Peru Coffee Report: Production Up Though Organic Challenges Persist
Peru’s Coffee Production on the Rise: Challenges and Opportunities
Peru, known for its high-quality organic coffee, is set to see a 6% increase in coffee exports in the upcoming year. Despite this positive outlook, smallholder farmers in Peru continue to face challenges that impact their profitability and sustainability in the industry.
The USDA Foreign Agriculture Service’s annual report on the Peru coffee sector highlights the production forecast for the upcoming year. With an estimated increase in coffee production by 7%, driven by better prices and increased fertilizer use, Peru is poised to continue its growth trend. However, challenges such as higher production costs, lack of access to credit, and premium markets continue to hinder the success of small coffee producers in the region.
Organizational challenges also play a significant role in the coffee industry in Peru. The impact of coffee leaf rust and coffee borer beetle outbreaks has affected approximately 40% of crops, leading to production challenges for farmers. Small farmers, who often cultivate Arabica coffee at higher altitudes, face difficulties in accessing credit and securing fair prices for their produce. Despite these challenges, many small farmers have formed associations or cooperatives to improve their post-harvest handling and access better financial assistance.
On the trade front, Peru remains a world leader in the production and export of organic coffee, with around 90,000 certified organic hectares. While the United States, Germany, and Belgium are key export markets for Peru, domestic consumption remains relatively low compared to neighboring countries like Colombia and Brazil. However, there is a growing trend towards specialty-grade coffee consumption among young urban consumers in Peru.
As a consumer, you have the power to support small local producers like Milagrosa Single Estate, a single origin small batch premium specialty coffee. By choosing to buy direct from small producers focused on quality rather than quantity, you are not only enjoying a superior coffee experience but also supporting the sustainability and livelihoods of small coffee farmers in Peru. Next time you reach for your morning cup of coffee, consider the impact of your choice and support the growth of the coffee industry in Peru.
