SHF land in R&R need
Peru is the 4th biggest Latin American producer
‘000 hectares, 2014
Global & region
9th in world
4th in LA
‘000 tons, 2014
~70% of land is in need of R&R
Need is primarily driven by old trees and exposure to disease(La Roya affected ~50% of coffee growing areas),and to a lesser extent by climate change.
Tons per hectare
Significant uplift potential given low current SHF yields
Total national supply could increase ~10-40% if R&R and GAP is implemented on all SHF land in need of R&R2
(1) The current yield is calculated on the basis of SHF production divided by SHF land area, the potential yield uplift comes from the GCP study on Peru: GCP, Peru: GCP: Economic Viability of Coffee farming, 2017;
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 100%, and the range reflects a 25-100% R&R success rate. Sources: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; USDA, Annual Coffee Report, 2017; ; Federacion Internacional de Productores Agropecuarios, Las cooperativas de Café en Peru: experiencias y perspectivas, 2009; Ministerio de Agricultura y Riego; Plan Nacional de Renovacion de cafetales, 2014; Dalberg interviews
Production is split
National production is split between SHFs and large and medium farmers
About 59% of farmers are SHFs (30% in tight value chains and a majority in loose value chains). 39% are medium farmers (between 5 and 50 hectares) and 2% hold land larger than 50 hectares.
1% of global SHFs1
# SHF land
(~70% of national land) – farm size typically ~2
# SHF production
(~70% of national production)
Assessment of SHF orgs.
Coops obtain better prices, improve post-harvest processing and marketing strategies of SHFs – ~30% of SHFs are linked to coops.
Links to market
Non organized farmers are linked to markets by trader.
(1) Assuming a global SHF population of 20 million. Sources: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; USDA, Annual Coffee Report, 2017; ; Federacion Internacional de Productores Agropecuarios, Las cooperativas de Café en Peru: experiencias y perspectivas, 2009; Ministerio de Agricultura y Riego; Plan Nacional de Renovacion de cafetales, 2014; Dalberg interview
Past R&R programs have focused on renovating areas affected by La Roya
Root Capital – Coffee Farmer Resilience Initiative
Root Capital lent USD 2.7 million to farmer organizations in Peru and trained them to deliver loans to their members
Government of Peru – Coffee renovation program
The Peruvian government channeled concessional loans to SHFs to encourage the renovation of 80,000 hectares
There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.