Honduras, the most important espresso producer in Central America, is synonymous with distinctive espresso high quality. The nation produces a various vary of flavour profiles throughout its completely different areas, permitting roasters to cater to quite a lot of shopper preferences.

With espresso costs set to stay above US $4/lb for the foreseeable future, sourcing methods are shifting. Roasters are compelled to search out new methods to steadiness high quality with price effectivity. These altering market dynamics are driving curiosity in cheaper but high-quality origins like Honduras.

Like every producing nation, roasters and consumers want to grasp key challenges and alternatives within the Honduran market to navigate it efficiently. To study extra, I spoke to Benjamin Paz, a Honduran producer and exporter, and Mirko Cuculizato, the director of Cafetano Specialty Espresso Roasters.

Be taught extra about PRF Honduras right here.

How the altering market is reshaping sourcing methods

The surge in espresso costs during the last 12 months is essentially altering international inexperienced espresso commerce dynamics. For the primary time in historical past, arabica futures broke the US $4/lb mark, reaching an all-time excessive of $4.41 in mid-February 2025.

Many imagine current unprecedented market highs have been on the horizon for a while. The worsening local weather disaster has been exacerbating dwindling provides in key-producing nations like Brazil and Vietnam, the place extended droughts and typhoons have dampened harvests, respectively, over the previous couple of years.

Compounded by US President Trump’s current threats to impose a 25% tariff on all Colombian items, espresso costs have remained properly over $4/lb since early February. And lots of predict that they received’t fall till the top of 2025.

For smaller inexperienced espresso merchants, this implies greater financing prices, elevated threat related to shopping for costlier espresso, and the potential for lowered cargo volumes. Some estimates point out that the end result could possibly be a closing common gross sales value of near US $9/lb, tightening already slim margins.

Roasters, in the meantime, are dealing with the troublesome resolution to extend their retail costs. Many predict 20% to 25% value hikes within the coming months, which can drive shoppers to vary their buying behaviour to offset the upper costs. A big rise in at-home consumption is to be anticipated as espresso drinkers are more likely to turn into extra price-conscious.

To keep away from the upper costs of inexperienced espresso consuming into revenue margins, roasters need to supply from cheaper origins whereas concurrently sustaining the standard of their choices.

Why curiosity in Honduran espresso is rising

With excessive espresso costs anticipated to persist for the foreseeable future, roasters are pushed to redshift their sourcing methods. Some will increase their product traces to incorporate blends that mix extra inexpensive coffees with specialty-grade beans. This technique goals to cut back prices with out compromising on flavour profile and high quality.

Concurrently, the demand for single origin tons will proceed, spanning a variety of value factors. This implies sourcing from extra economical origins, equivalent to Brazil, is more likely to turn into extra standard, however shoppers will nonetheless anticipate a various vary of flavour profiles.

Changes to cost differentials for Colombian, Kenyan, Costa Rican, and Guatemalan coffees on the Intercontinental Change in January 2024 led to a number of will increase in premiums. Colombia’s differential elevated from US $0.06 to $0.10 per pound, and Kenya and Costa Rica, beforehand at par supply stage, even have a $0.10 per pound premium. In the meantime, Guatemala’s differential elevated to $0.05 per pound from par supply stage

Within the wake of excessive arabica futures, elevated premiums can cut back roasters’ margins, forcing them to supply from cheaper origins that also provide comparable high quality.

For a lot of, Honduras might turn into a outstanding contender. Over the past twenty years, the nation has emerged because the main producer and exporter of espresso in Central America. Traditionally recognized for rising commercial-grade espresso, Honduran producers now promote a variety of qualities, together with high-end specialty tons.

To offer roasters and inexperienced espresso consumers with key, in-depth perception into the Honduran market, Producer & Roaster Discussion board (PRF) will host a webinar on 5 March 2025 at 10am EST/3pm GMT/4pm CET. The occasion, providing attendees first-hand perception from business specialists, will embrace three audio system:

On 27 & 28 March 2025, PRF will host its largest version but on the Copantl Resort & Conference Centre in San Pedro Sula, Honduras. The occasion, marking PRF’s tenth anniversary, will carry worldwide roasters, merchants, producers, baristas, and business specialists collectively to share their perception and expertise.

Yow will discover out extra info and join the Sourcing Espresso from Honduras: Key Insights into Manufacturing and Processing webinar right here.

Distinctive varieties and revolutionary processing

Throughout its rising areas, every with its personal distinct flavour profiles, Honduras produces a various vary of conventional and unique varieties. These embrace:

• Pacas & Bourbon – Balanced acidity with basic flavour profiles
• Parainema & Lempira – Illness-resistant with vibrant, advanced flavours
• Gesha – Floral, jasmine, and citrus-forward tasting notes

The success of those varieties was famous at the 2024 Cup of Excellence Honduras public sale, the place a 91.21-point washed Gesha acquired the very best bid of US $136.50/lb. The public sale attracted consumers from the US, Norway, South Korea, Thailand, China, and Saudi Arabia, underscoring the nation’s enchantment amongst high worldwide roasters and importers.

Producers are additionally innovating with processing strategies, showcased on the CoE public sale. Honduras, mostly related to washed processed coffees with clear, stone fruit flavour profiles, is now more and more adopting pure, honey, and experimental fermentation processing strategies – catering to the rising demand for differentiated flavour experiences.

The PRF webinar on 5 March will present roasters and inexperienced espresso consumers with key perception into Honduran varieties and processing strategies, serving to them perceive which coffees might complement their present choices.

What roasters and consumers must know

As with every producing nation, it’s necessary to grasp the construction and dynamics of the Honduran market earlier than committing to purchasing espresso.

The nation has one of the organised espresso sectors in Central America, primarily by IHCAFE, which helps farmers in accessing fertilisers and different inputs, repaying loans, and renovating farms.

 “Roasters and consumers must take the time to analysis who to purchase from,” says Mirko Cuculizato, the director of Cafetano Specialty Espresso Roasters, which operates a number of cafés in Honduras. “You’ll want to work with companions who can certify high quality and traceability.”

There are a number of methods to import espresso from Honduras: Patrons can work with cooperatives, exporters, or direct commerce fashions. To supply and purchase espresso efficiently, it’s additionally essential to grasp freight on board (FOB) pricing, lot separation, and high quality premiums.

“Like every origin nation, you should do enterprise with trusted companions who work with the Specialty Espresso Associaton, for instance,” Mirko provides.

Roasters and inexperienced consumers also needs to pay attention to harvest cycles and best-buying durations. The PRF webinar on 5 March will present attendees with key perception on the best way to safe contracts early to make sure entry to high-quality tons.

Understanding challenges & alternatives within the Honduran market

With extra roasters realigning their sourcing methods, competitors within the specialty espresso market is ready to accentuate. Honduras is positioned as a viable origin to handle margins and meet high quality requirements, however key challenges nonetheless persist available in the market.

“A better C value is beneficial for Honduran producers who’ve traditionally not been in a position so as to add worth to their coffees. Many farmers deserted espresso manufacturing again in 2021 when market costs had been so low,” says Benjamin Paz, the 2022 and 2024 CoE-winning producer and exporter in Honduras. 

“There was an absence of entry to schooling for producers to discover ways to spend money on espresso farms, however with greater arabica costs, they’re lastly in a position to make more cash,” he provides. “Nevertheless, there’s nonetheless plenty of stress as a result of the prices of manufacturing are growing. Honduras has additionally been combating greater financing prices and rates of interest, which went up round 90%, so producers are paying lots for financing espresso.”

For roasters and consumers, growing consciousness of the challenges that producers face within the nation will assist construct mutually useful and reciprocal relationships, doubtlessly resulting in long-lasting partnerships.

“There are challenges within the Honduran espresso sector. Nonetheless, producers perceive the long-term commitments required to function within the specialty espresso market that we didn’t have entry to 10 to fifteen years in the past,” Benjamin says. “The espresso harvest is excellent this 12 months. The standard of Honduran espresso is great, and we’re seeing clear enhancements.”

What’s one of the best ways to supply from Honduras?

The Honduran espresso sector presents distinctive alternatives and challenges for consumers and producers. Attending occasions like PRF Honduras presents invaluable perception into understanding the market and efficiently navigating it.

The 2-day discussion board will probably be held on 27 & 28 March 2025 on the Copantl Resort & Conference Centre in San Pedro Sula, Honduras. Along with lectures, panels, workshops, and cuppings, PRF Honduras can even embrace the fourth World Roasting Contest, the sixth Chilly Brew Espresso Championship, the second Cacao Masters Cup, the third World Espresso Awards, the second PRF Seed scholarship initiative, and an all-new Producer-Roaster Matchmaking programme.

Previous to the discussion board, PRF will host the Sourcing Journey Expertise, the place roasters can construct direct relationships with producers and discover sourcing alternatives for distinctive coffees with distinctive flavour profiles that match their wants and budgets. Patrons may study extra about sourcing fashions and logistics immediately from business specialists.

Sustained excessive espresso costs are pushing roasters to supply from cost-effective origins that supply distinctive high quality and numerous flavour profiles, positioning Honduras as a super choice.

However like all producing nation, roasters and consumers want to grasp the distinctive challenges and alternatives of shopping for Honduran espresso, serving to them navigate the market extra efficiently.

Join the Sourcing Espresso from Honduras: Key Insights on Manufacturing and Processing, going down on 5 March, right here.

Tickets for PRF Honduras can be found right here, and the STE tickets can be found for buy right here.

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