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Honduras Challenging ‘Big 5’ of Coffee Producing Countries


Elevated Honduras espresso harvests over latest years have led the Central American nation to problem the established ´large 5´ of espresso producing international locations, made up of Brazil, Vietnam, Colombia, Indonesia, and Ethiopia.

A map of Honduras and some major cities. Honduras coffee production has risen over recent years to see the country challenge the traditional big five of coffee producing countries
A map of Honduras and are available key cities

Brazil stands head and shoulders forward of all different producers, producing greater than 73 million sacks of espresso per yr on common between 2015 and 2020 in comparison with roughly 40 million sacks produced yearly by second-placed Vietnam, as highlighted in a new report from Instituto Hondureño del Café (IHCafe).

In line with that report, whereas Colombia and Indonesia are firmly established because the third- and fourth-largest producers, producing a mean of 18 million and 14.5 million sacks respectively every year throughout the identical interval, Honduras espresso yields have seen it push more and more nearer to overtaking fifth-placed Ethiopia.

SEE ALSO: Register a Business in Honduars: a 6-Step Guide

Between 2015 and 2020, whereas Ethiopia produced a mean of 9.5 million sacks of espresso per yr, Honduras produced a mean of 8.95 million per yr, and even exceeded Ethiopian manufacturing within the 2016/17 and 2017/18 harvests.

That factors to appreciable development within the Honduras espresso financial system, with the nation now firmly established because the chief amongst espresso producing international locations in North and Central America, having had manufacturing akin to each Mexico and Guatemala a decade in the past.

Honduran espresso plantations are usually concentrated within the western a part of the nation, near its borders with El Salvador and Guatemala.

Observe that, for the needs of this text, all pre-2014 values printed by IHCafe have been adjusted to the 46 kilogram sack counts, having beforehand been based mostly on 60 kilogram sacks.

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‘Large 5’ espresso producing international locations challenged amid rising consumption

Whereas the highest 4 espresso producing international locations are firmly established, Honduras has proven indicators of difficult Ethiopia’s place among the many ‘large 5’ over latest years, whereas India has additionally been house to rising manufacturing.

That comes amid rising consumption of espresso world wide, which exceeded 100 million baggage per yr for the primary time in 1996/7, in line with figures (pdf) based mostly on 60 kg sacks printed by the Worldwide Espresso Group (ICO).

A map of the top 10 coffee producing countries in the world, of which Honduras is number 6
A map of the largest espresso producing international locations worldwide

Consumption subsequently exceeded 150 million sacks for the first time in 2014/15, and hit an all-time report in extra of 168 million sacks in 2018/19. Whereas 2019/20 noticed the primary decline in consumption in a decade, it nonetheless sat at greater than 164 million sacks, and is predicted to bounce again to development once more within the present interval.

Notably, excluding the decline years of 2008/09 and 2019/20, consumption charges have been sturdy and rising because the Nineties, a decade throughout which consumption grew at roughly 2% per yr. In line with the ICO, that jumped to 2.4% per yr between 2000 and 2005, whereas the report set in 2019 adopted an annual improve of two.7%.

It’s on this context that rising manufacturing in Honduras espresso will be understood, with a rising worldwide marketplace for a product which is essential to the Central American nation’s massive agricultural sector. That has seen it change into more and more vital amongst espresso producing international locations.

Honduras espresso a cornerstone of the agricultural financial system

A graph of coffee production showing how Honduras coffee production is rising to help the country challenge the big five of coffee producing countries
Honduras has seen espresso manufacturing rise significantly over the previous decade

El Salvador and Guatemala are arguably extra well-known for being espresso producing international locations, given the historic significance of the crop to their economies and Honduras’ affiliation with fruit manufacturing.

Nevertheless, right now Honduras is by far the biggest producer and exporter of espresso in North and Central America, and the crop is seen as being key to reviving the country’s export economy within the face of the turmoil of the worldwide pandemic.

That’s partly as a result of agricultural items are so vital to the export financial system, on condition that the agricultural sector generates greater than 12% of gross home product (GDP) – one of many highest percentages seen in Latin America and the Caribbean.

As such, agricultural items represent almost 60% of total Honduran exports by worth, with espresso, tobacco, palm oil, and shrimp being of specific significance.  

At present, espresso producing international locations are seeing one thing of a increase, with prices more than doubling over the previous yr. Honduras has seen a concomitant rise within the worth of exports, which increased 350% in October and November 2021 in comparison with the identical interval the earlier yr.

That has drawn specialists predict an increase in the amount of land being used to supply Honduras espresso, promising to drive exports even increased and doubtlessly seeing the nation set up itself among the many high 5 world producers at a time when Honduras offers considerable attaction to foreign investors.

Biz Latin Hub can help you doing enterprise in Honduras

At Biz Latin Hub, we offer built-in back-office providers to traders and firms getting into and doing enterprise in Latin America and the Caribbean.

Our complete portfolio of providers contains accounting & taxation, company formation, due diligence, hiring & PEO, and company legal services, which means we are able to present a tailor-made package deal of providers to go well with each want.

With groups in place in 16 markets across the area, we’re additionally very best companions for multi-jurisdiction market entry and operational assist.

Whether or not you have an interest in investing in Honduras espresso, different alternatives on this Central American market, or prospects obtainable in different espresso producing international locations, contact us today to seek out out extra about how we may also help you attain your industrial objectives.

Or examine our team and expert authors.

Key services offered by BLH including legal services, accounting & taxation, hiring & PEO, due diligence, tax advisory, and visa processing
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