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Coffee Exports from Honduras Rise as Country Prepares for EUDR Challenges

By: Alexis Rubinstein, Managing Editor - Coffee Network

Coffee Exports from Honduras Rise as Country Prepares for EUDR Challenges 

 

CoffeeNetwork (New York) – Honduras could be one of the country’s most negatively impacted by the impending European Union Deforestation Regulation (EUDR).

The EUDR, which, at the time of writing is still expected to go into effect on December 31, 2024, would mean that coffee producers in the Central American country would need to prove their coffee was grown on land that has not been deforested anytime after 2020. According to research performed by The World Bank by overlapping forest monitoring and coffee production maps, it can be concluded that, of the total area of forest loss in Honduras since 2000, 12.3% were located in coffee-growing areas. “Similar back-of-the-envelope estimates suggest that only a minority of coffee-harvested areas may be non-compliant with the EUDR,” the report notes.

In Honduras, of the 97,000 registered producers, approximately 78% are small coffee growers of less than 3.6 hectares, representing approximately 37% of the total cultivated area and 33% of the production, data from the Honduran Coffee Exporters Association (ADECAFEH) shows.

“Despite its laudable objective, as of today the EUDR thus risks excluding from the EU market poor and underequipped farmers, who do not have the means to document their deforestation-free status,” the World Bank said.

In an effort to assist producers with compliance, earlier this year, JDE Peet’s and Enveritas entered into an agreement to verify that the Honduras coffee industry does not export coffee grown on land deforested after the year 2020, as required by the new European Union Deforestation Regulation (EUDR).

The agreement was signed by the Secretary of Agriculture and Livestock of Honduras, Dra. Laura Elena Suazo Torres, Instituto Hondureño del Café President Pedro Mendoza Flores, JDE Peet’s Vice President of sustainability Dr. Laurent Sagarra, and Enveritas CEO David Browning.

Enveritas has adopted a technological process to assess all of Honduras’ coffee growing regions through a combination of high-resolution satellite imagery, machine learning, and teams on the ground. JDE Peet’s will work with the farmers and local partners to assist in reforesting the land.

Around half (53-55%) of all of Honduras’ coffee is sent to the EU. Coffee exports account for approximately 5% of the national GDP (30% of agricultural GDP).

In an interview today with CoffeeNetwork, ADECAFEH’s President, Miguel Pon, said that exports for the 2024-2025 crop year are expected around 5 million bags, representing an increase of 7%. Other industry estimates, however, as less conservative, seeing exports as high as 5.4 million bags. The increase in exports has little to do with better demand and can mostly be attributed to higher production. “Demand has been slow, particularly from Europe, but it has increased in the past few days,” Pon tells CoffeeNetwork. “We have been more cautious due to the EUDR regulation, but we anticipate an uptick in trade activity following changes to the regulation.”

Pon does not expect delays in the harvest. “Some regions, particularly at low altitudes, have already started harvesting,” Pon said. The peak harvest season will begin in mid-December.

ADECAFEH is considering hosting the Coffee Dinner again next year (in November). A few other initiatives, like the PRF summit, will also take place next year in Honduras. This week, the country’s coffee institute, IHCafe, announced they will hold a new national coffee trade show called Cafexpo in San Pedro Sula in March 2025.

Alexis Rubinstein

 

  • Coffee

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