04 de Feb 2021 | Coffee
With big deliver: This 2021 Coffee rearranges expectantly
In the midst of the Pandemic, ground coffee opens a space in the Peruvian home and exports are resilient in the new context. This year the National Plan for the Promotion of Peruvian Coffee Consumption will be launched.
Exports: the post-covid situation
Coffee is one of the main agricultural products in international trade. Although covid-19 has affected logistics activities in the supply chain, the final impact is uncertain: the value of exports increased slightly, reaching US $ 637.4 million, the effect of an increase of almost 10% in the average price and decreasing the fall in the volume operated which was reduced to 3.54 million bags, 7.5% less than in 2019.
The final effect of the pandemic remains to be seen, but a new panorama in the participation of exporters is visible: in 2020, the 20 main companies exported 71.6% of the value and 73.4% of the volume; Compared to 2016, these have exported 12.4% less in value and 10.4% less in volume, a deconcentration. Now we find 2 more cooperatives in the top 10. Players are changing their position and participation in different markets.
Effects of the Pandemic
The pandemic has stimulated variations in international trade operations, and perhaps these have also benefited the sector, since in the new panorama, a strengthening in the business is appreciated: the average price received by Peruvian exporters last year was 137.6 USD / qq, is 15.3% higher than the figure of two years ago, and 22.8% higher than the average annual price of the NY Stock Exchange in 2020. This could be explained by how the biosafety protocols in the production and post-harvest processes have strengthened the image of the country as a producer.
For 2021, the projections for exports indicate that the volume would increase between 4.4% and 12.5% compared to the previous year; between 3.7 and 4 million bags of 60 kilos of green coffee. The sector would continue to show its adaptation to the new circumstances.
Source: Customs
Elaboration: Peruvian Chamber of Coffee and Cacao
Domestic consumption: national ground coffee accommodates the Peruvian home
By 2020, ground coffee, mainly Peruvian, has adapted to the new routines of the home, which now include teleworking. For this reason, its sales have increased by 6.9% compared to 2019, while soluble coffee has shown a slowdown. Roasted ground coffee is characterized by its aroma and aftertaste in the cup: qualities previously unnoticed in the daily frenzy, but which can now be appreciated at home. This is because the covid-19 has removed the coffee shops near our work centers or universities, as occasions to have a cup of coffee. There is no doubt that within this segment, specialty coffee shops have been hit the hardest. However, the pandemic has given a pause that allows us to realize the taste of what is being taken. Here, ground coffee, which is not yet part of the table of most Peruvian homes, has the opportunity to provide that different experience that is increasingly sought in the daily life of the home.
The National Plan for the Promotion of Peruvian Coffee Consumption
This year we will carry out the National Plan for the Promotion of Coffee Consumption; in an effort to create new consumption occasions for roasted ground coffee, in a way that benefits both Peruvian consumers and producers. The covid-19 has caused variations in the market, which can be used for this initiative.
The National Plan for the Promotion of Coffee Consumption is part of the Alliance for Sustainable and Competitive Coffee project, executed by the Peruvian Chamber of Coffee and Cocoa and the National Coffee Board as part of the SeCompetitive Program of the SECO Swiss Cooperation, in collaboration with Helvetas Peru and the Swiss Embassy in Peru.
SeCompetitivo Program Facebook: https://www.facebook.com/SeCompetitivo/
Facebook of the Peruvian Chamber of Coffee and Cacao: https://www.facebook.com/camcafeperu