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HomeCosta RicaSoaring Tomato and Potato Prices Alarm Costa Rican Consumers

Soaring Tomato and Potato Prices Alarm Costa Rican Consumers

Shoppers in Costa Rica are facing sticker shock as the prices of essential vegetables like tomatoes and potatoes have skyrocketed in recent weeks, raising concerns about the impact on household budgets. At farmer’s markets, a kilogram of tomatoes cost upwards of ₡3,000 ($5.50) between January 10th and 12th, with some supermarkets charging over ₡4,000 ($7.30) per kilo. This represents a significant increase compared to prices just a few months ago.

Potatoes have also seen a dramatic price jump, reaching more than ₡2,370 ($4.30) per kilogram, compared to just ₡625 ($1.15) a year ago. This reflects an astonishing 279% increase, according to data from the National Production Council (CNP).

The Minister of Agriculture and Livestock, Víctor Carvajal, attributed the price hikes to the devastating impact of Hurricane Rafael and Tropical Storm Sara, which struck the country in late 2024. These storms caused widespread damage to crops, with losses exceeding ₡35,000 million ($64 million).

While potatoes and tomatoes have been the most affected, other vegetables, including onions, chayote, and peppers, also suffered significant damage due to diseases, pests, and decreased productivity.

Ivannia Quesada, president of the National Chamber of Agriculture and Agroindustry (CNAA), warned about the potential for price increases back in November 2024, when the storms hit. She explained that vegetables with shorter growing seasons, like tomatoes, were particularly vulnerable to price fluctuations due to higher production costs and crop losses.

Quesada also pointed to another factor contributing to the price hikes: high intermediation margins in the agricultural supply chain. These margins, which represent the difference between the price paid to the farmer and the final retail price, can range between 100% and 250%.

Economists offer further explanations for the soaring tomato prices. They cite the inflationary shock caused by increased costs of agrochemicals and transportation, as well as the lingering effects of this shock on overall prices. Additionally, the high demand for tomatoes during the holiday season puts upward pressure on prices.

Experts agree that the atypical rainfall patterns experienced in recent months have further exacerbated the problem. The excessive rain has reduced the supply of tomatoes and other produce, driving prices even higher.

The impact of these price increases is being felt across Costa Rica, with many families struggling to afford basic staples. The government and agricultural organizations are working to address the issue and stabilize prices, but it remains to be seen how quickly consumers will see relief.

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