Quinoa, Market Update May 2023

Date: 23rd May 2023 Category: Latest News
Quinoa, Market Update May 2023

Peru is facing a significant reduction in quinoa production compared to the previous year, with figures from the Ministry of Agriculture indicating a decrease of 25-30% in quinoa availability. Several factors contribute to this decline, including late seeding, limited water availability, and reduced use of fertilizers, both organic and conventional. The crop has also experienced delays, with harvesting expected to take place in late May to June instead of the usual April/May period.

One major concern for the Peruvian market is the availability of organic quinoa. While exporters, farmers, and the Control Union believe that phosphonic acid occurs naturally in Peruvian soil and that no Aluminum Fosetyl is used, this creates challenges for obtaining organic materials.

  1. Exchange Rate and Prices: The Peruvian exchange rate has appreciated against the USD in recent weeks, and this trend is expected to continue. As a result, prices for quinoa have increased due to the lower production in Peru. The shortage in the market is expected to persist until the next crop in April/May 2024. The severity and timing of the shortage will depend on demand.

  2. Bolivia: Bolivia, as an alternative quinoa producer, has started its new crop amidst news of a smaller crop in Peru. This information has spread to Bolivia, leading to significant price increases at the farm level. However, the situation in Bolivia appears to be more favourable compared to Peru.

Considering the current market conditions, the quinoa market is expected to remain firm, with price increases anticipated in the coming weeks and months. To mitigate potential supply shortages, it is advisable for buyers to secure their quinoa needs for the current year's crop as early as possible.

The quinoa market is experiencing a shortage in Peru due to a smaller crop and challenges with fosetyl. Prices have increased and are expected to rise further in the coming months. Buyers are advised to secure their quinoa needs promptly to ensure availability. Bolivia's quinoa crop offers a relatively more favourable alternative.