Coffee in Honduras Building a Head of Steam

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Coffee production continues on an upward trend, positively impacting the economy and creating jobs for the Central American nation. 

La Prensa of Honduras reported that coffee accounts for 10% of Honduras’ GDP, and 38% of its agricultural GDP.  It generated 1 billion dollars during the 2014-15 harvest, 25% of the nation’s total export earnings.  64% of that harvest was sent to Europe, 31% to the United States, 4% to Asia, and 1% to Oceania and Africa.

Honduras is the largest producer of coffee in Central America, and the 6th largest in the world.  The coffee industry directly affects 120,000 families with members who are employed in the industry.  Additionally, the industry will generate one million new jobs in 2016.

Because of the profound impact coffee has on the entire country, the success of Honduras’ economy is often reflected in the success of their coffee production.  Farmers now look to improve the quality of coffee being produced as opposed to extending their farms’ territories, as this will lead to more usable beans and higher profits.

They aspire to yield as much high quality grain as possible so as to have more of their yield receive a high quality designation, such as USDA organic, Rainforest alliance, or starbucks.   Beans of this quality can be sold for $3.50 per pound while the rest of the beans can only be sold for $1.25 per pound.  Only 20% of the beans from a given harvest will be of this quality.

In the last six harvests the industry has increased its production by 200%.  Hand farms can yield 19 bushels of grain per acre farmed, while mechanical farms can produce 60 per acre. 

Santa Barbara, La Paz, and Copán are the preferred regions for the best coffee beans.

–See a related article in News In Brief, Honduras.