More than most items, Peruvian asparagus is extremely price sensitive at the retail level, according to Peter Warren, category manager for Ayco Farms in Pompano Beach, FL.

Warren, who is the asparagus category manager for Ayco and has been selling Peruvian asparagus for many years, said that every time the retail price drops by a $1 a pound, there is exponential sales growth. “If you sell ‘X’ at $5.99 (per pound), you’ll sell ‘3X’ at $4.99, ‘5X’ at $3.99 and ‘10X’ at $2.99,” he said.

That is exactly why he is a huge advocate of retail promotions to move the crop and create a good balance between developing and growing the U.S. market and giving growers in the South American country a good return on their investment (see separate retail promotion story on page 36).

Ayco Farms Inc. is a grower-shipper, importer-exporter that markets and distribute the fresh fruits and vegetables from its own farms in Central America, with that production being complemented by imports from a group of growers throughout Latin America and the United States. The firm owns farms in Guatemala and Honduras and has a field office in Peru, where it sources the aforementioned asparagus. The company is one of the larger players in the importation of Peruvian asparagus and is still in a growth mode.

Though total imports from Peru to the United States are expected to be down a bit this year, Warren said Ayco’s volume could grow by 20-30 percent because of the addition of new growers as well as increased acreage from its established growers. He said the company continues to get good traction from its Euro Wrap packaging, which features a sleeve and printed information communicating directly with the ultimate consumer.

Warren said increased sales to Europe, as well as more volume to Brazil and several other markets, is giving Ayco, as well as all Peruvian grower-shippers, more outlets for their product. This is creating increased demand for Peruvian asparagus, and is driving the price up as well.

The higher-priced product does have the advantage of shrinking the freight rate as a percentage of overall cost. For this reason, when the f.o.b. price Peru is high, air freight becomes the only logical mode of transportation for the product. Of course, Warren said July and August are typically periods of shorter supply. In September and beyond, he said volume will increase, the price will come down and a different dynamic will be in play.