USAID is boosting productivity of a newly introduced product in Peru, the jalapeño chili. Introducing drip irrigation technology has resulted in higher yields, reduced investment costs, better water usage and less waste in the central Amazon forest.  Harvested  jalapeños are processed in Agromantaro’s plant in Concepción (central Andes), reinforcing a value chain that benefits growers and producers in poor areas of Peru.

Jalapeño chilies harvested in the Amazon forest of Junín are processed at Agromantaro’s facilities in the highland of Junín, one of the most modern plants in the Peruvian Andes, according to the highest quality standards, and then exported to the American market.

After having identified a growing demand for artichokes in international markets, during its first phase, the PRA Project helped organize a greater supply of artichokes in the Mantaro Valley, Junín region. PRA made sure that the new production met the quality required by exporting companies. Artichokes growing areas expanded from 60 to 420 ha in four years. The Project’s action gave way to a more attractive business environment in the region and triggered Agromantaro’s decision to set up a processing plant for artichokes and other vegetables in Concepción, Junín, involving a US$1 million investment.  The plant is one of the most modern premises in the Peruvian Andes and it itself has generated 200 new jobs.

Building on the success of the production and export of artichoke bottoms and hearts, and having identified another market opportunity, Agromantaro started the venture of producing jalapeño chilies in Chanchamayo and Satipo provinces located in the Amazon forest area of Junín region.  Once harvested, the jalapeños are then processed in Agromantaro’s plant, reducing its spare capacity and increasing overall production turnover.  The resulting jalapeños are high quality preserved chilies which are sold to McCain Foods Ltd. Company in 22 lb containers destined to the American market.

As the jalapeño was a newly introduced product, not many producers in the region were acquainted with its cultivation and growth. During its second phase which started by late September 2009, the PRA Project has worked on identifying growers and organizing the value chain, providing technical assistance before and after the harvest, applying USAID’s PERSUAP (Pesticide Evaluation Report and Safer Use Action Plan) requirements to the jalapeño growing, and identifying financial needs for the growing seasons. Agromantaro, on the other hand, not only has ensured the purchasing of all the jalapeño production but has also provided the technological innovation package and has helped in the provision of technical assistance and the search for financial support.

These joint activities undertaken by the PRA Project and Agromantaro have greatly reduced the risks of introducing a new product in this geographical area.  So far 16 small producers are growing jalapeños in 30 ha, an extension which the Project plans to double in a year’s time. Drip irrigation has been a major technological innovation introduced in this central selva area and is already revolutionizing productivity: yields increased from 40 ton to 70 ton/ha and have surpassed the maximum yield achieved on the coast (40 ton/ha). Drip irrigation not only optimizes water usage and reduces waste but also allows jalapeño growth during the summertime, the most favorable season for this activity. Technology has also reduced investment costs by 30% attracting new producers to grow this new product.  The Project expects a jalapeño production of 2.25 million pounds for the first year, and 3.5 million pounds for the second year.