Suffolk coffee roasters and tea smiths Butterworth & Son explain how political unrest in Peru is affecting the coffee industry
It has now been 10 months since my visit to Peru, one of our most important coffee origins. Current news of Peru is not great; political unrest, strikes and protests are not always the civilised events we are used to in the UK. I asked one of my friends in Peru to give us the lowdown without the media filter.
Here's what Eshima Secce wrote:
Background
In less than five years, Peru has had six presidents. In December 2022, Pedro Castillo failed undemocratically to attempt to dissolve Congress and after his arrest, Dina Boluarte was anointed Peru’s sixth and first female president of the country. Immediately after, tens of thousands of people have come out to protest in various parts of the country to demand the resignation of Boluarte, the dissolution of Congress and the urgent call for presidential elections. More than 60 people have lost their lives in the riots between protesters and security forces that lasted around three months.
The strikes have disrupted the transportation of goods and services, affecting the coffee industry, which is the main agricultural product export. Peru is the ninth-largest coffee producer in the world and it is grown in several regions across the country, including Cajamarca, Amazonas, Junin, Cusco and Puno. These regions have been particularly affected by the strikes, which have prevented coffee farmers from harvesting, processing, and shipping their 2022 crops.
The scenario so far
Nearly four months into the Boluarte presidency, several ministers in her government have resigned, while the country has been rocked by its most violent protests in decades. Boluarte has tried to placate protesters, asking Congress for an earlier election date, but this was rejected by 62 votes against, 45 votes in favour and two abstentions. Making new elections to be done in April 2024.
After that, the left-wing benches of the Congress proposed the presidential vacancy motion against Dina Boluarte as a plea for protestors. For the latter to happen, 52 votes were needed, however, Boluarte was supported by the benches of Fuerza Popular (Fujimori's political party), Renovación Popular, Avanza País and Alianza para el Progreso, which ratified their support for the current government despite the crisis unleashed in December last year. This makes people believe congress and the president are working together to never intend to leave, but to gain time by showing a lot of activity but zero results.
Upcoming scenario
The national economy is mostly supported by the private and individual sectors, of which coffee exports have a leading role. Peru has a reputation for producing high-quality coffee, but the political instability has led to concerns about the reliability of the supply chain. This situation has made it difficult for Peruvian coffee to compete with other producers in the international market.
Despite these challenges, there is hope for the coffee industry in Peru. The 2023 coffee crop started two weeks ago in areas below 1,000 m.a.s.l and it shows a significant increase of 12 per cent compared to the harvest in 2022, which reached a volume of 228,000 tons of green coffee, this is mainly encouraged by good agricultural practices on farms, especially fertiliser application, despite their high prices. On the other hand, the National Joint of Coffee in Peru (Junta Nacional del Café), are claiming Peruvian authorities take action to the Europe restrictions for non-deforested lands certification, as it might impact the coffee export price in overruns and accreditation problems.
The country has a long tradition of coffee production, and there are many dedicated farmers and producers working to improve the industry. The government has also recognised the importance of the coffee industry and has taken steps to support its development through national fund programs such as Agroideas, Agrobanco, Innovate Perú and international expositions led by Promperu.
In conclusion, the political situation in Peru has had a significant impact on the coffee industry in the country. The lack of infrastructure, support from the government, and access to credit have made it difficult for the industry to compete on the international stage. However, there is hope for the industry, and with the right investments and support, it can continue to grow and contribute to Peru's economy.
Butterworth & Son coffee roasters and tea smiths are based on Moreton Hall, Bury St Edmunds
Owner Rob Butterworth’s job takes him around the world visiting coffee farmers to source great coffees
www.butterworthandson.co.uk
