SHF land in R&R need
Nicaragua is a relatively small producer
‘000 hectares, 2014
Global & region
12th in world
6th in LA
‘000 tons, 2014
~45% of total land is in need of R&R
The main drivers are disease (Nicaragua was hit by La Roya), bad current practices and old trees in some areas. Climate change could potentially also affect Nicaragua severely.
Tons per hectare
Though yields are low, SHFs are too few to drive total supply
Total national supply could increase ~5-10% if R&R and GAP is implemented on all SHF land in need of R&R2
(1) The current yield is calculated on the basis of SHF production divided by SHF land area in 2014, the potential yield uplift comes from the GCP study on Nicaragua: GCP, Nicaragua: GCP: Economic Viability of Coffee farming, 2017 – this study cites an average SHF yield of 10.2qq/mz;
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 35%, and the range reflects a 25A-100% R&R success rate. Sources: FAOstat, Coffee production and land under coffee, 2014; ICO production statistics
SHFs represent ~40% of total production
National production is dominated by larger farms (>14hectares)
SHFs1 are predominately in loose value chains,relying on several middlemen to get to market.
(<1% of global SHFs2)
# SHF land
(~60% of national land) – average farm size ~1.5-2.5 ha)
# SHF production
(~40% of national production)
Assessment of SHF orgs.
Coops are not dominant – export around 20% ofcoffee in 2012/2013SHFs most often rely on middlemen to sell theircoffee.
Links to market C
ECOM is dominant in the country and hasclose links to SHFs
(1) SHFs in Nicaragua are sometimes referred to as farms up to 14 hectares – we focus on SHFs with <3 hectares in farm size.
(2) Assuming a global SHF population of 20 million – estimates of farmers are high-level only and vary significantly. Source: GCP, Nicaragua: GCP: Economic Viability of Coffee farming, 2017; FAOstat, Coffee production and land under coffee, 2014; ICO production statistics; USDA, Nicaragua Coffee Annual Report, 2017;
Past R&R programs have largely focused on renovation in response to La Roya
Root Capital, USAID, Keurig, Starbucks – Coffee Farmer Resilience Initiative
USD 3.5 million in loans to a local coop for SHF renovation.
ECOM, Starbucks, IDB, IFC – ECOM Renovation
ECOM, in a innovative partnership with Starbucks, IFC, and IDB provided renovation loans to Nicaraguan farmers.
Catholic Service Relief, CIAT – Rust to Resilience
Renovation program to help farmers overcome La Roya.
There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.