1. National Export Strategy Agricultural sector Honduras - data

2. 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

3. 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

4. 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 ORGANIC RPODUCTS Passion Fruit Fiesta Export

5. STRENGTHSWEAKNESSES 1Exchange rate Productive quality culture 2Minimum SolariTechnology 3Political stabilityBurocracy Worksheet SW – Group 1

6. STRENGTHSWEAKNESSES 1 NATURAL CONDITION NON AGRESSIVE ENTREPRENURIAL SECTOR 2 EXPIRENCE IN WORLD CLASS PRODUC PRODUCE INFRAESTRUCTURE 3 LOW LABOR COST EDUCATION Worksheet SW – Group 2

7. STRENGTHSWEAKNESSES 1Production adaptabilityCapacity building 2 Potencial of large farm for export Small familly owned operations 3Water resoursesSectorial organization Worksheet SW – Group 3

8. STRENGTHSWEAKNESSES 1Lab forceFinance 2Port facilitiesInfrestructure 3Diversity of productionTechnology Worksheet SW – Group 4

9. OPPORTUNITIESTHREATS 1Productive linkage Crude oil increasing prices 2Product differentiationCompetitors 3SpecializationPrices Worksheet OT – Group 1

10. OPPORTUNITIESTHREATS 1 NEW MARKETSASIAN COMPETITORS 2 PRODUCTS DIVERSIFICATION CHANGING CONSUMPTION PATTERNS 3 NEW TECHNOLOGYFUEL COST Worksheet OT – Group 2

11. OPPORTUNITIESTHREATS 1 Growing product demand Geographical positioning 2 Low transportation cost New norms and regulations 3 Irrigation infrastructure Competition Worksheet OT – Group 3

12. OPPORTUNITIESTHREATS 1 Agro ecological Condition High competition 2Competitive priceConsumer high standard 3Investment atractionLow market price Worksheet OT – Group 4

13. CONFRONTATION MATRIX Productive Linkage ProductDifferentiation Specialization Crude Oil increasing prices Competitors Prices TOTAL Exchange Rate1011441131 Minimum Salary1348101440 Political Stability216106227 Productive Quality Culture 2218158191698 Technology24282391510109 Burocracy44550119 TOTAL54 S1S1 S2S2 S W W2W2 W T3T3 T2T2 T1T1 O3O3 O2O2 O1O1 Group 1

14. CONFRONTATION MATRIX NEW MARKETS PRODUCTSDIVERSIFICATION NEW TECHNOLOGY ASIAN COMPETITOR CHANGINGCONSUMPTIONPATTERNSFuel cost TOTAL NATURAL CONDITION 1618450043 EXPIRENCE IN WORLD CLASS PRODUC 10631116248 LOW LABOR COST 5232101142 NON AGRESSIVE ENTREPRENURIAL SECTOR 12818512964 PRODUCE INFRAESTRUCTURE 076051836 EDUCATION 2411312537 999999 270 S1 S2 S3 W1 W2 W3 O1 O2 O3 T1 T2 T3 Group 2

15. Group 3

16. CONFRONTATION MATRIX Agro Ecological Condition Competitive Price Investment Attraction High Competition Consumer High Standard low market Price TOTAL Labor force-161593 58 Port facilities-1159--25 Diversity of production1811115132078 Finance128153433 Infrastructure1310949348 Technology1118312261282 54 S1 S2 S3 W1 W2 W3 O1 O2 O3 T1 T2 T3 Group # 4

17. UGLY DUCKLING DEM --- COST ++ PASSION FRUIT DEM ++ COST ++ FIESTA EXPORT DEM ++ COST -- CANDIES IN HELL DEM --- COST -- 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