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

Former Costa Rica Football Chief Challenges FIFAGate Conviction

More than a decade after the FIFAGate corruption scandal shook international football, former Costa Rican Football Federation president Eduardo Li has renewed his attempt...

Costa Rica Urges Peaceful Transfer of Power in Colombia

Costa Rica has joined the United States and 11 other countries in urging Colombian authorities to guarantee a peaceful, orderly and transparent transfer of...

High Surf hits Costa Rica’s Caribbean Coast with Rip Current Risk

If you're planning beach days on the Caribbean side over the next several days, plan for rough water. Waves are running above two meters...

Flying to Costa Rica in the 1990s: Free Drinks, Meals and Smoking

Flying from Miami to Costa Rica in the 1990s could mean a hot meal, repeated rounds of complimentary drinks and a seat only a...

El Salvador’s Bukele Wins Primary for Third Presidential Term

President Nayib Bukele received the official nomination of his Nuevas Ideas party for the 2027 presidential election, clearing the path for a third consecutive...

Comparing Atenas and Puriscal for Costa Rica Homebuilders

For buyers looking to build a home in Costa Rica’s western Central Valley, Atenas and Puriscal often land on the same shortlist. Both offer...

Why Costa Rica’s Highway Projects Keep Costing More Than Promised

If you have ever wondered why a highway project in Costa Rica costs more than the government said it would, and finishes later than...

Costa Rica Faces Flood Risk as Tropical Wave Moves Across Today

A tropical wave moving across Costa Rica today is expected to bring yet another round of heavy rain and thunderstorms, with already saturated ground...

Costa Rica Report Finds High First-Time Vehicle Inspection Failure Rate

More than one-third of the vehicles presented for Costa Rica’s mandatory technical inspection failed on their first attempt during 2025, with excessive emissions, worn...
🌴 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