Market shocks and climate variability: The coffee crisis in Mexico, Guatemala, and Honduras

As a result of a dramatic decline in world coffee prices and the restructuring of both domestic and international institutions, coffee farmers have been facing one of the most difficult periods in sector history. In 2003, a comparative case study project (supported by the Small Grant Program of the Inter-American Institute for Global Change Research) in Guatemala, Mexico and Honduras explored the experiences and responses of coffee farmers to institutional reforms, market risk, and climate variability. Four communities were selected for study in the three countries in which household surveys and interviews were conducted. The impacts of the crisis and farmers' responses illustrate the potential obstacles that farmers confront with sudden and profound changes in production conditions, yet also suggest opportunities for interventions that might help farmers improve their resilience to future risk.