Coffee Shortage Looms
Besides a humanitarian crisis, two hurricanes across the countries of Guatemala, Honduras and Nicaragua could result in a shortage of coffee, according to AccuWeather.
Honduras is the biggest grower of coffee in the region, followed by Nicaragua and Guatemala. Combined, these three countries account for around 8% of the world’s coffee output. In Honduras alone, coffee is a $1 billion industry that generates 1 million jobs and accounts for 30% of the country’s Gross Domestic Agricultural Product, according to the Honduran Coffee Institute, a leading trade group in the country’s coffee industry.
The loss of coffee crop in Honduras, Nicaragua and Guatemala could result in higher prices for wholesale coffee buyers but may not be enough to have a substantial impact on prices for everyday coffee drinkers.
AccuWeather estimates that during Eta, there was a 10% loss of Central American coffee, mainly because of roads being washed out and coffee not making it to the market. It further estimates that additional impacts from Iota could be as much as another 10% to perhaps 25% loss as the region could be more susceptible to damage in the wake of Eta
These losses could be compounded by a strike.
Even if the coffee plants are unharmed after both storms, the significant rain could cause the coffee to mature too quickly and affect its quality,