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Falling coffee prices and reduced production strain livelihoods for small producers and day laborers

  • Food Security Outlook Update
  • Latin America and the Caribbean
  • November 2013
Falling coffee prices and reduced production strain livelihoods for small producers and day laborers

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  • Key Messages
  • Key Messages
    • In eastern Guatemala’s dry corridor, the lean season for poor smallholder farmers will be extended until the next harvest due to Primera crop losses and will be Stressed (IPC Phase 2) until December 2013. Day laborers in the Western Highlands will have difficulty meeting their basic food consumption needs due to the reduction in the demand for unskilled labor in the coffee harvest and will experience Stressed outcomes from January to March 2014.
    • The average to above-average second season harvest of maize and beans in Central America is increasing the supply of grains in the domestic markets and throughout the region. Poor households in Nicaragua and El Salvador are classified as having Minimal acute food insecurity (IPC Phase 1), while localized crop losses in Honduras place poor households in Stress (IPC Phase 2).
    • Prices in the international coffee market have steadily fallen and producers have been able to invest in treatment in affected areas in order to control the coffee rust in the region. A reduction in the demand for unskilled labor due to estimated coffee production losses in 2013/2014 in Central America will decrease the income of poor households dependent on this sector. Impacts may extend beyond 2015.
    • Food availability has improved significantly throughout Haiti since August 2013 due to the good performance of the spring agricultural production in the most productive areas. This situation is likely to continue until January 2014, during which time food stocks will begin to run out. However, some areas in the Southeast, the Northwest, Grand Anse, and the North have suffered from a prolonged drought, resulting in low production, leaving poor households in these areas Stressed (IPC Phase 2). Reserves coming from this production, especially in deficit areas, will be exhausted in January. This will result in an increase in prices of foods and reduced access for poor households in these areas, some of which will see Crisis (IPC Phase 3) food security outcomes between January and March.

    Figure 1


    This Food Security Outlook Update provides an analysis of current acute food insecurity conditions and any changes to FEWS NET's latest projection of acute food insecurity outcomes in the specified geography over the next six months. Learn more here.

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