Profitability of coffee production and its impact on the sustainability of family businesses in Honduras (#360)

Authors

Perdomo, Hector Orlando

Ordoñez-Avila, Jose Luis

Perdomo, María Elena

Abstract

This study aimed to analyze the profitability of coffee production and its impact on the sustainability of the family business. The analysis was made for coffee producers, specifically those who own between 3 and 5 blocks of cultivated coffee, classified as small, in the western region of Honduras. The methodology used is a qualitative reflection approach. For the analysis of profitability, income statements were prepared, and comparative profit margins were calculated for years ending from 2018 to 2021. The results indicate losses and negative margins of up to 0.42 and 0.08 cents for each dollar of sales in the years 2019 and 2021 respectively, resulting in a loss of capital for the producer and/or the use of other resources to cover costs and expenses. Likewise, a relationship was made between the total income received by a coffee producer based on its yield of quintals produced per block and sale price, with the cost of the basic food basket and basket of goods and services, with data from the year 2021, resulting in said income being insufficient to cover it, and therefore the impact on the sustainability of the family business is negative.