From the Field
Monday, February 28, 2022
Honduras Harvest Update
The harvest is down this year in Honduras, says Felice Chay, Latin American Origination Coordinator. “There is definitely a significant reduction in harvest size compared to last year.” The small harvest is caused by a perfect storm of climate change, Coffee Leaf Rust (CLR), several years of low prices and extensive migration, Felice says.
One of the biggest factors, Felice believes, is climate change. “The weather was really strange last year. They received too much rain, so the trees weren’t stressed enough to produce fruit.” Coffee trees need some water stress to produce fruit and without that stress, they don’t produce as much cherry.
There’s also been a resurgence of CLR this year. The first big wave of CLR in Honduras was in 2012-13. Many farms were destroyed and there was a huge national effort to replant with CLR-resistant varieties. However, many of those varieties have since lost their CLR resistance, so the fungus is back. “It was a bit of a déjà vu moment from being on farms in 2012 and seeing the loss of leaves due to CLR, they’re literally like matchsticks,” Felice says.
Another factor impacting low harvest size is the continued low prices for the past several years. “Low prices over the past 3 to 4 years have meant that many producers have been unable to invest in farm maintenance because prices weren’t covering their costs,” Felice explains. After several years of low investment, farms yields are down.
Migration is also having a continued impact on harvest size and quality. Migration has led to both farm abandonment and a shortage of laborers to work on farms, especially as pickers.
On a positive note, the smaller harvest is affecting internal prices and leading to even higher prices for farmers. “There’s been a lot of internal competition for the little coffee that’s been available,” Felice says. “Coffee is trading internally on a differential basis of +35 to +45 for commercial grades, which is unheard of. After several years of very low and unsustainable prices, I’m glad this year producers will finally be able to turn a profit.”
The smaller harvest size has meant that most exporters are still purchasing coffee to cover contracts. “It’s very hard to get new offers right now,” Felice says. Additionally, more competition for coffees of all grades has led to a reduction in specialty coffee availability. “With prices so high for commercial coffees, there’s less incentive for farmers to invest the time and money into producing specialty coffees,” Felice explains. “Specialty availability is going to be more limited this year.”
For roasters looking to buy specialty Honduras this year, we recommend contacting your trader as soon as possible to discuss options and/or possible substitutes for this year.