Agribusiness contribution to the national economy
In 2020, the sugar agroindustry directly represented approximately 4% of the agricultural GDP, 3% of the industrial GDP, 20% of the agroindustrial GDP and 1.1% of the total GDP, without considering the entire production chain process.
Currently, more than 57 thousand hectares of sugarcane are planted in the country, producing more than 540 thousand metric tons of sugar per year. Seventy percent of the cultivated area belongs to the industry and the remaining percentage belongs to independent producers.
Sugar production employs around 40% of the economically active population in its areas of influence in rural areas. More than 200 thousand jobs, including direct and indirect employment and related activities.
In comparative terms, Honduras ranks fourth in terms of total sugarcane production generated in the six countries that make up the Central American isthmus. The 2021-2022 crop year ended with a production of 8 million 50 kg bags of sugar, which represents a 24% decrease compared to the previous year, due to the impacts and damages caused by tropical storms Eta and Iota. Molasses extracted from cane juice accounted for approximately 150 thousand tons.
Economic Value(Generated and Distributed)
The economic value created by the sugar industry is close to 10,273 million lempiras annually. The economic value distributed shows that purchases from suppliers is the most important item (56%) followed by wages and salaries (21%), new investments (15%), taxes (7%) and occupational health and safety (1%).
10,273 million lempiras
Power generation has become the most important item in the sugar sector, accounting for 35% of income generation, followed by sugar with 34% and export sales (31%).
Sixty-seven percent of sugar is distributed in Honduras and 33% is exported, while the European Union and the United States each consume four percent of exports and the remainder is sent to the world market. In 2020, the value of sugar exports will represent close to US$80 million.
Domestic sugar production
Around 3.5 billion lempiras are paid annually for purchases from suppliers. Nearly 800 families of independent producers depend on the sugar industry. More than L 1.3 billion is paid annually in wages and salaries; about L 900 million in new investments; and about US$80 million in foreign currencies is generated through exports.
Taxes accounted for more than 430 million lempiras in 2020 between taxes to the national and municipal governments.
Investment in biosecurity, safety and occupational health represents more than 60 million lempiras.
The generation of energy through the use of sugarcane bagasse represents significant savings for the country in foreign currency. It is estimated that by 2020 the savings will be around US$91 million.
