Honduras
Last updated: 07 March 2020
Profile
Profile
Forestry and legality
| Source | ||||
|---|---|---|---|---|
| Region | Latin America & Caribbean | (2019) | UNSD | |
| FLEGT status | VPA negotiating | (2019) | FLEGT Facility | |
| Forest area | 4.6 | million ha | (2015) | FAO |
| Deforestation rate | 0.12 | million ha/year | (2010-2015) | FAO |
| Planted area | 0 | million ha | (2015) | FAO |
| Tree cover loss | 1.01 | million ha | (2001-2018) | Global Forest Watch |
| Tree cover loss (%) | 13 | % | (2001-2018) | Global Forest Watch |
| Tree cover gain | 58.3 | kha | (2001-2012) | Global Forest Watch |
| FSC certified area | 17,815 | ha | (December 2019) | FSC |
| PEFC certified area | 0 | ha | (December 2019) | PEFC |
| Double certified area (FSC & PEFC) | 0 | ha | (Mid-2019) | FSC & PEFC |
VPA status of Honduras
Honduras was the first Latin American country to initial a VPA with the EU in 2018. Implementation will begin once the Agreement has been ratified.
The VPA has been characterized by broad stakeholder engagement, including public and private sectors, civil society and, in a FLEGT VPA first at the time, indigenous peoples’ groups.
The VPA includes in its legality definition an indicator stating that the Forest Institute will respect the right to free prior and informed consultation in the territories of the Indigenous and Afro-descendant Peoples of Honduras where commercial timber harvesting is intended to take place and by which those Peoples are directly affected.
The timber legality assurance system will be based on Honduras’ existing national strategy against illegal logging (ENCTI).
Honduras has expressed an explicit desire to use the VPA to increase transparency in the forest sector. The Honduras VPA includes an annex on public disclosure of information that lists the information the government commits to making publicly available.
Forest resources in Honduras
FAO estimated the total forest area in Honduras at 4.6 million hectares in 2015, 41% of land area.
Deforestation averaged 120,000 hectares per year between 2005 and 2015 according to FAO, an annual rate of 2.2%, the highest rate in the Americas. Forest area has fallen from 8.1 million hectares in 1990. Demand for land by small-scale farmers is thought to be the major cause.
According to the Honduras Institute for Forest Conservation, Protected Areas and Wildlife (ICF), 500,000 hectares of softwood woodland have been destroyed by insect infestation since 2015.
According to ITTO’s 2011 Status of Tropical Forest Management report, at that time Honduras’ central highlands and the Mosquito Coast savannahs had nearly 2 million hectares of pine and mixed forests, while about 3.5 million hectares of broadleaved forests covered much of the Caribbean coast, the Agalta mountains and the eastern lowlands.
Industry
Industry
Economic and industrial status
| Source | ||||
|---|---|---|---|---|
| GDP | 23.8 | billion USD | (2018) | World Bank |
| Population | 9.6 | million | (2018) | World Bank |
| Income group | Lower middle income | (2019) | World Bank | |
| Ease of Doing Business (EDB) Rank | 133 | / 190 | (2019) | World Bank |
| Global Competitiveness Index Rank | 101 | / 141 | (2019) | World Economic Forum |
| Liner Shipping Connectivity Index | 13.4 | (maximum value in 2004 = 100) | (2019) | World Bank |
Timber industry competitiveness of Honduras
The Honduras forest products sector is dominated by micro, small and medium-sized businesses.
Honduras’ ranking on international competitiveness indices is low and has declined in recent years. Ranking on the World Economic Forum’s Global Competitiveness fell from 88th in 2017 to 101st in 2018. Honduras Ease of Doing Business ranking fell from 105th in 2016 to 121st in 2018. The country’s connectivity is low, ranked 93rd on the Connectivity Index.
According to the European Support to Honduras Forestry Sector (EUROFoR) project, centralized bureaucracy has undermined the competitiveness of this sector with illegal logging activities escalating the problem, while extended droughts, due to changing climatic conditions, have contributed to forest degradation, with the expansion of epidemic infestations being the most prominent challenge.
Nevertheless, according to ICF, the Honduras forest products sector produces around 700,000 m3 of logs each year and annual export earnings of US$66 million. In the six years 2013 to 2018, the sector created over 100,000 jobs, while 236 community forest management contracts were issued.
Trade Overview
Trade Overview
Highlights
According to the ITTO Biennial Review, national log production was stable at around 770,000 m3 in 2017 and 2018, a rise from 710,000 m3 in 2016. Honduras has implemented a ban on exports of unprocessed roundwood and squared logs.
Annual sawnwood production was stable at around 306,000 m3 in 2017 and 2018, up from 259,000 m3 in 2016, according to ITTO. A large proportion of sawnwood is exported. Sawnwood exports were 175,000 m3 in 2017 and 2018, a rise from 148,000 m3 in 2016 and only 74,000 m3 in 2014.
Honduras produces small volumes of plywood, estimated by ITTO at around 49,000 m3 per year between 2016 and 2018. Plywood exports were no more than around 10,000 m3 per year during this period and most production was consumed in the domestic market.
There was negligible production of veneer in the country between 2014 and 2018.
Honduras’s imports and exports of timber products in the latest 12 months (USD value from January 2019 to December 2019)
NOTE: Mirror data from STIX, drawing on trade data reported by Honduras’s main trading partners, is used. Read more about the data in ‘Data Sources and Issues’.
Hover over the chart to see the value.
| Imports (202.8 Million USD) | Exports (52.78 Million USD) | ||||
|---|---|---|---|---|---|
| Region | Country | Product | Product | Country | Region |
Honduras’s production, imports, exports and domestic consumption of primary wood products in 2018
(data source: ITTO) Hover over the chart to see the value.
Trend in production, imports, exports and domestic consumption of primary wood products (logs, sawnwood, plywood, and veneer) in Honduras
(data source: ITTO) 
Imports
Imports
NOTE: Mirror data from STIX, drawing on trade data reported by Honduras’s main trading partners, is used. Read more about the data in ‘Data Sources and Issues’.
Highlights
In 2018, Honduras imported timber products with total value of US$378 million, up from US$350 million in 2017. Import quantity increased from 364,000 tonnes to 358,000 tonnes during the same period.
A large proportion of Honduras timber product imports comprise paper products. Between 2017 and 2018, imports of these products decreased in quantity terms, from 309,000 tonnes to 304,000 tonnes, but increased in value from US$303 million to US$328 million.
Nearly 50% of paper product imports into Honduras derive from the United States, with most of the remainder from Latin American countries including El Salvador, Guatemala, Mexico and Brazil.
Between 2017 and 2018, Honduras imports of wood (HS 44) products were stable in value terms, at around US$26.5 million, but decreased slightly in quantity terms, from 46,600 tonnes to 44,900 tonnes.
Around half of Honduras wood (HS 44) products imports derive from Guatemala (mainly pallets and packaging) and a quarter from Brazil (mainly fibreboard).
Honduras imports only a small quantity of wood furniture, mainly from US and China
Trend in Honduras’s timber product imports by region (12-month rolling averages)
Honduras’s top 5 import partners in the latest 12 months (from January 2019 to December 2019)
| Country | Value (Million USD) |
|---|---|
| United States | 133.02 |
| China | 18.61 |
| Brazil | 12.46 |
| Germany | 9.00 |
| Canada | 5.07 |
Honduras’s timber product imports by product group in the latest 12 months (from January 2019 to December 2019)
| Product | Value (Million USD) |
|---|---|
| Paper | 170.51 |
| Wood | 17.48 |
| Furniture | 14.37 |
| Pulp | 0.44 |
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Honduras’s timber product imports by product group and region (12-month rolling averages)
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Honduras’s timber product imports from top 5 origin countries by product group (12-month rolling averages)
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Total value of Honduras’s wood product imports from top 5 origin countries in the latest 12 months (from January 2019 to December 2019)
(unit: 1000 USD)
| Composite panels | Fuel and charcoal | Joinery | Logs and other raw wood | Other processed wood | Pallets, packaging and barrels | Sawnwood and mouldings | Veneers and plywood | |
|---|---|---|---|---|---|---|---|---|
| All countries | 4,877 | 20 | 234 | 102 | 2,481 | 197 | 2,821 | 6,746 |
| Rank 1 | Brazil 3,534 | United States 20 | United States 105 | United States 102 | China 799 | United States 120 | United States 2,685 | China 2,272 |
| Rank 2 | Spain 377 | Brazil 95 | Brazil 758 | Taiwan 45 | Brazil 91 | Germany 1,534 | ||
| Rank 3 | United States 307 | Italy 17 | United States 609 | Spain 29 | Chile 27 | Spain 1,426 | ||
| Rank 4 | China 296 | Spain 13 | Japan 170 | Hong Kong 3 | Spain 18 | United States 1,036 | ||
| Rank 5 | Chile 145 | Hong Kong 3 | Taiwan 53 | Italy 169 |
*Wood products are products under Chapter 44 of Harmonized Commodity Description and Coding System (HS).
Exports
Exports
NOTE: Mirror data from STIX, drawing on trade data reported by Honduras’s main trading partners, is used. Read more about the data in ‘Data Sources and Issues’.
Highlights
In 2018, Honduras exported timber products with total value of US$220 million, down from US$313 million in 2017. Export quantity decreased from 384,000 tonnes to 279,000 tonnes during the same period.
Total timber product export value to the EU was only US$1.2 million in 2018, down from US$3.6 million in 2017.
A large proportion of Honduras timber product exports comprise paper products. Between 2017 and 2018, exports of these products decreased from US$230 million to US$147 million. Export quantity decreased from 245,000 tonnes to 155,000 tonnes.
Honduras exports of paper products to the US halved between 2017 and 2018, from 148,000 tonnes to 72,000 tonnes, although the US remained by far the largest single export market. Other key markets for Honduras paper in 2018 were Costa Rica, Nicaragua, Panama, El Salvador and Belize.
In 2018, Honduras exported 122,000 tonnes of wood (HS 44) products, down from 136,000 tonnes in 2017 and 154,000 tonnes in 2016. The share of exports to other Latin American countries has risen sharply in recent years, from 41% in 2013 to 72% in 2018. The share destined for the US has fallen from 51% to 23% in the same period.
Exports of wood (HS 44) products to the EU were only 665 tonnes in 2018, down from 1,235 tonnes in 2017.
Honduras’s wood furniture exports are generally low and have been very volatile in recent years, falling from US$17 million in 2014 to only US$2 million in 2016, rebounding to US$21 million in 2017, and then slipping back to US$17 million in 2018. Most wood furniture exports are destined for the US, with smaller volumes destined for other Latin America countries.
Total value of Honduras’s exports of timber products in the latest 12 months (from January 2019 to December 2019)
| Total export: | 52.78 Million USD |
| Total export to EU: | 1.32 Million USD |
| Total export to other regulated countries (Australia, Japan, Malaysia, Norway, Republic of Korea, United States of America, and Viet Nam): | 0.34 Million USD |
Trend in Honduras’s timber product exports by region (12-month rolling averages)
Honduras’s top 5 export partners in the latest 12 months (from January 2019 to December 2019)
| Country | Value (Million USD) |
|---|---|
| United States | 48.42 |
| Canada | 1.18 |
| China | 0.77 |
| Brazil | 0.68 |
| France | 0.47 |
Trend in Honduras’s timber product exports to EU and other regulated countries (12-month rolling averages)
*Other regulated countries include Australia, Japan, Malaysia, Norway, Republic of Korea, United States of America, and Viet Nam
Total value of Honduras’s exports by timber product group in the latest 12 months (from January 2019 to December 2019)
| Product | Value (Million USD) |
|---|---|
| Furniture | 25.74 |
| Wood | 19.25 |
| Paper | 7.80 |
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Trend in Honduras’s exports by timber product group and region (12-month rolling averages)
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Trend in Honduras’s exports to top 5 destination countries by timber product group (12-month rolling averages)
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Trend in Honduras’s timber product exports to regulated (EU and others) and unregulated countries (12-month rolling averages)
*Timber products are categorized according to Harmonized Commodity Description and Coding System (HS) codes: wood (chapter 44), pulp (chapter 47), paper (chapter 48) and furniture (chapter 94)
Total value of Honduras’s wood product exports in the latest 12 months (from January 2019 to December 2019)
(unit: 1000 USD)
| Fuel and charcoal | Joinery | Logs and other raw wood | Other processed wood | Pallets, packaging and barrels | Sawnwood and mouldings | Veneers and plywood | |
|---|---|---|---|---|---|---|---|
| All countries | 4,419 | 939 | 2,355 | 7,163 | 1,444 | 2,927 | 3 |
| Rank 1 | United States 4,138 | United States 917 | United States 1,718 | United States 6,804 | United States 1,383 | United States 2,130 | Germany 3 |
| Rank 2 | Canada 139 | Canada 17 | China 637 | France 157 | Netherlands 56 | Germany 239 | |
| Rank 3 | Australia 114 | France 5 | Canada 67 | Brazil 5 | Spain 190 | ||
| Rank 4 | Netherlands 16 | United Kingdom 37 | France 137 | ||||
| Rank 5 | Germany 12 | New Zealand 35 | Belgium 78 |
Trend in Honduras’s wood product exports to regulated countries (12-month rolling averages)
*Regulated countries include European Union, Australia, Japan, Malaysia, Norway, Republic of Korea, United States of America, and Viet Nam.
EU Imports
EU Imports
(data source: Eurostat COMEXT)
Highlights
The EU imported US$1.84 million of timber products from Honduras in 2018, a 6% gain compared to US$1.74 million in 2017 but a significant decline compared to over US$5 million in 2014 and figures of close to US$7 million before the financial crises.
EU imports from Honduras comprise mainly sawnwood (57% of value in 2018), with small amounts of mouldings (10%), densified wood (10%), fuel wood (5%) and wooden tools (5%).
EU sawnwood imports from Honduras comprise mainly pine with a small quantity of mahogany and other hardwoods.
EU imports are mainly into Germany and France, with small quantities into Belgium, Netherlands, Spain and the UK.
Trend in EU imports of timber products from Honduras by product group (12-month rolling averages)
Trend in EU timber product imports from Honduras to top 5 destination countries (12-month rolling averages)
Trend in timber product imports from Honduras to top 5 EU countries by product group (12-month rolling averages)
Trend in EU imports of wood products from Honduras by product group (12-month rolling averages)
Trend in wood product imports from Honduras to top 5 EU countries by product group (12-month rolling averages)
Total quantity of EU imports of wood product from Honduras to top 5 destination countries in the latest 12 months (from January 2019 to December 2019)
(unit: kg)
| Fuel and charcoal | Joinery | Other processed wood | Pallets, packaging and barrels | Sawnwood and mouldings | Veneers and plywood | |
|---|---|---|---|---|---|---|
| All countries | 113,522 | 4,209 | 203,422 | 38,560 | 742,311 | 1,691 |
| Rank 1 | Netherlands 102,400 | France 4,209 | France 164,869 | Netherlands 38,557 | Germany 235,480 | Germany 1,691 |
| Rank 2 | Germany 11,122 | United Kingdom 21,096 | Spain 3 | Spain 211,836 | ||
| Rank 3 | Spain 14,221 | France 133,145 | ||||
| Rank 4 | Netherlands 2,963 | Belgium 63,658 | ||||
| Rank 5 | Denmark 272 | Netherlands 47,497 |
*Wood products are products under Chapter 44 of Harmonized Commodity Description and Coding System (HS).
Data Sources and Issues
Data Sources and Issues
Due to lack of access to regular data on timber product exports from Honduras, the statistics shown in this IMM report draw on import data from 44 major timber trading countries in the EU, Asia and America. While these countries include many of Guyana’s most significant trade partners there are significant omissions, notably neighbouring countries in the Latin America/Caribbean region.
The commentary in this report draws on additional secondary sources, notably Honduras annual trade data from the IHS Markit Global Trade Atlas (subscription service).