FALCON COFFEES PERU S.R.L

As of 2024, we work with 304 registered farmers across 15 districts in the province of Cajamarca and 18 producer associations. Our team in Peru has grown to 12 employees (5 women and 7 men) that comprise our quality and logistics departments as well as an in-house agronomist. Our export office in in Lima. Alongside Honduras, Peru has historically been regarded as the discount Latin American origin of unremarkable and often unreliable quality. This reputation and its accompanying price discount are the results of supply chains focused on large volumes based on aggregated quality, built to serve roasters seeking value over remarkable coffee. This happens at the expense of Peruvian farmers who don’t reap the rewards of higher income through improved quality. The altitude of the Andes combined with rich volcanic soils and tropical rainfall means that Peru has the ideal topography and climate for producing high quality Arabica coffee. We identified the problem as post-harvest processing. Farmers had received little to no training on the chemistry and precision required to maximise the quality of their coffees. We realised that if we provided training that demanded attention to detail, we would need to offer the financial incentive to reward those farmers who made the effort. We focussed on improving our operations and technical activities. This has allowed us to increase volumes and develop the in-house facilities at our dedicated warehouse space. Most smallholder producers lack on-farm drying infrastructure to dry their coffee properly, so we also installed additional drying facilities close to our warehouse, enabling producers to achieve optimum moisture levels and lock in cup quality that would otherwise be lost where coffee cannot be dried properly. Quality drives market demand at premium prices, immediately impacting household revenue. Quality demands training and investment, opening the door to Good Agricultural Practices and incentivising improved environmental stewardship. There is no greater commercial achievement for a coffee producer than placing in the Cup of Excellence competition. It is a badge of honour that provides life changing recognition for producers who go the extra mile with their investments of time, resources and skills. It is the industry gold standard for driving world class quality. Hundreds of farmers enter these competitions, very few make the top ten due to the rigorous scoring criteria. In 2018 Falcon Coffees Peru was established in the northern town of Jaen with an initial intake of 35 farmers. Among them was Eli Espinoza, owner of a small, four-hectare farm, high up in the village of Las Pirias. In 2019 Eli entered the Cup of Excellence Peru competition for the first time. He was unsuccessful but received vital feedback on how to build on his knowledge and lift his crop quality. Under the guidance of our agronomist, our team in Jaen set to work deriving the maximum potential from Eli’s farm. We assisted the installation of a solar dryer and Eli began to experiment with natural processing. As one of the most innovative coffee producers in Peru, Efrain Carhuallocllo Salvador runs his farm and wet mill with extreme precision and care. He owns 4 hectares of land in the village of El Corazon located in Chirinos district. Efrain grows both yellow and red Caturra and Geisha varieties. Passionate about implementing sustainable practices, Efrain does not use using any herbicides or pesticides on his farms. They receive a cup score and an offer price immediately, which they can accept or refuse. In 2019 and 2020, on average Falcon paid double the commercial rate for parchment in Jaen