In an effort to rejuvenate its coffee industry, Honduras has announced an investment exceeding $3 million.
Honduras, a key ICE supplier, faces setbacks since 2020: adverse weather, production drops, and migration crisis impacting coffee sector.
Despite these challenges, the recent uptick in coffee prices on the New York Stock Exchange (ICE Future US) signals a potential turnaround for Honduras’s coffee production.
Local news source La Prensa reports that the country is embarking on a strategic recovery plan for its coffee lands.
The joint effort by Ihcafe and the Ministry of Agriculture aims to renew coffee areas without disrupting current production in Honduras.
The initial funding of 80 million Honduran lempiras (over $3 million) marks a significant commitment to this endeavor.
As part of the strategy, authorities have distributed 20 tons of coffee seeds across key producing regions.
These seeds are projected to cultivate around 300,000 bags of coffee over the next three years.
Carlos Murillo, Vice President of Agriculture, confident plan will rejuvenate lands, restore Honduras’s coffee production within four years.
The recent hardships faced by Honduran coffee farmers, notably the impacts of La Niña and excessive rainfall, have underscored the need for resilient and productive coffee varieties.
Honduras is not only focusing on crop renewal but is also exploring financial mechanisms such as easier access to credit and fertilizer purchase subsidies.
These measures aim to revitalize one of the country’s key industries and foster economic growth.
Looking at the Market
Honduras’s potential to produce up to 6 million bags of coffee positions it as a key player in the market.
However, the full impact of this investment on the market may take some time to materialize, with significant yields from the new plantings expected in at least three years.
Brazilian coffee producers, advised by expert Haroldo Bonfá, should learn from Honduras and leverage market conditions to enhance technology.
This strategic approach could help Brazil maintain its competitive stance in the global coffee market.
Honduras historically competes with Brazil as a top ICE coffee supplier, leveraging cost-effectiveness and quality to meet international demand.
However, climate challenges have seen these two nations alternate in their leading roles.
Brazil leads ICE coffee volumes at 50.85%, followed by Honduras at 45.43%, with Peru at 12.47%, according to Pharos Consultoria.
Honduras invests in coffee to recover and secure future growth, aiming for stability in the global market.