The quinoa boom and the welfare of smallholder producers in the Andes

Type Working Paper - Bioeconomics Working Paper Series
Title The quinoa boom and the welfare of smallholder producers in the Andes
Author(s)
Publication (Day/Month/Year) 2017
URL https://repository.uantwerpen.be/docman/irua/69038f/143910.pdf
Abstract
The recent attention for quinoa as a highly nutritious “superfood” and the consequent increase
in international quinoa trade is changing the production and consumption of quinoa among
smallholder farmers in Andean regions, where the crop originates from. Quinoa is converting
from a common staple and subsistence crop into a high-value cash crop. The rapid rise in
international quinoa prices creates a concern about quinoa consumption – and consequent
implications for nutrition – among Andean farm-households. In this paper, we estimate the
own price elasticity of consumption of quinoa for quinoa-producing farm-households in the
Peruvian Andes. We rely on the seminal Barnum-Squire farm-household model to explain the
effects of food price changes that simultaneously affect farm-households’ consumption and
production decisions. We apply the theoretical model to original farm-household survey data
from Junín, a traditional quinoa producing region in Peru. The estimates show that a 1%
increase in the quinoa price results in a 0.429% increase in quinoa production and a 0.238%
increase in its consumption. Our finding of a positive own price elasticity of consumption of
quinoa suggests that the global quinoa boom did not adversely affect the nutritional intake of
smallholder quinoa producers.

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