Costa Rica’s future is closely linked to the agriculture sector.
The first exports the country made were agricultural, and 175 years later, this remain the sector that provides the highest value, reaching $2,824 million last year.
Currently, Costa Rica exports over 300 agricultural varieties to 115 countries, but lacks innovation and support from the state to keep on growing, claims Pedro Beirute, general manager of Procomer.
According to Beirute, agriculture remains a dynamic, growing sector, with a very promising future. We are living in an era of amazing global demographic growth. The current growth percentage of the global population in ten years equals what it used to take 300 years.
The executive points out that international competition is fierce. Free trade agreements have made the agricultural sector more dynamic, granting new markets and privileged access conditions in over 50 countries.
Even though the outcome is positive, and for every dollar imported in Costa Rica, 4 dollars are exported, challenges remain complex. Local competitiveness and productivity are key to compete on an international and local level.
Innovation and state support must be promoted to reach the competitiveness levels demanded by international markets.
Innovation does not only include added value, but also developing non-traditional products. In order to achieve this, human capital development is key.
Costa Rica has created an inter-institutional committee that includes the ministries of Agriculture, Healthcare, and Economics, and the University of Costa Rica, to promote new products, in order to increase the production volume and overcome different obstacles.
According to the global demand, it is important to address issues such as the development of sustainable, organic, responsible and fair trade crops. Beirute states that having certifications on these topics is key, as there is a high international demand for these products, and a limited supply on a global level. Costa Rica already has a small volume of organic production of bananas, pineapples, roots and tuberculous, strawberries and blueberries. However, the challenge is to increase the volumes for exportations.
There are challenges in terms of infrastructure, financing, labour costs and bureaucracy. The sector needs more financial support using credit lines adapted to their requirements, as well a Bank for Development with programs focused on those sectors that show the greatest exportation potential, such as agriculture and harvest insurance products. It is not only important to consider the final value of products, but also to consider the value of crops process, providing greater certainty and continuity to crops and more leverage for farmers.
The sector must have technical support to implement better sowing practices and less bureaucracy for Plague Risks Analysis approvals in every market where business opportunities can be found by Procomer, the Ministry of Foreign Trade (Comex) and the Ministry of Agriculture (MAG).
The business sector must work on the strategy for logistics. Loads can be consolidated and logistic operators coordinated to create volume and look for better price margins, resulting into greater competitiveness on an international level.
“It is important for businessmen to understand that certifications are an investment and not expenses. We must certify in Global Gap, Fair Trade, Organics, Rain Forest, and a couple of others”, added Beirute.
Agriculture in Costa Rica can generate more innovation, productivity and employment.