Perlamayo is a small village in the district of Huabal. There are around 15 coffee producers in Perlamayo and most have caturra and bourbon, with some just starting to plant catimor, but this is very little at this point. The average farm size in Perlamayo is lower than average, with most producers only having around half a hectare of land. All of the producers here pick themselves and process and dry their coffee in their farms. This lot was built from day lots of various producers in the village.
Yields in Perlamayo are very low, since all of the producers are unassociated and have always been receiving very low prices for their coffee and so have nothing left to invest in the farm. Very low prices combined with small farm size means that producers here are some of the most vulnerable in the area, having very low household income. However, producers in Perlamayo produce some outstanding coffee, without any infrastructure or technical assistance, so we hope that with the help of our field team we will see a huge improvement in quality and production, which will further increase their household income and make coffee production a sustainable living for them.
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.