Peru's Coffee Sector: A Leap in Production and Sustainable Practices
Peru's coffee industry is witnessing significant advancements, with an expected growth in coffee production and a concerted effort towards sustainable practices to elevate the specialty coffee market.
Enhancement in Coffee Production Amidst Challenges
The 2023/24 crop year is poised to see a remarkable 16% increase in Peru's coffee production, spurred by the rising prices of international green coffee. Despite this positive outlook, Peruvian coffee growers are facing numerous challenges that affect their profitability. The ongoing battle against coffee leaf rust and the recent outbreak of coffee berry borer pose significant threats. Moreover, the limited access to credit for small farmers has long been an obstacle to improving production efficiency and profitability. Nonetheless, the lure of higher coffee prices is prompting investments in the farming sector, promising to improve yields and push overall production to 4.2 million bags in the 2023/24 season, up from 3.6 million bags in the previous year.
Elevating the Specialty Coffee Sector
The Community of Specialty Coffees (CCE) or Specialty Coffee Communities (SCC) initiative, supported by the United States Agency for International Development (USAID), is propelling the specialty coffee sector in Peru to new heights. This five-year project aims to increase production and incomes for smallholder coffee farmers in key Peruvian regions, intending to triple the annual income for about 3,200 coffee-growing families and significantly enhance exports. This effort underscores the untapped potential of Peru's coffee sector for achieving economic growth and a stronger position in the global market.
Promoting Sustainable Coffee Production
Peru is recognised as a global leader in specialty coffee production, exporting to over 50 countries worldwide. Coffee is a vital component of Peru's agricultural economy, covering up to 40% of the farmland and supporting the livelihoods of around 223,000 producer families. Despite its success on the global stage, many smallholder farmers continue to face poverty, compounded by challenges like market fluctuations, natural risks, and climate change. To combat these issues and promote sustainable coffee production, the Peruvian government, with the support of the UNDP's Green Commodities Programme, initiated a National Coffee Platform to tackle structural barriers. The establishment of a National Action Plan is focused on improving coffee productivity and quality, facilitating access to financial services, and enhancing commercial positioning.