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  • Writer's pictureJon Ferguson

Peru Declares New State of Emergency

Growing demonstrations led to a renewed state of emergency issued on January 15th, covering the regions of Cusco, Puno, and the port of Callao near Lima. However, the airport in Cusco has reopened following its second closure within the past month, caused by demonstrators returning to the airport for a second time on Wednesday, January 11th.

In early December, when former President Pedro Castillo was removed from office while seeking to dissolve Congress to prevent his impeachment, Castillo supporters began demanding new presidential elections and the removal of the newly positioned President Dina Boluarte, who was the former Vise President under Pedro Castillo. Boluarte is the sixth person to hold the presidency within the past five years.

Riot police officers clash with demonstrators during protests on Avenida de Pierola in Lima, on Dec. 15. Photographer: Audrey Cordova Rampant/Bloomberg

High-Intensity Waves - Raising the Red Flag On January 11th, authorities confirmed the closure of 98 ports due to high-intensity waves, with forecasting weather patterns to continue closure for several days. Although ports have reopened, shipping activities will likely be disrupted due to backlogged freight.

Wrapping up the 2022 Harvest Season

Much of the demonstrations are concentrated in the southern regions of Peru and around Lima, leaving coffee growing regions in the north without disruption. Although there are no physical supply chain disruptions currently being impacted by Peru’s political turmoil in the north, Peru’s political unrest demonstrates an opportunity for the international community to show their support and flexibility during these turbulent times. Political conditions have compounded forecasting and logistical issues from a harvest season which produced well below anticipated yield predictions by exporters, leaving many cooperatives struggling to fulfill their contractual obligations.

Last year was a very turbulent time for Peru’s coffee sector, and the impact will be felt for some time to come. As the new year begins, forecasting for 2023 brings a renewed opportunity for cooperatives to regenerate their focus and operations to improve accuracy on yield estimates and delivery times.

ElevaFinca is excited to reconnect and develop new relationships with clients to assist in discovering the best opportunities for the coming harvest season and to help minimize disruptions throughout the year.

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