Despite improvements in labor and income, the coffee sector’s recovery remains slow
• The coffee sector is currently continuing to struggle with lingering impacts of the unprecedented challenges of 2020.
However, as COVID-19-related restrictions have scaled back, vaccination schedules progress, and producers take advantage of lessons learned in the previous harvest, labor opportunities are expected to rebound to slightly below prepandemic levels.
• Up until September, the coffee sector has not benefitted from recent increases in international prices, as the sharpest rise occurred in July after most of the 2020/2021 harvest had already been sold. Should sale prices continue at elevated levels through the upcoming harvest, income for producers will increase only enough to recover from last year’s shocks but not sufficiently to overcome the multiple, compounding shocks of recent years.
• The regional coffee production for the crop year 2021/2022 is expected to be two percent below from the previous year,mainly driven by a decrease of 12 percent in Honduras’ production, according to USDA estimates, as the rest of the countries expect modest increases. This reduction is a combination of the negative effects on crop management due to the lack of economic sustainability for several years, the aftermath of hurricanes Eta and Iota, irregular rainfall during this year, and an increase in the incidence of coffee rust.