Honduras and El Salvador: Analyzing cost and profitability of specialty coffee in Central America

In Honduras and El Salvador, coffee (Coffea arabica) is one of the leading agricultural exports, and the share of specialty coffee is growing each year. However, despite the importance of specialty coffee production and exports, there is a knowledge gap regarding its cost structure and profitability, particularly those associated with labor costs The global market for specialty coffee (Coffea arabica) has increased significantly in the past several years. The increase in the demand for specialty coffee has generated significant interest among coffee farmers in producing countries. In the case of Honduras, the registration of specialty coffee began during the 2009 to 2010 harvest. By the 2019 to 2020 harvest season, specialty coffee accounted for 54% of total exports. In El Salvador, ≈80% of coffee exports are now differentiated/specialty coffee. Several studies have evaluated the costs and profitability of ...