Honduras - Country Commercial Guide
Agriculture

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-10-27

Coarse Grain

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

U.S. corn exports to Honduras increased by 15 percent in 2019 to $123 million. Growth potential remains positive with an average growth of more than seven percent in the past four years, given Honduras’ constrains and droughts to produce sufficient grain supplies to support animal, 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 shares.

White corn is the grain produced on the largest scale in Honduras. It is mainly utilized for human consumption. 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

2017

2018

2019

2020(Estimated)

Total Local Production

101,694,915

111,570,247

60,728,745

96,774,193

Total Exports

N/A

N/A

N/A

N/A

Total Imports

93,228,060

125,594,612

142,897,650

120,573,441

Imports from the U.S.

85,500,000

106,900,000

123,100,000

105,166,667

Total Market Size

194,922,975

237,164,859

203,626,395

217,347,634

(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 29,900 MT for white corn in 2020. For yellow corn, the tariff has been eliminated.

Web Resources

U.S. Department of Agriculture Foreign Agricultural Service in Honduras  

Exporter Guide Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras 2019

Rice

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

U.S. rice exports to Honduras in 2019 were $47 million. Sixty-five percent of the rice consumed by Honduras is imported from the United States. The quality and reliability of U.S. rice is well-known.

Rice is produced on a limited scale in Honduras. Production has increased slightly because the Honduran government is now providing credit and direct support to the local agro-industry.

Rice

2017

2018

2019

2020 (Estimated)

Total Local Production

22,963,522

19,232,355

18,146,736

20,114,204

Total Exports

2,809,146

2,282,190

1,979,970

2,357,102

Total Imports

50,552,711

68,872,891

57,013,057

58,812,886

Imports from the U.S.

44,900,000

60,800,000

47,100,000

50,933,333

Total Market Size

73,516,233

88,105,246

75,159,793

78,927,090

(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, the majority of rice imports have been from the United States. Honduran import demand is expected to remain strong as it is a basic food.

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 2020 there will be a tariff-rate quota of 117,000 MT for rough rice. Imports under the quota will be subject to a performance requirement, which will be eliminated in about two years. In 2020 a tariff rate quota of 14,875 MT will be for milled rice. 

Web Resources

U.S. Department of Agriculture Foreign Agricultural Service in Honduras  

Exporter Guide Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras 2019

Wheat

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Honduras’s land and climate are unsuitable for commercial wheat farming. The country depends on imports to fulfill their demand for wheat.

U.S. wheat exports to Honduras totaled $68 million in 2019. Wheat exports have had volatile growth in the past five years, and an estimated average of six percent increase since 2016. The expectation is for the wheat market to stabilize and for the import growth to be constant in the years to come.

Wheat

2017

2018

2019

2020 (Estimated)

Total Local Production

N/A

N/A

N/A

N/A

Total Exports

N/A

N/A

N/A

N/A

Total Imports

53,298,426

85,310,804

73,456,972

70,688,734

Imports from the U.S.

51,100,000

78,200,000

68,700,000

66,000,000

Total Market Size

53,298,426

85,310,804

73,456,972

70,688,734

(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 230,000 MT per year with the vast majority of it 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.

Web Resources

U.S. Department of Agriculture Foreign Agricultural Service in Honduras  

Exporter Guide Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras 2019

Soybean Meal

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Traditionally, Honduras has filled virtually all of its soybean meal demand with U.S. product. Domestic production is negligible.

U.S. soybean meal exports to Honduras were $99 million in 2019. The average percent growth of soybean meal over the years has been a steady five percent increase in the past five years. The increase is due to the demand from the aquaculture and avian production in the country.

Soybean Meal

2017

2018

2019

2020 (Estimated)

Total Local Production

N/A

N/A

N/A

N/A

Total Exports

N/A

N/A

N/A

N/A

Total Imports

86,300,000

107,200,000

99,300,000

97,600,000

Imports from the U.S.

86,300,000

107,200,000

99,300,000

97,600,000

Total Market Size

86,300,000

107,200,000

99,300,000

97,600,000

(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, TDM, GATS, BICO)

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. An increasing number of food franchise outlets are also requiring more chicken. Because of chicken meat is more accessible to purchase power of population.

Web Resources

U.S. Department of Agriculture Foreign Agricultural Service in Honduras  

Exporter Guide Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras 2019

Red Meats

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Honduras has one meat processing facilities that have been certified by the USDA’s Food Safety Inspection Service (FSIS) to export their products to the United States. Some red meat products and sub-products imports from the United States have become a necessity in order to be able to satisfy the country’s demands.

U.S. red meat exports totaled $7 million in 2019, which shows a 12 percent increase from the previous year. The average percent growth in the last five years reflects an uneven growth of one percent per year. Pork exports to Honduras look promising and stable.

Red Meats

2017

2018

2019

2020 (Estimated)

Total Local Production

311,724,960

297,064,854

298,076,567

302,288,793

Total Exports

9,081,120

15,176,778

15,045,272

13,101,057

Total Imports

11,268,204

11,088,081

13,107,648

11,821,311

Imports from the U.S.

6,200,000

6,700,000

7,000,000

6,633,333

Total Market Size

322,993,164

308,152,935

311,184,215

314,110,104

(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 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.

Web Resources

U.S. Department of Agriculture Foreign Agricultural Service in Honduras  

Exporter Guide Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras 2019

Processed Fruits and Vegetables

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Imports of processed fruits and vegetables from the United States have kept steady during the last four years. The imported products from the United States are recognized for their quality and a stable market for processed fruits and vegetables is predicted.

Process Fruits and Vegetables

2017

2018

2019

2020 (Estimated)

Total Local Production

N/A

N/A

N/A

N/A

Total Exports

68,178,091

61,213,325

45,844,880

58,412,099

Total Imports

60,855,020

57,291,870

58,510,417

58,885,769

Imports from the U.S.

14,500,000

12,200,000

12,700,000

13,133,333

Total Market Size

60,855,020

57,291,870

58,510,417

58,885,769

(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.

Web Resources

U.S. Department of Agriculture Foreign Agricultural Service in Honduras  

Exporter Guide Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standard Certification Tegucigalpa Honduras 2019

Food and Agricultural Import Regulations and Standards Narrative Tegucigalpa Honduras 2019