Honduras, the largest coffee producer in Central America, is synonymous with exceptional coffee quality. The country produces a diverse range of flavour profiles across its different regions, allowing roasters to cater to a variety of consumer preferences.
With coffee prices set to remain above US $4/lb for the foreseeable future, sourcing strategies are shifting. Roasters are forced to find new ways to balance quality with cost efficiency. These changing market dynamics are driving interest in more cost-effective yet high-quality origins like Honduras.
Like any producing country, roasters and buyers need to understand key challenges and opportunities in the Honduran market to navigate it successfully. To learn more, I spoke to Benjamin Paz, a Honduran producer and exporter, and Mirko Cuculizato, the director of Cafetano Specialty Coffee Roasters.
Learn more about PRF Honduras here.
How the changing market is reshaping sourcing strategies
The surge in coffee prices over the last 12 months is fundamentally changing global green coffee trade dynamics. For the first time in history, arabica futures broke the US $4/lb mark, reaching an all-time high of $4.41 in mid-February 2025.
Many believe recent unprecedented market highs have been on the horizon for some time. The worsening climate crisis has been exacerbating dwindling supplies in key-producing countries like Brazil and Vietnam, where prolonged droughts and typhoons have dampened harvests, respectively, over the last few years.
Compounded by US President Trump’s recent threats to impose a 25% tariff on all Colombian goods, coffee prices have remained well over $4/lb since early February. And many predict that they won’t fall until the end of 2025.
For smaller green coffee traders, this means higher financing costs, increased risk associated with buying more expensive coffee, and the potential for reduced shipment volumes. Some estimates indicate that the result could be a final average sales price of close to US $9/lb, tightening already slim margins.
Roasters, meanwhile, are facing the difficult decision to increase their retail prices. Many predict 20% to 25% price hikes in the coming months, which will force consumers to change their purchasing behaviour to offset the higher prices. A significant rise in at-home consumption is to be expected as coffee drinkers are likely to become more price-conscious.
To avoid the higher prices of green coffee eating into profit margins, roasters are looking to source from more cost-effective origins while simultaneously maintaining the quality of their offerings.
Why interest in Honduran coffee is growing
With high coffee prices expected to persist for the foreseeable future, roasters are pushed to redshift their sourcing strategies. Some will expand their product lines to include blends that combine more affordable coffees with specialty-grade beans. This strategy aims to reduce costs without compromising on flavour profile and quality.
Simultaneously, the demand for single origin lots will continue, spanning a range of price points. This means sourcing from more economical origins, such as Brazil, is likely to become more popular, but consumers will still expect a diverse range of flavour profiles.
Adjustments to price differentials for Colombian, Kenyan, Costa Rican, and Guatemalan coffees on the Intercontinental Exchange in January 2024 led to several increases in premiums. Colombia’s differential increased from US $0.06 to $0.10 per pound, and Kenya and Costa Rica, previously at par delivery level, also have a $0.10 per pound premium. Meanwhile, Guatemala’s differential increased to $0.05 per pound from par delivery level
In the wake of high arabica futures, increased premiums can reduce roasters’ margins, forcing them to source from more cost-effective origins that still offer comparable quality.
For many, Honduras could become a prominent contender. Over the last two decades, the country has emerged as the leading producer and exporter of coffee in Central America. Historically known for growing commercial-grade coffee, Honduran producers now sell a wide range of qualities, including high-end specialty lots.
To provide roasters and green coffee buyers with key, in-depth insight into the Honduran market, Producer & Roaster Forum (PRF) will host a webinar on 5 March 2025 at 10am EST/3pm GMT/4pm CET. The event, offering attendees first-hand insight from industry experts, will include three speakers:
On 27 & 28 March 2025, PRF will host its biggest edition yet at the Copantl Hotel & Convention Centre in San Pedro Sula, Honduras. The event, marking PRF’s tenth anniversary, will bring international roasters, traders, producers, baristas, and industry experts together to share their insight and experience.
You can find out more information and sign up for the Sourcing Coffee from Honduras: Key Insights into Production and Processing webinar here.
Unique varieties and innovative processing
Across its growing regions, each with its own distinct flavour profiles, Honduras produces a diverse range of traditional and exclusive varieties. These include:
- Pacas & Bourbon – Balanced acidity with classic flavour profiles
- Parainema & Lempira – Disease-resistant with bright, complex flavours
- Gesha – Floral, jasmine, and citrus-forward tasting notes
The success of these varieties was noted at the 2024 Cup of Excellence Honduras auction, where a 91.21-point washed Gesha received the highest bid of US $136.50/lb. The auction attracted buyers from the US, Norway, South Korea, Thailand, China, and Saudi Arabia, underscoring the country’s appeal among top international roasters and importers.
Producers are also innovating with processing methods, showcased at the CoE auction. Honduras, most commonly associated with washed processed coffees with clean, stone fruit flavour profiles, is now increasingly adopting natural, honey, and experimental fermentation processing techniques – catering to the growing demand for differentiated flavour experiences.
The PRF webinar on 5 March will provide roasters and green coffee buyers with key insight into Honduran varieties and processing methods, helping them understand which coffees could complement their current offerings.
What roasters and buyers need to know
As with any producing country, it’s important to understand the structure and dynamics of the Honduran market before committing to buying coffee.
The country has one of the most organised coffee sectors in Central America, primarily through IHCAFE, which supports farmers in accessing fertilisers and other inputs, repaying loans, and renovating farms.
“Roasters and buyers need to take the time to research who to buy from,” says Mirko Cuculizato, the director of Cafetano Specialty Coffee Roasters, which operates several cafés in Honduras. “You need to work with partners who can certify quality and traceability.”
There are several ways to import coffee from Honduras: Buyers can work with cooperatives, exporters, or direct trade models. To source and buy coffee successfully, it’s also crucial to understand freight on board (FOB) pricing, lot separation, and quality premiums.
“Like any origin country, you need to do business with trusted partners who work with the Specialty Coffee Associaton, for example,” Mirko adds.
Roasters and green buyers should also be aware of harvest cycles and best-buying periods. The PRF webinar on 5 March will provide attendees with key insight on how to secure contracts early to ensure access to high-quality lots.
Understanding challenges & opportunities in the Honduran market
With more roasters realigning their sourcing strategies, competition in the specialty coffee market is set to intensify. Honduras is positioned as a viable origin to manage margins and meet quality standards, but key challenges still persist in the market.
“A higher C price is favourable for Honduran producers who have historically not been able to add value to their coffees. Many farmers abandoned coffee production back in 2021 when market prices were so low,” says Benjamin Paz, the 2022 and 2024 CoE-winning producer and exporter in Honduras.
“There has been a lack of access to education for producers to learn how to invest in coffee farms, but with higher arabica prices, they are finally able to make more money,” he adds. “However, there’s still a lot of pressure because the costs of production are increasing. Honduras has also been struggling with higher financing costs and interest rates, which went up around 90%, so producers are paying a lot for financing coffee.”
For roasters and buyers, increasing awareness of the challenges that producers face in the country will help build mutually beneficial and reciprocal relationships, potentially leading to long-lasting partnerships.
“There are challenges in the Honduran coffee sector. Still, producers understand the long-term commitments required to operate in the specialty coffee market that we didn’t have access to ten to 15 years ago,” Benjamin says. “The coffee harvest is very good this year. The quality of Honduran coffee is excellent, and we’re seeing clear improvements.”
What’s the best way to source from Honduras?
The Honduran coffee sector presents unique opportunities and challenges for buyers and producers. Attending events like PRF Honduras offers invaluable insight into understanding the market and successfully navigating it.
The two-day forum will be held on 27 & 28 March 2025 at the Copantl Hotel & Convention Centre in San Pedro Sula, Honduras. In addition to lectures, panels, workshops, and cuppings, PRF Honduras will also include the fourth Global Roasting Contest, the sixth Cold Brew Coffee Championship, the second Cacao Masters Cup, the third Global Coffee Awards, the second PRF Seed scholarship initiative, and an all-new Producer-Roaster Matchmaking programme.
Prior to the forum, PRF will host the Sourcing Trip Experience, where roasters can build direct relationships with producers and explore sourcing opportunities for exceptional coffees with unique flavour profiles that match their needs and budgets. Buyers can also learn more about sourcing models and logistics directly from industry experts.
Sustained high coffee prices are pushing roasters to source from cost-effective origins that offer exceptional quality and diverse flavour profiles, positioning Honduras as an ideal option.
But like any producing country, roasters and buyers need to understand the unique challenges and opportunities of buying Honduran coffee, helping them navigate the market more successfully.
Sign up for the Sourcing Coffee from Honduras: Key Insights on Production and Processing, taking place on 5 March, here.
Tickets for PRF Honduras are available here, and the STE tickets are available for purchase here.
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