International Development Grant

Sustainable Coffee Production

Project Number: CA-3-A034541003

Status: Closed

Country/Region:

Honduras 100.00%

Maximum Contribution: $4,863,586.00

Start Date: June 09, 2010

End Date: December 31, 2016

Duration: 6.6 years

Project Description

This project provides assistance to 12 coffee cooperatives in 13 municipalities. The Honduran Institute for Coffee (IHCAFE) promotes sustainable coffee production practices such as shade-grown pesticide-free coffee to shift small-scale producers away from traditional practices that generate low yields and income and pollute water sources. IHCAFE provides training to producers and access to essential inputs such as credit and high-yield varieties as well as technology to improve post-harvest quality and reduce losses. IHCAFE also aims to strengthen the capacity of cooperatives in business plan development and marketing and to assist the cooperatives in obtaining internationally-recognized organic certification. This certification enables producers to gain access to high-value international coffee markets. The project is a component of the Agriculture Value Chain Initiative. The goal of the Initiative is to enhance food security for poor rural Hondurans. It aims to increase the annual income of small-scale producers through improvements in productivity quality and diversity in the coffee and cacao sectors.

Progress & Results Achieved

Results achieved as of March 2016 include: (1) lines of credit for 23 coffee producers associations were secured for a total value of CAN $2.78M to help producers improve and expand their production; (2) 782 producers (168 women and 614 men) have adopted improved sustainable production and post-harvest practices surpassing the project’s target of 693; (3) increased coffee production and productivity on 1 660 hectares of land (final target: 1 825 hectares) belonging to 849 families (surpassed project target of 693 families); (4) 4.6 million coffee plants were distributed (exceeding the project target of 1million) along with 196 600 hardwood and fruit trees to improve agro-forestry systems and conservation; (5) 1 128 capacity-building events were held with themes such as the integrated management of fungus and soil and water conservation; and (6) six wet processing plants ten electrical-drying stations five warehouses one roasting station and 150 small-scale solar drying stations and 241 wastewater treatment reservoirs were built/provided as part of the project. These activities are contributing to improving the ability of the cooperatives to produce certified coffee in Honduras and thereby earn sustainable incomes. As a result eight organizations accessed international markets (Australia Austria Belgium Japan Korea UK and US) and members of 12 organizations received their organic certification. It is also the first year of production for renewed plantations which allowed for an increase in daily income from US$4.93 in 2015 to US$7.85 in 2016.

Key Information

Executing Agency:
Honduran Institute for Coffee

Reporting Organization:
Global Affairs Canada

Program:
NGM Americas

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Agricultural inputs 10%
Agricultural extension 10%
Plant and post-harvest protection and pest control 20%
Agricultural financial services 60%

Aid Type: Project-type interventions

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Policy Markers
Level 1 Gender equality
Level 2 Environmental sustainability (cross-cutting)
Level 1 Participatory development and good governance
Level 1 Biodiversity
Major Funding (>$1M)
Budget Breakdown
2010-04-01 to 2011-03-31 $4,863,586 CAD
Geographic Information
000
Project Number: CA-3-A034541003