Two weeks ago we visited quinoa farmers in the region of Uyuni, Bolivia. The quinoa market remains unpredictable and volatile, so it was a good moment to talk to farmers and get the latest information about the new crop. We were also very pleased to be able to visit the social projects of our supplier. Their mission is to improve the working and living conditions of organic quinoa farmers. They have several projects related to irrigation, soil health, purchasing new machinery and training. Most of these projects contribute to a higher yield per hectare, which will benefit the farmers. Besides, they also have the FLO fair trade certification.
Demand has picked-up significantly in the past few weeks. Many buyers had been waiting for prices to stabilize to place orders and secure at competitive prices. Indeed, many buyers returned to the market in the past 6 weeks. This is putting some pressure on prices on the market. Demand is expected to remain strong in the coming 4 weeks, possibly weaken during the summer holidays and then pick up again in late August-early September.
Last weekend, at the Challapata Market in Bolivia, white quinoa showed signs of increasing as you can see in the graph below. This could eventually encourage farmers to speculate and push prices to continue to rise. They are withholding product, as they don’t require cash flow at this stage. Due to the market’s volatile and informal nature, we would advise to secure needs for the next 3-4 months and avoid any surprises. There is a chance that prices drop towards the last quarter of this year, depending on the volume of the second crop in Peru and international demand. Note that we are receiving reports that there isn’t much contraband from Bolivia to Peru so this is only due to local and export market movements.
Please note that Peru will sign the phytosanitary agreement with China in the next couple of days. Once China starts buying quinoa from Peru, prices could increase. This will be mainly the case for conventional quinoa.
In Bolivia Red/Black quinoa prices have remained fairly stable and no signs of them going down. Due to short production of these two varieties in Bolivia, due to last season’s lower price compared to white, we would advise to monitor these prices very closely. In Peru red/black quinoa prices have dropped and stabilized. We think it’s a good moment to secure your needs for coloured quinoas.
Please contact your Rhumveld sales manager for the latest offers.