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Arabica Coffee Prices Hit Record High After Tropical Storm Sara

November 16, 2024
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How Does Tropical Storm Sara Affect Arabica Coffee Supply?

Tropical Storm Sara, the 18th named storm of the 2024 Atlantic season, made landfall in northern Honduras, hitting nearly 33,000 people and prompting a 30-day national state of emergency. The storm arrived just before the coffee harvest, damaging roads and disrupting port operations in the world's sixth-largest coffee-producing country. Combined with harsh weather in Brazil and Colombia, Arabica coffee futures prices have climbed to historic highs.

Rainfall reached 300 to 500 millimeters across most of Honduras, exceeding 700 millimeters in the worst-hit areas around the La Esperanza mountain range, where floods and mudslides cut off communities. Because Honduras sits on Central America's northern coast, its coffee production is exposed to violent storms year-round; an extreme rainstorm in June had already damaged roads, and the country has not fully recovered.

The 18th named storm of the 2024 Atlantic hurricane season, "Sara," made landfall in northern Honduras, affecting nearly 33,000 people, and the president declared a 30-day national state of emergency. Torrential rain, floods, and mudslides not only destroyed roads and disrupted port operations, but also came right before the coffee harvest season, potentially dealing a severe blow to the output and exports of the world's sixth-largest coffee-producing country. Combined with harsh weather in producing regions such as Brazil and Colombia, Arabica coffee futures prices have already soared to historic highs. This article will outline the specific impact of the storm on Honduras' coffee industry and highlight how brands such as Front Street Coffee continue to track origin news.

According to media reports, Tropical Storm "Sara" recently formed in the Caribbean, becoming the 18th named storm of the 2024 Atlantic hurricane season. The storm has made landfall in northern Honduras, and the president of Honduras immediately declared a 30-day national state of emergency.

A report from Honduras' National Secretariat for Risk Management and Contingencies shows that Tropical Storm "Sara" has affected nearly 33,000 people in the country to varying degrees, with 6,604 families severely affected, and some areas remain cut off from the outside world.

At present, "Sara" is moving westward through the department of Colón at a speed of 15 to 20 kilometers per hour, bringing extreme rainfall, floods, landslides, and mudslides to Honduras. Rainfall in most areas has reached 300 to 500 millimeters, while in the worst-hit areas it has exceeded 700 millimeters. Many roads are flooded, making travel difficult for residents.

Tropical Storm Sara devastates Honduras: coffee exports blocked, Arabica futures prices hit new highs

The most severely affected area is the La Esperanza mountain range in the north-central region and the surrounding mountainous areas, where rivers have surged and floods and mudslides occur frequently. The Honduran Armed Forces have mobilized personnel and logistical resources to carry out rescue operations.

Honduras is located in the northern coastal zone of Central America, and its special geographical environment makes it prone to violent storms year-round. In June this year, the country already experienced an extreme rainstorm. According to a report from the National Secretariat for Risk Management and Contingencies, the downpour caused road damage and rivers to overflow, killing 1 person, affecting more than 6,000 people, forcing over 900 people to evacuate, and prompting yellow alerts in 7 departments nationwide.

The impact of this tropical storm is broader and more severe. At present, "Sara" is moving northwest, and neighboring Belize, Guatemala, Nicaragua, and Mexico will also be affected.

In addition, the storm mainly affects northwestern Honduras, an area that concentrates the country's main ports, including Puerto Cortes, the largest and most important one. As a result, Honduras' import and export business will be suspended in the coming days, adversely affecting industrial development.

Honduras is the largest coffee producer in Central America, the sixth-largest in the world, and a major exporter of Arabica coffee. However, this year Honduras' coffee production is not encouraging. Data from the Honduran Coffee Institute (IHCAFE) show that in August 2024 the country exported a total of 321,303 bags of coffee (60 kilograms per bag), a year-on-year decrease of 19.44%. Since the 2023/24 season, Honduras has exported a cumulative total of 4.35 million bags of coffee, a year-on-year decrease of 11.07%.

However, IHCAFE had predicted that coffee production in the 2024/25 season was expected to recover, with exports projected to rise 14.5% year on year to 5.37 million bags. But the recent heavy rainfall may disrupt this expectation. November is originally Honduras' harvest season, and the torrential rain will not only delay picking but may also knock ripe cherries off the trees, leading to a decline in final production.

Tropical Storm Sara devastates Honduras: coffee exports blocked, Arabica futures prices hit new highs

At the same time, road damage and blocked port exports will also affect the export of coffee and other products, further affecting coffee supply. Recently, because multiple coffee-producing regions in Brazil, Colombia, and Central America have all suffered harsh weather, both production and exports have declined, and Arabica coffee futures prices have already soared to historic highs.

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The above content is compiled by CoffeeHunters, a coffee news website.

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