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Peru Coffee Report: Production Steady Despite Structural Challenges

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Peru’s green coffee production is forecast to edge up 0.3% to 4.78 million 60-kilogram bags in market year 2026/27, with improved farm management and slightly larger harvested area offset by climate variability, leaf rust and coffee borer pressure, according to the latest USDA Foreign Agricultural Service annual report.

The report also forecasts exports as essentially flat at 4.55 million 60-kilogram bags, supported by stable supply and continued demand for high-quality arabica, organic and certified coffees.

[Note: This is part of an ongoing series of DCN stories that explore USDA FAS country-level coffee reports, which are produced by different authors and field offices around the world.]

Production Stabilizes After Rebound

The 2026/27 forecast is nearly even with the 4.764 million bags estimated for 2025/26, when Peru’s crop recovered sharply from 4.12 million bags in 2024/25.

Harvested area is forecast to rise 1.5% to 340,000 hectares, while planted area is forecast at 375,000 hectares. Coffee is grown across 16 of Peru’s 25 regions, with Cajamarca accounting for 22% of production, followed by San Martín at 20%, Junín at 19% and Amazonas at 15%.

More than 90% of Peruvian coffee is grown by smallholders on farms smaller than 5 hectares. The report said most farms rely on traditional shade growing, hand picking and sun drying.

Rust, Credit and Roads Hold Back Gains

Peru’s coffee sector continues to face lingering disease and pest pressure. The report said coffee leaf rust, which has affected the country since 2013, now impacts nearly 40% of the crop, while coffee borer infestations remain a problem, particularly below 1,500 meters.

Production costs also remain heavy. Labor accounts for about 58% of costs, followed by fertilizers at 24% and agrochemicals at 12%. FAS said limited access to credit remains another major challenge, especially because private banks often reject untitled land as collateral, pushing farmers toward buyers or informal lenders.

The sector is also held back by poor roads, especially during the rainy season, along with limited storage and processing facilities in some key growing areas. 

Exports Hold Near 4.55 Million Bags

Coffee exports are forecast at 4.554 million bags in 2026/27, nearly unchanged from 4.546 million bags in 2025/26 but still up 16.5% from 3.908 million bags in 2024/25.

The United States remained Peru’s top coffee buyer in 2025/26, accounting for 32% of exports, followed by Germany at 16% and Belgium at 11%. The report said export prices averaged $7,577 per metric ton in 2025/26, up 55% from the previous year.

Peru remains the world’s leading exporter of organic coffee, with about 90,000 certified organic hectares. FAS said many additional hectares are effectively organic because small-scale growers use few chemical inputs, often because of cost constraints.

EUDR Concerns

Peruvian coffee groups remain concerned about European Union Deforestation Regulation (EUDR) requirements, particularly for smallholders lacking land titles and geo-referenced farm data. The National Coffee Board, the country’s main coffee producer association, has warned that more government support is needed to preserve European Union market access.

The report also cited the USDA-backed MOCCA project, which trained more than 27,000 producers in Peru, supported 515 nurseries and facilitated nearly $17 million in credit. Meanwhile, the national export promotion agency PromPeru continues to promote Peruvian coffee abroad.


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