Country overview
Coffee is a big deal for Peru’s economy - it’s one of the main agricultural exports. Nearly 225 thousand families grow it, employing a large part of the countryside population. The coffee belt, also called Yunga or Selva Alta (High Jungle), stretches along the Eastern slopes of the Andes, from 800 m to 2000 m above sea level. The six main producing regions are Junín, San Martín, Cajamarca, Cusco, Amazonas, and Huánuco.
The coffee harvest in Peru runs from April to September on plots averaging 3 to 5 hectares, in steep hillsides with (mostly) dense tree coverage. If it sounds challenging it’s because it is. Coffee cherries are hand-picked, which drives up production costs, often offset by underpaid family labour.
Peru produces only Arabica coffee. The main varieties are Typica, Caturra, Catimor, Pache and Bourbon. Typica was the cultivar of choice until 2012, when a leafrust outbreak severely affected 80 thousand hectares of coffee plantation. Catimor helped the recovery, but yields are still low, so smallholders often take other jobs off-season to make ends meet.
Algrano allowed me to get feedback on the quality of the coffees we offer and how roasters use them, so we can make better recommendations to new buyers. We review all the roaster information and contact those who showed interest in our coffees. We have everything in one page and adjust the offers to what sells best, review what doesn't sell and understand why, as well as better promote the best-selling coffees.
MARJORIE PARRILLA | Cooperativa Valle Alto
History
Coffee made its way to Peru around 1740, with commercial production kicking off by the 1830s. The sector has faced its share of challenges, like the civil war with the Shining Path guerrilla in the 1980s and 1990s, the 2012 leaf rust outbreak, and the COVID-19 pandemic in 2020.
The cooperative movement began in the 1960s alongside agrarian reforms. Back then, producers banded together to fight low prices from intermediaries – a problem that persists to this day.
Groups like the Junta Nacional de Café (JNC) and the Cámara Peruana del Café y Cacao (CPC) highlight that prices in the internal market have been below production costs since the early 2000s. USDA data shows an average farm gate price of US$ 1.53/kg while production costs hover around US$ 2.2/kg.
Organic production and cooperativism
Many roasters love Peruvian coffees for their mild, fruity, and floral profiles. And if you’re after certified coffees, Peru’s got you covered: 80% of its production is organic. But remember, not all certified coffees are created equal. While some farmers and cooperatives actively care for their environment, many smallholders don’t fertlise simply because they can’t afford it.
Cooperativism is crucial when considering organic coffee from Peru. Producers who are members of cooperatives (or sell to some specialty exporters) get technical assistance, training, and access to organic inputs. Yet, only 30% of smallholders are part of an organisation.
Producers who are not members of cooperatives often sell coffee to intermediaries al barrer, with no criteria to assess and reward quality. They get cash in hand but no yearly support. Without fertilizers, land can be farmed to depletion, leading to slash and burn practices for new plots.
At Algrano, we believe it’s important to source coffee from cooperatives and exporters in Peru who provide technical assistance to producers and reward quality through pricing. We apply this criterion to verify sellers on our marketplace, supporting a stronger supply chain. We also work with a few independent mid-size farms – a rare group in the country.
We define prices for parchment according to the international market. But there’s an additional factor in Peru. We’re in direct competition with local merchants. They stockpile coffee to sell to large traders with no traceability. In our case, the prices we list on the platform include a quality premium to producers and full traceability. At the end of the season, we evaluate sales and reward farmers with bigger differentials against local prices.
PERCY DANIEL PAREDES ARÉVALO | Ecoforest
Quality
Peruvian coffee used to have a reputation for short shelf life, with roasters noting that the cup profile of green coffee faded quickly due to poor drying techniques. Sun drying on farms without moisture meters led to uneven drying and unstable quality.
But here's the deal: this has changed over the last decade. After the leaf rust outbreak, Peru invested in a major recovery program to reverse a 40% drop in exports. Embracing specialty coffee became a strategy to boost the sector and find buyers who value coffee beyond certifications. That’s how the first Cup of Excellence in Peru was born in 2017. Today, this coffee is highly appreciated for its consistency and stable shelf life. Things took quite a turn!
