Quinoa Australia: Oversupply could hurt its premium price

Australian Quinoa could lose its attractive price tag and no longer be able to claim its niche title. A market analyst explains what it means for grain growers.

Production warning: Oversupply issues of quinoa were being shown in countries including South America and Peru, where the grain is primarily produced.

WITH demand booming for niche superfood quinoa and varieties set to be released in Australia in coming years, a market analyst has warned that oversupply of the product could erase its premium price.

Thomas Elder Market’s Andrew Whitelaw said he had concerns over a production push of the crop in Australia, which had the potential to result in the product no longer being able to claim its niche title and attractive price tag.

This follows the recent release of Western Australia Department of Primary Industries and Regional Development’s report on a new government-funded quinoa variety.

“Quinoa varieties are set to be released in Australia in coming years,” Mr Whitelaw said.

“Previously growers were restricted to growing quinoa on a contract basis, this new variety designed for Australian conditions will be available on the open market.”

He said this meant Australia could potentially grow large volumes of the grain.

According to Mr Whitelaw, oversupply issues were being shown in countries such as South America and Peru, where the grain is primarily produced.

“At the start of the decade, these two nations grew around 180,000 tonnes and in 2018 they produced 350,000 tonnes,” Mr Whitelaw said.

“The reason for this growth is due to demand increasing prices.

“The price increases encouraged growers, which in the end resulted in too much production.

“ Supply exceeds demand and prices fell dramatically.”

He said Australia wasn’t a niche producer, and produced product in bulk.

“Australia is a powerhouse grains producer,” Mr Whitelaw said.

“Australia could easily grow 50,000 tonnes, and that would cause a price drop.

“As new crop types get added to the mix of arable commodities which growers can plant from quinoa to teff, it is important that it is understood that the niche premium is only available whilst the product remains niche.”

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