economy
March 10, 2026
‘Everyone feels like they are being scammed’: can Central America’s small coffee growers survive as global prices fall?
Family-run farms in El Salvador and Honduras face mounting losses, rising costs – and the need to adapt or be left behind
TL;DR
- Climate change is causing rising temperatures and erratic weather in key coffee-growing regions across Latin America.
- Producers are facing increased costs for fertilizer and labor, alongside unpredictable yields and quality reductions.
- Market prices for coffee are projected to fall, while farmers' production costs continue to rise.
- Labor shortages are becoming acute as younger generations leave rural areas due to the physically demanding and poorly paid nature of coffee farming.
- Adaptation strategies like managing shade and soil restoration require investment that many small farmers cannot afford.
- Institutional support for coffee producers has weakened over decades, leaving them to navigate challenges largely alone.
- Initiatives promoting ecological practices and focusing on soil health and long-term stability are emerging as potential solutions.
- The declining economic importance of coffee is leading to land being converted to other crops like sugarcane or sold for development.
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