Peruvian Economy IV: Coffee
Production, Export, and Economic Importance
Peru is one of the leading producers of Arabica coffee worldwide. During the 2022–2023 harvest, the country produced a total of 216,000 metric tons, ranking as the ninth-largest Arabica producer globally. This coffee variety is the most widely cultivated both in Peru and around the world, known for its quality, flavor, body, and aroma.
Coffee cultivation in Peru spans over 660,000 hectares across 11 regions, with the main producing areas being San MartÃn, JunÃn, Cajamarca, Amazonas, and Cusco. More than 236,000 farmers are involved in the coffee industry, providing a livelihood for nearly one million people.
Peru is currently the world’s leading producer and exporter of organic coffee, alongside Ethiopia. 95% of the country’s coffee is grown by small-scale farmers, and Peru accounts for 48.1% of the certified organic coffee-growing area in Latin America.
In 2022, Peruvian coffee exports reached USD 1.236 billion. The main export destinations were the United States, Germany, Belgium, Colombia, and Sweden.
Beyond its economic value, coffee is Peru’s main traditional agricultural export, along with asparagus. It represents approximately 50% of all agricultural exports and around 5% of the country’s total exports.
History of Coffee in Peru
Coffee was introduced to the Americas in the 18th century by European immigrants. In Peru, it began to be cultivated in regions such as Chanchamayo, Moyobamba, San Ignacio, Jaén, Huánuco, and Cusco. By the mid-18th century, Peru was producing coffee for both local consumption and export to markets like Germany, Chile, and Great Britain.
Since 1850, European settlers promoted coffee farming in the Chanchamayo Valley. By 1930, British capital had helped consolidate the valley as a key coffee-growing region. Since the late 20th century, the quality of Peruvian coffee has improved significantly, particularly in the organic segment.
Varieties and Characteristics
Peru cultivates several varieties of coffee, including Good Hard Bean (central jungle), Hard Bean (northeastern jungle), and Medium Hard Bean (southeastern region). Among these, Good Hard Bean typically earns the highest market prices due to its superior quality.
Global Context
Coffee originates from the Kaffa region in Ethiopia and is now grown in tropical and subtropical countries. The world’s top coffee producers are Brazil, Vietnam, and Colombia, with Brazil accounting for over one-third of global coffee production.
Source: Wikipedia
