Saturday 12 October 2024

COSTA RICA – This year’s crop expected to be the smallest in 37 years, says Gain Report

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In the past, the price of coffee for domestic consumption was always lower than the price of coffee for export. This change signals that roasters have had to compete with higher prices to obtain high quality coffee locally.

According to research done by a marketing company for ICAFE in 2013, consumption per capita in Costa Rica is 4.29 kg/year.

The details of the research show that people between 12 and 60 years drink 2.69 cups of coffee per day (one cup has 10.36 grams of coffee on average). However, younger drinkers (12-17) drink much less coffee than adults aged 45-60.

According to the local industry, this represents an important challenge for the sector since the largest consumer group (older adults) will decline significantly within the next 15-25 years.

Trade

Costa Rica exported 1,421,803 bags in 2011/2012 and 1,398,183 bags in 2012/2013. Export volume is expected to decline in 2013/2014 to 1,200,000 bags as a result of lower production. According to industry sources the higher coffee prices experienced in recent months will not benefit producers in the short term because most of the 2013/2014 crop had already been sold at lower prices.

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However, higher average prices are expected by producers for the 2014/2015 crop.

Most of Costa Rica’s coffee was exported to the United States (53.29%), Belgium (13.42%), and Germany (6.2%).

The United States has been the main destination for Costa Rica’s coffee for several years now. During the last three marketing years, exports to the United States have exceeded 690,000 bags, and the trend is for higher exports. Export volume has declined sharply during the last 10 years as a result of lower production and higher domestic consumption.

During 2001/2002 Costa Rica exported 2,016,971 bags, as compared to 1,398,183 bags in 2012/2013. Also, export patterns have changed. Costa Rica used to export a higher share to Europe and Japan in the past.

Although coffee has declined to third place in terms of the export value of agricultural products, it is still an important source of foreign exchange. Coffee exports amounted to $307.8 million during the 2012/2013 crop year, down 33% from the previous period. Bananas and pineapples now surpass coffee in terms of export value.

Source: Gain Report – Usda

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