In the dynamic coffee industry, it's imperative to remain well-informed and take proactive steps when faced with challenges. Collaboration is the key to conquering these obstacles, ensuring the enduring excellence of coffee from Peru. In the upcoming sections, we will delve into an overview of the situation, our action plan, and the (EUDR) compliance survey results.
Overview of the situation
Peruvian coffee exports are under threat due to delays in implementing EU regulations. The World Bank warns of inadequate coordination between authorities and the private sector, putting millions of Peruvians at risk. Challenges include aging plantations, rising costs, and a competitive disadvantage. Property rights issues and declining exports exacerbate the situation, prompting a call for government action to safeguard this vital industry. Immediate cooperation is required to meet EU standards and ensure the stability of Peru's coffee sector.
Property Rights Issue: The legality of coffee-growing families' land ownership is a significant challenge, as 60% lack property titles. Legal barriers, particularly Law 29763 related to forests and wildlife, prevent them from acquiring legitimate land rights and could lead to the expropriation of inherited land.
Exports Decline: Coffee exports from January to August 2023 have dropped to 72,000 tons, a 25% decrease compared to 2022's 246,600 tons. This decline raises concerns among coffee producers and the industry as a whole.
Throughout the years, Peru has earned international recognition as a prominent exporter of high-quality coffees, particularly specialty and sustainable varieties. Support for Peru's exports is important, and we are committed to providing assistance.
James Cieza Rosillo producer from the hamlet of "La Higuera", Peru
Our action plan:
Survey Results Report: Compliance with the European Union Deforestation Regulation (EUDR)
We have requested cooperatives and partner entities in Peru to fill out an information form to evaluate the needs for them to become compliant with the regulations. This report presents the results of a survey conducted in October 2023, among fifteen organizations in Jaen, Peru, associated with coffee production and marketing. The survey's objective was to assess these organizations' preparedness and practices concerning the European Union Deforestation Regulation (EUDR). The findings provide insights into their readiness for compliance with the EUDR and identify areas for improvement.
Key Findings:
Awareness of EUDR: 90% of respondents were aware of the European Union Deforestation Regulation, though only 50% had a clear understanding of its provisions.
Data Collection Initiation: 90% of the surveyed organizations have begun collecting data relevant to EUDR compliance, demonstrating proactive engagement.
Data Collection: Organizations are gathering diverse data, including producer geolocation information, plot details, and production data.
Data Collection Methods: Common methods include inspection sheets, field visits, and email-based information collection for certifications.
Tools and Platforms: A variety of tools and platforms, such as Notecam, Charl's Soft, Geo tracker, Google Earth, and ForestWatcher, are used for data collection.
Ensuring Compliance: Organizations intend to ensure compliance with relevant legislation by conducting field inspections and implementing procedures tailored to each country's forestry and wildlife regulations.
Timeline for Readiness: All respondents expect to have all data ready for compliance by December 2024, reflecting their commitment to compliance.
Challenges in EUDR Compliance: Significant challenges include information gathering, regulation interpretation, and the complexity of due diligence.
Areas of Support: Respondents expressed the need for support in areas such as regulation and due diligence training, geolocation data management, and streamlined procedures for information handling.
Survey Conclusion:
The survey results show that most coffee industry organizations in Jaen are actively addressing EUDR compliance. While awareness and commitment are high, challenges remain in data collection and regulation interpretation. The areas of support identified are critical for ensuring effective and timely compliance with the EUDR. This report lays the groundwork for future actions aimed at EUDR compliance.
If you have any questions or require further information about the impact of EU regulations on Peruvian and Colombian coffee, please do not hesitate to reach out to us.
Our latest coffee offer is constantly updated here
Source for the overview section: Junta Nacional del café.