For the 2012 growing season, Alpine Fresh Inc. has changed its irrigation practices in Peru to become more efficient in an effort to save water and ultimately decrease costs.

“We have changed the way we irrigate our asparagus,” said Walter Yager, president of the Miami-based company. “This has resulted in a 30 percent savings on water. Where a particular well used to irrigate 100 acres, we are now irrigating 130 acres with the same amount of water.”

Mr. Yager, who is the firm’s chief executive officer, said that water is tight in Peru and there are no new wells being drilled on the firm’s farms, so this efficiency in water use is necessary if the company wants to continue to increase its production.

Speaking July 24 to The Produce News, Mr. Yager said that current Peruvian asparagus production was at the 250,000-cartons-per-week level, but it would begin to increase as it approaches the peak fall production of about 800,000 cartons per week.

“Right now we are in the traditional winter period [in Peru], which means volume is down to a lower level,” he said.

But the Alpine Fresh founder does not believe volume will be a problem this year. “There will be plenty of volume for the North American market this year,” he said. “The question is whether it be promoted at higher prices.”

Mr. Yager explained that increased demand for fresh Peruvian asparagus from Europe and processed Peruvian asparagus from all over the world will lead to higher prices this summer and fall. He said that is going to lead to higher retail prices in the United States, and the question remains whether the demand from the U.S. consumer will be there at the higher retail prices.

He said that in 2011 many retail ads were written with a f.o.b. price on the asparagus in the mid-teen level of $16-$17 per crate. “This year, the sales price [during promotions] will be more like $19 [per carton].”

For its part, Alpine Fresh is offering more value-added packs in an effort “to get decent money in a more stable environment.”

He explained that the firm is selling more of these value-added packs — such as microwavable configurations, spears packed in resealable bags and combo packs combining white and green asparagus — on a contract-type basis with a consistent price. He indicated this is preferable to fighting the fluctuating market price that typically exists for the bulk pack.

The company also continues to diversify its customer base, adding clients in Europe as well as in Canada for non-fumigated Peruvian asparagus. Alpine Fresh has its own production in Peru so this diversification of customers allows it to market its asparagus at the most advantageous price to the best market.