CoffeeNetwork (New York) – National coffee production in Peru reached a new record in 2018, with the country producing 364,500 tons (around 6 million 60-kg bags), according to the latest data from the country’s agricultural association, Minagri. This is up 8% from the previous year due to the renovation of new coffee plantations throughout the country.
In the first quarter of 2019, Arabica coffee production in Peru decreased by 3% (88.8 thousand tons) compared to the same period of 2018 (91.6 thousand tons).
However, it is expected that in the middle of the year, production will pick up, since according to Minagri data, another 15,000 hectares of renewed coffee area will begin producing.
As for regional production, the regions of San Martín and Junín stand up, representing 76.8% of the total production.
Some regions like Amazonas, Huanuco, Pasco and Ayacucho, have increased their production in 2019, while regions like Junín, Cajamarca, Cusco, Ucayali, among others, have decreased its production, San Martin remains unchanged.
The price crisis that affects all coffee producing regions in the country have forced producers to adopt new measures. There are regions that, instead of decreasing their production, have increased it, with the hope that having more coffee would mean higher incomes for the farmer.
while other regions faced with low prices already are lacking incentives to increase production or sell their crop, because they would be losing money.
Production in the first quarter is still very small, since the bulk of production starts in April and the highest concentration of production is observed in May and June, to a lesser extent in July every year.
After having dropped to 4.1 soles per kg. of coffee in December 2017, one of the lowest prices in recent years, as of January 2018, the price to farmers began to recover, slowly reaching a value of 5.8 soles per kg. In June of 2018, priced remained around that level and stayed that way until October 2018, when farmgate prices began to sharply fall, touching 4.9 soles in December, 4.8 soles in January 2019 and as low as 4.4 soles in March. By mid-June 2019, however, prices recovered back to 5.50 soles per kg.
Coffee beans exports during 2018 increased by 10% in terms of volume, totaling 268,000 tons, while in terms of value has remained almost at the same level, with US $ 700.6 million in 2018 (-0.7%).
In the period January-May 2019, exports fell 15.6% to 33,100 tons, while in value has declined 13.9% to US $ 86 million.
Markets like Germany, Belgium, England, Colombia and Japan all decreased their imports of coffee from Peru during the period, while other countries like USA, Canada, Sweden, France and South Korea saw increases.
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