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Peru

Why Peru's Coffee Growers Can't Make Ends Meet

Peruvian coffee farmers desperately need help — from both the public and private sectors — to improve quality and bring down production costs.

Coffee picker near Quillabamba, Peru
Coffee picker near Quillabamba, Peru
Paulo Yvan Almeida*

-Analysis-

LIMA — For most of the approximately 220,000 families in Peru who grow and sell coffee beans for a living, things are going from bad to worse, and for a simple reason. Unlike for farmers in Brazil, Colombia or Vietnam, in Peru, coffee is no longer profitable.

The international price of conventional coffee hovers around $100 a quintal. But in Peru, it costs more than that (approximately $120) to produce that amount. Why? For starters, Peruvian cultivators produce less per acre than their peers in Brazil or Vietnam.

In those countries, farmers tend to have more land at their disposal, plus more advanced technology for the production and post-harvest phases. On top of that, the fertilizers and other chemical products needed for coffee farming are subsidized.

Numbers provided by the National Agricultural Census (CENAGRO) show that 95% of Peruvian coffee farmers have less than five hectares, which is not enough to produce any significant amount. Per hectare productivity is also a problem. The average productivity rate nationwide is below 15 quintals (840 kilograms) per hectare. Brazil's is twice that.

Peruvian coffee beans — Photo: Annerella

To improve the situation, farmers first need to produce more coffee in less space. That will require improvements in both crop management (sowing, fertilization, plant defenses and adequate pruning) and at the post-harvest phase (pulping, fermentation, washing and drying of grains). These kinds of skills and techniques can be shared and taught, through training sessions, for example, and in some places, farmers have already made strides: In production zones like Jaén or Moyobamba, growers are producing more than 50 quintals a hectare.

The higher the quality, the more markets will pay.

Another alternative for Peruvian cultivators is to produce specialty coffees, where the priority is cup quality. The higher the quality, the more markets will pay. A quintal of coffee with a cup quality superior to 88 points can reach around $1,000. Again, the key is in the rigorous approach and dosed application of efficient, technological and environmentally friendly farming inputs.

Producing significant quantities of quality coffee is very much a possibility, but for that to happen, the government, private sector, society and sector organizations need to lend a hand by sharing know-how and technology so that small and mid-sized farmers can adopt better farming practices and become more competitive.


*The author serves as regional director for the international chemical company Yara South Pacific.

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Economy

Soft Power Or Sportwashing? What's Driving The Mega Saudi Image Makeover Play

Saudi Arabia suddenly now leads the world in golf, continues to attract top European soccer stars, and invests in culture and entertainment... Its "soft power" strategy is changing the kingdom's image through what critics bash as blatant "sportwashing."

Footballer Karim Benzema, in his Real Madrid kit

Karim Benzema during a football match at Santiago Bernabeu stadium on June 04, 2023, in Madrid, Spain.

Pierre Haski

-Analysis-

PARIS — A major announcement this week caused quite a stir in the world of professional golf. It wouldn't belong in the politics section were it not for the role played by Saudi Arabia. The three competing world circuits have announced their merger, putting an end to the "civil war" in the world of pro golf.

The Chairman of the new entity is Yassir Al-Rumayan, head of the Saudi Arabian Public Investment Fund. Add to this the fact that one of the major players in the world of golf is Donald Trump – three of the biggest tournaments are held on golf courses he owns – and it's easy to see what's at stake.

In the same week, we learned that two leading French footballers, Karim Benzema and N'Golo Kanté, were to join Saudi club Al-Ittihad, also owned by the Saudi sovereign wealth fund. The amount of the transfer is not known, but it is sure to be substantial. There, they will join other soccer stars such as Cristiano Ronaldo.

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