PINEAPPLE PROMISED LAND?
Costa Rica must contemplate the economic and environmental feasibility of becoming a large pineapple exporter following its first shipment to China in 2017.
As with all agricultural farming, there is a balance between growth and environmental standards. Costa Rica is in a unique circumstance following its first shipment of fresh pineapples to China. While this is a potentially lucrative demand market, there may be adverse effects on Costa Rica's lush environment and its famous image of sustainability.
A 2003 tariff agreement between Costa Rica and the EU has helped establish the Latin American country as one of the largest exporters of pineapples globally. According to Abel Chaves, President of the National Chamber of Pineapple Producers (CANAPEP), Costa Rica "produces 2.9 tons per hectare, above Brazil with 2.6, the Philippines with 2.5, and Thailand with 1.9."
As a result, pineapple production has become a legacy industry in the country where fresh pineapple and its variants represent 33% of total agricultural output, roughly USD1.1 billion, or about 2% of total GDP in 2016. 2017, however, has offered an additional boost to export potential by seeing its very first shipment of Costa Rican pineapple to China via the Caldera port in Puntarenas.
Access to the Chinese market is a major focus for many companies and countries in today's globalized world, and Costa Rica has been no exception. The prospect of the Chinese market is not without its challenges, however.
Not only is the market demand not fully proven in its current nascent stage, there is the great geographical divide of the countries making shipment of a perishable good an ongoing drain on resources for exporters. There is hope that, through marketing the Costa Rican variation as a delicacy compared to its more bitter Filipino counterpart, they may see a boon to the already thriving pineapple business in Costa Rica.
Even still, there is another consideration that must be addressed, which is the viability of a country the size of West Virginia and its ability to grow enough supply to satisfy potential crippling demand from the world's most populous nation. Simply offering up more land for pineapple cultivation amounts to further environmental degradation by tearing down pristine jungle habitat. It is a perpetual issue in Costa Rica and other sub-tropical emerging nations, and many struggle to find the sweet spot between maintaining pristine tropical ecosystems or stimulating job growth in usually rural, underemployed areas.
However, the true impact of job growth is a bit ambiguous. Pineapple production in Costa Rica employs roughly 32,000 people directly and 120,000 indirectly employed by the industry, not an insignificant figure in a country of less than 5 million people. However, roughly 70% of those employed are Nicaraguan seasonal workers, many illegal. Much of this money makes its way out of the country in the form of remittances, thereby, limiting the economic benefit of production.
Furthermore, Costa Rica's entire national brand, from tourism to energy, is based on sustainability and greenness. How do they reconcile growth and greenness? The US and the EU represent an established export market and make up roughly 97% of current pineapple exports. Ultimately, the answer may simply be the status quo with a twist. During an interview, Chaves expressed his optimism and clarified that Costa Rica is looking to supply organic pineapples, a smaller niche market.
In similar efforts to fill other market demands, Costa Rica may be better situated to further develop its value-added processes like dehydrated pineapples or expand its organic pineapple production, a solution seemingly more suitable to such a small land mass servicing the richest regions in the world.
PINEAPPLE PROMISED LAND?
TABLE OF CONTENTS
Interview
Yamileth Astorga, President, Costa Rican Institute of Aqueducts and Sewers (AyA)
TBY talks to Yamileth Astorga, President of the Costa Rican Institute of Aqueducts and Sewers (AyA), on the challenges of providing high-quality potable water and working to prevent a water deficit.
read articleInterview
Luis Carlos Delgado Murillo, President, National Supervisory Council for the Financial System (CONASSIF)
TBY talks to Luis Carlos Delgado Murillo, President of the National Supervisory Council for the Financial System (CONASSIF), on the importance of collaboration between the private and public sectors and facilitating new business.
read articleInterview
Minor Rodríguez, General Manager, Coopesa
TBY talks to Minor Rodríguez, General Manager of Coopesa, on being the only self-managing cooperative in the world dedicated to heavy aircraft, the importance of communication, and maintaining a flat and democratic governance structure.
read articleReview
Reaching the Sky
The construction sector in Costa Rica has recovered significantly from a slump in 2016. However, the country has much to accomplish, especially in terms of ensuring new residential projects are inclusive for all income levels and fixing the infrastructure problem.
read articleInterview
Dr. Fernando Llorca Castro, Executive President, Caja Costarricense del Seguro Social
TBY talks to Dr. Fernando Llorca Castro, Executive President of Caja Costarricense del Seguro Social, on the importance of institutional longevity, joining the OECD, and bringing standardized services to every part of the country.
read articleFocus: Education Training
Get the Ball Rolling
One of the main factors that attracts investors to Costa Rica has been its skilled human capital. For this purpose, the government and academia are collaborating to improve programs and better align them to the requirements of several industries.
read articleReview: Education
Class Is In Session
High levels of public investment have made Costa Rica's education system one of the strongest in Latin America, and government leaders are working to improve teacher quality and ensure that the poorest Costa Ricans have access to quality secondary and tertiary schools.
read articleInterview
Marco Robert, General Manager, IMC Interamericana Medios de Comunicación
TBY talks to Marco Robert, General Manager of IMC Interamericana Medios de Comunicación, on the importance of articulating a clear philosophy, the industry's biggest weaknesses, and the ideal advertising setup.
read article