Semilla’s Work in Honduras – Coffee, Crisis, and Ethical Investment

Climate and Coffee: A Threatened Future

In high-altitude communities like Selguapa in Honduras, the conditions for growing high-quality Arabica coffee are exceptional. Yet, the future is uncertain. Climate change and plant diseases, like coffee leaf rust (which destroyed 25% of national production in 2019), are putting Arabica at risk globally. Despite this, most farmers sell their coffee cherries to intermediaries who pay low prices and often manipulate weights. Even some reputable co-ops operate this way.

This system discourages quality. Farmers have little reason to invest in growing better cherries when buyers don’t reward it. Poorly processed coffees still end up in the market - sometimes even under Fair Trade labels - yet the producers see few benefits. It’s a model that benefits neither farmers nor the long-term quality of coffee.

Migration as a Survival Strategy

Because coffee prices rarely cover costs, many producers are forced to abandon farming altogether. Migration - often to major cities or to the U.S. -has become a widespread response to economic instability. In 2017, nearly 19% of Honduras' GDP came from remittances. For many rural families, knowing how to migrate is now more valuable than knowing how to farm. This migration drains communities of their youth, labor, and future.

The Hidden Cost of Foreign Investment

Much of this crisis is shaped by international policy - particularly Canada’s involvement in Honduras. After a 2009 coup that removed a democratically elected president, Canadian investment in Honduras skyrocketed. While presented as support for economic development, much of this funding has gone toward extractive industries like mining and manufacturing, benefiting Canadian corporations while leaving local communities behind.

Companies like Gildan and Goldcorp have faced repeated accusations of labor abuse, environmental damage, and corruption, while repatriating most profits. This form of foreign direct investment extracts wealth from the Global South and leaves local people with fewer resources, rights, and choices.

A Different Kind of Investment

Semilla operates on a different model—one rooted in transparency, equity, and partnership. Instead of relying on exploitative supply chains or predatory investments, we work directly with smallholder coffee farmers and commit to:

  • Paying 100% above the local market price, every year.

  • Eliminating intermediaries, so money goes straight to producers.

  • Setting fixed prices across communities, rewarding the effort regardless of cup score.

  • Providing micro-financing, funded by roasters and customers, that goes directly into farmers’ personal accounts.

By building relationships at the community level and sourcing entire harvests, we aim to make coffee farming not only viable but dignified—keeping families together and allowing future generations to stay on the land.

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