National Export Strategy

Agricultural sector Honduras - data

Structure

• External analysis• Description of EU market• Critical success factors • Scenarios

• Internal analysis• Sector description• Product range• Supply structure• Strengths and weaknesses

• Strategy• Focuses/challenges, options (4)• Robust option

• Methodology used

External factors

• Consumption of organic and exotic products

• Migration of labor force• Transportation/logistics cost• Production costs Asia• Harmonization of EU legislations• Agricultural subsidies EU

•More jobs ,factories, production, inflation, circulation of foreign currency because of high utility margins, more market opportunities•Industrial diversification, collateral benefits; tourism industry•Increased export consultant demand, GDP•Positive agricultural commercial balance•Decrease in quality standards because of over demand•Increased efficiency en transport, related services, and logistics•Higher life standards in rural area•Reduction in rural – urban migrations

Ugly Duckling

Candies in Hell

•Commercialization costs = HIGH•Lower utility margins•Lower market prices on organic/exotic vegetables and fruits•Other producing countries could have a competitive advantage in costs•Highly unlikely for companies to succeed on organic and exotic products in Honduras•Higher invest on publicity to promote organic•Highly concentrated market with little local competition and few firms.

•Increased demand•Higher production•Product diversification•Increased rate of employment•More competitors entering the market•Lower prices•Lower profits

•Low prices•High competition•Low consumption•High quality•High requirements•Diversification of another countries•Relocation of the production•Some countries go out of the market

EU TENDENCY TO BUY LOCALLY

OR

GA

NIC

R

PO

DU

CTS

Passion Fruit

Fiesta Export

STRENGTHS WEAKNESSES

1 Exchange rateProductive quality culture

2 Minimum Solari Technology

3 Political stability Burocracy

Worksheet SW – Group 1

STRENGTHS WEAKNESSES

1 NATURAL CONDITION NON AGRESSIVE ENTREPRENURIAL SECTOR

2 EXPIRENCE IN WORLD CLASS PRODUC

PRODUCE INFRAESTRUCTURE

3 LOW LABOR COST EDUCATION

Worksheet SW – Group 2

STRENGTHS WEAKNESSES

1Production adaptability

Capacity building

2Potencial of large farm for export

Small familly owned operations

3 Water resourses Sectorial organization

Worksheet SW – Group 3

STRENGTHS WEAKNESSES

1 Lab force Finance

2 Port facilities Infrestructure

3 Diversity of production Technology

Worksheet SW – Group 4

OPPORTUNITIES THREATS

1 Productive linkageCrude oil increasing prices

2 Product differentiation Competitors

3 Specialization Prices

Worksheet OT – Group 1

OPPORTUNITIES THREATS

1 NEW MARKETS ASIAN COMPETITORS

2 PRODUCTS DIVERSIFICATION

CHANGING CONSUMPTION PATTERNS

3 NEW TECHNOLOGY FUEL COST

Worksheet OT – Group 2

OPPORTUNITIES THREATS

1Growing product demand

Geographical positioning

2Low transportation cost

New norms and regulations

3Irrigation infrastructure

Competition

Worksheet OT – Group 3

OPPORTUNITIES THREATS

1Agro ecological Condition

High competition

2 Competitive price Consumer high standard

3 Investment atraction Low market price

Worksheet OT – Group 4

S1S2S

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CONFRONTATION MATRIX

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NATURAL CONDITION 16 18 4 5 0 0 43 EXPIRENCE IN WORLD CLASS PRODUC 10 6 3 11 16 2 48

LOW LABOR COST 5 2 3 21 0 11 42 NON AGRESSIVE ENTREPRENURIAL SECTOR 12 8 18 5 12 9 64

PRODUCE INFRAESTRUCTURE 0 7 6 0 5 18 36

EDUCATION 2 4 11 3 12 5 37

9 9 9 9 9 9

270

S1

S2

S3

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W2

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S1 Production adaptability 13 16 25 12 17 14 97S2 Potential of large farm to export 5 7 7 9 4 8 40S3 Water resources 0 0 0 0 0 0 0W1 Capacity building 17 12 11 12 19 15 86W2 Small companies(family) 0 0 1 1 0 2 4W3 Sectorial organization 10 10 1 11 5 6 43

45 45 45 45 45 45 270

CONFRONTATION MATRIX

Group 3

CONFRONTATION MATRIX

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TO

TA

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Labor force - 16 15 9 3 15 58

Port facilities - 1 15 9 - - 25

Diversity of production 18 1 11 15 13 20 78

Finance 12 8 1 5 3 4 33

Infrastructure 13 10 9 4 9 3 48

Technology 11 18 3 12 26 12 82

54 54 54 54 54 54

S1

S2

S3

W1

W2

W3

O1 O2 O3 T1 T2 T3Group # 4

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Increase production quality culture to create clusters; invest in technology to produce higher value added products

Make sure we keep our labor cost low to meet competition form Asia, Use our experience in production of world class products to face changing consumption patterns

Make use of the high production adaptability for diversification ; build capacity to facde EU norms and regulations

Diversify production to counter low prices ; adopt technology to meet consumer high standards in the EU

8. Confronting the options