Value chain and competitiveness of organic coffee in the agricultural cooperatives of southern Peru

Abstract

Agricultural cooperatives have been contributing to the economic dynamics in their territories. In southern Peru, organic coffee is in great demand. Therefore, the study objective is to determine the critical processes of the organic coffee value chain and its relationship with the competitiveness of coffee agricultural cooperatives. The methodology used was a mixed approach of descriptive, correlational, cross-sectional, and case-study type. The results indicate that the value chain is production, collection, conversion, and marketing links. The cooperatives' value chain level is 40% fair, 50% low, and 10% very low. Regarding competitiveness, 10% of the cooperatives are very low, 70% are low, 10% are fair, and only 10% are high. The value chain and competitiveness relationship are significant; they have a high positive co-dependence. The critical processes in the value chain are production, collection, conversion, and marketing. It is proposed that the Tupac Amaru and Inambari cooperatives carry out their activities independently and market their products nationally and internationally. The conclusion is that the organic coffee value chain in southern Peru is not strong, as there are no cooperatives with a high or very high level. The demand for coffee is greater than the supply. Only the San Juan del Oro cooperative has a high level of competitiveness; CECOVASA, regular; and 70% have low or very low competitiveness. The lowest-level dimensions are environment, financial management, associativity and institutionality, and business strategy. The state has a negative relationship, showing that its participation in improving the competitiveness of cooperatives is not effective; access to coffee farms is also deficient. Cooperatives, local governments, the national government, non-governmental organizations, and international cooperation should strengthen lower-level dimensions to enhance the coffee value chain and improve its competitiveness.