Case Study

Origin Issue Assessment: Peru Coffee

Through research and expert consultation, the Rainforest Alliance (as part of the JDE Common Grounds program) develops Origin Issue Assessment (OIA) that identify and examine significant risks in key coffee regions. The Peru 2021 OIA pinpointed the following as significant risks: protected areas, forest and high conservation areas, income diversification, and climate smart agriculture.
In Peru, the expansion of coffee-growing areas poses a high risk for deforestation in currently forested and protected areas. A significant proportion of deforestation in Peru is linked to small scale agricultural expansion through slash and burn practices, and coffee production is one of the main drivers of deforestation. Coffee farmers are unable to earn a living income mainly due to low and volatile coffee prices and climate change impacts. With little support for income diversification, some farmers abandon coffee farming and turn to the cultivation of coca, the raw material used in cocaine. Despite its illegality, farmers can earn a higher and more stable income. Climate change is increasingly being felt among Peruvian coffee growers who face challenges with adapting to changing climatic conditions. A lack of subsidies and credits are limiting the implementation of climate smart agriculture practices.