Peru’s Coffee Export Value Records a YoY Increase of 331% in H1 2022

Published 2022년 9월 5일

Peru is known for producing special and high quality Arabica coffee across the world. Coffee is an important part of the country due to the employment it generates and the revenue it earns from exporting. During the first half of 2022, the country recorded a YoY increase in value and volume of coffee exports of 331% and 176%, respectively. Higher exports were primarily driven by rising demand for Peruvian coffee as Brazil struggled to keep up with its production levels. Furthermore, the rising global coffee prices increased the revenue earned from coffee exports for Peru.

Peru is one of the leading organic coffee producers in the world, primarily producing the Arabica variety. Being Peru’s main agricultural export commodity, coffee makes up 25% of national agricultural income and is exported to over 50 countries in the global market. According to the USDA, Peru’s coffee production for the current marketing year (MY) April 2022–March 2023 is forecasted to be 4.03 million 60 kg bags, which is a YoY increase of only 2%. Subsequently, coffee exports are expected to reach 3.95 million bags, which is a slight increase from the previous MY. Suitable agro-climatic conditions and higher prices are driving coffee producers in the country to increase their output, which will increase the availability of coffee in the country for exports. This year, in particular, Peru has performed very well in terms of coffee exports during H1.

The lower global coffee supply resulted in rising FOB prices and export revenue for Peru this year. According to the Coffee and Cocoa Committee of the Association of Exporters (ADEX), in the first half of 2022, Peru exported coffee worth USD 436 million. Out of the total value, USD 54 million was earned from organic coffee exports while the remaining USD 371 million was earned from conventional coffee exports. The total value of exports recorded a YoY increase of 331%, while the volume of exports also increased by 176% during this period. The most important markets for Peru were the US and Germany, which together accounted for 45% of total shipments. This was followed by Belgium, Colombia, Sweden, France, Canada, the United Kingdom, and South Korea, all of them with three-digit growth.

With Brazil struggling to produce enough coffee to export overseas, Peru capitalised on the opportunity by exporting to other countries that appreciated high quality coffee. Last year, Peru’s coffee exports were worth USD 760 million, with the main destinations being the United States, Germany, Belgium, and Spain. In 2022, it is projected that coffee exports will generate USD 1,200 million, which is an extraordinary figure not recorded before since 2011, when sales of USD 1,594 million were reached. Peru has the potential to reach this figure this year given the global market dynamics and ample coffee production in the country. There is a Permanent Multisectoral Commission National Executive Coffee Council established, which is a coordination space working towards sustainable and competitive development of Peruvian coffee and achieving these production and export targets.