Honduras
Agriculture

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

Last published date: 2019-10-13

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

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 decreased by 20 percent in 2017 to $85 million. Growth potential remains positive with an average growth of 6 percent in the past five years, given Honduras’ inability 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. Sorghum makes up about 10 percent of the total coarse grain production. The Government of Honduras is providing incentives to increase production of white corn and sorghum to assure food security for human consumption.

Corn

2015

2016

2017

2018 (Estimated)

Total Local Production

119,954,545

126,680,851

110,491,429

106,743,752

Total Exports

             5,676,440

             6,082,660

             6,143,900

5,758,965

Total Imports

110,258,461

124,836,940

124,908,012

122,245,069

Imports from the U.S.

77,557,321

106,073,616

107,197,749

83,028,358

Total Market Size

224,536,566

245,435,131

229,255,542

223,229,856

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

Leading Sub-Sectors
The main product imported in the coarse grain category is yellow corn. An average of 95 percent of yellow corn consumed in Honduras is imported. Corn from the United States is also 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. Demand for yellow corn is expected to rise because Honduras is now exporting poultry to the United States. The Honduran government is also providing incentives to increase beef production. Honduras ranks 14th among the leading markets for U.S. corn grain exports.

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 2 percent per year. Honduras will have a base quota of 28,980 MT for white corn in 2018. For yellow corn, the tariff will be eliminated in 3 years and Honduras will have a quota of 299,371 MT in 2018, growing at 5 percent per year. Tariff cuts will be back-loaded.

Web Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras         
Exporter Guide Tegucigalpa Honduras 2017    
Food and Agriculture Import Regulations and Standards Certification_Tegucigalpa_Honduras_2017
Food and Agricultural Import Regulations and Standards Narrative_Tegucigalpa_Honduras_2017

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 2017 were $42 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

2015

2016

2017

2018 (Estimated)

Total Local Production

11,136,363

11,659,574

11,131,592

10,835,758

Total Exports

1,797,482

1,800,883

2,861,406

3,808,252

Total Imports

57,426,203

58,336,571

58,572,073

59,102,505

Imports from the U.S.

60,293,552

71,256,167

41,829,698

45,276,140

Total Market Size

66,765,084

68,195,262

66,842,259

66,130,010

(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, SIECA, 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. Data estimates based on the past five years indicate the market’s stability.

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. Honduras is ranked 10th among the leading 35 country markets for U.S. rice imports.

Under CAFTA-DR, rice tariffs will be eliminated in five years. Tariff cuts will be back-loaded, with out-of-quota imports subject to a safeguard. There will be a quota of 113,400 MT for rough rice, growing by two percent in 2018. Imports under the quota will be subject to a performance requirement, which will be eliminated in five years. A quota of 14,025 MT will be for milled rice, growing by five percent per year. The tariff rate quota (TRQ) for rough and milled rice in 2018 is 113,400 MT and 14,025 MT, respectively.

Web Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras         
Exporter Guide Tegucigalpa Honduras 2017    
Food and Agriculture Import Regulations and Standards Certification_Tegucigalpa_Honduras_2017
Food and Agricultural Import Regulations and Standards Narrative_Tegucigalpa_Honduras_2017

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 $51 million in 2017. Wheat exports have had volatile growth in the past five years, and an estimated 9percent decrease since 2013. The expectation is for the wheat market to stabilize and for the import growth to be constant in the years to come.

Wheat

2015

2016

2017

2018 (Estimated)

Total Local Production

0

0

0

0

Total Exports

0

0

0

0

Total Imports

65,157,034

71,606,896

73,182,288

76,412,592

Imports from the U.S.

55,111,456

65,605,010

51,039,417

58,228,608

Total Market Size

65,157,034

71,606,896

73,182,288

76,412,592

(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, SIECA, 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. Among the global export markets for U.S. wheat, Honduras ranks in position 27th.


Web Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras         
Exporter Guide Tegucigalpa Honduras 2017    
Food and Agriculture Import Regulations and Standards Certification_Tegucigalpa_Honduras_2017
Food and Agricultural Import Regulations and Standards Narrative_Tegucigalpa_Honduras_2017

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 $86 million in 2017. The average percent growth of soybean meal over the years has been a steady one percent increase in the past five years. However, this increase is strictly due to the demand from the aquaculture and avian production in the country.

Soybean Meal

2015

2016

2017

2018 (Estimated)

Total Local Production

0

0

0

0

Total Exports

0

0

0

0

Total Imports

102,793,560

98,681,817

97,936,156

99,731,165

Imports from the U.S.

91,340,955

87,568,878

86,201,796

87,796,486

Total Market Size

102,793,560

98,681,817

97,936,156

99,731,165

(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, SIECA, 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. Honduras is now exporting chicken to the United States, where tariffs on Honduran imports are currently zero. Honduras ranks 12th among U.S. soybean meal export markets.

Web Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras         
Exporter Guide Tegucigalpa Honduras 2017    
Food and Agriculture Import Regulations and Standards Certification_Tegucigalpa_Honduras_2017
Food and Agricultural Import Regulations and Standards Narrative_Tegucigalpa_Honduras_2017

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

Overview
Honduras has two meat processing facilities that have been certified by the USDA’s Food Safety Inspection Service (FSIS) to export their products to the United States. However, red meat 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 $60 million in 2017, which shows a 12 percent increase from the previous year. However, 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

2015

2016

2017

2018 (Estimated)

Total Local Production

332,500,000

353,957,447

311,724,960

297,064,854

Total Exports

8,903,056

3,305,550

6,404,366

11,122,594

Total Imports

60,845,784

66,129,599

56,540,472

55,003,987

Imports from the U.S.

48,217,855

54,137,613

60,552,439

60,291,697

Total Market Size

384,442,728

416,781,496

361,861,066

340,946,246

(Statistics are unofficial estimates. Data in USD. Sources: Honduran Central Bank, SIECA, 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 is contributing to a change in consumer demand from beef to more grain dependent proteins, such as pork and poultry.

Opportunities
The tourism sector in Honduras has witnessed substantial growth. The number of U.S. restaurants and franchises operating in Honduras has grown rapidly. The government has designated 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. Honduras is not ranked in the top 35 beef export markets from the U.S. but is ranked as 12th for pork exports from the United States to Honduras.

Web Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras         
Exporter Guide Tegucigalpa Honduras 2017    
Food and Agriculture Import Regulations and Standards Certification_Tegucigalpa_Honduras_2017
Food and Agricultural Import Regulations and Standards Narrative_Tegucigalpa_Honduras_2017

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 increased 11 percent from the previous year. Nevertheless, the average percent growth in the last five years has been six percent due to the increased imports of processed fruits and vegetables from Mexico and Central America. However, the import 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

2015

2016

2017

2018 (Estimated)

Total Local Production

NA

NA

NA

NA

Total Exports

62,457,191

60,731,468

56,279,814

53,651,041

Total Imports

73,449,990

78,581,760

77,045,899

75,840,309

Imports from the U.S.

11,410,381

13,772,373

15,238,185

14,220,532

Total Market Size

NA

NA

NA

NA

(Statistics are unofficial estimate. Data in USD. Sources: Honduran Central Bank, SIECA, 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 pre-made French fries from Canada and the United States. Honduran ranks 30 among the leading country export markets for U.S. processed vegetables.

Web Resources
U.S. Department of Agriculture Foreign Agricultural Service in Honduras         
Exporter Guide Tegucigalpa Honduras 2017    
Food and Agriculture Import Regulations and Standards Certification_Tegucigalpa_Honduras_2017
Food and Agricultural Import Regulations and Standards Narrative_Tegucigalpa_Honduras_2017