No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCoffeeRising Labor Costs Threaten Costa Rica's Coffee Producers

Rising Labor Costs Threaten Costa Rica’s Coffee Producers

The coffee industry in Costa Rica is facing significant challenges due to rising labor costs and decreasing profits for producers. This alarming situation was highlighted by experts from the Economic Commission for Latin America and the Caribbean (ECLAC) during a recent discussion at the National University’s School of Economics (UNA).

A major concern is that most of the revenue generated by the coffee industry does not make its way back to the producers. New regulations, potential increases in operational costs, and non-tariff barriers affecting coffee bean exports are all putting pressure on the sector’s short-term viability.

So Jeong Lee, an expert in the field, emphasized the gravity of the situation: “Only a small percentage of the added value from coffee production reaches the producer, and this share is very limited. With rising costs, it’s becoming more likely that producers will lose the motivation to continue their work. If this trend continues, we could find ourselves without a viable coffee industry in the near future.”

Currently, producers receive only about 20% of the total added value from coffee sold at retail. This figure can vary between 5% and 20%. While they can capture an additional 10% through processing and up to 20% more through roasting, much of this value is concentrated among a few large companies. For instance, during the 2022-2023 production cycle, just 211 small processors managed to handle only 3% of the coffee, while six major companies accounted for a staggering 44%.

The study conducted by ECLAC examined various risks and market conditions affecting coffee production, outlining both challenges and opportunities for improvement within the sector.

Key risk factors identified include climate change, aging coffee plantations, increasing debts faced by producers trying to keep their businesses afloat, labor shortages, and threats from pests and diseases.

For Costa Rica’s coffee industry to thrive and grow, it is essential that costs are shared fairly among producers, processors, roasters, and consumers. Supporting small producers and fostering collaboration within the industry—and across borders—is crucial for overcoming these challenges.

For those of us living in Costa Rica and enjoying our morning of Costa Rican coffee, it’s important to recognize these issues facing local producers. By understanding these dynamics, we can appreciate the hard work that goes into every cup and support efforts aimed at sustaining this vital part of Costa Rica’s economy.

Trending Now

Lagoon Operator Says German Consul Was Swimming When He Drowned

The association that runs the recreation center where Germany's consul in Costa Rica died on Saturday has disputed the account that circulated internationally in...

Costa Rica’s Pacific Waters Reach Unusually High Temperatures

Ocean temperatures along Costa Rica’s Pacific coast are running unusually high, with researchers recording water up to 2°C (3.6°F) warmer than normal in some...

Costa Rica Issues Green Alert as Rincón de la Vieja Activity Increases

Costa Rica has placed five areas near Rincón de la Vieja Volcano under a preventive green alert after more than 100 eruptions were recorded...

Costa Rica Renews Push to Make Chirripó Its First UNESCO Global Geopark

Costa Rica and the State Distance University are renewing an effort to have Chirripó recognized as Costa Rica's first UNESCO Global Geopark, a designation...

Costa Rica’s president says US ground operations would benefit national security

President Laura Fernández said US ground operations on Costa Rican soil would be good for national security if they pursued shared targets, while stressing...

Costa Rica’s Whale and Dolphin Festival Returns This Weekend

If you have been waiting for the right weekend to see humpback whales in Costa Rica, this is it. The 16th Whale and Dolphin...

Rare Blue Octopus Returns to Galápagos as a Newly Identified Species

The rare blue octopus that surprised scientists has returned to the Galápagos Islands. The specimen, about the size of a golf ball, will be...

Two Pococí Judges and a Judicial Agent Detained in Diablo Probe

Prosecutors say two judges and a judicial agent from the Pococí courts are suspected of bribery and procuring impunity for a drug trafficking group between 2023 and 2026.

Forbes Puts Costa Rican Coffee Farmers at the Center of the $60 Cup

A Forbes travel feature on $60 coffee centers on a small producers association in Turrubares. Its president says the Starbucks price reported in the article likely reflects an intermediary rather than a direct sale.
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel