Costa Rica’s Green Coffee Boom: Overcoming Challenges, Embracing Change
Costa Rica is expected to experience a moderate increase in green coffee production in the 2023/24 market year, following a 50-year low in output that was recovered two years ago.
Factors Driving Production Increase
According to the latest report from the USDA Foreign Agriculture Service (FAS), the projected increase in production is driven by anticipated favorable weather conditions and efficient fresh planting strategies.
Decline in Coffee Farmers
This growth is occurring despite a rapid decline in the number of coffee farmers in Costa Rica. The decline in coffee producers can be attributed to prolonged periods of low coffee prices, an aging farming population, and the high cost of land in close proximity to urban areas.
FAS Reports on Coffee Industries
The US information entity intends to release 16 yearly reports on the coffee industries of various countries. These reports are authored by various individuals and regional offices.
Projected Green Coffee Production
According to FAS projections, Costa Rica’s green coffee production for the 2023/24 period is estimated to reach approximately 1.44 million 60-kilogram bags. This represents a growth rate of over 15% compared to two years ago.
Persistent Production Issues
Despite the positive outlook, the Costa Rican industry faces persistent production issues, as emphasized by the agency. Fluctuating immigration patterns during coffee harvest seasons create challenges for Costa Rican coffee farmers, as a significant portion of the coffee harvest depends on temporary foreign workers from Nicaragua and Panama.
Concerns Regarding Declining Farmers
The decline in the number of active farmers is a notable concern, as the majority of coffee production in the country is carried out by small-scale farmers who are approaching retirement age without any successors.
Attractiveness to International Markets
Despite the challenges, Costa Rica remains attractive to international markets, particularly the United States and the European Union. The United States is the largest export market for Costa Rica’s green coffee, accounting for 48% of the volume, followed by the European Union at 35%.
Innovation in Post-Harvest Processing
Costa Rica’s coffee growers have consistently contributed to the global specialty coffee market by introducing innovative post-harvest processing techniques on their farms. The number of coffee mills has increased, reflecting the industry’s trend towards producing diversified products in smaller batches (referred to as ‘micro-lots’) to achieve higher selling prices.
Conclusion
Despite a shortage of farmers, Costa Rica is projected to increase its green coffee production due to favorable weather conditions and fresh planting strategies. However, challenges related to labor resources and the decline in the number of active farmers remain significant concerns for the Costa Rican coffee industry.
