A coffee rust outbreak in Central America and the Dominican Republic which was widespread by June 2013 threatens the main source of income of hundreds of thousands of poor households. WFP has implemented food security related assessments in Nicaragua and other countries of the region to better understand the impact of the coffee rust on livelihoods. The negative impacts for the coffee industry are expected to be long lasting. Some observers are suggesting that a full recovery might not be possible until 2016.
In Nicaragua, around 300,000 jobs depend on coffee production. Coffee exports have reduced with a 32% compared to the same period in 2012. Lower international coffee prices, and a reduction in seasonal employment, is taking a toll on livelihoods.
The impact of staple food price changes on the cost of the basic food basket from October to December 2013 was moderate.