Maize flour and cereals market in Honduras

Earlier Report Observations

From 2018 to 2021, the maize flour and cereals market in Honduras expanded significantly, with production rising from 700 thousand tons to 777 thousand tons and market volume growing from 718.2 thousand tons to 797.2 thousand tons. This period saw a consistent increase in domestic output, while imports fluctuated between 38.6 and 44.6 thousand tons.

In 2022, the Secretariat of Agriculture and Livestock (SAG) conducted a comprehensive evaluation of the corn production and flour processing sector, aiming to improve coordination and order within the industry. The following year, the market welcomed new competition with the entry of Molsa, which invested $20 million to build a mill with a daily capacity of 300 tons, targeting 35% of the national market. Simultaneously, a tripartite agreement established a guaranteed price and purchase volume for white corn used in flour production for the 2024-2025 cycle, providing stability for growers and processors. These developments coincided with a stabilization of the total market volume around 800 thousand tons.

For 2024, the price guarantee agreement remained in effect, supervised by government agencies to ensure proper use. Additionally, favorable agricultural production and measures by the Honduran Agricultural Marketing Institute (IHMA) to directly purchase basic grains from producers strengthened the strategic reserve, supporting overall market stability.

Production maize flour and cereals in Honduras

In kind, 2017-2020, K t

Top producers of maize flour and cereals, 2017-2020

World map of production of maize flour and cereals, 2017-2020

Honduras has seen its maize flour and cereals production volume grow for the third year in a row. In 2020, the country produced 760.0 K t of maize flour and cereals, representing a gradual 7.0% increase compared to the previous year. Looking at the period from 2017 to 2020, production rose by 10.1%, which translates to an average annual growth rate of 3.3%.

Annual dynamics of production in Honduras in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two years of decline, maize flour and cereals production in Honduras rebounded. In 2020, the output was valued at 344.8 M $ US, showing a strong year-on-year uptick of 13.7%. Between 2017 and 2020, production increased by 12.1%, equating to an annualized rate of 3.9%. The lowest value was recorded in 2019 at 303.1 M $ US, which also saw the largest decline of 1.2%.

Annual dynamics of production in Honduras in value, 2017-2020, M $ US

Exports maize flour and cereals from Honduras

Exports in kind, t

Maize flour and cereals exports from Honduras have increased for the third consecutive year. In 2020, exports amounted to 25 520 t, marking a 14.0% gain relative to the prior year. From 2017 to 2020, exports grew by 46.1%, which corresponds to an annualized rate of 13.5%.

Annual dynamics of product's exports from Honduras in kind, 2017-2020, t

Between 2017 and 2020, Nicaragua and El Salvador together accounted for 84.4% of total exports in kind, with other countries forming a diversified but less significant portion.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Honduras in kind, 2017-2020

Exports in value, K $ US

Cross-border shipments of maize flour and cereals from Honduras have risen for the third year in a row. In 2020, exports reached 11 577 K $ US, amounting to a 21.1% uptick compared to the previous year. Over the period from 2017 to 2020, exports increased by 48.6%, with a compound annual growth rate of 14.1%.

Annual dynamics of product's exports from Honduras in value, 2017-2020, K $ US

Throughout 2017 to 2020, El Salvador and Nicaragua remained the primary destinations for exports in value terms, jointly taking 81.9% of total flows, while other partners each accounted for significantly smaller shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Honduras in value, 2017-2020

Imports maize flour and cereals to Honduras

Imports in kind, t

Imported maize flour and cereals volumes in Honduras have increased for the third consecutive year. In 2020, imports reached 44 610 t, marking a slight gain of 1.1% compared to 2019. Over the period from 2017 to 2020, imports grew by 23.8%, with a compound annual growth rate of 7.4%.

Annual dynamics of product's imports to Honduras in kind, 2017-2020, t

From 2017 to 2020, El Salvador was the primary source for imports in kind, accounting for 89.2% of total flows, while other markets formed a long tail of smaller partners.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Honduras in kind, 2017-2020

Imports in value, K $ US

Imported maize flour and cereals volumes in Honduras have increased for the third consecutive year. In 2020, Honduras imported a total of value_last_year K $ US of maize flour and cereals, indicating a small increase of 2.6% compared to 2019. Over the period from 2017 to 2020, imports rose by 26.8%, with a compound annual growth rate of 8.2%.

Annual dynamics of product's imports to Honduras in value, 2017-2020, K $ US

Between 2017 and 2020, El Salvador remained the main source for maize flour and cereals imports to Honduras, taking 88.7% of total imports in value terms, while the remaining volume was distributed among other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Honduras in value, 2017-2020