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Following an industry-wide crisis of defaults and availability issues in Peru last year, we know that reliability is your top concern.
The good news? The producers selling through Algrano are reporting a strong and promising harvest. But it’s crucial to be aware of the market dynamics that continue to challenge producers and could affect the market this year. Roasters from the USA will be looking for Brazil replacements due to the new tariffs, which adds pressure to Peruvian coffee demands. This is a stressful period for producers who continue to struggle with financing, as previous defaults have made lenders more cautious. Algrano supports our partners with pre-financing, but we recommend you proactively communicate with your producers and inquire about possible bottlenecks.
Important dates
There are four shared shipments planned for this season: two to Europe, one to the UK, and one to the USA. Here are the key dates:
What to expect from the Peru 2025 Harvest
- Production rebound: The USDA forecasts an 8% production and export rebound this year, totalling 4.2 million 60kg bags. This adds a layer of confidence to the strong reports from our producer partners.
- A growing harvest: Reports confirm a strong, extended harvest with many producers seeing more volume and improved quality, confirms Larisa Tenorio from Aprocassi cooperative.
- Quality consistency: Our Head of Quality, Pablo García Jimenez, confirms quality consistency through our received samples:
"Peru still upholds its reputation for high standards in coffee. This year, the harvest is in line with last year’s, marked by exceptional sweetness, clean profiles, and consistent balance. The coffee lots, in general, are showcasing that signature sweet citrus acidity, accompanied by cacao notes and a silky, creamy body, reflecting the origin's continued commitment to maintaining these high quality profiles.” Pablo García Jimenez, Head of Quality.
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- Managed challenges: Jheny Fernández from Valle Alto cooperative and Omar Garcia from Alvarado cooperative both noted that a specific plague and some unusually dry conditions have affected a part of the crop. However, these are localised issues, and our partners are working closely with Algrano to manage this, ensuring the final quality and volume of their offerings remain high.
A new chapter of opportunity
The defaults seen last year were rooted in a surge of unexpected demand, partially caused by delays in shipments from Ethiopia. According to a report by StoneX, Peruvian cooperatives defaulted on an estimated 100,000 bags because many exporters hadn’t secured enough financing to deal with the unexpected increase of local prices, driven by demand and a higher C price. This year, we're seeing a similar surge in demand for a new reason: the US tariff on Brazilian coffee. This is causing North American roasters to shift their sourcing to other origins, with many favouring Peru.
While this creates opportunities for Peruvian farmers, it's a stressful period. The previous defaults made lenders a lot more cautious, and producers are still struggling with financing. Algrano is supporting our partners with pre-financing but roasters need to contract the coffee before we pre-pay producers. To ensure a smooth supply chain, we recommend you to be a proactive partner and also to enquire about possible bottlenecks with our team.
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The human element
This year's harvest is not just about numbers; it's about the deep expertise of producers who are committed to their craft. Peru is the world’s leading exporter of organic coffee, and this commitment to sustainable practices is at the heart of our partners' work.
We've heard firsthand from producers about the value of this partnership. As Jheny Fernández, from Valle Alto shared:
“(…) in reality we have been able to have you all taste our coffee, and more and more people are getting on board. That is very important for us. It’s also an impulse for us to see that sales are always increasing, it is comforting for us to, continue doing our work that we do every day.” Jheny Fernández, Valle Alto.
Valle Alto: Discover the diverse quality of Valle Alto's harvest
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- A commitment to community: A key focus of our partners' work is to empower women and youth within their community. Omar Garcia from the Alonso de Alvarado cooperative, for example, highlighted this commitment as a core part of their mission. This is exemplified by projects like Valle Alto’ special "Huellas de Mujer" (Woman’s footprints) coffee, which highlights the impact and dedication of women producers.
- Innovating for the future: Omar also highlighted Alvarado cooperative’s investment in innovative farming practices that lower production costs and increase volume. Their focus on efficient water management, in particular, shows they are proactively building a more resilient and sustainable supply chain to adapt to climate change.
- Passion for the product: Jheny from Valle Alto notes that they’ve been able to "develop the harvest in the best way," and she emphasises the unique, diverse quality of their coffees. Larisa Tenorio from Aprocassi, on the other hand, reports that many producers are seeing more production than last year, with an overall improvement in quality.
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- The power of partnership:
"(…)Algrano is growing a lot and our clients are saying that the Algrano platform has helped a lot of roasters to get coffees from origins. It has made it much easier for them and thanks for that, it also helps us, the cooperatives and organisations." shared Larisa Tenorio, Aprocassi.
This year's Peruvian coffee is here. The passion and dedication of producer, combined with a strong and consistent harvest, make this a promising season for Peruvian coffee. With the new market dynamics at play, demand is high, so don't miss out!
View the Peruvian coffee lots here!
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