Taking too long? Close loading screen.

Peru, an Unpolished Diamond in Coffee Production

 

After more than six years in the Colombian coffee industry, getting to know coffee growing families and tasting all sorts of different coffees, I decided to take on the new challenge of managing a different, slightly more problematic origin.

ico Readtime

4 Minutes Read

miguel sanchez

By Miguel Sรกnchez

Perรบ Country Manager

Compared to Colombia, Peru is an unpolished diamond in coffee production. Since the beginning of June, Iโ€™ve been living and working as Caravelaโ€™s Country Manager here. Peru might not be as well-known for coffee as its neighboring countries Brazil and Colombia, but it is slowly building itself a reputation as an exceptional specialty coffee origin.

Peru is very different from Colombia in terms of processes and logistics but has a huge amount of potential to produce high quality coffees. Coffee is grown high in the Andes and most producers are small- holders with an average farm size of between 2 and 5 hectares. Infrastructure on farms is often fairly poor, meaning a lot of work is required to improve coffee quality.

Before discussing our work in this diverse country, I want to first talk about the issues and challenges facing the Peruvian coffee industry.

The main challenge that we have encountered in Peru is that there is no formal entity that governs the coffee industry. This has led to the following issues:

Inconsistent quality: In Peru, there are no standards in terms of measuring units, yields, prices, or quality grades. An example of this is the use of quintales to measure the volumes of coffee produced and delivered. The actual kilogram measurement for each quintal is not standardized and usually varies from region to region and sometimes even between cooperatives in the same region. Some use 55 kg per quintal, others use 55.2 kg, and others still 46.5 kg.

You also often find situations where producers have delivered their lots to different buyers, with each buyer giving them a different quality grade and a different price for their coffee. This lack of standardization generates confusion for coffee growers, making it hard for them to know what direction to work in as they are constantly receiving mixed messages.

Lack of know-how: Coffee farmers in Peru have had little or no access to technical assistance or education. This has resulted in bad farming practices with many farmers relying on poor infrastructure to process their coffee, leading to inconsistent quality. Many farmers are unsure how to move forward and start the process of producing specialty coffee.

Low prices: Over the past few years, the price for coffee has been very low and for many farmers, they simply donโ€™t have the resources to invest in their farms and to improve farm infrastructure. Like in many other parts of the world, farmers are looking for other opportunities, and in Peru, โ€˜specialty coffeeโ€™ is beginning to seem like the only viable way to produce coffee. To make matters worse, for many farmers buying appropriate fertilizers or building quality-focused drying infrastructure is not financially viable.

Fragmented Supply Chain: Although Peru is mostly known as a coffee origin in which cooperatives and associations dominate large portion of the industry, the reality is that only 30-40% of farmers in the country are members of a cooperative. This means that a majority of small-scale farmers in the country are independent and donโ€™t have trustworthy organizations to sell their coffee to.

As a result, many farmers are forced to sell their coffee to the infamous โ€˜coyotesโ€™ who take advantage of a desperate situation. These farmers, who are not members of associations, are not able to benefit from valuable support which some cooperatives offer, such as technical assistance and access to pre-finance.

Many farmers are not part of associations not just because their farms are isolated and located in remote places, but also due to a loss of confidence in these institutions based on past experiences with mis-management or appropriation of funds.

  • Despite all these challenges, we have managed to find more than 700 quality-minded coffee growers with the will and energy to improve the quality of their coffee. Identifying these farms is a huge piece of work in itself but is also only the beginning; these relationships take time, work, and education.
  • Many coffee growers in Peru lack information and education about the market and about the product that they produce. To address this issue, we firstly have our PECA team on the ground and we have also established our first two direct purchasing points, one in Quillabamba, Cusco, and the other in Jaรฉn, Cajamarca.
  • Being present in these two regions, allows us to be closer to coffee farmers and cooperatives and helps us strengthen our relationships on the ground.

    Over the past few years we have travelled the length and breadth of the country, visiting some of the most remote areas and introducing ourselves to small-scale farmers. We have been carefully building partnerships with cooperatives and sharing our expertise in quality control, supply chain management and quality focused pricing.

    Our aim is to standardize processes, prices and quality in order to stop confusing coffee growers and to help them improve their own farming practices. The main objective here is to be fully transparent with farmers to create an environment of trust and to help them be as successful as they possibly can.

    Overall my experience in Peru has been very valuable. I have discovered amazing potential and since Caravelaโ€™s arrival in the country two years ago, there have been significant improvements in post-harvesting practices.

    Our PECA team is currently focused on educating farmers in correct harvesting practices and the importance of humidity and water activity in producing better, more consistent quality which does not age quickly. As our newest origin, we have been able to leverage 17 years of experience in 6 different origins, carefully adapting this knowledge to the local context. Slowly but surely we are getting there.

  • 0 Comments

    Submit a Comment

    Your email address will not be published. Required fields are marked *

    Was this interesting? Grab a coffee and pick another from the articles below
    Agroforestry For the Planet: The Impact of Shade-Grown Coffee

    Agroforestry For the Planet: The Impact of Shade-Grown Coffee

    What Makes a B Corp a Different Kind of Business?

    What Makes a B Corp a Different Kind of Business?

    Sustainability: The Sextant of Our Navigation

    Sustainability: The Sextant of Our Navigation

    Taking Coffee Education Program to the Next Level

    Taking Coffee Education Program to the Next Level

    Learning from 2021 and Reflecting on the Future of Coffee

    Learning from 2021 and Reflecting on the Future of Coffee

    Cost Of Production Spotlight: Price Spikes โ‰  Higher Incomes

    Cost Of Production Spotlight: Price Spikes โ‰  Higher Incomes

    Receiving Coffee, Delivering Resilience

    Receiving Coffee, Delivering Resilience

    Recognizing Producers’ Commitment to Excellence in El Salvador

    Recognizing Producers’ Commitment to Excellence in El Salvador

    The Sum of Small Actions: PECA contributes to the reduction of GHGโ€™s

    The Sum of Small Actions: PECA contributes to the reduction of GHGโ€™s

    A Pivotal Moment for Specialty Coffee

    A Pivotal Moment for Specialty Coffee

    Long Distances, Long Histories: Getting Close to Coffee in Oaxaca

    Long Distances, Long Histories: Getting Close to Coffee in Oaxaca

    We are Best for the World 2021!

    We are Best for the World 2021!

    Transparent Teamwork with Local Cooperatives

    Transparent Teamwork with Local Cooperatives

    Planning Ahead: As bad as it sounds?

    Planning Ahead: As bad as it sounds?

    Growing and Thriving with Guatemalan Farmers

    Growing and Thriving with Guatemalan Farmers

    An Update on Colombiaโ€™s Ongoing Crisis

    An Update on Colombiaโ€™s Ongoing Crisis

    Mastering the Learning Loop in Peru

    Mastering the Learning Loop in Peru

    Supply Chain Hurricane: Weathering a perfect logistical storm in 2021

    Supply Chain Hurricane: Weathering a perfect logistical storm in 2021

    Making the Coffee World More Sustainable

    Making the Coffee World More Sustainable

    A Familiar Face Returns: William Ortiz at the helm of Colombia/Ecuador

    A Familiar Face Returns: William Ortiz at the helm of Colombia/Ecuador

    Cause and Effectiveness: Increasing Impact with the Sustainable Development Initiative

    Cause and Effectiveness: Increasing Impact with the Sustainable Development Initiative

    Shifting Calendars, Shifting Harvests

    Shifting Calendars, Shifting Harvests

    Third-Party Verification that Leads to Action

    Third-Party Verification that Leads to Action

    ‘Milds’ Intrigue: The Price Quandry Facing Farmers

    ‘Milds’ Intrigue: The Price Quandry Facing Farmers

    Guiding Farms in the Right Direction

    Guiding Farms in the Right Direction

    Our Best Coffee is Our People

    Our Best Coffee is Our People

    Inclusion and Diversity Report

    Inclusion and Diversity Report

    What’s Brewingย in the Coffeeย Industry: Lessons Learnedย and What to Look Forward in 2021

    What’s Brewingย in the Coffeeย Industry: Lessons Learnedย and What to Look Forward in 2021

    Why Add Yeast ?

    Why Add Yeast ?

    Polar Promise in Las Palmas: A Case Study of North Star’s El Salvador Origin Project

    Polar Promise in Las Palmas: A Case Study of North Star’s El Salvador Origin Project

    Peru 2020: Rising Up From Lockdown

    Peru 2020: Rising Up From Lockdown

    Ecuador 2020: Making Our Way in the Middle

    Ecuador 2020: Making Our Way in the Middle

    Climate Neutral Caravela 2025: Steady Steps Towards a More Sustainable Future

    Climate Neutral Caravela 2025: Steady Steps Towards a More Sustainable Future

    Impact of COVID-19 on Specialty Coffee Roasters: Adapting to New Realities

    Impact of COVID-19 on Specialty Coffee Roasters: Adapting to New Realities

    A Primer on Transparency + Traceability Part II

    A Primer on Transparency + Traceability Part II

    A Primer on Transparency + Traceability Part I

    A Primer on Transparency + Traceability Part I

    How to Create a Specialty Coffee Line to Attract Commercial Coffee Drinkers Into The Specialty Coffee World? Part II

    How to Create a Specialty Coffee Line to Attract Commercial Coffee Drinkers Into The Specialty Coffee World? Part II

    A Take on Long-standing Relationships: Hasbean and Pedro Claros

    A Take on Long-standing Relationships: Hasbean and Pedro Claros

    Futures Contracts: What, Why, How  Part Three: Futures 103 How Hedging Works

    Futures Contracts: What, Why, How Part Three: Futures 103 How Hedging Works

    Futures Contracts: What, Why, How Part Two: Futures 102

    Futures Contracts: What, Why, How Part Two: Futures 102

    Futures Contracts: What, Why, How Part One: Futures 101

    Futures Contracts: What, Why, How Part One: Futures 101

    Grade Expectations: Finding Versatility and Value in A and AA Coffees

    Grade Expectations: Finding Versatility and Value in A and AA Coffees

    A Presentation on Cost of Production In Latin America

    A Presentation on Cost of Production In Latin America

    Meso-American Producer Survey: The Pandemic Will Leave Long-Lasting Scars

    Meso-American Producer Survey: The Pandemic Will Leave Long-Lasting Scars

    Invisible Barriers for Moving Coffee

    Invisible Barriers for Moving Coffee

    Caravela at 20: The Journey is Only Getting Started

    Caravela at 20: The Journey is Only Getting Started

    Certifiably Awesome: Passion and Persistence Turn Promise into Parchment in Mexico

    Certifiably Awesome: Passion and Persistence Turn Promise into Parchment in Mexico

    Harvest Arrives, Along with a Pandemic

    Harvest Arrives, Along with a Pandemic

    Minga From Field To Filter: Coffee Reacts and Adapts to the Covid Era

    Minga From Field To Filter: Coffee Reacts and Adapts to the Covid Era

    Mother Nature Turns The Volume Down in Nicaragua

    Mother Nature Turns The Volume Down in Nicaragua

    LOTSA Potential: The Long-Term Supply Agreement as a Tool for Financial Stability and Building Relationships

    LOTSA Potential: The Long-Term Supply Agreement as a Tool for Financial Stability and Building Relationships

    Progress in a Picture-Perfect Coffee Setting

    Progress in a Picture-Perfect Coffee Setting

    The Price and Value of Consistency

    The Price and Value of Consistency

    Looking Back and Leaping Forward

    Looking Back and Leaping Forward

    Womxn-Powered Coffee: Why It Matters

    Womxn-Powered Coffee: Why It Matters

    Unpoppable Opportunities for the Future

    Unpoppable Opportunities for the Future

    Equipping the Equipo: Playing to win in Guatemala and El Salvador

    Equipping the Equipo: Playing to win in Guatemala and El Salvador

    Agronomy to Keep the Microlots Coming

    Agronomy to Keep the Microlots Coming

    Evolution in a Land of Revolution

    Evolution in a Land of Revolution

    Cupping as Meditation

    Cupping as Meditation

    Origin Revelations

    Origin Revelations

    Avoiding the Poverty Trap: Choosing Stories Instead of Emotional Marketing

    Avoiding the Poverty Trap: Choosing Stories Instead of Emotional Marketing

    Iโ€™ve Bean Everywhere, Man

    Iโ€™ve Bean Everywhere, Man

    Have Yourself a Mara Little Christmas

    Have Yourself a Mara Little Christmas

    All Roads Lead to Coffee

    All Roads Lead to Coffee

    How Coffee can Complement Food

    How Coffee can Complement Food

    Building Projects at Origin

    Building Projects at Origin

    Coffee: Culture or Business?

    Coffee: Culture or Business?

    Cafรฉ: ยฟCultura o Negocio?

    Cafรฉ: ยฟCultura o Negocio?

    A Study on Costs of Production in Latin America

    A Study on Costs of Production in Latin America

    Fermentation Experiments in Nicaragua โ€“ How We Managed to Go from RTB to AAA

    Fermentation Experiments in Nicaragua โ€“ How We Managed to Go from RTB to AAA

    Constantly Adapting to Change

    Constantly Adapting to Change

    Mind the Gap: A Growing Gray Area Between Market and Production

    Mind the Gap: A Growing Gray Area Between Market and Production

    Embracing Technology to Create New Pathways in Coffee

    Embracing Technology to Create New Pathways in Coffee

    Forward Contracting to Secure Quality, Quantity and Relationships

    Forward Contracting to Secure Quality, Quantity and Relationships

    Caravela Sponsors Seven Small-holder Coffee Producers to attend the Producer and Roaster Forum in Guatemala

    Caravela Sponsors Seven Small-holder Coffee Producers to attend the Producer and Roaster Forum in Guatemala

    Colombian Specialty Coffee Scene. A Perspective from Cafรฉ Quindรญo

    Colombian Specialty Coffee Scene. A Perspective from Cafรฉ Quindรญo

    Introducing Collectivos in El Salvador, Guatemala and Mexico

    Introducing Collectivos in El Salvador, Guatemala and Mexico

    Coffee Sampling  Increases Farmers Profitability Opportunities

    Coffee Sampling Increases Farmers Profitability Opportunities

    Caravela From a Newcomer’s View

    Caravela From a Newcomer’s View

    Impact Report 2018

    Impact Report 2018

    Water Activity: Predictive insights Changing Processes and Profits

    Water Activity: Predictive insights Changing Processes and Profits

    Blending Experience with Passion in Mesoamerica

    Blending Experience with Passion in Mesoamerica

    Coffee in Galapagos: Evolving To Thrive

    Coffee in Galapagos: Evolving To Thrive

    The Specialty Coffee Transaction Guide โ€“ Setting the Bar on Prices

    The Specialty Coffee Transaction Guide โ€“ Setting the Bar on Prices

    Arriving at a price

    Arriving at a price

    Rich Farmer, Poor Farmer

    Rich Farmer, Poor Farmer

    Low Prices, Risky Times

    Low Prices, Risky Times

    Making it Work as Well as it Can

    Making it Work as Well as it Can

    Discovering the Source

    Discovering the Source

    A Mutual Evolution: Caravela Nicaraguaโ€™s William Ortiz, on helping people grow coffee, and how coffee helps people grow

    A Mutual Evolution: Caravela Nicaraguaโ€™s William Ortiz, on helping people grow coffee, and how coffee helps people grow

    The High Price of Getting the Best from Ecuador

    The High Price of Getting the Best from Ecuador

    Victims of Exchanging Currencies โ€“ Who Should Take on this Risk?

    Victims of Exchanging Currencies โ€“ Who Should Take on this Risk?

    A Pilgrimage to the Future

    A Pilgrimage to the Future

    Why Weโ€™re Investing in World Coffee Research?

    Why Weโ€™re Investing in World Coffee Research?

    The Making of a Champion

    The Making of a Champion

    Peru, an Unpolished Diamond in Coffee Production

    Peru, an Unpolished Diamond in Coffee Production

    Investing in Education: Investing in People

    Investing in Education: Investing in People

    How Roasters Can Influence the Supply Chain

    How Roasters Can Influence the Supply Chain

    Aromas: More than Just a Coffee Competition

    Aromas: More than Just a Coffee Competition

    FOB vs. EXW – Two Buying/Shipping Methods for Your Green Coffee

    FOB vs. EXW – Two Buying/Shipping Methods for Your Green Coffee

    Checking Your Cultural Bias at the Door

    Checking Your Cultural Bias at the Door

    Sample Roasting vs. Profile Roasting

    Sample Roasting vs. Profile Roasting

    How to Keep Records of your Costs of Production?

    How to Keep Records of your Costs of Production?

    Why and How to Estimate Costs of Production in a Coffee Farm?

    Why and How to Estimate Costs of Production in a Coffee Farm?

    Supply Chain Logistics – The Clockwork of Coffee

    Supply Chain Logistics – The Clockwork of Coffee

    1st SEMESTER HARVEST 2018 SURVEY

    1st SEMESTER HARVEST 2018 SURVEY

    Forecasting Green Coffee Purchasing

    Forecasting Green Coffee Purchasing

    From Origin, With Love

    From Origin, With Love

    How Joe Coffee and the Guarnizo family work together to ensure everyone wins

    How Joe Coffee and the Guarnizo family work together to ensure everyone wins

    What is specialty Coffee

    What is specialty Coffee

    Impact Report 2017

    Impact Report 2017

    Impact Report 2016

    Impact Report 2016

    Drying in Peru: the Final Step in Quality Improvement

    Drying in Peru: the Final Step in Quality Improvement

    Passion for Coffee: Nicaragua

    Passion for Coffee: Nicaragua

    Passion for Coffee: Guatemala and Salvador

    Passion for Coffee: Guatemala and Salvador

    “Despacito”: How Coffee Should Be Dried

    “Despacito”: How Coffee Should Be Dried

    Why we are a B-Corp

    Why we are a B-Corp

    How One Roaster Can Impact a Whole Community

    How One Roaster Can Impact a Whole Community

    FOB vs: EXW – Two Buying/Shipping Methods for Your Green Coffee

    FOB vs: EXW – Two Buying/Shipping Methods for Your Green Coffee

    When is it time to harvest?

    When is it time to harvest?

    Just In Time Inventory

    Just In Time Inventory

    Spectrum Purchasing and How it Impacts Sustainability

    Spectrum Purchasing and How it Impacts Sustainability

    • This field is for validation purposes and should be left unchanged.

    Translate ยป

    Pin It on Pinterest

    Share

    Share this content with your coffee community!