Peru’s Efforts to Boost Coffee Sector Stifled by High Costs, Low Prices

Peruvian coffee arabica organic

“Coffee farmers throughout Peru are weighing the relatively high costs of replanting old or diseased trees against low international prices. Such market forces are threatening the country’s already economically delicate coffee sector, according to the latest annual report from the United States Department of Agriculture’s Foreign Agriculture Service(FAS).

Peru remains the world’s leading exporter of organic Arabica coffee, with an estimated 90,000 certified hectares in addition to non-certified farms, which in many cases are following organic practices out of necessity due to lack of access to chemical fertilizers, pesticides and fungicides.

According to the FAS report, many smallholder coffee farms throughout Peru have not fully recovered financially from the leaf rust outbreak that peaked in the country in the market year 2013/14, affecting as much as 50% of the country’s total crop production.

While Peru’s Ministry of Agriculture has led an ambitious rust recovery and replanting program in the years since, and the federal government has initiated a sweeping marketing initiative for coffee, total coffee-farmed land in the country is estimated to be 390,000 hectares in 2019, a negligible increase compared to last year. The report further estimates that countrywide production volumes and export volumes will see slight increases over last year’s levels.”

Read more here.

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