Henry just got back from a trip to Honduras, and it was a great opportunity to observe some of the recent big changes that are ongoing in the country.
Access to finance remains the biggest pressure point
Changes in the local banking landscape have made credit harder to come by, particularly for smaller, independent producer organisations. Many groups that historically relied on relationship-based lending are now adjusting to stricter rules and higher capital requirements which has reduced their ability to finance the harvest and their exports, in a time when the requirement is larger due to the high New York market. Larger companies-especially those with scale or international backing, have been better positioned to weather this shift, and as a result, market share has become more concentrated.
Structure of producer organisations is changing
Five years ago, certified coffee in Honduras was dominated by large cooperatives. Today, many of those have struggled due to governance and financial issues. In contrast, professionally run corporate structures have gained ground, particularly in certified and specialty markets. Some of the most successful players have adapted creatively, maintaining strong producer participation while adjusting governance models to meet certification requirements. These organisations are well managed and appear better placed for the future, while many cooperatives appear to be in a period of transition administratively and structurally, reorganising so they can compete and access enough finance. We have strong allies in both structures of governance and it’s great to see them both thriving in different ways.
Supplier positioning is shifting, but our approach remains the same
Export volumes this season remain dominated by multinationals and large local players focused on scale rather than quality; their share of the pie has certainly grown. While cheaper options exist at the very top end of the volume table, they often come with trade-offs that don’t fit with D.R. Wakefield’s long-term approach. We are proud to work with who we work with and feel they offer an excellent blend of quality, values, price and efficiency.
Industry is recalibrating how coffee is evaluated
Honduras is part of a broader global shift from the traditional SCA cupping form to the newer Coffee Value Assessment (CVA). Adoption is still uneven, but momentum is building–particularly as IHCAFE (National Honduras Coffee Institute) and Cup of Excellence have already moved in this direction. For now, both systems are operating side by side, creating a bit of ambiguity, but that’s nothing new in coffee-we love a bit of grey! Over time, it’s likely the CVA will become the dominant framework, starting in specialty and gradually moving into the commercial space. For now, we must speak two languages.
The takeaway is that Honduras is navigating a period of adjustment. Finance is tighter, structures are evolving, and assessment systems are changing–but strong, well-governed suppliers with clear values are proving resilient. As ever in coffee, it’s complicated and full of nuance– which is exactly why it’s so important to work with good people!
