Quinua and rural livelihoods in Bolivia, Peru and Ecuador

Transcription

1 1 Quinua and rural livelihoods in Bolivia, Peru and Ecuador 1 Dr 11 Magdalen Road Oxford OX4 1RW hellin@fincahead.com

2 2 Quiñua and rural livelihoods in Bolivia, Peru and Ecuador Executive summary 1 1 Introduction 2 2 Quiñua and Andean agriculture A diverse and robust grain Quiñua and local agricultural systems The rediscovery of quiñua: Malnutrition, under-nutrition and food security 4 3 Production of quiñua in Bolivia, Peru and Ecuador How much quiñua is grown? Yields of quiñua Costs and prices 9 4 Consumption of quiñua in the Andes What do the figures say? Romanticising an indigenous crop? Consumer demand for quality quiñua 14 5 Wheat imports to Bolivia, Peru and Ecuador Volumes and prices Impact of wheat imports on the production of quiñua and other domestic crops 19 6 Exports of quiñua from Bolivia, Peru and Ecuador Reacting to demand in the Developed World La Asociación Nacional de Productores de Quiñua (ANAPQUI), Bolivia Escuelas Radiofónica Populares del Ecuador 24 7 Quiñua and food security: The pitfalls of the export market We re not talking about coffee and bananas Natural, social and human capital: Under-appreciated resources The organic dilemma Quiñua diversity and patents Cultivation of quiñua in Europe and the United States 31 8 What does the future hold? The contribution of quiñua to food security Programa Nacional de Apoyo Alimentario: Peru The power of mimicry: Win over the urban middle classes The need for new approaches 35 References 38 Annex 1 - Terms of reference 41

3 3 Quinua and rural livelihoods in Bolivia, Peru and Ecuador Executive summary Quinua (Chenopodium quinoa) is an annual plant found growing in the Andean region of South America, between sea level and the heights of the Bolivian altiplano, at around 4000 m above sea level. Quinua has long been known for its nutritional value and was highly valued by the Incas. In the last 25 years, there has been a growing interest, on the part of scientists and anthropologists, in quinua, particularly with respect to its contribution to food security. One of the problems facing any study of quinua s potential and actual contribution to food security is that there few reliable data available on the impact of quinua on farmers livelihoods. Data suggest that the production of quinua has increased in the last 20 years, especially in Bolivia. However, an increasing amount is for export to the developed world. One of the biggest obstacles to the cultivation and domestic consumption of quinua is that food preparation is very labour-intensive. In the Andean region, farmers are increasingly obliged to work off-farm to supplement farm income. Labour availability to process quinua for home consumption and/or sale in local markets is increasingly unavailable. Often it is far easier to consume cheaper bread and/or pasta. While many commentators have referred to the detrimental impacts of wheat imports on the consumption of indigenous foods such as quinua, it is hard to support this claim with the data available. Production of quinua and imports of wheat and wheat flour show no direct relationship. What is undeniable is that people in Bolivia, Peru and Ecuador are so accustomed to eating bread made from imported flour that domestic consumption of quinua is unlikely to increase dramatically in the short- and mid-term. Faced with the difficulty of competing with wheat on the national market, current research and development efforts seek to encourage the production and consumption of organic quinua and its export. Case studies from Bolivia and Ecuador demonstrate that this approach is partially successful. One of the dangers is that quinua thrives in parts of Europe and the United States. This may undermine the market for Andean-produced quinua. There is also a risk farmers will focus on a handful of quinua varieties that suit the export market rather than those that offer them great food security in adverse climatic conditions. Despite the above uncertainties and ambiguities, quinua does have an important role to play in local people s livelihoods. This is particularly the case in rural populations living in extreme condition such as the Bolivian and Peruvian altiplano. Domestic consumption of quinua in can increase if the crop s image as a 3 rd class food is improved. In the meantime, Peru has shown that production and consumption of quinua can be stimulated if it is included in national food programmes.

4 4 2 Introduction This report examines the role that quinua plays in local people s livelihoods in Bolivia, Peru and Ecuador. Quinua was highly valued by the Incas as a nutritious and hardy crop. After several centuries of neglect it has been rediscovered by natural and social scientists who see its potential in terms of its contribution to food security in the region. This reports looks at the area planted with quinua and changes in production and consumption over the last decade. Furthermore it examines the likely link between imported wheat and the replacement of quinua in local peoples diets. A number of case studies of farmers who grow quinua for export are analysed in order to assess the advantages and disadvantages of producing quinua for a small but growing market in Europe and the United States (US). It is important to note that much of this report is based on secondary sources. The authors field research on quinua was largely confined to the issue of farmers producing quinua for the export market (Sections 6 and 7). Although there are some data on quinua production, consumption and internal markets, there is little information on the impact of quinua on farmers livelihoods. Furthermore, data on the impact of subsidised wheat imports on food security are not readily available. This is particularly the case with respect to imports and national debt. Further field research is warranted to clarify the potential contribution of quinua to food security and rural livelihoods and to gather first-hand information from farmers on the extent to which cultivating quinua is a viable option. 3 Quinua and Andean agriculture 3.1 A diverse and robust grain Quinua (Chenopodium quinoa), also known as quinoa, is an annual plant found growing in the Andean region of South America, between sea level and the heights of the Bolivian altiplano, at around 4000 m above sea level. The mature plants stand 1 to 2 m high and produce striking purple and yellow heads of seeds, which turn brown on maturity. The grain is small (about 2 mm across) and can be used as flour, or toasted, added to soups or made into bread. Dried, it can be stored for up to ten years. Quinua has long been known for its nutritional value, having a high protein content and significant amounts of many micronutrients. For the Incas it was a staple, known as the Mother Grain and because it was a light and nutritious food, quinua helped sustain the Inca army on its long march through the Andes (National Research Council, 1989). It complemented the other Inca staple of freezedried potatoes, known locally as chuño and like quinua, still consumed today. As a species, quinua is highly variable. It is more a complex of sub-species, varieties and landraces (National Research Council, 1989), which allows it to survive in an extraordinarily wide range of harsh ecological conditions. Once established, quinua can survive levels of

5 5 drought, salinity and frost in which other crops would perish. In Bolivia, near the famous salt lakes of Uyuni, quinua grows in areas which receive only 200 mm of rainfall per year, in saline soils and conditions of frost on over 200 nights per year (Sven Jacobsen, Centro Internacional de la Papa, Lima, pers. comm.). During the day the sun dries the air mercilessly. At night the temperature plummets to well below freezing. There are few plants which produce a useful crop under these conditions, and thus few alternatives for farmers to cultivate in such areas. Largely because of its ability to survive and produce under such conditions, quinua remains an important crop in three main regions of the Andes, all located between 3,200 and 4,200 m: the northern Altiplano (around Lake Titicaca on the Bolivian and Peruvian border); the southern Altiplano (around the salt flats of southern Bolivia) and the highland valleys of central Peru, mainly around the Mantaro Valley (Garí, 2000). In these three areas alone, some 56,000 hectares (ha) of quinua were cultivated in 1998, producing about 80 % of Andean quinua production (Aroni, 1999; Arca, 1999). Significantly less quinua is cultivated in Ecuador. Quinua is variable too, in the type of grain it produces. In some areas, notably southern Bolivia, native quinua varieties tend to be large grained and bitter, with rapidly germinating seeds and quick maturation times. Further north, there are more varieties of sweet quinua, with small grains and a longer growing cycle (Alejandro Bonifacio, Fundación para la Promoción e Investigación de Productos Andinos (PROINPA ) La Paz, Bolivia, pers. comm.). The colour also varies widely, ranging from white through pale yellow, orange, red and black. Despite its hardiness, Quinua is susceptible to a variety of pest and disease problems. In the dry southern Altiplano, insect pests cause greater damage. Moving further north and with increasing humidity, diseases such as mildew become more important. Sweet varieties in particular, are subject to severe depredation by birds: not only do they eat the grains, immature grains are also shaken from the seed head and wasted. Up to 25 % of the crop can be lost this way (Juan Perez, Escuelas Radiofónica Populares del Ecuador (ERPE), Riobamba, Ecuador, pers. comm.). 3.2 Quinua and local agricultural systems Andean agriculture, particularly in the altiplano areas of southern Peru and Bolivia, is based on systems of crop rotation, which emphasise diversity, environmental risk management and food security. It is traditional to sow a mixture of quinua varieties in any one area. Some varieties are valued for their ability to withstand drought, frost, and salinity. Other varieties are grown largely for their market value, and nutritional or gastronomic qualities. For example in the northern Altiplano area around Lake Titicaca, native varieties such as Kiankolla has a high resistance to frosts; Blanca de Juli has good market value; kkotio is valued for its nutritional and gastronomic qualities. Cultivation of a range of varieties

6 6 contributes to farmers security, particularly in a risky environment. This is especially important for poor farming households cultivating marginal lands (Gari, 2000). In the northern Altiplano, crop rotation generally involves alternation of potato or another tuber, followed by quinua and finally a cereal, such as barley, or perhaps a legume. If land pressure permits, the land is left in fallow for four to eight years, and is used during this time for grazing of animals. However, with decreasing areas of land available for use, farmers are often forced to reduce the fallow period. In the southern Altiplano, the traditional system comprises potatoes in rotation with quinua and fallow, the cycle lasting years. There is, however, a myriad of variations of these systems depending on topography, rainfall, soil type and land tenure. In the altiplano, traditional forms of land management still exist. The system of Aynuqa has traditionally regulated the balance between cultivated land and fallow, grazing land. An aynuqa is a collection of plots, communally owned, but individually worked and inherited. The individual plots within an aynuqa are managed in a co-ordinated manner, with periods designated for crop cultivation; grazing of crop residues; grazing of regrowth, or firewood collection. Each aynuqa is enclosed by a communal wall, which helps to protect crops from grazing animals and frost, while minimizing individual labour requirements. This allows a smaller number of shepherds to watch everyone s animals and reduces individual wallbuilding and maintenance costs. The aynuqa is managed and regulated by a traditional organisation, the ayllu (Laguna, 2000). Increasingly, however, the ayllus and aynuqas are disappearing, weakened by migration, and the increasing intensification of quinua production where the focus is on an individualised export market (see sections 6 and 7). 3.3 The rediscovery of quinua: Malnutrition, under-nutrition and food security For centuries, quinua has been ignored by non-indigenous peoples as a potential agricultural crop. Following the Spanish conquest of the Incas, traditional crops such as quinua, were deliberately repressed and replaced with European species such as wheat, barley and broad beans (National Research Council, 1989), a culinary colonialism that continues to a large extent today. Whilst extensive crop improvement programmes have focussed on the better known cereals such as wheat and barley, indigenous crops like quinua have remained largely untouched by science. The advantage is that there remains a vast array of locally-adapted varieties which have not been replaced by more productive improved varieties. Conversely it means that yields are low and, therefore, while quinua may be able to survive in a range of extreme or marginal environments, it is not as productive as the improved cereals when grown in favourable agricultural conditions.

7 7 In the last 25 years, there has been a growing interest, on the part of scientists and anthropologists, in indigenous crops and the potential they offer both in the Andes and worldwide. Quinua has attracted much interest in development circles because of its potential contribution to food security, particularly its ability to provide good quality nutrition in regions with problems of under-nutrition and malnutrition. Quinua is a source of a wide range of nutrients, with a similar energy content to, but higher protein levels than other cereals. For example, the protein content of quinua typically ranges from 14 to 16 %, (different varieties of quinua have different nutritional properties) while that of wheat tends to be about 10 %, rice 7.7 % and corn 10.2 % (Macdonald, 1999). While quinua contains significant amounts of many micro-nutrients, it is deficient in some essential amino acids and therefore works well when eaten in combination with other foods, particularly legumes like beans, or animal products. Despite the frequent claims made for the exceptional nutritional quality of quinua, studies of the effect of quinua in the human diet are few, although they are suggestive of its beneficial effects (Macdonald, 1999). Hence, while quinua may chemically be a good source of certain nutrients, it is less well-know how easily these can be absorbed and utilised by the human body. Its potential contribution to aspects of food security is unclear and remains unproven. Following the World Food Summit in November 1996, The Rome Declaration on World Food Security was issued. Food security was defined as food that is available at all times, to which all persons have means of access, that is nutritionally adequate in terms of quantity, quality and variety, and is acceptable within the given culture. Traditionally the focus of many food security initiatives has been on the problem of ensuring an adequate supply of food. However, whilst adequate food supply may be available in total, not all members of the population necessarily have the resources to obtain it. Those most at risk from food insecurity are the marginalized urban poor and the rural population who are either land-poor or landless. These groups of people often cannot supplement their diets with home-grown foods. The issue of quinua s potential contribution to food security is further clouded by the inconsistency surrounding estimates of the degree of malnutrition and under nutrition in the Andean region. A recent United Kingdom Department for International Development (DFID) electronic forum entitled Hunger and Poverty, pointed out that the results obtained from studies of food security and malnutrition may depend on who carries out the monitoring. For example, governments may be tempted to portray an overly positive picture of food security in order to demonstrate a policy success. In addition, there are no commonly-agreed indicators of food security, leaving research open to manipulation. Studies carried out at particular times of year (e.g. before, during and after harvest) or during different years, may produce different results in the same population. Most studies have focused on the provision of macronutrients, with little information available for micronutrient intake, especially for adult women (Macdonald, 1999). According to some sources, acute

8 8 malnutrition does not appear to be a widespread problem among Andean people. Several studies have suggested that on average Andean people s energy intakes range from 80 to over 100% of the required calories. The high consumption of tubers and a mix of different grains means that on the whole, protein levels may be adequate (Tripp, 1982). However, although the quantity of protein appears to be adequate, analysis of protein quality does not seem to be well documented (Macdonald, 1999). The average adequacy of the diet doubtless conceals severe extremes of nutritional levels. Acute malnutrition, as assessed by weight-for-height, does not appear to be a widespread problem, especially for children beyond 24 months of age (Macdonald, 1999). According to another study from 1988, acute malnutrition was uncommon in Ecuador, and was concentrated among children aged 12 to 23 months (Freire et al., 1988, cited in Macdonald, 1999). However, other researchers suggest the opposite. In the Ecuadorean Andes stunting has been reported at levels of 57 to 67 % (Leonard et al, 1993 and Freire et al, 1988, cited in Macdonald, 1999). Stunting is indicative of chronic under-nutrition. In addition, other studies (Ayala, 1999) suggest that 50 % of the Peruvian population is affected by chronic malnutrition, defined as an insufficient quantity and quality of food. The same study suggests that approximately 45 % of the Peruvian population combine under-nutrition and malnutrition at different stages of life, where inadequate food availability during childhood leads to obesity and other medical problems later in life because of a growing preference for junk foods. Despite confusion over the precise nutritional status, there is little doubt of the need for improved nutrition and food security among the Andean population, both rural and urban. What is less clear is the best means of achieving this. Many researchers and development workers were concerned in the early 1980s at the downward trend in quinua production, partly caused by cheap and alternative food products made from wheat (Section 5). For example, research in three rural communities in northern Ecuador in 1980, demonstrated that in 89 households, only 5 percent of total meals in a 24-hour period contained quinua (Tripp, 1982). Development practitioners speculated that quinua, with its high protein content, could be promoted within the Andean region to improve nutritional levels of farmers producing the crop and of the urban population who might consume it, whilst supporting smallholder farmers to remain productively on the land. One of the major problems facing any study of quinua s potential and actual contribution to food security is that there few reliable data available about quinua production levels (Section 3), nor the amount of quinua which is destined for domestic consumption in, (Section 4) and export from, the three focus countries of Bolivia, Peru and Ecuador (Section 6). It is, therefore, exceptionally difficult to determine the degree to which projects that encourage farmers to produce quinua for the market, either national or international, automatically have beneficial impacts on the nutritional status of the family. A recent study in Ecuador (Macdonald, 1999) examining the impacts of an agricultural development project in the

9 9 highlands, concluded that it is not clear that re-introducing quinua cultivation necessarily improves the nutritional status of families, especially of women.

10 10 4 Production of quinua in Bolivia, Peru and Ecuador 4.1 How much quinua is grown? Centuries of neglect from outsiders and disdain from the formal agricultural sector led to a decline in the area of quinua cultivated. Until the 1980s, the area planted with quinua dropped continuously. It is estimated that in Peru the area cultivated with quinua per annum fell from 47,000 ha in 1951 to 15,000 ha by the 1970s (according to Tapia et al, 1979, quoted in Garí, 2000). Since the 1980s, the area of quinua in Bolivia and Peru has been increasing (data from FAO Statistical Database), with sharp increases seen in production in Bolivia during the mid- 1980s and late 1990s (Graph 1). The area planted with quinua in Ecuador, by contrast, has remained very low, fluctuating between 500 and 2000 ha. Quinua in the northern Altiplano of Peru now comprises about 10 % of the cultivated land (INEI, 1996). However, it should be noted that less than 10% of the total land area of the northern Altiplano is estimated to be suitable for agriculture and as a result there is a shortage of land. (Instituto Nacional de Estadística e Informática,1996). It is estimated that 70 % of peasant households on the Bolivian side of the northern Altiplano have less than 10 ha (Risi, 1994, cited in Garí, 2000). However, there is much variation, for example in Escoma, on the eastern shore of Lake Titicaca in Bolivia, the authors were told that the 1992 census had revealed that each family farmed on average only about 0.8 ha (Gunter Martinez, Centro de Investigación y Capacitatión Agropequaria, Escoma, Bolivia, pers. comm.). Studies carried out in the Cusco and Puno areas of southern Peru (i.e. the very northern end of the northern Altiplano) in the 1985/86 planting period, suggest that each family cultivated an average of 1.7 ha, but only 20 % of families sowed quinua. When it was sown it occupied an average of only 0.07 ha (Benavides, 1993). In the southern Altiplano, approximately 19,600 families, out of a total of about 25,000, cultivate quinua (Laguna, 2000). This area probably endures the harshest of the Andean environments, with annual precipitation of only mm, average monthly temperatures fluctuating between 8 and 20 C, and days per year with temperatures falling below 0 C. Families in some areas of the southern Altiplano rely almost entirely on quinua production, to the exclusion of other crops or livestock, and intensively cultivate an average of 6-7 ha per family (Laguna, 2000). In Central Peru, the Mantaro Valley comprises the third largest quinua cultivating area (after the northern and southern Altiplano areas). The Mantaro valley is a wide, flat agricultural area at about 3,300 m altitude, which leads into a series of tributary valleys and associated highland areas. The area planted with quinua in the Mantaro valley has increased significantly in the 1990s, almost doubling between 1994 and 1998 (Garí, 2000) from 2000 ha to about 4,000 ha of quinua. This represents about 15 % of Peru s quinua production.

11 11 Graph 1 Area of quinua cultivation, Bolivia, Peru and Ecuador, (Source: FAO Statistical Databases, FAOSTAT) 60,000 50,000 40,000 30,000 20,000 10, Area (hectares) Bolivia Ecuador Peru Year Quinua, although traditionally grown in Ecuador, is cultivated on a much smaller scale than in Bolivia and Peru. The milder climate of the green Andes of Ecuador and northern Peru, characterised by adequate rainfall and little climatic variability, permit alternative crops to be viable, hence, reducing the need to rely on quinua. Land pressure in many upland areas of Ecuador is a disincentive to growing quinua. In Riobamba average land holdings are only 0.8 hectares per family (Juan Perez, ERPE, Riobamba, Ecuador, pers. comm.). Higher humidity levels in Ecuador also encourage greater disease problems for quinua. 4.2 Yields of quinua Yields of quinua in the Andean countries are low in comparison with production levels of grains such as wheat and also in comparison with quinua which is grown in the developed world. While the average yield per ha of quinua in was between 0.5 and 0.98 tonnes in Bolivia, Ecuador and Peru (data from FAO Statistical databases), yields of wheat in the US averaged 2.8 tonnes. Meanwhile, a trial of quinua production in Portugal in 2000, resulted in yields of 5 tonnes per ha, a difference attributed to irrigation and mechanised, uniform cultivation (John Hedger, University of Westminster, UK, pers. comm.). Work on the profitability of quinua cultivation in Europe carried out by a project funded by the Food and Agriculture Organisation (FAO), CIP and the Danish aid organisation, DANIDA project, suggests yields in Europe of between 2 and 4 tonnes per ha. In examining production of quinua in the Andes, the figures available need to be taken with a pinch of salt. In Ecuador, groups working with quinua producers anticipated yields of tonnes per ha (extension agents with ERPE, Riobamba, Ecuador and Rodrigo Aroyo (Inagrofa), pers. comm.). This compares to FAO statistics that indicate average yields of 0.5 tonnes per ha. In Bolivia, an average yield of tonnes per ha in 2000 was considered an exceptionally good harvest (Asociación Nacional de Productores de Quinua (ANAPQUI),

12 12 La Paz, Bolivia, pers. comm.). The FAO figure for that year was calculated at 0.5 tonnes per ha. The overall yield in Bolivia was also expected to be high in 2000, with a harvest of 35-40,000 tonnes. The FAO databases give the 2000 harvest as only 25,000 tons. The true picture of quinua production in the Andean countries is therefore not clear. Sources in Bolivia, Peru and Ecuador all pointed out that a lot of the quinua which is sold in Ecuador and Peru, is actually Bolivian in origin. This is particularly the case with so-called Quinua Real, the large, white grained quinua, which is only grown in the southern Altiplano area. Thus, official figures for production, sales and exports from all three countries are probably missing a large portion of illicit trade in quinua between the three countries. 4.3 Costs and prices A large proportion of the quinua produced in Peru and Bolivia is destined for home consumption and is, therefore, never sold on the market. However, in Bolivia, where commercialisation of quinua has had the biggest impact, farm-gate prices of quinua rose almost 50 % between 1986 and 1999, from US$ 0.54 per kg to US$ 0.75 per kg in Organic quinua, although commanding a slightly higher price (US$ 0.93 per kg in 1999), does not seem to receive enough of a premium to make up for additional production costs (Laguna, 2000). In 2000, Bolivian farmers were being offered approximately US$ 0.70 per kg, a reduction on the 1999 price. The authors were told that private buyers were offering only US$ 0.28 per kg in local markets. Although price reductions in 2000 were due to the exceptionally large harvest in the same year, in Bolivia, there is no obvious relationship between the increasing production of quinua and the price offered to farmers (Graph 2). Note that the very low prices seen in 1985 and 1986 were during a period of hyperinflation in Bolivia, distorting the price. The price of quinua has risen in Bolivia along with production. This suggests an increase in demand. Both price and production have levelled off in Bolivia since about However, the relative value of quinua has changed over the past 20 years. At the start of the 1980s, quinua producers needed to exchange 91 kg of quinua for 45.5 kg of sugar (Laguna, 2000). Relative price changes now mean that the opposite applies: 45.5 kg of quinua buys 91 kg of sugar. There is further confusion because it not at all clear, when the full costs of labour, land and inputs are taken into account, whether the cultivation of quinua is profitable. Several studies of quinua production suggest that, when labour costs are taken into consideration (i.e. the opportunity cost of not working elsewhere, or the actual cost of employing paid labour) and land costs, the net income from quinua is negative. Based on prices from 1995/96, Salis (1993) calculate that the yield from one ha of quinua in the Cusco area of Peru was 900 kg. At the time, quinua was sold for $US 0.37 per kg. This

13 13 represented a net loss of US$ 198 per ha if the entire 900 kg was sold. In 2000, the Peruvian government s National Food Programme, Programa Nacional de Apoyo Alimentário (PRONAA), were paying $US 0.61 per kg for good quality, but uncleaned quinua (see section 8.1). This price is considered high by others working in the sector, who are also trying to set up commercial deals, and who consider that US$ 0.43 per kg was a fair market price in In 1990, a study of quinua production in five provinces of Ecuador, looked at the profitability of quinua production across a range of farm sizes and agricultural systems (Campaña and Nieto, 1990). This study concluded that the biggest variable in production costs was that of labour. Calculations of the profitability of quinua were hampered by the fact that production figures varied from 0.25 to tonnes per ha. In this study quinua was profitable in all cases except in the lowest yielding farm. Graph 2 Quinua production and price, Bolivia Source: FAO Statisitical Databases FAOSTAT and Laguna (2000) 30,000 $ ,000 $0.80 $0.70 Production (tonnes) 20,000 15,000 10,000 $0.60 $0.50 $0.40 $0.30 Price (US$) 5,000 $0.20 $ Year $0.00 Production Price per kg The ERPE project (see section 6.3) is encouraging farmers around the town of Riobamba in Ecuador to join their programme of quinua production for export. ERPE s field staff estimate that 1 ha of land producing 900 kg of quinua would produce a profit of US$ 431. The ERPE project offers farmers a price, which in 2000 was fixed at US$ 0.63 per kg for uncleaned quinua ($ 0.74per kg clean). Rodrigo Aroyo, who runs an agricultural export business called Inagrofa in Quito, Ecuador, pays farmers a farmgate price of US$ 0.66 per kg for conventional quinua or $0.77 /kg for organic, uncleaned quinua. These figures are similar to those paid by PRONAA in Peru. There is, therefore, much variation across in the region in the farm-gate price of quinua. In addition, there is very little consensus on whether quinua production is profitable. It could be argued that in most cases the increased area planted to quinua is indicative of the fact that for

14 14 many farmers it is a priority crop to grow. Whilst figures on the area sown to quinua and the price paid to farmers are important, of more immediate concern to development practitioners is the extent to which quinua is consumed in the Andes, and the degree to which subsidised food imports undermine quinua consumption. 5 Consumption of quinua in the Andes 5.1 What do the figures say? Quinua is traditionally a food of the rural population in the Andes and a large proportion of production is destined for home consumption. In Puno, Peru, it is estimated that in recent years, 60 % of the average 10,000 tonnes per annum produced in the province is for home consumption, while 20% goes to the local market and a further 20% to local and Cusco-based processing plants. Farmers produce different varieties of quinua, depending on the expected end-use: % of the area is sown with a mixture of varieties, for home use. The remaining % is sown with commercial varieties (Ordinola, 1999). However, although important in the diet, it seems that quinua is not a staple, in terms of its inclusion in a majority of meals. A survey of 800 housewives in six provinces of Peru at the end of 1996, found that 5.5 % included quinua in breakfast, 1.1 % in lunch and 0.9 % in dinner. Whilst 90 % of respondents consume quinua in some form (from daily to irregularly), it was not generally eaten on a daily basis. According to a study in Nunoa, Peru in 1988 (Leonard and Thomas, 1988, cited in Macdonald, 1999), quinua s energy contribution to the diet had decreased from an average of 238 calories per day to 22 calories per day over 20 years. Similar patterns of low levels of quinua consumption have apparently also been recorded in Bolivia and Ecuador (Kim et al, 1991; Tripp, 1982, cited in Macdonald, 1999) during the 1980s. A study by Tripp (1982) in Imbabura, Ecuador, found that quinua was a constituent of only 5 % of meals in a 24-hour period. However, according to a more limited survey carried out at the same time in three different communities in Imbabura, 30, 60 and 90 % of households had eaten quinua within the previous week. Quinua consumption was clearly very variable between communities within the same area.. Another study carried out in five provinces of the Andean sierra in 1989 found that 35 % of rural families consumed quinua (Nieto & Andrade, 1990), although it did not look at how regularly. Urbanisation and changes in working patterns also have an impact on patterns of consumption of quinua. In 1996 in Peru, a survey found that in 15 farming communities in the Cuzco Province, quinua was frequently eaten all year round, but particularly during seasons of harvest and sowing. In contrast, consumption in urban areas tended towards cheaper and more easily available products (Ayala, 1999b) (see Section 5 on the impact of wheat imports on quinua consumption).

15 Romanticising an indigenous crop? Many projects over the past two decades have sought to introduce or reintroduce the cultivation of quinua, in the hope that this will promote consumption and improve food security (Tripp, 1990). It seems intuitively illogical not to use a resource as nutritious and locally available as quinua would seem to be. But are we in danger of romanticising an indigenous crop, and thereby ignoring some of its drawbacks? Are there perfectly rational reasons why quinua is not consumed widely by local peoples? The answers may lie in the labour costs of cleaning quinua and water availability in rural areas. When the mature quinua crop is harvested, a number of processing steps are needed before the grain can be consumed or stored. It is a time consuming process and very labourintensive, especially when carried out manually, as in the majority of cases in Peru, Bolivia and Ecuador. Once harvested (during which some grain is lost due to the irregular maturation of grains on one stalk) the grain is dried in stacks, threshed, winnowed, dried again and then de-bittered. Losses through the post-harvest processes are estimated to be over 40 % (Salas, 1999). The final result of manual processing is often a poorly cleaned product, contaminated with dirt and stones. The bitterness in quinua derives from a chemical called a saponin. Each quinua grain is contained within a hard coat or pericarp, which contains 0-6 % saponin, depending on the quinua variety. Saponins are toxic and distasteful and must be removed before consumption, often an exhaustive process. At an industrial level, removal of the saponins presents two problems: the high cost of drying the grains and the disposal of the contaminated water following washing. Industrial processes may involve washing the grains, dry, mechanical dehulling or a combination of the two. Dry processes entail lower costs and are less polluting but only remove about 80 % of the saponins (Salas, 1999). Mechanical de-bittering is therefore limited to the least bitter varieties of quinua. Normally at a household level, the grains are washed and rubbed with stones to remove the bitter outer coats. The other limiting factor to the rural consumption of quinua is, therefore, access to sufficient water. In general, the removal of the saponins has been identified as one of the main constraints to increased consumption at the household level, particularly the increased labour demands (Macdonald, 1992). The impression that there is often a surplus of labour in rural areas is often a fallacy. In many parts of the developing world and especially in the Andean region, farmers and their families are increasingly obliged to work off-farm to supplement farm income and provide consumer goods (Zimmerer, 1993). The root cause of this is often increased costs of production and reduced returns to labour, forcing farmers to seek off-farm income generating activities i. Throughout the Andean region, temporal migration is a way of life for many communities, especially in the southern Altiplano. For many years, men migrated to the mining

16 16 communities, leaving their families to care for the animals (sheep and llama), which were subsequently sold or bartered in the mines. With the closure of many mines in the 1980s, large numbers of former emigrants returned to their communities. Some of these returnees are now engaged in the production of quinua for the market (Laguna, 2000). Others continue to migrate temporarily elsewhere in Bolivia or abroad (Garí, 2000). In Bolivia, for example, farmers from the altiplano have migrated to the Amazonian lowlands to grow soya bean, coffee and coca. These farmers retain land in the altiplano and the detrimental impact on farm management of this temporary migration has been well documented (e.g. Zimmerer, 1992). In areas such as Sucre, in Bolivia, the labour intensive harvest of quinua, coincides with a seasonal migration to the cotton, sugar cane, soya and wine producing areas (Oscar Barea, PROINPA, Sucre, Bolivia, pers. comm.). In areas with significant seasonal migration, women are often left in charge of the farm. Labour availability to process quinua for home consumption and/or sale in local markets is increasingly unavailable in many rural areas. There is a counter argument that if quinua can be made a commercial crop, generating high enough incomes to obviate the need for migration, sufficient labour may be available for the post-harvest processing. 5.3 Consumer demand for quality quinua Quinua is a rustic crop. It is produced largely by small farmers, and any excess to home consumption is often sold as a mixture of varieties, processed by small companies and distributed by a network of individual intermediaries. At all stages in this chain, there is a lack of quality control. At each stage in the market chain, quinua from different sources may be mixed together, so that good quality quinua will be mixed with other varieties and impurities by the time it reaches the consumer. For example, in Puno in , there were 49 processing plants, mostly small and informal, with a lack of adequate infrastructure and poor quality control (Ordinola, 1999). Intermediaries who collect quinua from the smallest local markets and transport it to the wholesale market in cities like Lima in Peru, constantly mix quinua from different producers and markets. By the time the quinua arrives in Lima, and is bought in the retail market by the poorer urban consumers, even good, clean quinua is mixed up with poor quality grain. Prior to consumption it must be washed several times, and cleaned of debris. A survey of housewives in Peru, found that the need for further cleaning of purchased quinua, first to remove dirt and stones, and secondly to wash out the remaining bitterness, was a major limitation to the market (Ordinola, 1999). It is not surprising then, that urban consumers, within the Andean region, are put off buying quinua, despite its known benefits (Table 1). Quinua sold in supermarkets is of better quality and subject to some controls, but is sold at such a high price that it is beyond the reach of the low-to-middle classes which make up the majority of the urban population.

17 17 Table 1 Perception of quinua by potential urban consumers in six provinces of Peru (Lima, Huaraz, Huancayo, Ayacucho, Cusco and Puno (Ordinola, 1999) Positive attributes of quinua Highly nutritious generally with a pleasant taste a natural, environmentally sound product well known easy to digest Negative attributes of quinua not clean and containing many impurities; sometimes bitter, where inadequately cleaned expensive not consistently available difficult to prepare As populations of the Andean countries become increasingly urbanised and linked to the market, people tend to seek both cheaper and easier alternatives to foods such as quinua. There is no doubt that wheat products bread and pasta fit both these criteria. According to Laguna (Laguna, 2000), in 1999 in Bolivia, the farmer who sold 45.5 kg (one quintal) of quinua, without removing the saponin, received a price of about US$ 35, with which they could buy about 81.8 kg (1.8 quintals) of pasta ready for cooking. Given the lengthy preparation necessary for the consumption of quinua, it is much simpler to boil pasta. Rising prices of quinua, whilst potentially being good for farmers, in terms of providing them with a better income, may also provide an incentive for farmers as well as the urban poor, to turn away from consuming quinua and substitute it with bread and pasta made from subsidised, imported wheat. It is often far easier and cheaper for both rural and urban households to purchase pasta and/or bread. In the context of high labour demands, reduced labour availability, and competition from cheaper alternative foods, it is clearer why efforts to promote quinua for local consumption have been only partially successful. The issue of cheap imports is considered below. The question of quinua s contribution to rural household livelihoods via production for export is discussed in Section 6 and 7. 6 Wheat imports to Bolivia, Peru and Ecuador Since the 1950s, the massive imports and donations of wheat arriving to the Andean countries have constrained the cultivation of quinua, confining it to rather marginal and upper Andean lands, and driving it away from the gastronomy of many cities, towns and households (Garí, 2000).

18 Volumes and prices Wheat has been imported into Bolivia, Peru and Ecuador in large quantities for approximately 50 years. While many commentators have referred to the detrimental impacts of wheat imports on the consumption of indigenous foods such as quinua and locally-produced rice and wheat, it is hard to identify cause and effect using the data available. Statistics available for the import of wheat and wheat flour into Andean countries are not always consistent (for example, the comparison of data available from US Department of Agriculture Foreign Agricultural Service Global Agriculture Information Network [GAIN] and those available through the FAO Statistical database), but they do show the same trends. Wheat and wheat flour imports (wheat equivalent) to Bolivia, Peru and Ecuador have fluctuated over the past 40 years as shown in Graph 3. The striking trend is the huge and consistent increase in imports of wheat and wheat flour to Peru, whilst in Bolivia and Ecuador, volumes have remained more constant. Over the five years, imports of wheat and wheat flour to Peru have levelled off somewhat, although Peru remains one of the major wheat importers in the world (USDA, 2001a). Wheat and wheat flour may be imported in a number of different ways: as food aid (either donated or on long-term credit supported by the US or other governments) or as commercial imports. Wheat and wheat flour exports from the USA to Bolivia, Ecuador and Peru, (actual for January to December 2000 and planned food aid for financial year 2001) are shown in the table 2 (USDA 2000; USDA 2001b). Graph 3 Wheat imports to Bolivia, Peru and Ecuador, (Source: FAO Statistical Databases FAOSTAT) 1,600,000 1,400,000 1,200,000 Volume (tonnes) 1,000, , ,000 Bolivia Ecuador Peru 400, , Year

19 19 Table 2 Wheat and wheat flour imports from the United States Country Commodity volume 2000 (Tonnes) Value 2000 (000$) expected volume 2001 expected value 2001 (000$) (Tonnes) Bolivia wheat flour 36,195 6,609 17,990 3,903 wheat 6, ,820 2,041 Ecuador wheat flour wheat 205,827 26,857 61,130 8,349 Peru wheat flour 9,023 2,055 1, wheat 266,620 29, ,210 16,250 Evidently, the US is not the only country to export wheat and wheat flour in vast quantities to the Andean region. According to the USDA FAS GAIN report for Ecuador, 2001 (USDA, 2001c), in Marketing Year (MY - July to June) 2000/2001, imports of US wheat to Ecuador were expected to be 180,000 tonnes out of a total 420,000 tonnes. (It should be noted that this figure of 180,000 tonnes differs from the figure of 205,827 tonnes for calendar year for wheat imports above. This may be due to the different time span over which volumes were calculated.) According to the GAIN Report, in 2001/2002, imports of US wheat to Ecuador are expected to rise to 200,000 tonnes of a total 450,000 tonnes. The US contributes less that half of the total wheat imports to Ecuador. In Year 2000, Canada was the only other exporter of wheat to Ecuador, holding 60 % of the market. At other times, Argentina and Uruguay also contribute. The GAIN report suggests local production of wheat in Ecuador is more likely to decline than increase in future. The main reasons are the lack of incentives, suitable planting land and lack of adaptable seeds. According to the USDA FAS figures, 50,000 tonnes of wheat was imported into Ecuador under Section 416(b) regulations in 2000, and a further 30,000 tonnes under Title I provisions of Food for Progress. This means that the former was donated to Ecuador (under the US scheme for disposing of its surpluses), while the latter was provided on long-term credit terms, with a minimum payment holiday of seven years, in return for liberalisation of Ecuador s agricultural economy for imports of US commodities. At the same time, Ecuador reduced its tariffs for imports of wheat and wheat flour to 10 and 20 % - presumably the pay-off for wheat supplied under Food for Progress. According to the GAIN Report, the decision to reduce import tariffs for US wheat, stems from a desire to halt the increase in the price of bread and pasta occurring in Ecuador during the previous two years, due to devaluation and the transition from the national currency, the Sucre, to the US dollar. Wheat flour remained at a relatively constant price of US$ to $ per 50 kg bag during the first half of Increases in the prices of bread and pasta were largely due to rising prices of electricity, water, labour and other inputs.

20 20 It is unsurprising that there is apparently a lack of incentives for the production of wheat in Ecuador. Wheat yields in Ecuador were 800 kg per hectare during 2000 (FAO Statistical Databases) compared to yields of 2,819 kg per ha in the USA and 2,445 kg per ha in Canada. 6.2 Impact of wheat imports on the production of quinua and other domestic crops It is worth a look at the scale of the imports of wheat and wheat flour into the Andean countries in comparison with the production of quinua over the same period. Graph 4 illustrates the situation in Bolivia. There are two striking observations. the scales are different by a factor of 10. Imports of wheat and wheat flour dwarf the production of quinua nationally. production of quinua and imports of wheat and wheat flour show no direct relationship. There is no trend to increasing imports in correlation with decreasing production of quinua. This may have happened prior to 1980, but the figures are not available. The situation is similar in Peru and Ecuador: imports of wheat and wheat flour occur on a completely different scale from the production of quinua. Because the imports totally swamp quinua production, there is no discernable relationship between the two. However, the link between the two is a long-term one, going back some 50 years. As Rosemary Thorp points out (Latin American Centre, University of Oxford, pers. comm., July 2001), people in Peru and other Andean countries have become so accustomed to eating bread made from imported flour especially in coastal districts that reliance on imported wheat is second nature to the population ii. While evidence of a possible link between subsidised wheat imports and a decline in quinua consumption is not clear, there are data that clearly show that wheat imports have disrupted the production of locally-grown wheat. In Ecuador, duty-free wheat imports and an overvalued exchange rate led to significant negative incentives for domestic wheat production during the 1970s. During this decade, wheat production in Ecuador fell by 6.0 % per year while wheat consumption increased. As a result wheat imports grew at a rate of 12 % annually from 1970 to 1982 and self-sufficiency in wheat fell from 54 % to 8 % (Byerlee, 1989). Consumers, however, benefited; flour prices remained constant between 1973 and 1981, and the real price of bread fell by 50 %

21 21 Graph 4 Wheat and wheat flour imports and quinua production, Bolivia Source: FAO Statistical Databases FAOSTAT 300,000 30,000 Wheat and Wheat Flour Imports (tonnes) 250, , , ,000 50,000 25,000 20,000 15,000 10,000 5,000 Quinua Production (tonnes) year 0 Bolivia: imports Bolivia, quiñua production Byerlee (1989) also points out that in the 1970s, Ecuador s economy grew rapidly. This was due to the petroleum boom and resulted in more off-farm employment and an accelerated rural-urban migration. Real wages paid by farmers in the Sierra almost doubled between 1972 and This raised the costs to farmers because they could not increase product prices due to competition from cheap, imported wheat. In addition they could not substitute for labour through mechanisation. Labour-intensive agricultural activities were neglected. Farmers in Ecuador also had to contend with the fact that during the 1970s, subsidised fuel meant that long-distance transport costs declined substantially in real terms and this further reduced the inland prices of imported and bulky items such as wheat. Ecuador became dependent on imported wheat and since then, the country has not escaped this dependency. Cano Sanz, (1987) has also documented the impact of cheap food imports on domestic production in Colombia. There is strong evidence that subsidised wheat imports undermined domestic production. In the 1950s Colombia cultivated 176,000 ha. of wheat, by 1987 this had fallen to 50,000 ha. Wheat imports in Colombia between the mid-1960s and mid-1980s increased by an average of 9.2 % per annum, some four times faster than the population growth rate. Consumption of locally-produced rice and maize fell. Given a strong demand for wheat-based products, particularly bread and pasta, it is very difficult for quinua to be re-inserted into the national palate again. In addition to this, the subsidisation of wheat production and export by the north American countries, combined with reduced tariffs on imports to Andean countries (as with Ecuador in 2000) in an attempt to keep the urban poor fed, means that quinua cannot possibly compete as a crop for national subsistence. Faced with the difficulty of competing with wheat on the national market, the prospect of an export market for quinua becomes increasingly attractive.