Peru’s organic coffee output is to grow by 7% in the 2024-25 season despite leaf rust disease problems.
According to USDA’s Foreign Agricultural Service (FAS), production will peak at 4.22 million 60-kg bags, above 2023-24’s 4.2 million bags.
Exports will also increase by 6%, to reach 4.07 60-kg million bags, up from 2023-24’s 4.06 million bags.
The main drivers of production are the reigning high prices and increasing organic fertilizer use, both of which are boosting yields.
Positive International Prices
Regarding the price impact, organic coffee from Peru is attracting high international prices due to its exceptional quality.
On June 4, 2024, international coffee prices rose to $2.29 per pound, a positive push for exporters in Peru.
Though lower than the April 17, 2024’s high of $2.48 a pound, the price surpasses that of the entire second half of 2023. During this second half, the price had peaked at $2.10 a pound on December 14.
Global prices have been improving after supplies took a hit due to drought in production leaders, Brazil and Vietnam. For this reason, Peru is specially benefiting from low global supplies.
Leaf Rust and Farmers’ Challenges
Ironically, national production is up amid a decade-long leaf rust disease that has affected a slither of the coffee area.
According to FSA, Peru recovered 3.95 million bags from the disease in the 2023-24 season, 9% more year-on-year.
This is a promising outlook given that since 2013, coffee rust has infected 40% of Peru’s coffee plantations.
However, family growers who make up the bulk of production continue to face low credit ratings and benefit little from high prices.
To circumvent this challenge, growers are forming cooperatives, which receive better prices than individuals.
Exports Stable
As growers continue to face remuneration and disease odds, exports remain stable in the 2024-25 season.
Most recipients of these green beans are in the U.S., who command 28% of Peru’s organic coffee exports.
The European Union comes second in these single-origin imports, with German importing 18% and Belgium 9%.
In summary, despite farmers’ worries and disease challenges, Peru’s organic coffee sector expects both yield and export increment. As the following statistics show, there is more than meets the eye in the Andes’ country’s key agricultural export.
Peru Coffee Statistics
Peru ranked the ninth largest producer of coffee worldwide in 2022 at 323,300 tonnes, 216,000 tonnes of which was Arabica. The South American nation ranked 9th in Arabica production worldwide in the 2022-23 season, beaten by the likes of Brazil. Exports from coffee reached $1.236 billion in 2022, a yearly rise of 37.8%.
Who grows coffee in Peru?
Small-scale farmers cultivate 95% of Peru’s coffee. The farmers produce 75% of the coffee in the Andes highlands between 1,000 and 18,000 m above sea level. These areas include San Martin, Amazonas, Cusco and Junin.
How much coffee do Peruvians drink per capita?
Since almost all of coffee produced in Peru goes into export, domestic coffee consumption is low. It amounted to 650 grams per capita or 190,000 bags in the 2020-21 season.