Country Profile Honduras

"Honduras is one of the poorest countries in the western hemisphere. DE Foundation assists coffee producers in Honduras to improve production, quality and income and thus contributes to poverty reduction."

Coffee in Honduras

Honduras, with 65.5 percent of its population living in poverty, is the second poorest nation in the Western Hemisphere after Haiti. Three million Hondurans suffer from food insecurity, and the vast majority of the extreme poor live in rural areas. The country is currently recovering from a political crisis, and is prone to natural disasters and climate-related incidents such as tropical storms and el Niño-induced droughts. Coffee – its most important exportable product - is produced by 85,000 farmers in fourteen of the eighteen Honduran provinces.

Challenges

Coffee from Honduras is sought after on the international market, as it offers a significant volume of Arabica coffee at competitive prices. The consistency of quality is somewhat problematic although the last years have seen some improvements. The variation in quality is mainly caused by the fact that many farmers do not have access to services such as agricultural extension, credit and road maintenance - although they pay a large levy for these when selling coffee. The sector and its institutions are highly politicised, with little collaboration between private enterprises and part of the cooperatives and inefficient rendering of services to farmers. This is especially bad for non-organised, smallholder farmers. Although there have been some positive changes in recent years, still a huge potential exists for increasing the productivity of Honduran coffee cultivation, mainly through a more efficient use of inputs such as fertilizers and water. Specifically for Honduras’ poorest farmers, the development of a more productive coffee sector will be very beneficial.

Role of the DE Foundation

2008-2013

The DE Foundation finances part of the activities of the Alliance for Sustainability (established by Sogimex, an exporter belonging to the ECOM group). The Alliance focuses on assisting farmers in improving the productivity of their coffee plantations and the quality of the coffee they produce. Important aspects on which farmers need training and assistance are efficiency of input use and proper techniques to prune the coffee trees. It also strives to help farmers obtain certification, working mainly with Utz, but also with other certifications that provide market opportunities.

As proper fertilization is essential for optimal productivity, the project offers participating farmers advice on balanced nutrient application. By buying in bulk the total volume of fertilizers - used by all farmers participating in the programme - the Alliance can negotiate competitive prices for these fertilizers, while at the same time ensuring that quality fertilizers are used. Furthermore, as the cost for fertilizers is high, the project allows farmers to buy them on credit, which they then pay back in coffee.

Thus far, the project has already provided technical assistance to over a thousand coffee producers. Most of the assistance is provided in groups, but to help farmers better define their priorities in terms of agricultural practices, individual support is also offered.  Spectacular results already were achieved in terms of increased quality, productivity and income for farmers, while at the same time Sogimex was able to increase its export volume. This demonstrates that there is a strong potential for increasing exports and profitability - for both farmers and exporters - through the implementation of best practices at farm and field level.

Ambitions

A far higher number of coffee producers could benefit from technical assistance, so there is still a lot of work to be done. To help this happen, government support for a nationwide initiative – as well as funding – would be very beneficial. Furthermore, coffee exporters in Honduras should be given a greater role to play, in order to achieve significant results. Ultimately – as the fertilizer programme has already demonstrated, substantial improvements in yield are possible when farmers receive access to the necessary resources and the information on how best to use them.