FAO Initiative on Soaring Food Prices
 

Honduras

Background

Honduras is one of the poorest and least developed nations in the Western hemisphere. Traditionally, the country has been heavily reliant on exports of bananas and coffee, but the impoverished population sees little benefit from these. Honduras is also vulnerable to swings in their prices on international commodity markets.

In addition, Honduras is dependent on the outside world for its fuel and food needs. The main staple, yellow maize, is 100 percent imported, while the country also imports 85 percent of its rice. Beans, produced locally, are the second most important food for consumption, but massive floods in October 2008 are expected to reduce those harvests.

Some 35 000 hectares of agricultural lands have been destroyed as well as 31 500 hectares of crops that were about to be harvested.

The country is mountainous and has limited transport and communications. Hurricane Mitch in 1998 set the country’s development back by years, with damages to infrastructure, agriculture and homes estimated at US$3.8 billion.

The price of rice in the capital Tegucigalpa in mid-November was 64 percent higher than in November 2007. Maize was up more than 35 percent in the northern city San Pedro Sula over the same period.

FAO Response

In response to the global food price crisis, the government of Honduras launched a National Plan for Production of Basic Grains. FAO is supporting the government in insuring the provision of improved seed, fertilizers and other farming supplies to more than 8800 vulnerable smallholder farmers and their families.

The government has announced an additional support program to replant beans in light of the October floods disaster.

The TCP programme there provided bean seed during the immediate summer planting season. Beans are the second most important food stuff in the country, and beans have now been harvested.

Most importantly, FAO is now boosting the government’s capacity to process bean seed of locally adapted varieties for the coming seasons. FAO is procuring an advanced seed dryer for the government so that seed can be produced in sufficiency in the country.

The European Commission has also supported an FAO rapid assessment of the soaring food prices situation in the country.

In July, FAO undertook a regional assessment in Central America to measure the capacities of the region's countries to produce seed locally. The resulting proposal, now being finalized, aims to rebuild seed production systems so countries are once again self-sufficient in their regional market. Presently, seed is often purchased from overseas.

Links

Hurricane Mitch wiped out 70 percent of agricultural production