Feasibility and opportunities for Peruvian purple corn in Australia

by Tim O’Hare, Kent Fanning, Jess Sanderson and Ross NaidooSeptember 2015

Feasibility and opportunities for Peruvian purple corn in

Australia

by Tim O’Hare, Kent Fanning, Jess Sanderson and Ross Naidoo

September 2015

AgriFutures Australia Publication No. 15-111 AgriFutures Australia Project No. PRJ-009378

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© 2021 AgriFutures Australia All rights reserved.

ISBN 978-1-76053-219-2 ISSN 1440-6845

Feasibility and opportunities for Peruvian purple corn in Australia Publication No. 15-111 Project No. PRJ-009378

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Researcher contact details

Dr Tim O’Hare Health & Food Sciences Precinct 39 Kessels Rd Coopers Plains QLD 4108

07 3276 6018 07 3216 6591 t.ohare@uq.edu.au

In submitting this report, the researcher has agreed to AgriFutures Australia publishing this material in its edited form.

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Executive summary What the report is about

Peruvian purple corn is a maize originating in the region of Peru, Ecuador and Bolivar. In contrast to normal yellow maize, the entire cob is used as a source of purple colorant for food and beverages, as a healthy additive to food products, and as a nutraceutical for a range of cardiovascular and inflammation-related diseases. The current report outlines the feasibility and opportunities for growing Peruvian purple corn in Australia.

Who is the report targeted at?

The report provides preliminary information for those considering growing Peruvian purple corn in Australia as a domestic or export product. For processors, it identifies potential markets and what factors need to be considered in producing a value-added product.

Where are the relevant industries located in Australia?

There is currently no production of Peruvian purple corn in Australia. Many varieties are adapted to the altitude tropics of Peru, although varieties also exist adapted to coastal areas. It is expected that Peruvian purple corn will be able to be grown in many areas where yellow maize and sweet-corn are currently produced in Australia. Background

At this stage, Peruvian purple corn is very much an unknown new crop for Australia, with no information readily available. Although closely related to yellow maize, it has remained largely in Peru, and only recently been expanding, perhaps largely due to its use as a natural food/beverage colorant and increasing evidence of the cardiovascular and anti-inflammatory health benefits of corn flavonoid compounds, including purple anthocyanins. Purple corn is particularly rich in anthocyanins, with up to four times the antioxidant capacity of blueberries, well known in this area. As a food colorant, its use has expanded, particularly in the European Union, and in Japan, as restrictions in artificial colorants have been introduced. It is probable that expansion of the use of natural colorants is also likely to occur in Australia, based on other regulatory trends. Purple corn is not a sweet-corn, and therefore not eaten as a vegetable. Waxy-starch varieties of purple corn do exist however, and are popular as a vegetable in some countries of south-east Asia. Super-sweet varieties of Peruvian purple corn are yet to be developed.

Aims/objectives

The aim of this report is to provide a summary of the current production and marketing of Peruvian purple corn. This includes a breakdown of extent of production, varieties and access to seed, production systems, environmental limitations, what part of the corn is used, how it is processed, limitations, customers and markets, major trends, health benefits, and future needs.

Methods used

The results of this report were generated in part by consultation of the available literature on Peruvian purple corn (including translation of reports from Spanish to English) in regard to cultivation, varieties, pigment extraction, and health benefits; on-line searches of available products; import, quarantine and cultivation of Peruvian purple corn; extraction of anthocyanin from cobs/kernels and stability testing.

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Results/key findings

The main existing producers of Peruvian purple corn are Peru and China, with the principal markets being the United States and Japan, and to a lesser extent Spain, Italy and Germany. The United States is a major importer of intact cobs for the production of the Peruvian purple corn beverage ‘chicha morada’, while Japan is the major importer of de-kernelled cobs for colorant extraction for inclusion in beverages and foods. Pulverised cob powder is currently imported into Australia from Peru, primarily for the health-food market.

The main limitation to growing Peruvian purple corn in Australia is availability of seed. Due to quarantine restrictions, maize seed cannot be imported into Australia without going through a growth cycle under quarantine conditions, precluding the importation of hybrid seed, which would segregate in genetic uniformity after this growth cycle. Alternatively, in the absence of inbred parent material being imported for seed production, open-pollinated varieties could be imported and subsequent selection made for Australian conditions.

Peruvian purple corn is widely marketed on its perceived health benefits, largely related to cardiovascular health and anti-inflammatory properties. Few human studies have been conducted, with the majority of research conducted on rats, although purple corn extract was found to be effective in reducing mild hypertension in humans. Purple corn extract is usually marketed as a nutraceutical in capsule form.

The purple colorant extracted from the cob of Peruvian purple corn (largely the anthocyanin, cyanidin-3-glucoside) is being used as a replacement for the artificial colorants such as Allura Red (E129) in food and beverages. Although other natural pigment sources such as grape-skin or red cabbage may be potentially more competitive, purple corn may be utilised for the passive health benefit that it conveys to consumers.

The kernels of Peruvian purple corn are a minor product relative to the cob due to their lower anthocyanin concentration (only the kernel pericarp is purple). The complete kernels can be milled into corn-meal for use in corn products such as purple corn-chips, or used to make the Peruvian alcoholic beverage ‘chicha’.

Although an economic evaluation remains to be conducted, the main competitors to Australian-sourced product are likely to be China and Peru, based on lower costs of production. Upscaling to larger mechanically harvested product or organic production systems in Australia may be more competitive.

The development of super-sweet varieties of Peruvian purple corn is also a possibility for the Australian market due to quarantine restrictions on the import of fresh corn, and the popularity of sweet-corn in the Australian market. In addition, the absence of a comparative super-sweet product in export markets would give such a product a very strong marketing advantage.

Implications for relevant stakeholders

The production of Peruvian purple corn in Australia provides an additional product for the existing maize industry, as well as more specialised growers who are interesting in diversifying to a value-added product. The development of a purple supersweet-corn would further diversify the Australian sweet-corn industry, offering an alternative product to yellow sweet-corn.

From a community perspective, it is possible that the general health of consumers may benefit from increased consumption of high-anthocyanin products, although these links are still to be conclusively demonstrated. Similarly, the replacement of artificial colorants with natural colorants is likely to minimise the associated health-risks of consuming artificial colorants. Addition of a purple supersweet-corn to the diet could be a more widely accepted means of exposing the community to high-anthocyanin containing foods.

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Recommendations

The development of a market for Peruvian purple corn is contingent on cost competitiveness against imported processed product and competition with other producing countries into export markets. An economic assessment would be recommended before further development.

Production of fresh products such as a supersweet-corn variant of Peruvian purple corn is considered viable due to quarantine restrictions against imported fresh corn, and absence of an equivalent product domestically. Similarly, absence of an equivalent product globally would potentially make purple sweet-corn a highly viable product in export markets.

Lack of seed of Peruvian purple corn in Australia requires import of a seed source and further development of suitable lines for variety establishment. Open-pollinated varieties of Peruvian purple could potentially be grown prior to the establishment of adapted varieties.

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A new industry – Peruvian purple corn 1. Production of the new plant

Consideration Description What is the product? Peruvian purple corn (Zea mays L.) is a maize originating in the region of Peru, Bolivia

and Ecuador. Its cob is a deep purple in colour, primarily due to the anthocyanin ‘cyanidin-3-glucoside’ in the kernel pericarp (skin) and cob itself. The inside of the kernel is white and composed mainly of starch, containing no pigment. The kernels and cobs are traditionally used in the production of a non-alcoholic beverage (chicha morada) and as a colorant for a dessert (mazamorra morada). The crushed de-kernelled cob is the principal source for colorant, while the kernels are used for corn-meal for use in either corn-based food products (tortillas etc.) or as animal feed. The kernels can also be used for the alcoholic beverage ‘chicha’ through fermentation of the kernel starch/sugar. Peruvian purple corn is grown commercially in Peru, China, and the USA. Outside of Peru, it is principally grown as a natural source of food colorant (replacement for Allura Red AC or E129), or as a health ingredient or health supplement. In the USA, the kernels are also used for the production of corn products such as purple corn-chips. Purple ‘waxy’ or ‘glutinous’ endosperm variants are also commercially grown in Thailand, Philippines, and China and eaten as a vegetable.

Location and extent of production

There is no commercial production of Peruvian purple corn in Australia. Initial trials in south-east Queensland sub-tropics indicate that Peruvian purple corn (both standard and waxy forms) will produce similarly to standard yellow sweet-corn hybrids, but are slower to mature. Plant height tends to be greater in the summer, than autumn season. The very limited lines of Peruvian purple corn currently in Australia are unnamed, although may be one of the widely used Peruvian commercial varieties such as ‘Canteno’. The principal purple maize varieties grown in Peru include:

(1) Cuzco Purple: suited to intermediate altitudes, large-seeded, 8 rows per cob, late maturing. Related to Giant Cuzco (white)

(2) Purple Canteno (derived from Cuzco Purple): most commercially grown variety, smaller kernels than above, popular highlands variety (1800 to 2500 m), early maturing

(3) Purple Caraz (derived from landraces Ancashino and Alazan), smaller kernels than Cuzco-derived varieties, intermediate maturing, adaptable to coastal areas, deeply-pigmented cob

(4) Arequipa: high altitude variety, similar shape to purple Cuzco, smaller kernels, early maturing, cobs less pigmented

(5) Junin Black: short cob with irregular rows, very dark cob, high altitude variety.

Improved varieties produced by the University of La Molina (Peru) include:

(1) PMV-581: derived from Purple Caraz, adapted to the coast and low hills, 15-20 cm cob, intermediate maturing, highly pigmented, resistant to rust and cercospora leaf spot. Yield 2-4 tonnes/ha, 2 ears per plant

(2) PMV-582: adapted to higher altitude, intermediate maturity, medium-sized kernels, highly pigmented

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Improved lines developed by INIA (Peru) have been recorded to produce up to 10 tonnes/ha. Based on the above, the variety Purple Caraz and PMV-581 would appear to have greatest potential under Australian subtropical conditions, although other improved lines may exist. Temperate conditions with longer day-lengths may contribute to larger plant growth and delayed maturity. In the USA, the Suntava company have developed a proprietary purple hybrid suitable for temperate conditions. Yield is reported to be less than established yellow maize cultivars. Chinese varieties of purple corn are believed to have lower pigment concentrations than Peruvian varieties.

Production systems and processes

Traditionally, Peruvian purple corn is sown directly into field-rows prepared for cultivation, and grown under normal conditions (fertiliser, spacing, hilling, insect and weed control) for maize. Seed is normally treated with a fungicide prior to planting, and planted to a 5 cm depth. Irrigation is recommended every 10-12 days, depending on climate and soil-type. Planting density varies (56000-67000 plants/ha) depending on fertilisation and crop management. Too high a density can result in smaller cobs, smaller kernels and poor flowering. Weed control is needed in the first 35 days due to competition for nutrients, water and light. Cobs are normally harvested once kernels have declined to 30-35% moisture content. Harvest is either by directly harvesting ears and removing husk-leaves, or cutting of entire stalks and drying for 4-5 days, followed by removal of the ear. Cobs are normally further dried in the field to approximately 10-15% moisture content. Cross-contamination of Peruvian purple corn pollen to yellow maize will not affect the colour of yellow maize, and consequently can be grown in close proximity. Pollen from yellow maize will however induce yellow endosperm colour in Peruvian purple corn (normally white). This will be masked by the purple outer layer (pericarp), but can potentially alter the colour of corn-meal made from the purple kernels. It will not affect the colour of the cob. Production of purple corn extract for the beverage chicha morada and other products traditionally involves boiling of cobs. Wholesalers/exporters primarily source the de-kernelled cobs for processing into powder, due to a significantly higher pigment concentration than kernels. Further purification of the purple pigment (anthocyanin) from the milled powder is also possible using solvent extraction and heating. Kernels may be milled into a purple cornflour (e.g. for tortillas), although the pericarp must be retained during the milling process, as the starchy endosperm is colourless. Purple waxy cobs are sold and marketed similarly to sweet-corn, and consumed as a vegetable. Cobs are harvested in a physiologically immature state, similar to sweet-corn. Cobs are either sold fresh, or retort-packaged to form a shelf-stable product.

Environmental limitations and seasons (climate, rainfall, temperature, soil type, production lag i.e. sow to harvest)

Peruvian purple corn varieties vary in their adaption to altitude, ranging from sea-level to 3500 m. Altitudes of 1000-2900 m have been suggested for optimal production of purple corn in Peru (situated in the southern hemisphere tropics). Coastal planting occurs from April to September, while altitude plantings occur from August to October, to avoid frost. Soil-type, rainfall, day/night temperatures also vary somewhat, with lower temperatures significantly increasing the time from sowing to harvest. Cultivation can be potentially staggered geographically for year-round production if required.

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Purple corn appears highly susceptible to fungal cob-rots caused by Fusarium spp. Field-trials in south-east Queensland confirmed this, although susceptibility was variable. Wet conditions, or high humidity during maturity increases cob-rot. It is likely that drying following harvest at 30-35% moisture reduces the incidence of cob-rots and subsequent losses. Cob-rots should be minimised, as Fusarium can produce the mycotoxin ‘fumonison’, which is potentially harmful to human health. Purple waxy variants grown in Thailand and Philippines may have improved adaption for higher rainfall and sub-tropical conditions.

Other limitations – access to inputs including researchers

Access to germplasm appears the major limitation for Peruvian purple corn cultivation in Australia. There is no commercial supply in Australia, and import of maize seed requires a cycle of growth within certified quarantine facilities. This situation precludes the importation of hybrid seed, which would segregate genetically following this step. Importation of open-pollinated varieties would be possible, but resulting product variability is greater. Optimum varieties based on yield and anthocyanin content within different cultivation regions and growing systems (e.g. irrigation) is unknown. Resistance to disease is unknown, although Peruvian selection PMV-581 has been described as having resistance to rust and cercospora leaf spot. Initial observations indicate varying susceptibility to cob-rot (Fusarium) under high rainfall conditions, which may require selection for disease resistance.

Other limitations – access to markets

Preparation of non-alcoholic chicha morada powder requires a food-preparation plant for cooking and subsequent drying and packaging. Production of a milled-cob extract or milled-flour will require a milling facility. As the purple anthocyanin pigment is primarily in the pericarp layer (bran), this should be retained in the production of any flour or corn-meal.Extraction of a concentrated food colorant or nutraceutical will require an extraction facility.

Are there any regulatory restrictions?

Peruvian purple corn colorant is permitted as a vegetable juice colour additive under US FDA 21 CFR 73.260 food regulations. Natural colorants from a region importing to the USA must be certified by the FDA as 100% natural. Food Standards Australia and New Zealand (FSANZ) permits addition of anthocyanin to food under code number 163. Japan limits the level of the mycotoxin, fumonison B2, to a maximum of 2 ppm in imported Peruvian purple corn products. This toxin can be produced by the cob-rot fungi Fusarium and is hepatotoxic (liver) and nephrotoxic (kidney). Fumonison B2 is the most common fumonison in maize. The United States (FDA) limits total fumonison concentration (fumonisons B1, B2 & B3) to between 2 and 4 ppm in corn and products. The EU limits fumonison (B1+B2) to 1-4 ppm, depending on maize/maize-based food product. Australia has no fumonison restriction for maize in the domestic market.

Is your industry’s entry on the RIRDC Farm Diversity website? Do you have any suggested edits?

No.

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2. Customers and markets Consideration Description Production volumes and values first point of sale

There is no commercial production in Australia. A total of 7000 tonnes is claimed to be traded globally each year, with 348 tonnes produced in China and 6540 tonnes in Peru. Peru trading companies are small to medium, turning over US$2.5 million per annum.

Domestic markets Direct market of Peruvian corn, milled cobs, milled flour, chicha morada pre-mixed powder to Health-food resellers, Latino restaurants and Peruvian/Bolivian/ Ecuadorian expatriate population. Purple flour/corn-meal for corn-based products (tortillas, corn-chips).Processed-food and beverage industries requiring ‘health-associated’ ingredients, or natural food colorants to replace artificial purple/red colorants. Nutraceutical industries requiring health-based ingredients either as a component or as a principal ingredient (e.g. capsules).

Export markets The principal markets for purple corn include the USA and Japan, which have 74 and 24 products containing purple corn, respectively. The USA is the principal market for intact kernels and cobs, thought to be mainly supplying the expatriate Peruvian population to use in the making of chicha morada and other traditional products. Japan (followed by the USA) is the main market for de-kernelled, crushed cobs, for use as a natural colorant in food and beverage products. Concentrated anthocyanin is mainly exported to Japan, USA and Germany, but in much lower quantities. There are 12 trading companies claiming to trade in purple corn, 3 in the Peoples Republic of China, and 9 in Peru. Smaller export markets include the EU countries of Spain, Italy and Germany.

Imports The principal purple corn extract imported into Australia is crushed de-kernelled cobs for the Health-food industry. An Australian company (Loving Earth) appears to no longer import to supply the market, although product is available through selected retail outlets sourced from the Peruvian exporter, Ecoandina. Intact cobs (with kernel) are not imported into Australia due to quarantine restrictions. Artificial chicha morada pre-mix sachets are also available in Australia (such as Negrita, manufactured in Peru, or Zuko), but contain only artificial purple corn flavour and no derivative from purple corn. Retorted whole waxy purple corn (sterilised) from the Peoples Republic of China is available within Australia, via the distributor, H.S. Australia Pty Ltd. for consumption as a processed vegetable. Blue maize tortilla-chips are currently imported from R.W. Garcia (USA) and sold by Coles Supermarkets. This product appears to be derived from blue-aleurone maize, rather than Peruvian purple maize.

Promotion and market development

Promotion and market development is premature in the absence of commercial growers and a processor.

Description of supply chain(s) and processing requirements (prospective routes to market)

Supply chain following harvest and field-drying is dependent on the product. Intact cob and kernel has a limited market outside traditional Peruvian culture, although considerable export of this product is made to the USA to Peruvian expatriates. Cobs are normally expected to be dried to 20% moisture content and to be of good size (>15 cm).

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The principal processed product from Peruvian purple corn is the de-kernelled cob (milled particles), and to a lesser degree, purified anthocyanin extract (fine powder). Procedures for production of de-kernelled cob particles within Peru: purple cobs (20-40% moisture content) purchased from producer/wholesale market with cob length 15 cm or greater; damaged, deteriorated, or rotting cobs separated manually on a conveyor; cobs washed to remove impurities; cobs dried to 8-10% moisture; kernels separated from cobs using a corn sheller; cobs sieved to remove small particles; cobs cut to a 2 cm length; milling using a hammer-mill to obtain 0.5 cm particle size; microorganism sterilisation by passing particles through a tunnel of ultraviolet light; packaging into polyethylene or aluminium foil bags to weight specification. Procedure for anthocyanin powder extraction within Peru: purple cobs (20-40% moisture content) purchased from producer/wholesale market with cob length 15 cm or greater; damaged, deteriorated, or rotting cobs separated manually on a conveyor; ; cobs washed to remove impurities; cobs dried to 12% moisture; kernels separated from cobs using a corn sheller; cobs sieved to remove small particles; milling using a hammer-mill to obtain 0.2 cm particle size; solvent added, macerated and heated to release pigment; physical waste from cob filtered and discarded; removal of extraneous materials influencing anthocyanin stability; boiling to stabilise the pigment; drying to a powder or concentrated syrup by controlled heating to avoid anthocyanin degradation. Milled kernels: kernels have a significantly lower anthocyanin content than the cob, as the anthocyanin is only present in the pericarp, while the internal endosperm consists of white starch. Consequently, the product is useful for starchy food inclusion. Milling requires retention of the pericarp (bran), and the flour produced is actually a cornmeal. The milled kernels can be used directly for food products, such as purple corn-chips. Peruvian purple cornmeal produced by Suntava company in the USA is used to make Mystic Harvest purple tortilla-chips.

What are the value add opportunities?

Products from Peruvian purple corn include:

• Powdered cob (colorant extraction) • Powdered kernels (cornmeal) for tortilla/corn-chips • Purple corn extract capsules (nutraceutical) • Anthocyanin extraction (powder) • Chicha morada pre-mix powders (traditional beverage) • Purple corn syrup concentrate • Shelf-stable retort packaging (waxy varieties only) • Purple sweet-corn development (requires breeding)

What major trend is this following (health, Asian food export focus etc.)

Purple corn is following the health trend, especially in Japan. It is considered to fall into the ancient grains and super food category. Purple corn extract is seen as a health-promoting product with a number of animal studies (rats, mice) performed to assess efficacy. Few human studies have been conducted and consequently label health claims on food products are not permitted in Australia. Despite this, inclusion of Peruvian purple corn extract in products can generate a ‘passive’ health message to the market. Purple corn extract is used as a health product in its own right for cardiovascular benefits, anti-inflammation, obesity and anti-cancer. Purple corn extract is also used as a natural replacement colorant for artificial colours, although this appears to be partly linked to its perceived health benefit, as alternative natural colorants may be cheaper and more colour-stable.

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Ingredient novelty is also a driving force, due to its unfamiliarity and perceived ‘exotic’ nature. Purple waxy corn appears popular in south-east Asia due to product novelty.

3. Competition and competitive advantage Consideration Description Substitute products Artificial colorants with similar colour range (e.g. Allura Red AC, E129) for food and

beverages. Most obvious is artificial chicha morada pre-mix beverage powders, which contain artificial red and blue colours, as well as artificial chicha morada flavour. Other natural colorant sources such as red cabbage, grape, and purple sweet potato which may offer a cheaper or more stable colorant.

Export competitors Peru and China. Potentially domestic USA production for the north American market.

Sources of competitive advantage

Organic production may provide a marketing and safety advantage over Chinese and possibly Peruvian production. Absence of GMO maize in Australia may be a competitive advantage against US-sourced product (note that Peruvian purple corn in the US is not GMO, but may be grown in proximity to yellow GMO maize). Production of purple waxy-corn for the domestic Australian market due to quarantine restrictions of fresh foreign corn product. Development of a purple supersweet-corn for the domestic fresh market and export market due to quarantine (domestic only). Potential monopoly of purple supersweet-corn in export markets due to absence of other varieties available.

Sources of competitive disadvantage (establishment costs, lack of knowledge on best management practice)

Production and extraction in China is likely to have a significant cost advantage over Australia. Some markets for Peruvian-sourced purple corn may perceive Peru origin as important from a cultural marketing perspective. Lack of commercial seed availability in Australia due to import quarantine restrictions for maize.

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4. Industry organisation Consideration Description Industry organisation and fragmentation

No Australian Peruvian purple corn industry exists. The maize and sweet-corn industries are currently established for yellow and white coloured varieties. Sweet-corn for the Australian domestic market is dominated by 2-3 larger suppliers for fresh product. Frozen/canned yellow sweet-corn industry also exists.

Industry communication No formal grower communication channels have been established for Peruvian purple corn. The Maize Association of Australia coordinates maize communication within Australia. Sweet-corn growers are represented through AUSVEG.

Industry funding GRDC levy funds from the maize industry. Funding is used according to existing industry priorities and therefore unlikely to fund the development of Peruvian Purple corn in the early stages of development. HIA levy vegetable growers for R&D into industry priorities. Potential coverage of development of purple sweet-corn is possible, but would depend on support by existing industry. HIA are also managing funds for matching non-levied voluntary contributions from industry, but would depend on new product development being selected as an area of expenditure.

5. Direct economic impacts Consideration Description Gross value of production

There is no Australian production of Peruvian purple corn. Currently, the Australian maize industry services domestic industry, with 10% exported. Domestic production in 2011 was divided into: stockfeed 50%, Grit corn 25%, Waxy maize <10%, snack food 3%, high-amylose 2.5%, popcorn 1-2%, white corn 0.5%. The Australian sweet-corn industry is valued at $60-70 million (farm-gate), largely servicing the domestic fresh and frozen market.

Industry profitability The profitability characteristics for Peruvian purple corn production remain to be evaluated.

Direct employment No direct employment in 2015.

Scalability and size (what potential timeframe for doubling the industry, what advantages / disadvantages of getting to a bigger industry)

Based on broad-scale maize production already present in Australia, rapid increase in Peruvian purple maize would be possible once suitable varieties for planting are available. Similarly, production of Peruvian purple waxy-corn or sweet-corn as vegetables can be easily up-scaled using existing sweet-corn facilities, subject to availability of suitable varieties. Isolation of product during cultivation would not be required to avoid contaminating yellow corn with Peruvian purple corn pollen. Yellow corn can contaminate Peruvian purple corn endosperm colour (normally white), but would only affect corn-meal colour and not cob colour. This is in contrast to aleurone-coloured corns (blue corn etc.) which would produce coloured kernels on yellow maize.

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6. Indirect economic impacts Consideration Description Potential value of downstream processing economic activity (poor, fair or good)

Good. Milling of both the cob and kernels for colorant and cornmeal, respectively, are the principal value-added products, either for direct or indirect sale.

Potential value of associated tourism or localised retail economic activity

Moderate. Novelty value of purple corn in market for beverage production or corn-chip products; potentially purple sweet-corn.

Potential value of inputs and services

Similar to standard maize.

Potential value of indirect employment

Processing facilities could vary from small to large processing facilities, depending on market demand.

Potential economic value of providing diversification options for farmers

Peruvian purple corn provides good potential for diversification for existing maize or other grain growers in warm temperate and subtropical growing regions. Availability of a purple sweet-corn would diversify the sweet-corn market, and provide an additional purple vegetable for consumers within this sector.

7. Indirect environmental impacts Consideration Description Carbon, weeds, pests, biosecurity, other

Similar to existing maize. Cultivation of Peruvian purple corn near yellow maize will not cause pollen cross-contamination issues (purple kernels) to the yellow maize, as pericarp tissue is genetically determined by the female parent (yellow maize has a clear pericarp, and will remain yellow). Contamination of Peruvian purple corn from yellow maize pollen, however, will induce yellowing of the white endosperm of Peruvian purple corn, which may influence corn-meal colour. It will not affect colour of the cob, which is used as colorant production.

8. Indirect social impacts Consideration Description Potential health benefits from supply of product

Peruvian purple corn is widely perceived as a health product for hypertension, cardiovascular disease, arteriosclerosis, cancer, obesity and cognitive dysfunction, and is often quoted as having an extremely high level of anthocyanin. Although a number of animal trials (mainly rat) have been conducted, there have been few human clinical tests conducted to verify these claims. Despite this, there has been extensive commercialisation of anthocyanin-rich products as health foods or nutraceuticals. This is the case with Peruvian purple corn, especially in Japan where it is used as an ingredient in a number of food and beverage products. Peruvian purple corn is often quoted as having extremely high anthocyanin concentrations, although intake depends on the form of the product (cob extract, cornmeal) and the concentration in final products (e.g. nutraceutical capsules, beverages, foods). Studies on the antihypertensive effects of purple corn appear to be the most advanced, with both animal and human studies indicating a significant drop in blood pressure after consuming purple corn extracts. A small human clinical trial indicated

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a drop of blood pressure by 5-6 and 10-11 points in pre-hypertensive and mildly hypertensive participants, respectively. Although it has been shown that individual anthocyanins such as cyanidin-3-glucoside and peonidin-3-glucoside can act as vasodilators, pure Peruvian purple corn extract appears to be more effective than purified anthocyanins. Mechanisms for action remain unclear, as anthocyanins are poorly uptaken in the gastro-intestinal system. Antioxidant activity (ability to quench oxygen radicals) does not appear to be a mechanism. Because of low uptake, it has been proposed that the degradation products formed by metabolism (such as protocatechuic acid from cyanidin-3-glucoside) are more responsible for activity. Degradation products can be formed either after catabolism or by the gut microbiota (bacteria). Recent studies have indicated that anthocyanins and other flavonoid compounds may also have a direct effect of the microbiota population profiles of the gastrointestinal tract. It has been proposed that these changes can lead to reduced levels of inflammation in the body, indirectly affecting cancer and a diverse range of inflammation-related diseases and disorders, as well as reducing negative effects associated with obesity. Studies with obese mice have indicated reversal of many metabolic markers such as LDL cholesterol after being fed diets high in anthocyanin-rich diets. Anthocyanin-rich diets have also been linked to an improvement in brain function, again through a reduction in neuro-inflammation. It is likely that studies elucidating the mechanism of Peruvian purple corn health benefits will continue, owing to the preliminary studies that have been conducted. Increased consumption of Peruvian purple corn is likely to have a positive effect on human health, particularly cardiovascular-related biomarkers and diseases. Introduction of a sweet-corn variant of Peruvian purple corn to the domestic market may increase exposure and consumption of this product by the Australian public.

Potential for indigenous / cultural benefits

Minimal, apart from introduction of Peruvian traditional food and beverage from Incan culture to Australian consumers.

Other None identified.

9. RD&E and other needs Consideration Description What are the knowledge gaps or resource gaps?

Knowledge and resource gaps relevant to a potential Peruvian purple corn industry in Australia include availability of suitable varieties for cultivation, agronomy to manage the varieties, ability to cultivate as a broad-acre mechanically harvested crop, ability to develop speciality Peruvian purple corn (e.g. supersweet-corn) for the Australian and export market.

What are the RD&E needs (priority order)

Identification of varieties suitable for Australian conditions (cob quality, anthocyanin concentration, fumonison minimisation). Development of supersweet-corn varieties for the domestic fresh-market and export. Value-adding and processing.

Do RD&E priorities include any cross-sectoral needs (e.g. minor use chemicals, climate change adaption)

Overlaps with maize and sweet-corn chemicals registered for pest and disease control. Overlap with processing of other anthocyanin-containing products (e.g. Queen garnet plum).

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What other priorities i.e. non-RD&E are important to this industry (e.g. lack of a processing facility) (priority order)

Establishment of a processing facility. Identification of most cost-competitive products for domestic and export markets.

Can the industry fund the RD&E without government assistance? If not, why not?

There is no industry in Australia in 2015. Funding by GRDC is unlikely due to size of industry. Funding by HIA to develop speciality supersweet-corn variants of purple Peruvian corn may be possible.

10. Conclusion of industry feasibility Consideration Description Is the industry currently or potentially viable

Viability is contingent on cost competitiveness against imported processed product and competition with other producing countries into export markets. Production of fresh products such as a supersweet-corn variant of Peruvian purple corn is considered viable due to quarantine restrictions against imported fresh corn, and absence of an equivalent product domestically. Similarly, absence of an equivalent product globally would potentially make purple sweet-corn a highly viable product in export markets. Lack of seed of Peruvian purple corn in Australia requires import of a seed source and further development of suitable lines for variety establishment. Open-pollinated varieties of Peruvian purple could potentially be grown prior to the establishment of adapted varieties.

What is the concise value proposition for the industry?

Peruvian purple corn is a recognised health image and can also be used as a substitute colorant for artificial colours. A supersweet-corn variant of Peruvian purple corn is a novel product that would fit into the sweet-corn segment of the fruit and vegetable sector (similar to pink-skinned versus white-skinned potatoes).

AgriFutures Australia

Building 007Tooma WayCharles Sturt UniversityLocked Bag 588Wagga Wagga NSW 2650

02 6923 6900 info@agrifutures.com.au

@AgriFuturesAUagrifutures.com.au

AgriFutures Australia is the trading name for Rural Industries Research & Development Corporation. AgriFutures is a trade mark owned by Rural Industries Research & Development Corporation.

Feasibility and opportunities for Peruvian purple corn in Australia

by Tim O’Hare, Kent Fanning,

Jess Sanderson and Ross Naidoo

September 2015

AgriFutures Australia publication no. 15-111

AgriFutures Australia project no. PRJ-009378

ISBN: 978-1-76053-219-2