Quinoa crop continues to develop with some mishaps, as usual in agriculture. This year we experienced late rains; not much water fell during November, which generated quinoa plants to weaken and dry. By December, we had excess rains, causing the mildew fungus (Peronospora variabilis) to attack. Finally, during the last days of February, the crops were hit with frosting:
All this means we can expect a smaller May 2021 harvest.
Quinoa exports begun slow this year, the same as during 2019, but we expect volumes to recuperate when stocks in Europe and USA clear. Buyers are still carrying stocks mainly due to Covid impact on tourism and foodservice.
The reduction of exported volume implies there is still stock available in Peru. We are not sure if the stock held is larger or smaller than the harvest yield reduction.
These stocks are not reflecting on more substantial price reduction because most of it is held by some other exporters that obtained low-cost, long-term financing (Reactiva Peru) from the Government due to Covid and used the loan to take positions in quinoa. This quinoa was purchased by some exporters during Q3 at high prices. The Government has extended the grace period to pay-off these loans until 2022, so these exporters are not pushed to liquidate positions.
Prices have dropped a bit on the market. Please let us know when you may have a requirement for this product, and if there is anything we can do for you.
We’ll continue keeping you updated with the developments of this coming harvest and the overall quinoa market in Peru.