Peru coffee output to see sharp drop this year

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Peru, the third largest coffee producer in South America, will see a significant drop in coffee production this year, due to labor shortages, and lower crop yields.

According to the Peruvian government, coffee production will drop by about 25 percent this year, to about 5.5 million bags.

However, production is expected to return to 2011 levels next year, Gestión reported.

Meanwhile, revenue from Coffee exports are expected to drop to $1 billion – a 37 percent fall – due to lower prices, and fewer orders. Coffee-export income totaled $1.578 billion in 2011, an all time high.

Peru is the third largest coffee producer in South America, just behind Brazil and Colombia, and is one of the top 10 biggest producers in the world. The country is the largest producer and exporter of organic coffee in the world.

Peru, the third largest coffee producer in South America, will see a significant drop in coffee production this year, due to labor shortages, and lower crop yields.

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