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 has experienced strong economic growth in recent years, but still faces challenges such as poor diversification, high inequality, and widespread poverty. Coffee remains Honduras’ top export product, but the export price has been decreasing. Honduras exports the highest volume at the lowest unit price when compared to other Central American countries. Sustainably produced coffee can be sold for a much higher price on the international market. However, sustainable coffee farmers have not benefited from a higher income of their sustainable produced coffee. Their coffee cooperatives or producer associations lack knowledge and connections to sell the sustainably produced coffee to interested purchasers. Consequently, they are selling sustainability compliant or certified coffee 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 ultimate goal of the project is to create resilient livelihoods for smallholder sustainable coffee farmers, stimulate economic growth and participation in global value chains, and 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 sixteen 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.

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 SDC (Swiss Agency for Development and Cooperation, Federal Department of Foreign Affairs FDFA). 

News

Honduras
Sustainable agriculture
03.10.2021
Honduras coffee sector promotes sustainable and inclusive market opportunities in specialty coffee at the Coffee Expo 2021 
A Honduran delegation, including Swisscontact presenting Inclusive Coffee Project, participated in the Specialty Coffee Association's Coffee Expo 2021 in New Orleans, which brought together hundreds of specialty coffee professionals and enthusiasts from around the world.
Honduras
Trade facilitation
23.09.2021
Empowering Women in Honduras to Access Markets for their Sustainable Coffee
An interview with Orieta Pinto, President of the Honduras Chapter of the International Women in Coffee Alliance (AMUCAFE), a partner of Swisscontact’s Inclusive Coffee project

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