Devouring profit - International Coffee Organization

national economy of Honduras. Between 1970 - 1987, coffee represented 37% of
agricultural production growth, more than twice any other crop. Bananas were for a
long time the primary exported product but after Hurricane Mitch, a substantial number
of plantations were damaged, which are now recovering. This caused coffee exports
to assume first place. Thus in 1998, coffee exports were US$433 million whilst for
bananas for the same period the value was only US$157 million
According to Oseguera 34 (2000), current productivity levels are a result of a project
supported by USAID (Agency for International Development - US Government) 10
years ago. This project focused on increasing coffee productivity based on new varieties,
such as Catuai and augmentation of the density of trees per hectare from 1,700
to 3,500. At that time IHCAFÉ lines of credit were supported by USAID, but currently
all credit supplied to Honduran coffee is from the private sector. According to information
from the Honduran Coffee Institute (IHCAFÉ), it is estimated that the total area
planted in coffee crops is about 260,000 ha. The whole area is planted to arabica. The
coffee areas are located from the centre to the northern and north-western parts
which have a higher rainfall than the area to the south near El Salvador. Table 38 lists
the different coffee regions in Honduras.
Table 38. Principal coffee regions in Honduras.
The average national coffee area per farm it is about 2.5 hectares with an estimated
number of 105,000 coffee farmers. According to Suazo 35 (2000), 85% of the farmers
have less than 5 hectares in coffee. But it is estimated that the other 15% are responsible
for producing 45% of the country’s coffee with the remaining 85% of coffee
farmers producing the other 55%, hence suggesting a considerable concentration of
production in relatively few hands.
Guatemala
As in neighbouring Honduras, agriculture is the most important sector of the Guatemalan
economy and one of its most important resources is its naturally fertile soil. Despite
important mineral resources such as petroleum, antimony, lead, nickel, zinc, etc.,
Guatemalan agriculture still provides about 25% of GDP. The most important agricul-
34 Oseguera, F. Director of the Agricultural Division, IHCAFÉ. Personal Communication,
2000
35 Member of the technical staff, IHCAFÉ, Honduras, 2000
101