2.2.1.- Costa Rica
Costa Rica is by far the biggest producer and exporter in Central America of ornamentals and fruits, with a share of 60% in Central America’s total export of fruits, vegetables and ornamentals in 2006. Vegetables are mainly produced for the local market. Costa Rica has gained its current position with crops like coffee and later on bananas. Diversification however has brought ornamental plants, flowers, foliage and various new types of fruits to the country. The 70’s and the 80’s have brought a large number of foreign companies and entrepreneurs to Costa Rica to set up new businesses. From the ’90s onwards, less attraction for new types of investments and crops has been detected. The biggest exception to this has been the enormous growth of pineapple production during the most recent decade.
Agriculture in Costa Rica is on a turning point. Costs are rising and are by far the highest of all Central American countries. Reduction of costs is necessary by means of mechanisation. This solution is also required in order to improve quality and uniformity of produce. Another measure to be taken by Costa Rican producers is the creation of added value to their products. If you can’t beat your competitor on costs, make sure they pay you better!
Costa Rica still has a very strong image which is mainly based on the fact that the country is regarded world wide as a friendly, environmentally aware and peaceful nation. Too little has been done so far to use this image for commercial purposes in agriculture (see chapter 5).
2.2.1.1.- Production
Area of production
In table 2.1 on the next page, the area harvested for the major agricultural products is given. The main agricultural crop as far as area harvested is concerned is banana with an area above 50.000 hectares. The crop with the highest growth rate is indisputably pineapple. From 2001 tot 2005 the area has doubled from 13.000 to 26.000 hectares. Orange covers a large area but is only used for processing. Production of horticultural crops in (plastic) greenhouses is estimated at 250 hectares of which around 90% is occupied by ornamental crops.
Production quantity
Table 2.2 shows the production quantity for the major agricultural products, according to the data available. A slight increase in agricultural production can be observed.
2.2.1.2.- Trade
Export
Table 2.3 on the next page shows the export value (US$) of the major agricultural products for the sectors covered by this study. Banana is still the mayor crop followed by pineapple. Exports of non-traditional agricultural products, such as melons, pineapples, ornamental plants and foliage, mainly to the United States and the European Union, have grown strongly since 1995.
Export
Table 2.3 on the next page shows the export value (US$) of the major agricultural products for the sectors covered by this study. Banana is still the mayor crop followed by pineapple. Exports of non-traditional agricultural products, such as melons, pineapples, ornamental plants and foliage, mainly to the United States and the European Union, have grown strongly since 1995.
Fresh fruit export is by far the biggest export group accounting for 1.19 billion dollars in the year 2006. Over the last 4 years, the export of fruits has grown with 67%, mainly due to the increase of the pineapple exports of (170% from 2002-2006). Banana has a share of 54% in the total fruit export in 2006 and has grown with 35% over the past 4 years.
The export value of ornamentals is growing slightly with 10% per year. The export value has grown with 26% since 2002. The category ‘live ornamental plants’ has a share of 41% in the total export value and has increased with 27% (2002-2006). The export value of cut flowers has grown considerably with 48% since 2002. The export value of foliage shows less growth, 15%, but still has a larger share in the total export of ornamentals in 2006 then cut flowers; 38% versus 21%.
Vegetable export has increased with 37% over the past 4 years. Cassava has a considerable share in the total export; 40%. Finally, the export value of prepared and preserved vegetables and fruits is quite large; 132 million dollar in 2006.
Export trade partners
More than 50% of all fruits are exported to the United States. Both Italy and Canada have more than doubled their fruit imports from Costa Rica during the last 5 years. As for fruits, the United States are the main importer for ornamentals as well. Although it should be said that flowers have the USA for more than 90% as their destination while plants, cuttings and foliage go primarily to Europe.
For vegetable exports, primarily cassava and squash, North America accounts for 65% of the total export value. Remarkable in these figures is the strong position of Puerto Rico. The final group, preserved fruits and vegetables, has Europe as its predominant destination.
Export to the Netherlands
In 2006 45% of all exports from Costa Rica to the Netherlands consisted of fruit, vegetable and ornamental products. The total export value to the Netherlands from these sectors amounted US$ 227 million.
Ornamentals exports have increased slightly since 2002. In 2006 the export value reached US$ 58 million, with a share of 26% in the total export value of fruit, vegetable and ornamental products to the Netherlands. The live ornamental plants, foliage and other plant parts that are exported to the Netherlands mainly go directly to breeding companies, were the plants and plant parts are further treated and made ready for Dutch auctions.
Vegetable exports have increased slightly since 2002, but in comparison to the other three sectors, it makes up only a small part. Furthermore, export from this sector is mainly formed by cassava.
The export of fruits to the Netherlands has made an enormous leap since 2002. In the years from 2002 onwards, the exports increased with almost 600% to a value of almost US$ 94 million in 2006, with a share of about 40% in the total export value of fruit, vegetable and ornamental products to the Netherlands. This is mainly ascribed to the enormous growth of pineapple exports. Other fruit exports have increased as well, but to a far lesser extent.
Export of prepared fruits and vegetables to the Netherlands also shows a strong growth to a value of almost US$ 70 million in 2006 and with a share of about 31% in the total export value of fruit, vegetable and ornamental products to the Netherlands. Especially the export of fruit and vegetable juices are responsible for this considerable growth.
Import
In table 2.6 the import value (US$) of the major agricultural products is given for the sectors covered by this study.
2.2.1.3.- Agricultural supplies and services
Costa Rica has a broad range of companies that provide agricultural supplies and services. Products like fertilizers and crop protection products are available at competitive prices. Technology like greenhouses and packing equipment is mainly being imported from Europe, Israel and the USA. This type of products is being sold through local representatives (agents) or in some cases directly from the country of origin.
In the table below the imports of agricultural products from the Netherlands is shown for the group with HS code 06 (ornamentals). An interesting fact is the import of flower bulbs from the Netherlands which sums up to over US$ 10 million.
