Recently, the United States Department of Agriculture released a report on the coffee industry in Peru, a South American country. According to the report, coffee production in Peru decreased last year due to the impact of the El Niño phenomenon.

In the first quarter of the 2023/24 fiscal year, coffee producers faced significant challenges. Due to the impact of El Niño, rising temperatures and insufficient rainfall, the ongoing occurrence of coffee leaf rust affected coffee growth.

In the subsequent quarters, production gradually recovered from the grip of El Niño, reaching 3.95 million bags. Although this was 6% lower than the previously estimated output, it represented a 9% increase compared to the previous year.

As a result, coffee production for the 2024/25 marketing year is expected to reach 4.22 million bags (60 kg/bag), while exports are projected to be 4.07 million bags. This is due to the current high international coffee prices, which encourage coffee farmers to invest more in coffee cultivation and fertilizers, helping to increase both production and exports.

Currently, the estimated national coffee harvest area in Peru is 335,000 hectares, unchanged from the previous year. In terms of yield, the average production is expected to be 756 kg per hectare, a slight increase from the previous year.

In terms of exports, Peru’s coffee export volume for the 2024/25 marketing year is expected to grow by 6.4% compared to the previous year, reaching 4.07 million bags (60 kg/bag), driven by increased production.Currently, the United States remains the largest market for Peruvian coffee, accounting for 28% of total exports, followed by Germany and Belgium with 18% and 9%, respectively.

In 2019, Chinese companies invested $1.3 billion to acquire a 60% stake in Terminales Portuarios Chancay S.A. (Chancay Port Terminals). The Peruvian National Port Authority (APN) granted COSCO Shipping Group exclusive operating rights for Chancay Port, after which Chinese companies immediately began construction. However, just before completion, Peru unilaterally announced the revocation of the Chinese company’s exclusive operating rights.

In 2023, the bilateral trade volume of goods between China and Belgium reached 3,769,129.43 million US dollars, including agricultural products such as fruits and coffee. In this regard, Peruvian coffee farmers believe that China's coffee consumption is continuously growing, and increased trade between China and Peru will help boost Peruvian coffee exports to China.