Coffee review

Annual report of Honduran Coffee 2017

Published: 2025-08-21 Author: World Gafei
Last Updated: 2025/08/21, Highlight of the report: Honduras is the largest coffee producer in Central America and the third largest coffee producer in Latin America, ranking sixth in global coffee exports. Coffee production in Honduras from October 2017 to September 2018 is expected to reach 6.5 million bags, up 4 per cent from last year. For the 2016 / 2017 sales year, at the beginning of 2017, Loeb

Highlights of the report:

Honduras is the largest coffee producer in Central America and the third largest coffee producer in Latin America, ranking sixth in global coffee exports. Coffee production in Honduras is expected to reach 6.5 million bags from October 2017 to September 2018, up 4 per cent from last year. For the 2016-2017 sales year, in early 2017, the Lebra coffee bean (Lempira) was found to have contracted coffee rust, although it was previously thought to be immune to coffee rust. In April 2017, the Honduran Coffee Institute (IHCAFE) confirmed that Lebra's resistance to coffee leaf rust was not comparable.

Summary:

Honduran coffee grows at high altitudes, with 61 per cent of the farms at sea level between 3900 and 5200. Coffee is grown in 15 of the 18 agricultural areas in Honduras. According to a study by the Honduran Coffee Institute (IHCAFE), nearly 97000 small and medium-sized farms planted coffee beans in 2016, accounting for 89 per cent of coffee production in Honduras.

The coffee harvest for the 2017 / 2018 sales year is expected to be 6.5 million bags. According to reliable calculations, this yield has increased by 4% over last year's harvest, taking into account the loss of the risk of coffee leaf rust transmission. The Honduran coffee plantation that grows Lebra coffee beans has been severely damaged by sudden coffee leaf rust. If the coffee plantation management does not handle it properly, the harvest of the 2017 Coffee Leaf Rust in the 2018 sales year may be further affected by the coffee leaf rust. In addition, future harvests may also be at risk, and IHCAFE has stepped in and taken action to prevent the spread of disease, excessive rainfall and continuous high temperatures.

Authorities predict that coffee exports will reach 6.3 million bags in the 2017 / 2018 sales year, which is a conservative figure taking into account the risk of the spread of coffee leaf rust. Exports of certain varieties of coffee have increased due to the increase in demand.

Production:

60% of coffee in Honduras is grown between 3900 and 5200 feet above sea level, 23 per cent at 2900 to 3900 feet, and the remaining 16 per cent at 1600 to 2900 feet above sea level. Coffee is grown in 15 of the 18 agricultural growing areas in Honduras and 210 out of 298 cities. Between October 2010 and September 2016, 97061 manufacturers registered for IHCAFE. Of these producers, 96608 are small growers (harvesting less than 153bags per year) or medium growers (153to766bags per year). These small and medium-sized coffee growers harvest about 89% of the coffee produced in Honduras.

Coffee production accounted for 4% of GDP in 2001, according to the Central Bank of Honduras. The coffee production forecast for 2017 / 2018 is estimated at 6.5 million bags, an estimated increase of 4 per cent over 2016 / 2017. The expected increase is due to an increase in acreage two years ago, which also takes into account the impact of coffee leaf rust on the harvest.

The production of the 2017-2018 sales year is full of uncertainties due to rust. Many producers still need training and financial support to control rust in order to improve a range of anti-rust equipment on coffee plantations before the rainy season. The Honduran government will provide about $25000 in new loans to manufacturers to deal with new rust outbreaks. However, many producers are still repaying loans from the government at the time of the rust outbreak in 2012. HCAFE is taking action to prevent coffee leaf rust from spreading with the onset of the rainy season and rising temperatures. At the same time, INCAFE has completed a review of the operational plan and budget for the preventive control of coffee leaf rust.

INCAFE also predicted the possibility of El Ni ñ o, which could have a negative impact on coffee production in the long run due to less rain and drought this year. At the same time, small farmers' lack of technology for the application of chemical fertilizers and water shortage will have a great impact on coffee production.

According to reliable sources, both the acreage and harvest area will increase slightly in the 2017 / 2018 sales year, but far less than before coffee rust.

The following agencies are committed to the prevention and control of coffee leaf rust:

1. The Coffee production early warning system (SAT) was established in 2012, when Honduras was in the midst of an outbreak of coffee leaf rust. SAT consists of the IHCAFE, the Secretariat of Agriculture, the Secretariat of Animal Husbandry, the Food Secretariat, the Agricultural Organization (FAO), the Meteorological Organization of the National Service, and the International Organization of Plant and Animal Health (OIRSA). The goal of the organization is to inform and interfere with potential phytosanitary threats to governments, coffee producers, and specialized agencies in a timely manner. This information is also shared with countries and coffee beans with rust-resistant varieties are cultivated. SAT will issue monthly announcements to guide IHCAFE and coffee producers to continue to improve regulatory measures and really implement agricultural coffee production practices.

2. IHCAFE Research and Development Center will continue to evaluate the rust resistance level of various coffee varieties, and conduct research on a series of other varieties.

3. Coffee producers' associations and international organizations have implemented short -, medium-and long-term strategies to combat coffee leaf rust after 2013, which focus on producer training, advocacy activities and technical assistance.

These special coffees have different programs and certifications such as Fair Trade / ORG (FLO / ORG), Association 4C, Organic (ORG), UTZ Certification, Rainforest Alliance (RFA), Birdfriend, Starbucks Coffee, Fair Trade (FLO) Coffee Certification, Japanese Agricultural Standards (JAS) and Excellence Cup. Between 2010 and 2016, exports of high-quality special coffee rose to 5.1 million bags, a big increase compared with the previous period.

As part of IHCAFE's efforts to sell Honduran specialty coffee, six different coffee zones have been established. These specialty coffee varieties will not be infected with rust, due to the high demand, production continues to rise. Producers rely on a good mode of agricultural production to control their growth and maturity.

The United States Department of Agriculture (USDA) is a participant in the largest coffee growing program in Honduras. The project is implemented by TechnoServe and focuses on all aspects of the coffee value chain: production, processing, post-harvest and marketing, accounting for about 60% of coffee production nationwide. The project aims to improve the production of high-quality coffee through improved cultivation, post-harvest and treatment, strengthen links with national markets, increase exports, strengthen links with other coffee producer organizations, and provide adequate financing channels for the broad masses of producers.

Consumption:

It is estimated that the local per capita consumption of coffee beans is 40 pounds per year. The increase in domestic consumption trends mainly comes from shopping malls, gas stations, retail areas, coffee shops, supermarkets, office buildings and hospitals. A large part of the Honduran population is young consumers, and they are consuming more different types of coffee drinks, such as "iced" coffee. The current life of the coffee bar provides customers with free wireless Internet to attract high school and college customers.

Trade:

Exit:

Honduras ranks first in Central America in terms of coffee bean exports, third in Latin America and sixth in the world. It is estimated that the harvest in the 2017 / 2018 sales year will reach 6.5 million bags, with 6.3 million bags of coffee beans being exported. In the coffee trade of the whole year, the delivery volume is the largest from March to June. The value of exports reached $842 million between 2010 and mid-2011, with an average transaction price of $163.83 per bag.

Number of major export destination countries:

Export trade matrix

Country:

Honduras

Goods:

Raw coffee beans

Time period

Sales year

Unit:

Bag (60kg)

Export to

2016

2017

The United States

1164

The United States

1388

Other countries

Other countries

Germany

1405

Germany

1677

Belgium

450

Belgium

536

Italy

354

Italy

423

France

262

France

313

Mexico

207

Mexico

247

Switzerland

159

Switzerland

190

The United Kingdom

139

The United Kingdom

166

South Korea

130

South Korea

156

Canada

123

Canada

146

Total amount of other countries

4393

5242

No country quantity is listed.

746

891

Total export volume

5139

6133

Source: 2016 sales year: preliminary annual report of IHCAFE 2015

Sales year 2017: late estimate

Informal exits:

The quantity of high-quality coffee exported informally has increased significantly and has been exported in large quantities to Guatemala and Nicaragua, as buyers from those countries have higher prices than local buyers and exporters, with an estimated volume of 460000 bags.

Import:

During 2015, domestic consumption imported roasted coffee mainly from the United States, Costa Rica and Nicaragua, according to the Central Bank of Honduras. Imported soluble coffee mainly comes from the United States, Colombia, Mexico, Chile, El Salvador and Costa Rica. In terms of domestic expectations, competition between domestic coffee and roasted and soluble coffee supplied by the United States will grow. Juan Valdes Columbia Coffee is now sold in supermarkets and is popular in major shopping chains in the country. International Coffee sells soluble coffee in machines in local shopping malls and offices. In addition, soluble coffee is very popular because of its convenient characteristics, and its price is also higher than that of local coffee.

Inventory:

Shares are jointly held by private sector exporters and baking institutions. Coffee beans are stored by exporters because the stock of coffee beans needs to match contracts to be delivered in the future and does not hold stocks designed to influence prices. Roasters in Honduras keep their coffee beans consumed in the country throughout the year. Some stocks may be sold to other Central American countries in the middle of the year due to price factors.

Policy:

IHCAFE was founded in 1970 and is defined as a semi-autonomous institution. In 2000, the Government of Honduras (GOH) privatized IHCAFE as an efficient non-profit organization. At the same time, the National Coffee Council (NCC), the world's highest regulatory body, oversees the Honduran coffee industry all the time. NCC is a professional organization for all aspects of coffee production, harvesting and export. IHCAFE has the following strategic axes:

(a) strengthen production and productivity.

(B) guaranteed Honduran coffee.

(C) promote sales.

(d) Diversified marketing.

(e) completion of financing for the coffee sector.

It provides guidance and regulations for the entire coffee industry. It establishes commercial procedures and controls coffee production and mouth. IHCAFE issues export licenses to exporters, where producers must register in order to trade coffee and complete coffee exports.

Marketing:

Honduras divides coffee production and quality specifications into six different regions for differences in microclimate and soil composition. In 2004, Honduras started the COE Cup. Makala Coffee Geographic indication (GI) was born as a brand of Honduran Western Coffee (HWC). International Marketing-the IHCAFE "Excellence Cup" promotion brings together the best Honduran coffee, which is sold globally through electronic auctions. Through this game, Honduras discovered a niche market for coffee. Honduras hosted the 13th Century Cup in 2016 and plans to encourage it to maintain consistent quality coffee, promote good production practices, processing, good environmental management and compliance with international market requirements. Honduras has a growing reputation as a professional coffee producer. More and more international fairs will invite Honduran coffee producers to participate in the exhibition. With the increasing demand for high-quality Arabica roasted coffee, Honduras has the opportunity to establish opportunities to cooperate with coffee sellers in the United States.

Production, supply and demand data statistics:

Raw coffee beans

2014/2015

2015/2016

2016/2017

Starting month

October 2014

October 2015

October 2016

Official data

New price level

Official data

New price level

Official data

New price level

Planting area

0

303

0

324

0

338

Harvest area

0

240

0

261

0

274

Fruiting tree

0

1020

0

1110

0

1168

A fruitless tree

0

270

0

270

0

210

Total amount of coffee trees

0

1290

0

1380

0

1378

Initial inventory

340

340

415

694

0

510

Arabica output

5300

5827

5500

6287

0

6517

Robusta output

0

0

0

0

0

0

Other output

0

0

0

0

0

0

Total output

5300

5827

5500

6287

0

6517

Import of coffee beans

0

0

0

0

0

0

Import of coffee powder

0

0

0

0

0

0

Instant coffee import

20

16

20

16

0

16

Total import

20

16

twenty

sixteen

0

sixteen

Total supply

5660

6183

5935

6997

0

7043

Export bean quantity

4900

5137

5100

6133

0

6321

Coffee powder export

0

0

0

0

0

0

Instant coffee export

0

0

0

0

0

0

Total export

4900

5137

5100

6133

0

6321

Domestic coffee powder consumption

three hundred and twenty five

three hundred and thirty six

three hundred and fifty

three hundred and thirty eight

0

three hundred and forty

Domestic instant coffee consumption

twenty

sixteen

twenty

sixteen

0

sixteen

Domestic consumption

three hundred and forty five

three hundred and fifty two

three hundred and seventy

three hundred and fifty four

0

three hundred and fifty six

Final inventory

four hundred and fifteen

six hundred and ninety four

four hundred and sixty five

five hundred and ten

0

three hundred and sixty six

Total distribution

5660

6183

5935

6997

0

7043

Area unit: 1000 ha; tree quantity unit: million; coffee quantity: 1000 bags (60kg/ bag)

0