In recent times, the development of Costa Rica’s coffee industry has been facing ongoing difficulties and numerous challenges. Recently, the United States Department of Agriculture released a report on the state of Costa Rica’s coffee industry over the past six months.

The main reasons for the reduced yield were the early onset of the rainy season and heavy rainfall in March 2023, as well as the impact of El Niño, which caused local temperatures to be higher than average. This led to increased fruit development, a rise in fungal diseases, and wet harvesting conditions, all of which affected coffee quality and increased drying costs.

In terms of labor and transportation, last year Panama experienced several weeks of large-scale government protests, and the roadblocks caused by the protests affected transportation. In addition, Nicaraguan migrants began moving northward, and the supply of coffee harvesting machines was limited, all of which ultimately exacerbated the decline in harvest yields.

Moreover, as the Costa Rican colón continues to appreciate while the US dollar weakens, the relative price of coffee exports has risen. Exporters may adopt a conservative strategy as a result, which could ultimately lead to a decline in export volumes.

The exchange rate issue has already led to dissatisfaction among many producers and business associations in Costa Rica. In mid-May, representatives from the production sectors such as coffee and fruit, as well as industries including tourism, transportation, and services, gathered in front of the Central Bank (BCCR) and the Ministry of Finance to protest. They marched to express their concerns about the severe economic losses that the exchange rate policy has caused to their industries.

Therefore, they hope the government will pay attention to the development of various industries in the country and intervene in the currency market to stabilize the exchange rate. Otherwise, it will trigger social issues and ultimately harm the interests of the people.