Rising Labor Costs Threaten Costa Rica’s Coffee Producers – CoffeeTalk
Costa Rica’s coffee industry is facing significant challenges due to rising labor costs and decreasing profits for producers. Experts from the Economic Commission for Latin America and the Caribbean (ECLAC) highlighted this issue during a recent discussion at the National University’s School of Economics (UNA). Most of the revenue generated by the coffee industry does not make its way back to the producers, and new regulations, operational costs, and non-tariff barriers affecting coffee bean exports are putting pressure on the sector’s short-term viability.
As a result, only a small percentage of the added value from coffee production reaches the producer, and this share is very limited. With rising costs, it is becoming more likely that producers will lose motivation to continue their work, potentially leading to the near-extinction of the coffee industry in the near future.
Currently, producers receive only about 20% of the total added value from coffee sold at retail, with much of this value concentrated among a few large companies. Key risk factors identified include climate change, aging coffee plantations, increasing debts faced by producers, labor shortages, and threats from pests and diseases.
To ensure the success of Costa Rica’s coffee industry, fair cost sharing among producers, processors, roasters, and consumers is essential. Supporting small producers and fostering collaboration within the industry is crucial for overcoming these challenges.
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Source: Coffee Talk