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Honduras is the 3rd largest Latin America producer
Coffee land
‘000 hectares
301
Production share
Global & region
6th in world
3rd in LA
Production
‘000 tons
282
Varieties
Arabica-Robusta
100% A
0% R
70% of total land is in need of R&R
‘000 hectares
Need is primarily driven by old trees and exposure to disease (La Roya affected ~25% of coffee growing areas). Climate change also has the potential to negatively affect Honduras –especially in the central region.
+45%
Some potential for SHFs, but less impact on total supply
~5-20%
Total national supply could increase ~5-25% if R&R and GAP is implemented on all SHF land in need of R&R2
Notes:
(1) The current yield is calculated on the basis of SHF production divided by SHF land area, the potential yield uplift comes from the GCP study on Honduras: GCP, Honduras: GCP: Economic Viability of Coffee farming, 2017.
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 45%, and the range reflects a 25-100% R&R success rate Sources Sources: Source: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; Root Capital, Learning Report: the CFIR, 2016; USDA, Annual Coffee Report, 2017; IHCAFE, Programa de Asistencia al Pequeno Productor, 2017; IHCAFE, El sector café de Honduras: avances, institucionalidades and desafios, 2017; Dalberg Interview
Most SHFs are in tight and loose value chains
Majority of national production comes fromSHFs, though less so than other countries
The majority of SHFs are either in tight or loosevalue chains. IHCAFE reaches most of the SHF.
# SHFs
‘000
96
(includes SHFs <7hectares – 2% of global SHFs1)
# SHF land
‘000 hectares
265
(~90% of national land) – farm size typically <3 hectares
# SHF production
‘000 hectares
181
(65% of national production)
Assessment of SHF orgs.
All coops are registered by IHCAFE1~40% of SHFsare linked to coops. Coops have low capacity todeliver TA.
Links to market
SHFs are registered by IHCAFE.
Notes:
(1) Insitituo Hondunero del Café;
(2) The collection mechanism of the coffee producer savings fund is through a tax of USD 13.25/quintal exported. Of this sum, USD 9 is used for the Coffee Trust Fund (Fondo Cafetero Nacional, FNC) to repay the loans helps by banks and used by producers, and to pay IHCAFE for inputs sold to producers. Source: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; Root Capital, Learning Report: the CFIR, 2016; USDA, Annual Coffee Report, 2017; IHCAFE, Programa de Asistencia al Pequeno Productor, 2017; IHCAFE, El sector café de Honduras: avances, institucionalidades and desafios, 2017; Dalberg Interview
Past R&R programs have focused on providing access to long-term concessional finance for renovation
IHCAFE – Programa de Apoyo al Pequeno Productor andPrograma de Emergencia al Pequeno Productor
since 2007
HCAFE and the government provided highly concessional loans, technical assistance, and inputs to the least productive SHFs affected by La Roya to renovate their lands.
Root Capital – Coffee Farmer Resilience Initiative
since 2013
Root Capital lent USD 1.5 million to farmer organizations in Honduras and trained them to deliver loans to their members
Grupo Caldega - Programa de Produccion sostenible de Café
2015-2020
The purpose of the program is to renovate 1 million trees and to provide TA to 50,000 SHFs
There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.