Improving inclusion, competitiveness, and sustainability in midstream Honduran coffee chains

This article presents a systematic comparison between conven
tional and ‘differentiated’ coffee value chains, paying attention to (micro
and macro) economic performance and environmental outcomes at different
midstream segments of the Honduran coffee value chains. Growth has been
strong in the Honduran coffee sector, especially among coffee cooperatives and
commercial enterprises devoted to the production of ‘differentiated’ coffees
at premium prices. We rely on a systematic data inventory of input use,
costs, and benefits of all agents involved at different midstream stages of the
coffee value chains to compare their performance. We find that midstream
integration is critical for yield and quality improvement of Honduran coffee.
This can be reinforced through voluntary certification (mainly for organic
produce) and branding. Moreover, upgrading of conventional coffee for sales
at local and regional markets offers some promising prospects for inclusion
and sustainability.