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Factories Close, Reopen in Honduras

David Savona
Posted: July 27, 2009

The wandering protest of deposed Honduran president Manuel Zelaya caused cigar production in the country to largely cease on Friday.

The former president who was removed from office on June 28 has set up camp in Octotal, Nicaragua, near the border of Honduras. His calls for support have drawn thousands of demonstrators, leading to a curfew that temporarily stopped business.

"The city of Danlí had a noon curfew [on Friday]," said Christian Eiroa, president of Camacho cigars, which are rolled in Danlí. He said the curfew made it largely impossible for cigars to be rolled on Friday.

"The border crossing with Nicaragua is closed. Things are now officially disrupted," said Charlie Toraño, president of Toraño Cigars, which are made in Honduras and Nicaragua. Toraño also oversees operation of the ST Cigars factory in Honduras and Nicaragua. "The roads are blocked so we cannot transport cargo to the capital."

Things are closer to normal today, although a curfew is still in place, albeit one that begins at 6 p.m., according to Toraño. Eiroa said the cigar and tobacco industry—by far the largest employer in the area—is allowed to operate via special permit. "The city is still under curfew, but there's a special permit for tobacco companies."

Toraño said employees who live outside Danlí were unable to come to work due to the disruption.

"It's a minute-by-minute situation," he said.

Honduras is the second largest exporter of premium cigars to the United States.