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

Costa Rica Opens Prison Modeled on El Salvador’s CECOT

Costa Rica's new maximum-security prison opens today, but no inmates move in until late October. Here is how it will operate, who goes first and the legal fight over its rules.

Costa Rica Water Outage to Affect 13,000 in Heredia

More than 13,000 people in San Rafael de Heredia are expected to lose water service for six hours today, while crews clean two storage...

Costa Rica’s Public Schools Have Lost 180,000 Students in Five Years

Public school enrollment in Costa Rica has fallen 16.5% since 2021 as births decline, while private schools have added more than 12,000 students.

Costa Rica Ransomware Attacks Rise 39%, Microsoft Reports

Ransomware attacks targeting Costa Rica increased by 39% over the past year, placing us among the world's ten most affected nations, according to Microsoft's...

Is Snoop Dogg’s Costa Rica Concert Still Happening?

Update, Oct. 13: No. The production company, Stockwell Entretenimiento, announced Tuesday afternoon that Snoop Dogg’s December 3 concert in Costa Rica has been canceled...

Dollar Slips Back Toward 450 Colones, Shrinking What Your Dollars Buy

The dollar closed Friday at 452.92 colones on Monex, down from 460.45 on Oct. 1, reducing what anyone earning or saving in dollars gets in Costa Rica.

Panama Earthquake Aftershocks Could Shake Costa Rica for Weeks

Costa Rica could experience more tremors in the coming days and weeks as Panama continues to record aftershocks from yesterday's powerful magnitude 7.7 earthquake....

More Than 400 Buildings Sit in the Path of Costa Rica’s Electric Train

Incofer's feasibility study found more than 400 homes, shops and buildings inside the rail right-of-way for the Tibi electric train. The state must also buy 145 private lots by 2028.

El Salvador’s New National Stadium Hits 75% as 50,000 Seats Arrive From China

El Salvador's new National Stadium is three-quarters built, President Nayib Bukele announced Thursday, and when it opens next year its 50,000 seats will make...
Loading…

Latest News from Costa Rica

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