouraging quinoa production in the northern coast of Peru, aiming at replacing rice production. The Ministry of Agriculture promotes production reconversion through technical assistance, irrigation equipment, and market orientation. Agrobanco offers credits to for planting and purchasing equipment.
This program aims at reconverting at least 50,000 hectares of rice into quinoa, reducing water consumption from 20 to 6 cubic meters per hectare, and avoiding salinization of fields flood irrigation of rice leaves 30 MT of salt in the field.
Only active subscribers can read all of this article.
If you are a subscriber, please log into the website.
If you are not a subscriber, click here to subscribe to this edition of the STAT website and to learn more about becoming a subscriber.
