Coffee Export
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ScribdTranslationsINTRODUCTION
Coffee is the first Peruvian agricultural export product and it is the seventh
coffee exporting country worldwide. Not only does it lead agricultural exports,
but it is among the top 10 export products, after some minerals, oil, natural gas,
fishmeal, among others.
Peru is the world's second largest exporter of organic coffee, after Mexico.
Peru has 425,416 hectares dedicated to coffee cultivation, which represent 6%
of the national agricultural area. The growth potential of coffee in the country is
around 2 million hectares.
Coffee plantations are installed in 17 regions, 67 provinces and 338 districts.
Currently, 223,482 families of small producers are involved in coffee production
nationwide and 95% of them are farmers with 5 hectares or less of the product.
One third of agricultural employment is related to the coffee market. 2 million
Peruvians depend on this activity.
30% of coffee producers belong to some type of organization and 20% export
directly through their producer organizations.
80% export through export companies and 5% have higher education.
3% manage their coffee fields with high technology and 7% have access to
credit.
THE EXPORT OF COFFEE
The demand for specialty coffees in the world is an opportunity for coffee
producers in Peru, both the geometric growth of coffee shops, cafeterias and
micro-roasters in developed countries show that the demand for specialty
coffees is growing and will continue to grow in the world. .
In 1997, Peruvian specialty coffees entered the international market and in 2000
they exceeded 130,000 quintals, 60% of which correspond to organic coffee,
according to the National Coffee Board.
Coffee production from specific regions is not recognized as specialty coffee
due to traditional marketing, lack of certification and information on demand in
international markets. The weak organization of producers hinders the
development of activities and learning about the production of specialty coffees.
Specialty coffees reach prices of US$ 20 to US$ 90 per quintal above the price
reached in contracts on the New York Stock Exchange, therefore they
constitute an important alternative due to their high profitability . According to
the electronic news program "Café de Calidad al Día" 45% of coffee
consumption in the US corresponds to single origin coffees, blends of specific
origins and organic.
Peru's supply of specialty coffees for the year 2015 - 2017 according to
APECAFE, an organization created to promote the production and marketing of
specialty coffees under the auspices of PROMPEX.
PERU: EXPORTABLE SUPPLY OF SPECIAL COFFEES 2015 - 2017
ORIGIN COMPANY CHARACTERISTICS OFFER
(Quintals)
CANCHAQUE COOP CEPICAFE ORGANIC WASH 15,000
QUILLABAMBA COOP COCLA SPECIAL, 120,000
PREMIUM AND
ORGANIC WASH
RICH VILLA ASOC COPAEVIN ORGANIC 20,000
ASOC VILLA RICA WASHING,
HIGHLAND SPECIAL
PREMIUM AND
ETHNIC WASH
CHAMCHAMAY COOP PANGOA SPECIAL AND 46,000
O COOP LA ORGANIC WASH
FLORIDAE
COM. DOVECOTE
APURIMAC COOP. VRAQUS ALTERNATIVE 10,000
RIVER VALLEY ORGANIC
WASHING
THE MOST COOP. GREEN ALTERNATIVE 10,000
GOLD ORGANIC
WASHING, ETHNIC.
JAEN SAN ASOC PERUNOR ORGANIC WASH 10,000
IGNACIO TRADING WASHED
RODRÍGUEZ ASOC RODRÍGUEZ ORGANIC SPECIAL 10,000
DEMENDOZA DE MENDOZA
MOYOBAMBA ASOC CAFÉ ORGANIC WASH 4,500
GIANFRANCO
AMAZON COOP BAGUA ORGANIC WASH 10,000
LARGE
SAN JUAN DEL COOP SAN JUAN ORGANIC WASH 20,000
ORO DEL ORO
SANDIA VALLEY
COOP
Source: APECAFE In Perú our Gold Grows in Trees, Catalog 2017
In 1999, the Peruvian Association of Specialty Coffees APECAPE was created
at the initiative of PROMPEX. To represent Peru in the specialty coffee
segment. Its members are coffee producers from all over the country,
cooperatives and committees of medium and small producers, industrialists,
exporters and advisory institutions (PROMPEX). Its main objective is to promote
the production, consumption and export of specialty coffees from Peru. The
work of this institution is important and is appreciated in the various areas as we
see in the Junín region.
The areas are located above 1,000 meters above sea level, the varieties offered
are Typical, Caturra, Bourbon and Pache, with cup characteristics of good
flavor, acidity, body and aroma. Added to this offer are the corresponding
volumes of private companies such as Romero Trading, which is also one of the
main exporters of conventional coffee.
Peru actively participates in the world organic coffee market. It is one of the
main producers along with Mexico and Papua New Guinea. Peru exports 10%
of organic coffee worldwide.
The Specialty Coffee American Association - SCAA is supporting the promotion
of specialty coffees through the participation of specialized tasters for the
qualification of Peruvian coffees and will facilitate direct contact with buyers
affiliated with this institution. Exporters
Coffee Exports
Sales to the international market are carried out mainly by private exporters who
acquire the coffee in parchment and process it to obtain green or gold coffees
for export. The main destination countries for coffee exports in 2017 were
Germany 37.1%, the US with 24.6%, Canada 6.0% the Netherlands 6.0%,
France 3.5% and Japan 3.3%, which together explained 80.5% of the total
destinations. .
50% of the total exported in 2017 was carried out by 5 commercial companies,
and more than 70% is exported by 10 exporters, among which are
representatives of traders, such as Compañía Internacional del Café SA, which
represents Neumann Kaffee Gruppe and Cargill Amazónica. to the
transnational Cargill.
Coffee Export: Evolution of Value, Volume and Price. 2015-2017
Coffee Exports: Evolution of Value, Volume and Price 2015 - 2017 (Annual
Growth Rates %)
Main Coffee Exporting Companies 2017
Huancaruna pear trees 22.3%
Commerce & Co. 8.5%
International Coffee Company 7.9%
COCLA
6.0%
Louis Dreyfus Peru
5.7%
Agroindustrial and Commercial
4.6%
Arriola
4.6%
Romero Trading SA
4.2%
Valdivia Canal Hugo
3.3%
PERCOF
28.2%
Others
10.- PERUVIAN COFFEE EXPORTS and MARKETING
In 2015, our total exports (286 million dollars) represented only 1.9% of the total
world value of imports (14,492 million dollars) made by consuming countries.
Peru has exported green coffee worth 332 million dollars, our main consumer
markets being Germany 109.1 (32.8%), United States 81.2 (24.3.4%),
Netherlands 16.8 (5.06%), Canada 12.1 (4.5% ) and Japan 11.3 (4.2%).
For the year 2017, our exports totaled 180 million dollars, a significant decrease
compared to previous years, explained by the lower prices of our coffee in the
world market.
Peruvian coffees are mostly priced within the other mild Arabica category, with
a certain emphasis in recent years on improving quality, which has achieved a
reduction in the penalty differential due to the variability in the quality of the lots.
. The alternative to overcome this situation and the low prices of the last 2 years
and the years to come is to continue improving and standardizing quality.
Internal marketing
The marketing system in Peru is determined by the forms of organization of the
producing sector, traditional practices, and processing and production
methods . In the coffee business, several types of intermediaries intervene,
which results in high transaction costs , generating inefficiencies in the coffee
chain. In the commercialization of coffee there are one or more merchant
collectors who receive different names according to the areas, whose function is
to collect the coffee, since it is produced in small volumes and in a
geographically dispersed manner. They pay low prices to the producer and mix
different qualities and origins of coffee, further distorting the quality of the
coffee.
The dry method allows the farmer to retain the dried cherries after harvesting
and drying, thus allowing him to choose the best time for his sales. The collector
is dedicated to purchasing small quantities directly from the farmer, and
accumulates them until they are converted into commercially viable quantities
and sold.
The wet method requires that cherries be delivered immediately after harvest.
The exporter often finances the intermediary so that he in turn buys from the
farmer through advances. Due to the difficulty of the farmer's access to
financing , the traditional marketing system is reinforced. The following diagram
clearly illustrates this structure , which is unfavorable to the producer and the
export of quality coffee. The cooperatives have managed to evade the
traditional marketing of quality coffees. The cooperatives have managed to
evade traditional marketing and directly export both coffee.
COFFEE EXPORTS IN RECENT YEARS
According to official information from Mincetur, Peruvian coffee is the main
agricultural export product with an FOB value of US$ 707 million registered at
the end of 2017. It is exported to 44 countries led by the United States - under
the Fair Trade seal as the main buyer -, followed by Germany, Belgium,
Switzerland and Canada.
“According to our sectoral policy, we focus on ensuring that at the end of the
fifth year of the government, agriculture grows at an annual rate of 5% and
exceeds US$ 10,000 million in exports,” said the head of Minagri.
The Ministry of Agriculture and Irrigation (Minagri) through the General
Agricultural Directorate and its articulated arms Sierra y Selva Exportadora and
the Compensation Program for Competitiveness (Agroideas), as well as the
Ministry of Foreign Trade and Tourism and Promperú seek to strengthen the
promotion and commercial coordination actions for coffee producers.
COFFEE EXPORT IN 2018
Perales Huancaruna leads Coffee exports with operations worth U$
8.8 million in 2018
Agrodataperu gathers and processes information related to Agricultural Foreign
Trade of Peru. The information we provided in 2017 until December has been
seen by more than 996 thousand companies and/or professionals in the world
related to the Agricultural Sector (more than 80 thousand monthly).
Exports of agricultural products concentrate more than 200 products that make
up the portfolio that Peru offers to the world. The information contains who sells,
Country and volumes of operations carried out. The same situation occurs in
Peru's imports of agricultural products. Access to information gives a great
reference on volumes, prices, destinations and companies that carry out
Agricultural Foreign Trade.
BIBLIOGRAPHIC REFERENCES
http://minagri.gob.pe/portal/485-feria-scaa/10775-el-cafe-peruano
https://www.monografias.com/trabajos35/cafe-peruano/cafe-
peruano.shtml#exportacycomerc
https://andina.pe/agencia/noticia-peru-es-primer-abastecedor-cafes-
especiales-a-eeuu-bajo-sello-comercio-justo-707064.aspx
https://www.agrodataperu.com/2018/05/cafe-grano-peru-exportacion-
2018-abril.html
