Latest News on Peruvian Coffee: Falling Prices Force Peruvian Farmers to Switch to Coca Cultivation!

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The Crisis in Peru's Coffee Industry

Due to the global collapse in coffee prices, farmers in Peru's central jungle have been forced to cut down all their coffee plantations and start growing coca, the raw material used to produce cocaine. This national trend has brought Peru's coca production to approximately 55,000 hectares annually (producing around 500 tons of cocaine), enough to supply more than three times the United States' annual cocaine demand.

Impact of COVID-19 on Coca Production

With COVID-19 lockdowns reducing drug trafficking routes, coca prices plummeted to half their previous levels, with demand decreasing by 23% throughout 2020 compared to the previous year. Despite this, due to consistent demand, coca provides greater security for impoverished farmers than any other crop.

The Decline of Peru's Coffee Golden Age

Yusbel Almonacid Santos, a farmer from the town of Satipo in Peru's central jungle, recalls the golden age of Peruvian coffee: "People were very interested in coffee; back then, coffee was the golden bean. Ten years ago, Peruvian coffee prices were very high, reaching up to $2.70 (1.97 pounds) per kilogram. But in 2010, coffee leaf rust spread throughout the jungle, destroying Peru's coffee plantations. Although the National Agricultural Bank provided loans to help farmers replant, soon after, prices plummeted to $0.60."

Local Farmers' Perspective

"Growing coffee isn't profitable!" local farmers lament.

Coffee from Peru's growing regions requires farmers to cultivate on steep slopes year-round. Each coffee harvest requires hiring a group of workers for harvesting, followed by sun-drying. Every year, merchants demand higher quality and more certified organic coffee beans, increasing farmers' costs. "The workload of coffee farming is greater than the profit," complains one farmer.

Marianne Zavala, leader of a local farmers' alliance, states: "If the price is only $1.40 per kilogram, that's just enough to pay the harvesters' wages, but for those who grow coffee, it's equivalent to nothing. Harvesting coffee actually only puts coffee growers in debt, so in 2020, many coffee growers couldn't be bothered to harvest the ripe coffee fruits."

The Broader Agricultural Crisis

Prices of other crops are also too low to survive. "We took out bank loans to plant one hectare of bananas. When the bananas looked beautiful and ready to harvest, their prices fell to $0.40. How can farmers make money with such prices? Now many farmers have loans from banks, and because they can't earn money, they worry that the bank will send people to collect debts," says Marisol Díaz.

Extreme Poverty in Remote Regions

In areas far from Peru's major towns, extreme poverty is a common phenomenon. Houses are built with rough wooden planks and rammed earth floors, and many homes lack electricity, sanitation facilities, and running water. Malnutrition and anemia are common, especially among children. A coffee grower points to the swollen bellies of local children, saying: "Look, the children here can only drink soup. People really can't afford better food."

Coca as a Lifeline

Now coca has become the lifeline for these farmers. As a cash crop, it has clear advantages. Coca grows like weeds on steep slopes as well as in acidic soil and high-altitude areas. Coca can be harvested within a year of planting, with its harvest cycle from March to April each year providing families with a steady income. The price for 25 kilograms of coca fluctuates between $30 and $70, while coffee averages $37 for the same weight, with only one harvest per year. "When leaf rust killed the coffee trees, those who grew coca could keep their farmland, while those who didn't grow coca had to abandon their land due to lack of income."

Coca: More Than Just a Crop

Coca is not just a crop; it's more like a "savings account."

Coca has rich social, cultural, and medicinal significance in Andean indigenous culture, dating back to pre-Columbian times. However, since the 1970s, coca has been primarily used for cocaine production. According to local civil organizations, of the 117,292 tons of dry coca leaves produced in Peru in 2017, a conservative estimate suggests that 106,401 tons were used for drug production. Despite being illegal, farmers have no moral qualms about growing coca. "We are not committing a crime by growing coca; the crime is committed by those who buy cocaine base," explains one grower.

Government Response and Violence

Due to the Peruvian government's violent response to coca expansion, supported and funded by the United States, in April 2019, in the San Gabán region about 1,500 kilometers southeast of Peru's capital Lima, two coca growers were killed by government forces, and many more were injured while defending their plantations.

Abandonment and Neglect

In the small town of Paratushali in Peru's central jungle, locals describe their region with words like "abandoned," "neglected," and "forgotten." During the rainy season, roads become impassable, public health and education infrastructure are lacking, and farmers' biggest complaint is the state's lack of assistance in marketing their products. "The state never cares about us small growers; they're more interested in cracking down on coca. The state development agency (DEVIDA) is supposed to help us replace coca with other agricultural products, but they end up spending 80% of their budget on salaries and cars. When the budget finally reaches us, all we get is a bag of fertilizer and a machete," says a local coca grower.

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