Coffee in Honduras: Negative Outlook

Honduran coffee growers forecast that for the 2018-2019 harvest, foreign sales income will be reduced by $300 million with respect to the previous cycle.

Monday, January 28, 2019

According to the Association of Coffee Exporters of Honduras (Adecafeh), the bad numbers for the sector continue, because so far this crop has registered a fall of $ 40 million in exports, equivalent to 400 thousand quintals, compared to the previous cycle.

Laprensa.hn reports that "... producers estimate that if the trend continues, at the end of the coffee year it could represent a 300 million dollar drop in foreign exchange."

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Emilio Medina, a businessman in the sector said that "... If this continues, we would have to be grateful if it reaches $1 billion dollars, the previous year we closed with $1.3 billion, but this year as can be seen, nine million quintals would be exported."

According to CentralAmericaData reports, in the first semester of 2018 the main coffee exporter in Central America was Honduras, with $830 million, followed by Guatemala, with $474 million, Nicaragua, with $322 million, Costa Rica with $228 million, El Salvador, with $83 million and Panama with $11 million.

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Coffee Production Would Go Down 11%

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In Costa Rica, the coffee sector expects that for the 2018-2019 harvest will be produced about 1.8 million quintals, a volume that would be 11% lower than that recorded in the 2017-2018 season.

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Because of the drought and the decrease in international prices, the trade guilds of the sector in El Salvador are projecting a decrease in production for the next harvests.

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Negative Expectations for Honduran Coffee

June 2018

The sector union foresees that for the 2017-2018 harvest foreign currency generated from sales abroad will fall by 14% with respect to the previous season.

Explained by a drop in the average price per hundredweight of exports, which fell from $145 in the 2016-2017 season to $123 so far in the current harvest, the Honduran Coffee Institute (Ihcafé) envisages a 14% decrease in income from sales abroad.

Honduras: Coffee Sales Still Falling

May 2018

Up until April 30, the export value of the current 2017/18 harvest was $680 million, 13% less than was reported on the same date in the 2016-2017 cycle.

According to figures from the Honduran Coffee Institute, the registered decrease is due to the fact that " ... The average export price per hundredweight to date is $122.74, compared to the average price of 2016-2017 of $145.26, down 16%. "

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