Inclusive Coffee: Promoting sustainable markets

The project seeks to reduce the existing inequalities in the sustainable coffee value chain in order to create more resilient livelihoods for smallholder sustainable coffee farmers.
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Departamento de Choluteca, Honduras
13.2504325
-87.14228949999999
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Departamento de Comayagua, Honduras 
14.5534828
-87.6186379
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Departamento de El Paraiso, Honduras
13.9821294
-86.49965460000001
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Departamento de La Paz, Honduras
13.9984833
-87.9334803
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Departamento de Lempira, Honduras
14.1887698
-88.55653099999999
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Departamento de Copán, Honduras
14.9360838
-88.86469799999999
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Departamento de Ocotepeque, Honduras
14.5170347
-89.0561532
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Departamento de Santa Barbara, Honduras
15.1202795
-88.4016041
Project duration
2021 - 2024

The project

The Honduran economy continues to face the challenges of poor diversification, inequality, and widespread poverty. In the current post-pandemic context and global inflation, commodity markets have seen a high level of volatility. Coffee remains Honduras’ top export product, but the reality for Honduran coffee farmers is filled with high production costs, heightened challenges due to climate change, difficulty finding workers due to growing migration in the field of production, and increased requirements to access international markets. In addition, many farmer organisations have limited access to markets and have not had the opportunity to build direct long-term trade relations.

In many cases, the international market recognises a price premium for sustainably produced coffee. However, sustainable coffee farmers in Honduras have not always benefited from a higher income for their coffee. In many cases, their coffee cooperatives or producer associations lack the knowledge and connections that are necessary to sell sustainably produced coffee to interested buyers. Consequently, they are selling certified coffee or coffee that would meet sustainability requirements at conventional prices. 

The project seeks to address this disconnect by strengthening the trade promotion capacities of Honduran business support organisations so that they become able to provide services to export-ready companies that are themselves committed to sustainable and responsible production. The main objective of the project is to create resilient livelihoods for smallholder sustainable coffee farmers, foster economic growth – particularly for women in the coffee sector – and participation in global value chains, as well as contribute to a healthier environment.

As the first project to apply Swisscontact’s innovative Inclusive Trade Promotion methodology, this project will seek to influence two market systems simultaneously: the inclusive export promotion system (last mile) and the inclusive import promotion system (first mile) in the destination markets. This double approach allows for the strengthening or creation of inclusive global value chains, which generate value for both seller and buyer, promote economic growth and reduce wealth inequality in Honduras.

Direct partners of the project will be nine local business support organisations. These business support organisations provide capacity-building services to sustainable coffee cooperatives, producer associations and SMEs that allow them to identify their export capacity, design an export marketing plan, obtain market intelligence and find out about specific market access requirements. Once they are ready to access export markets, the organisations support them with go-to-market services, such as facilitating participation in trade shows and other matchmaking events, which will help them establish sustained relationships with potential buyers in Europe and other prioritised regions.

Lastly, the project will facilitate the creation of a multi-stakeholder Alliance for Inclusive and Competitive Trade Promotion to strengthen the currently weak and underdeveloped trade promotion environment in Honduras. Made up of champions from both the public and the private sector, this alliance is envisioned to create the framework conditions conducive to inclusive economic growth and resilience for Honduran sustainable coffee companies.

 

Project goals

Smallholder sustainable coffee farmers who are part of sustainable coffee companies (cooperatives, producer associations and SMEs) are able to successfully negotiate directly with sustainable importers, generating increased sales of sustainable coffee and in this manner make their livelihoods more resilient.

Expected results

  • 16 local business support organisations are capacitated to provide export promotion services to their clients from the sustainable coffee sector.
  • 26 sustainable coffee companies access the export promotion services provided by the business support organisations.
  • 1 850 smallholder sustainable farmers (30% women) increase their income and generate a higher price per unit for their sustainable coffee.
  • 30 importers and roasters per year participate in events and matchmaking activities to establish direct trade relationships with sustainable Honduran coffee companies.
  • At least 5 high-level government officials and 5 private sector representatives are active members of the Honduran Alliance for Inclusive and Competitive Trade Promotion.

Financing partners

This project is part of the Swisscontact Development Programme, which is co-financed by the Swiss Agency for Development and Cooperation (SDC), Federal Department of Foreign Affairs FDFA. 

News

Honduras
Sustainable agriculture, Trade
19.05.2022
Quality Calibration in Coffee as a Meeting Point Between Honduras Origin and the German Market
The two-time coffee cupping champion and first German Q-Arabica Grader since 2009, Katharina Gerasch, trained 60 coffee cuppers from organizations part of the Inclusive Coffee Project (Proyecto Café Inclusivo), which is financed by the Swiss Agency for Development and Cooperation (SDE) and implemented by Swisscontact. According to the expert, the main impact of this workshop conducted in Honduras is, “Improving marketing and commercialization by understanding which attributes buyers seek and allowing producers to understand the level of their own coffee,” explained Katharina.
Honduras
Sustainable agriculture
17.04.2022
Inclusivity and sustainability mark the difference in Honduran Specialty Coffee at the Coffee Expo held in Boston
Honduras’ delegation stood out for its integral representation of the coffee value chain – featuring producers, cooperatives, exporters, and roasting companies that are part of Swisscontact’s Inclusive Coffee project, alongside institutions in the coffee sector and Honduran brands that are franchised in the United States.
Honduras
Sustainable agriculture
07.04.2022
Café Inclusivo from Honduras at Coffee Expo 2022 in Boston
With newly acquired knowledge and tools to implement their commercial and export strategies, 18 cooperatives that produce sustainable coffee in Honduras and that are part of Swisscontact’s Inclusive Coffee project will participate in the Coffee Expo, as part of their efforts to generate resilient life means, through the construction of long-term commercial partnerships. 

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