Honduras’ coffee exports will probably be 3.37 million 60-kg bags during this harvest season, unchanged from the previous cycle, said the president of the board of directors of the national coffee institute, Asterio Reyes.

The institute previously projected exports of 3.64 million 60-kg bags.

“This drop is due to the significant increase movement of contraband coffee into Guatemala,” Mr. Reyes told Reuters in an interview.

He said the reduction in exports was also due to strong rains that cut off access roads to coffee-growing regions and knocked cherries from trees. Low temperatures also dried out beans on branches.

Honduras, the second largest coffee grower in Central America, has a reputation for lower quality varieties than neighboring Guatemala.

Mr. Reyes said traders sneak coffee across the border to sell, since Guatemalan beans earn a premium on international markets.

Gourmet coffee supply is tight because of a shortfall in Colombia, so there is more demand and higher prices for specialty types.

Guatemala says it has no knowledge of the smuggling and carefully monitors the contents of its blends.