This is a best prospect industry sector for this country. Includes a market overview and trade data.
Coarse Grain
Overview
U.S. corn exports to Honduras increased by 70 percent in 2021 to $218 million, mostly due to the global economic reopening, the increase in world trade volumes, and the advances in the vaccination process and labor mobility. U.S. exports grew 19% during the first quarter of 2022, signaling a rebound fueled by the impact of Hurricanes Eta and Iota and the prolonged dry season on local corn production. Growth potential remains positive with an average growth of more than seven percent in the last four pre-COVID years. Given Honduras’ constraints and droughts, it is unable to produce sufficient grain supplies to support animal and fish/seafood feed, including for the expansion of shrimp and tilapia production. Honduras’ proximity to major grain export terminals such as New Orleans, Houston and Galveston will continue to allow U.S. corn and other commodities to compete for increased market share.
White corn, mainly used for human consumption, is the most widely produced grain in Honduras. In the last two years, sorghum production has decreased to a minimum. The Government of Honduras is providing incentives to increase production of white corn to assure food security for human consumption.
|
Corn |
2019 |
2020 |
2021 |
2022 (estimated) |
|---|---|---|---|---|
|
Total Local Production |
209,277,647 |
272,005,368 |
243,345,645 |
255,512,927 |
|
Total Exports |
N/A |
N/A |
N/A |
N/A |
|
Total Imports |
142,897,650 |
132,808,877 |
221,347,383 |
287,751,598 |
|
Imports from the U.S. |
137,228,005 |
128,700,125 |
218,373,649 |
283,885,744 |
|
Total Market Size |
352,175,297 |
400,814,245 |
464,693,028 |
543,264,525 |
|
Exchange Rates |
L24.54 |
L24.73 |
L24.25 |
L24.68 |
Units: USD
(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, TDM, GATS, BICO)
Leading Sub-Sectors
The main product imported in the coarse grain category is yellow corn. All yellow corn consumed in Honduras is imported from the United States. Corn is used for animal feed production, particularly in the feed mixes used in the poultry, shrimp, tilapia, livestock, and swine industries.
Opportunities
Increased growth is expected in the feed mixes used in the poultry, livestock, shrimp, tilapia, and swine sectors. The Honduran government is also providing incentives to increase beef production.
Under CAFTA-DR, Honduras did not reduce the out-of-quota duty for white corn, but liberalization will occur through a quota which will grow up to 2 percent per year. Honduras will have a base quota of 30,820 MT for white corn in 2022, and 31,280 MT in 2023. For yellow corn, the tariff has been eliminated.
Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras
Exporter Guide Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras
Rice
Overview
U.S. rice exports to Honduras in 2021 were $63 million. In year 2021 ninety-six percent of the rice consumed by Honduras was imported from the United States. The quality and reliability of U.S. rice are key selling factors behind the high market share.
Rice is produced on a limited scale in Honduras. 2022 production is expected to decrease compared to 2020 because of the impact of Hurricanes Eta and Iota at the end of 2020 and planting delays because of the prolonged dry season in 2021.
|
Rice |
2019 |
2020 |
2021 |
2022 (estimated) |
|---|---|---|---|---|
|
Total Local Production |
33,951,878 |
42,752,833 |
31,467,132 |
40,907,272 |
|
Total Exports |
1,979,970 |
2,732,789 |
1,961,983 |
2,020,842 |
|
Total Imports |
57,013,057 |
63,695,818 |
65,117,386 |
68,373,255 |
|
Imports from the U.S. |
50,851,441 |
47,273,921 |
62,920,288 |
75,504,345 |
|
Total Market Size |
84,803,319 |
106,448,651 |
96,584,518 |
109,280,527 |
|
Exchange Rates |
L24.54 |
L24.73 |
L24.25 |
L24.68 |
Units: USD
(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, TDM, GATS, BICO)
Leading Sub-Sectors
Local rice millers prefer to import paddy rice for price reasons and to keep their processing plants running. However, milled rice is also imported into Honduras.
Opportunities
Historically, most rice imports have been from the United States. Honduran import demand is expected to remain strong as it is a staple of the local diet and local production is expected to decrease.
Under CAFTA-DR, rice tariffs will be eliminated in two years (2023). Tariff cuts will be back-loaded, with out-of-quota imports subject to a safeguard. In 2022, there will be a tariff rate quota of 120,600 MT for rough rice. Imports under the quota will be subject to a performance requirement, which will be eliminated in 2023. In 2022, the tariff rate quota for milled rice will be 15,725 MT.
Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras
Exporter Guide Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras
Wheat
Overview
Honduras’s land and climate are unsuitable for commercial wheat farming. The country depends on imports to fulfill the demand for wheat.
U.S. wheat product exports to Honduras totaled $86 million in 2021. Wheat exports have increased 33% between years 2019-2021 due the economic reopening after the COVID-19 pandemic, experiencing an increased recovery in year 2021-2022. As the country continues to recover from an economic recession, growth is estimated at 20% back from lower levels of -12% in year 2020.
|
Wheat |
2019 |
2020 |
2021 |
2022 (estimated) |
|---|---|---|---|---|
|
Total Local Production |
N/A |
N/A |
N/A |
N/A |
|
Total Exports |
N/A |
N/A |
N/A |
N/A |
|
Total Imports |
68,290,022 |
60,039,196 |
85,697,583 |
102,837,100 |
|
Imports from the U.S. |
64,226,786 |
60,038,919 |
85,697,498 |
102,837,100 |
|
Total Market Size |
68,290,022 |
60,039,196 |
85,697,583 |
102,837,100 |
|
Exchange Rates |
L24.54 |
L24.73 |
L24.25 |
L24.68 |
Units: USD
(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, TDM, GATS, BICO)
Leading Sub-Sectors
The Honduran wheat industry uses an average of 216,000 MT per year with the vast majority of its raw material coming from the United States. Data estimates based on current sales indicate the market’s stability.
Opportunities
Honduras looks to the United States as its main source of wheat products, both through commercial channels and donations. There are no import duties applicable to U.S. wheat exports.
Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras
Exporter Guide Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras
Soybean Meal
Overview
Traditionally, Honduras has filled virtually all its soybean meal demand with U.S. product. Domestic production is negligible.
U.S. soybean meal exports to Honduras were $156 million in 2021 and increased 42% compared to 2020 despite the COVID-19 pandemic, as the feed and food industries were exempted from confinement measures. The average growth of soybean meal imports over the last five years has remained steady at five percent. Demand from the aquaculture and avian sectors is fueling the growth in soybean imports.
|
Soybean Meal |
2019 |
2020 |
2021 |
2022 (estimated) |
|---|---|---|---|---|
|
Total Local Production |
N/A |
N/A |
N/A |
N/A |
|
Total Exports |
N/A |
N/A |
N/A |
N/A |
|
Total Imports |
91,782,544 |
110,206,181 |
156,162,625 |
187,395,150 |
|
Imports from the U.S. |
91,773,346 |
110,056,740 |
156,160,500 |
187,392,600 |
|
Total Market Size |
91,782,544 |
110,206,181 |
156,162,625 |
187,395,150 |
|
Exchange Rates |
L24.54 |
L24.73 |
L24.25 |
L24.68 |
Units: USD
(Statistics are unofficial estimates. Data in USD. Source: TDM,)
Leading Sub-Sectors
The growing poultry, shrimp, and tilapia sectors in Honduras have been responsible for the increasing demand for soybean meal as it is used in feed mixtures for those products.
Opportunities
Continued expansion in the feed industry, particularly for poultry and tilapia production, should continue to fuel the demand for U.S. soybean meal in the years to come. Since the price of chicken products is more accessible to the Honduran population, demand from an increasing number of food franchise outlets is driving the need for more chicken.
Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras
Exporter Guide Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras
Red Meats
Overview
Honduras has one meat processing facility that has been certified by the USDA’s Food Safety Inspection Service (FSIS) to export its products to the United States. Some red meat products and sub-products imports from the United States have become a necessity to be able to satisfy the country’s demands.
U.S. red meat exports totaled $80 million in 2021, reflecting a 3 percent increase over the previous year. The average growth in the last five years reflects an uneven growth of 6-13 percent per year. Pork exports to Honduras will significantly increase in 2021-2022 as local production was severely hit by Hurricanes Eta and Iota in November 2020 and is slowly recovering.
|
Red Meats |
2019 |
2020 |
2021 |
2022(Estimated) |
|---|---|---|---|---|
|
Total Local Production |
348,622,760 |
352,923,306 |
345,145,281 |
362,402,545 |
|
Total Exports |
15,858,817 |
18,036,426 |
16,317,114 |
17,948,825 |
|
Total Imports |
77,547,618 |
85,144,010 |
86,631,764 |
90,963,352 |
|
Imports from the U.S. |
70,145,130 |
77,608,073 |
80,030,341 |
84,031,858 |
|
Total Market Size |
426,170,378 |
438,067,316 |
431,777,045 |
453,365,897 |
|
Exchange Rates |
L24.54 |
L24.73 |
L24.25 |
L24.68 |
Units: USD
(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, TDM, GATS, BICO)
Leading Sub-Sectors
CAFTA-DR brought immediate tariff elimination of prime and choice pork and beef cuts. Current Honduran consumer demand is centered on regular pork cuts, beef cuts, prime pork, beef variety meats, liver, tongue, sausage, trimmings, and pig’s feet. Additionally, the significant decrease in cattle stocking rates in Central America and purchasing power is contributing to a change in consumer demand from beef to more grain-dependent proteins, such as pork and poultry.
Opportunities
The number of U.S. restaurants and franchises operating in Honduras has grown rapidly. The government looks at tourism as one of the priority sectors likely to create jobs and economic growth. Hotels and restaurants need a consistent supply of quality meat products such as U.S. beef and pork. Honduran traditional cuisine uses entrails and internal organs in its dishes. The local red meat industry does not produce enough products to satisfy its demand.
Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras
Exporter Guide Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras
Processed Fruits and Vegetables
Overview
Imports of processed fruits and vegetables from the United States have declined 13% in 2020 but are slowly starting to grow again. The imported products from the United States are recognized for their quality but have lost market share to Mexico since 2018. Total exports from the United States totaled $25million in 2021.
|
Process Fruits and Vegetables |
2019 |
2020 |
2021 |
2022 (estimated) |
|---|---|---|---|---|
|
Total Local Production |
N/A |
N/A |
N/A |
N/A |
|
Total Exports |
45,879,028 |
76,762,836 |
114,518,701 |
125,970,571 |
|
Total Imports |
61,336,439 |
60,947,571 |
86,937,694 |
95,631,463 |
|
Imports from the U.S. |
20,220,467 |
17,652,504 |
24,776,898 |
27,254,588 |
|
Total Market Size |
61,336,439 |
60,947,571 |
86,937,694 |
95,631,463 |
|
Exchange Rates |
L24.54 |
L24.73 |
L24.25 |
L24.68 |
Units: USD
(Statistics are unofficial estimate. Data in USD. Sources: Honduran Central Bank, TDM, GATS, BICO)
Leading Sub-Sectors
Products that are popular with Honduran consumers and that are not subject to tariffs include canned sweet corn, tomato paste, canned pears, canned peaches, and mixed canned fruit. Data estimates based on current sales indicate a stable market.
Opportunities
Many U.S. franchises and restaurants in Honduras currently import frozen pre-made French fries from Canada and the United States.
Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras
Exporter Guide Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras
Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras
Point of Contact: Agtegucigalpa@usda.gov