Peruvian Coffee Business Analysis of Peruvian Coffee Brands

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In the 2019 coffee year, Peru's coffee harvest area is estimated to be 390000 hectares, a slight increase over the previous year. As part of the Ministry of Agriculture's coffee rust recovery plan, producers will continue to replace coffee trees and fertilizers to replant and cultivate new areas. Peruvian coffee will be picked in April this year and will reach its peak from June to September. About 85% of the crops are harvested between April and July.

At present, Peruvian coffee is mainly sold and exported through cooperatives or coffee traders. The average yield per hectare is estimated at 729 kg per hectare in 2018 / 19 and is expected to increase to 744 kg per hectare in 2019 / 20. However, in well-managed coffee plantations, the yield of coffee per hectare has reached more than 2500 kilograms. The main reason for the low yield per mu is that the existing coffee trees are too old, and the cost of replacing them remains high.

Data show that it costs $3000 to replace a hectare of old, less productive or diseased coffee trees. This forces many producers to replace every 20 to 30 years on average, rather than every decade, as other coffee-producing countries do.

At present, the annual maintenance cost of coffee farms in Peru is about US $1200 per hectare. Based on this and other factors, the average production cost of Peruvian coffee calculated by FAS Lima is about US $1.75 per kilogram, of which 49 per cent is labour.

Peru, which is famous for its special organic coffee, is the second largest producer of organic coffee in the world and the third largest exporter of coffee in South America.

At present, Peruvian coffee is recognized as one of the best coffee in the world. Soft sour taste, mellow taste, distinct levels, rich and sweet, in recent years frequently won the international coffee gold award!

Peru is the world's leading exporter of organic coffee, with about 90000 organic certified public standards. In addition to these certified hectares of land, most of Peru's coffee exports are organic, largely due to the inability of smaller growers to pay for expensive fertilizers and pesticides. The demand for boutique coffee abroad has prompted some small growers to seek professional certification. Existing certifications available to small coffee growers include:

Fair Trade: by the International Fair Trade labelling Organization (FLO)

Certified organic: certified by the United States Department of Agriculture's National Organic Program (NOP), Japanese Agricultural Standards (JAS) and other agencies, Natureland and Organic crop improvement Association (OCIA)

Sustainable Coffee: through the Rainforest Alliance

Certified Cafe practice: Starbucks Certification