In Peru, the most significant challenges farmers face include poor infrastructure and climate change. In particular, unpredictable and unprecedented heavy rainfall can cause a number of severe issues, including uneven cherry ripening and plant damage..
To further complicate matters, the climate varies widely across Peru’s coffee-growing regions, even in the regions around Jaén.
Here, OCL works directly with producers, cupping all deliveries and paying a premium directly related to the quality of their coffee to show how their crop can be differentiated. They also provide education on financial and agricultural best practices to help farmers move towards a more sustainable future.
The prices OCL pays to producers starts with the market rate for organic coffee as the base. A quality premium is then added to that. In 2019, OCL paid an average of 37% above the market price to smallholder coffee farmers in Jaén.
In the past year, this works out at more than US $500,000 paid in quality premiums to smallholder farmers.
OCL also carries out a number of initiatives to invest in the quality of future coffee harvests. In recent years, it has funded the construction of a warehouse for storage and green coffee sorting, as well as a new vacuum packing line for microlot and nanolot coffees.