Nicaragua

Nicaragua's Coffee Industry

Nicaragua remains a mid-tier coffee exporter with a strong emphasis on Arabica production. For the 2025/26 marketing year, Arabica exports are forecast at 2.42 million 60-kg bags, while Robusta exports are expected to hold steady at around 160,000 bags. Arabica accounts for over 95% of total output, grown primarily in Jinotega, Matagalpa, and Nueva Segovia.

Robusta is cultivated in the Southern Caribbean Coast, notably around Nueva Guinea where it has been planted since 2006 but fully legalized only since 2013.

Production is largely smallholder-based, with cooperatives playing a central role in market access, certification, and technical support. Around 50% of coffee is produced by smallholders, many of whom are members of cooperatives certified under Fairtrade, Organic, or Rainforest Alliance schemes. These models have helped buffer farmers against price volatility and improve access to credit and training, though outcomes vary depending on cooperative structure and asset endowments.

Climate challenges persist. El Niño events have disrupted rainfall patterns, reducing yields and bean size. Rising temperatures and erratic weather have intensified outbreaks of coffee leaf rust and complicated harvest timing. Replanting efforts have covered only 14% of total coffee area since 2013, falling short of ideal renewal rates.

Political instability has compounded sector risks. Outbound migration has reduced the rural labor force, affecting harvest quality and quantity. The 2024 bankruptcy of Nicaragua’s largest exporter disrupted financing and market access for thousands of producers. Export logistics remain strained, with port congestion and limited government investment in infrastructure.

For UK and EU Buyers

Shipping to the UK by sea from Nicaragua typically takes 40 to 45 days.

For UK and EU buyers, Nicaragua offers consistent access to high-quality Arabica with potential for certified and traceable sourcing. However, climate volatility, political uncertainty, and logistical bottlenecks require careful and diversified sourcing strategies.