Jose Arce Diaz is the owner of 3 hectares of coffee in the village of Las Pirias in Chirinos. The area is mostly planted with caturra and typica, but he also grows bourbon and catimor. At 1800masl the growing conditions at the farm are ideal, and contribute to a very refined and fruity cup profile. Jose processes his coffee at his house, where he has a small hand pulper and a fermentation tank. He recently invested in a new drying area, which is a wood frame with plastic covers and raised beds inside.
Jose is one of the new wave of young coffee producers in Peru, having moved from an area south of Jaen where they grow a lot of grains and potato, he started working in farms in around Chirinos, before saving up enough money to buy his own plot of land. Up until this year, Jose had been selling all of his coffee to intermediaries and local aggregators, but now is being paid based on cup score and has more than doubled his household income since he started working with Falcon. Jose plans to invest a lot of this into his farm, renovating the old plants and planting new, high quality varieties.
We have been working in Northern Peru for several years, buying specialty coffee from cooperatives and associations with whom we have built lasting relationships. This is the conventional way of sourcing in Peru and gives farmers associated with these groups some stability. Whilst a lot of the arrival quality in previous season has been good, we struggled to impact upon that quality or make improvements in the supply chain as we would like. More importantly, the premiums we had been paying for quality rarely makes it back to producers in the same, something we have had very little control over in previous years. In Peru, like some other origins, many coffee farmers are For these reasons we decided we needed to change the way we buy coffee in Peru, and work directly with producers, to be able to control and improve the quality and have full financial traceability. In order to do this, we set up a warehouse in Jaen and started to buy in parchment directly from producers.
The Cajamarca region holds a lot of potential for quality coffee, with ideal growing conditions and great varieties, but quality is often lost in picking, processing and drying, with producers lacking infrastructure and knowledge. The most vulnerable producers are those that are unassociated, who aren’t members of a cooperative, association or organisation, and they represent 75% of producers in Northern Peru. These producers don’t have access to training sessions or premiums for quality or certifications, and their income is totally dependent on the market price. Often, local aggregators, a buyer who lives in the same area, will come to the farm or house of producers and buy coffee their coffee, cash in hand, and then sell it on, in some cases directly to an exporter or more often to other traders and middlemen. This results in the producer being paid very little for their coffee and a lot of quality coffee is lost.
Our field team identified producers and producer groups across Jaen and San Ignacio, who brought their parchment to our warehouse in Jaen, where it was weighed, and a sample taken from each bag. The green sample is then analysed, and yield is calculated, before it is roasted, cupped and graded. The price is determined by the cupping results and producers are paid in full the same day, with premiums well above the market price, in most cases double. We have over 300 registered farmers, who will all be trained on farm management and picking, processing and drying by our agronomist, Auber Terrones Rojas.
This shift in approach to sourcing will allow us to forge long term relationships directly with farmers, improve the coffee quality and increase producer household income through access to quality premiums.