Honduras - 3.5 Food and Additional Suppliers

The local market for food and other products in Honduras shows a considerable level of competition. There are multiple suppliers and local producers competing in terms of quality, variety and prices. However, it is important to note that the ability of the local market to meet current demand may present limitations in certain sectors, especially those that require more specialized technologies and processes. Factors such as limited access to finance, lack of modern agricultural technologies, climate variability, and challenges in pest and disease management can also limit agricultural production capacity in Honduras. This can affect the supply of fresh and local food in the market.

In terms of scalability, the local market has significant potential. There are opportunities for growth and expansion of local production, in line with the country's growing demand. There is growing interest in the agro-industrial sector and increased investment in infrastructure related to the production and distribution of food and other products.

In terms of imports and exports, Honduras imports a variety of products, such as cereals, dairy products, meat, fruits and vegetables, to meet domestic demand. At the same time, the country has a strong export capacity in agricultural products, such as coffee, bananas, shrimp and oil palm products. These exports have become important sources of income for the country.

Generic country information can be found in sources that are regularly maintained and reflect current facts and figures. For an overview of country data related to the services and supply sectors, see the following sources:

The Observatory of Economic Complexity - MIT (OEC): Honduras (HND) Exports, Imports, and Trade Partners | OEC - The Observatory of Economic Complexity

Disclaimer: The inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP/Logistics Group, and is used solely as a determinant of services, and capabilities.

Note: The WFP/logistics group maintains complete impartiality and is not in a position to endorse or comment on the suitability of any company as a trusted service provider.

Honduras - 3.5.1 Food Suppliers

Overview

Honduras' food availability is in a difficult situation. Although it has been widely concluded that food availability is no longer considered the most important dimension of SAN, due to the greater importance of confronting inequality in our societies, it is still extremely important for the rural economy of Honduras, where extreme poverty is concentrated.

Honduras has a high potential in agriculture and has a tropical climate that allows the productive activity of this sector almost all year round, guaranteeing the production of tilapia, shrimp, sugar, cocoa, coffee, bananas, a wide variety of fruits and vegetables, among others.

Additional information can be found in sources that are regularly maintained and reflect current facts and figures. For more specific and detailed information on food availability and market conditions, please refer to the following sources:

USAID Famine Early Warning Systems Network (FEWS NET): https://fews.net/latin-america-and-caribbean/honduras

Retail

The retail industry faces significant challenges, including emerging markets, a rapidly evolving business environment, and the need to provide convenient service in an industry that is increasingly demanding.

Supply chains must now provide flawless service and incorporate all these factors to overcome these challenges.

Below is a table with a relative rank indicative for the type of retailer, where 1 is what the population uses the most and 5 is what is used the least:

Types of Retailers Available
Type of Retailer	Rank (1-5)
Supermarket: focuses on the supply of a range of food, beverage, cleaning and sanitation products; has significant purchasing power; is often part of national/regional/global chains.	3
Convenience store/Minimarket - medium-sized store; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of a chain or cooperative.	1
Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options.	4
Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options.	5
Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments.	2

Wholesale – Supermercados La Colonia

Supermercados La Colonia is a supermarket chain established in Honduras for more than 60 years. It operates in the main urban areas of the country and enjoys an outstanding reputation at the regional level, offering a wide range of products and services to Honduran consumers

In Honduras in general terms, the wholesale channel is an intermediary. Where companies operating in this business sector buy their products directly from industries, manufacturers, and even other wholesalers' resellers. To give an example, the white and yellow maize market is dominated by a small number of wholesalers, operating in Tegucigalpa, San Pedro Sula and in intermediate towns close to the main producing areas. Most of the production of this grain is channeled through the Purchase and Sale Agreements between producers and agribusiness constituted with the support of the State, through the Ministry of Agriculture and Livestock (SAG), and the Secretariat of Economic Development (SDE).

The general picture is summarized below:

Supplier Overview
Company Name	Supermercados La Colonia
Address	Colonia Alameda, Rubén Darío Street, next to the National Drugstore
Does the supplier have its own production / manufacturing capacity?	No, it is primarily sourced through a combination of supply sources.
Does the supplier have its own retail capacity?	Yes, the chain operates a network of supermarket stores in various locations across the country. These stores are the main channel through which La Colonia sells its products directly to consumers.
Does the supplier have its own transport capacity?	No, the supermarket chain uses external transportation and logistics services to supply its stores and distribute the products throughout the country.
Does the supplier have its own storage facilities?	Yes, the provider has its own storage capacity.
Approximate Turnover in MT	N/A
Payment Methods Accepted	Cash and credit for financially capable customers
Other Comments or Key Information	N/A

Primary Goods/ Commodities Available

Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
00 - Live animals (other than fish, crustaceans, molluscs, etc.)	N/A	N/A
01 - Meat and meat preparations	Meat and meat products	N/A
02 - Dairy products and birds’ eggs	Milk and milk products	N/A
03 - Fish (not marine mammals), crustaceans, molluscs…	Fish and fish products	N/A
04 - Cereals and cereal preparations	Rice and its derivatives	N/A
05 - Vegetables and fruit	Vegetables, fruits and nuts, jams/jellies, fruit juices.	N/A
06 - Sugars, sugar preparations and honey	Sugars and their derivatives	N/A
07 - Coffee, tea, cocoa, spices and manufactures thereof	Coffee and its derivatives	N/A
09 - Miscellaneous edible products and preparations	Margarine, sauces, soups and broths, yeasts.	N/A
41 - Animal oils and fats	Animal oils and fats	N/A
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated	soybean oil, olive oil, corn oil, and vegetable oil.	N/A

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Honduras - 3.5.2 Additional Suppliers

Overview

Honduras possesses multiple strengths and the potential for faster growth and greater shared prosperity, due to its strategic location, a growing industrial base, continued efforts to diversify its exports, and a young and growing population.

In Honduras, operational support equipment and other relevant materials are widely available and used in humanitarian operations as well as in programming at the national and district levels. These key commodities are procured through different channels, including imports and trade partnerships with domestic and international suppliers.

In terms of equipment for humanitarian operations, tents of different sizes and capacities are available to provide temporary shelter to displaced or disaster-affected people. Water pumps and piping systems are also in place to facilitate access to drinking water in areas where water infrastructure may be limited. Water reservoirs are also available for water storage and distribution in communities in need of additional supply.

Some of the main economic sectors in Honduras according to their activity are:

Agriculture: it is the most important generator of production, income, exports and employment of the Honduran economy, in addition to providing valuable environmental services. The rural population that has emigrated abroad sends significant foreign exchange earnings. However, the sector receives little state support, credit and investment, which restricts its sustained development. In recent years, their growth has been weak and volatile, with low productivity and little competitiveness, and the potential of forests is underutilized. Some activities (melon, African palm, poultry, aquaculture, sugarcane and pineapple) show strong dynamism and some diversification has been achieved.
Forestry: the importance of this sector is that it contributes 0.87% to the economic growth of Honduras, thus presenting a deficit in the trade balance of wood products during the years under study; tied to the above, in the country the use of the forest is reflected at the private level for industrial purposes, using pine roundwood in greater proportions. In other words, the use has only been of a raw material nature and there are few technological processes that allow these products to obtain a greater added value.
Maquila Industry: The maquila sector is one of the main industries of the Honduran economy. It is of great importance for the country, both in attracting Foreign Direct Investment (FDI) and in generating new sources of employment. According to data from the Honduran Association of Maquiladores, 315 national and foreign companies are part of the sector, distributed in 9 areas. Business opportunities exist throughout the entire value chain of the maquila sector. In such a way that the more integrated it is, the more competitive it becomes. These range from supply of supplies, design, packaging, various and comprehensive services such as administration and logistics systems, among others.
Electric Power and Water: The electricity sector in Honduras is called a vertically integrated utility (except for about half of the capacity of electricity generation), an unfinished attempt to reform the sector in the early 90s, the increasing percentage of thermal generation in the last two decades, the weak financial state of the state-owned company (ENEE) (Empresa Nacional de Energía Eléctrica), large technical and commercial losses in transmission and distribution, and poor electricity coverage in rural areas.

The drinking water and sanitation sector has gained coverage of water supply and sanitation services and has increased significantly over the last few decades. However, the quality and efficiency of the services are deficient, and gaps in coverage persist, especially in rural areas.

Construction: The construction industry sector contributes approximately between 6.3 and 6.8 percent of GDP, making it the sixth most important sector for the national economy and the third economic activity that generates the most jobs.
Transport: responsible for the mobilization of the different goods and transport of passengers in a maximum way, which includes the land and air transport service.
Communications: it have been advancing at a good step, innovating in them almost at the same time as the other countries. Emphasizing that Honduras still has a long way to go in terms of communication strategies, but it also registered an increase of 3.6% in 2022.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.