Wheat and meslin flour and cereals market in Honduras

Earlier Report Observations

The Honduran wheat flour and cereals market was highly concentrated, dominated by a few large mills like Molino Harinero de Sula. In 2018, the sector saw a significant entry with the announcement by Salvadoran-backed Molsa to invest $20 million in a new 300-ton-per-day mill, aiming to capture about 35% of the national market. Throughout the period, the market remained heavily dependent on wheat imports, particularly from the U.S., which influenced domestic prices and availability.

The COVID-19 pandemic in 2020 reduced bakers' purchasing power, affecting demand, while mandatory fortification of wheat flour with iron, folic acid, and B vitamins was accelerated under Decree No. 3,609. This regulation was later formalized by the Central American Technical Regulation RTCA 67.01.15.07 in 2022. Post-pandemic recovery supported consumption in 2021. Market volume then fell sharply to 194 thousand tons in 2022, before rebounding to 208 thousand tons in 2023, with shifts in export levels playing a key role in these fluctuations.

Production wheat and meslin flour and cereals in Honduras

In kind, 2017-2020, K t

Top producers of wheat and meslin flour and cereals, 2017-2020

World map of production of wheat and meslin flour and cereals, 2017-2020

Honduras experienced a second consecutive year of decline in wheat and meslin flour and cereals production. In 2020, the country produced 201.2 K t, marking a 3.2% decrease from the previous year. Production peaked in 2018 at 210.0 K t, which also saw the largest annual increase of 4.8%.

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

In value, 2017-2020, K $ US

In 2020, the output of wheat and meslin flour and cereals in Honduras was valued at 85 329 K $ US, showing a year-on-year gain of 1.9%. From 2017 to 2020, production increased by 14.2%, equating to an annualized growth rate of 4.5%. The highest value was recorded in 2018 at 87 572 K $ US, which also saw the largest annual increase of 17.2%. In contrast, 2019 experienced the largest decline of 4.4%.

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

Exports wheat and meslin flour and cereals from Honduras

Exports in kind, t

Wheat and meslin flour and cereals exports from Honduras declined for the third consecutive year. In 2020, exports reached 14 381 t, showing a sharp decrease of 31.2% compared to 2019. Between 2017 and 2020, exports decreased by 42.8%, equating to an annualized decline of 17.0%.

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

From 2017 to 2020, El Salvador almost entirely determined the geographical structure of wheat and meslin flour and cereals exports from Honduras, accounting for 90.7% of total flows.

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

Wheat and meslin flour and cereals exports from Honduras declined for the second consecutive year. In 2020, exports registered 6 099 K $ US, representing a sharp decline of 27.5% compared to the previous year. Over the period 2017-2020, exports decreased by 35%, with a compound annual growth rate (CAGR) of -13.4%. The maximum value was recorded in 2018 at 9 580 K $ US, which also saw the largest annual increase of 2.2%.

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

From 2017 to 2020, El Salvador remained the main destination for wheat and meslin flour and cereals exports from Honduras, taking 89.0% of total exports in value terms, while the remaining volume was distributed among other countries.

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

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

Imports wheat and meslin flour and cereals to Honduras

Imports in kind, t

In 2020, wheat and meslin flour and cereals shipments to Honduras from abroad stood at 22 144 t, constituting a moderate gain of 9.1% compared to 2019. Between 2017 and 2020, imports increased by 8.7%, equating to an annualized growth rate of 2.8%. The minimum value was recorded in 2019 at 20 296 t, which saw the largest annual decline of 10.9%. In contrast, imports peaked in 2018 at 22 766 t, with the largest annual increase of 11.8%.

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

From 2017 to 2020, the geographical pattern of imports in kind reflected a strong dependence on El Salvador, which absorbed 98.4% of total flows.

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

Honduras experienced a second consecutive year of decline in wheat and meslin flour and cereals import volume. In 2020, imports amounted to 10 008 K $ US, down by 9.0% versus the previous year. Over the period 2017-2020, imports decreased by 4.6%, with a compound annual growth rate (CAGR) of -1.5%. The maximum value was recorded in 2018 at 11 288 K $ US, which also saw the largest annual increase of 7.6%.

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

From 2017 to 2020, the geographical pattern of imports in value terms reflected a strong dependence on El Salvador, which absorbed 98.3% of total flows.

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

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