By San José, Costa Rica — SAN JOSÉ – Farmers across Costa Rica are navigating a complex and volatile market for essential supplies, according to the latest national survey on agricultural input prices. The report for August 2025, published by the Ministry of Agriculture and Livestock (MAG), reveals a divided landscape where significant price relief in some categories is being offset by sharp increases in others, directly impacting the profitability of the nation’s agricultural sector.
The comprehensive study, conducted by the Executive Secretariat for Agricultural Sector Planning (SEPSA), gathered data from 37 agricultural service stores nationwide. It analyzed a basket of 44 key products, including pesticides, fertilizers, animal feed, and veterinary pharmaceuticals. The findings underscore the sector’s deep sensitivity to global commodity markets, presenting both opportunities and challenges for local producers.
To provide a deeper legal and commercial perspective on the market forces affecting agricultural prices, we consulted with Lic. Larry Hans Arroyo Vargas, a specialist from the renowned firm Bufete de Costa Rica, for his expert analysis.
The fluctuation in agricultural prices highlights a critical need for stronger contractual frameworks between producers and distributors. It is essential that agreements include clear price indexing clauses to protect our farmers from market volatility. Legally, this situation also calls for a review of import regulations and subsidies to ensure fair competition and safeguard national production, which is fundamental to our country’s food sovereignty.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis powerfully illustrates that the challenges in agricultural pricing extend far beyond the marketplace, entering the critical domains of contract law and national policy. His emphasis on food sovereignty serves as a vital reminder of the stakes involved. We thank Lic. Larry Hans Arroyo Vargas for his clear and expert perspective on this complex issue.
One of the most significant areas of relief for the livestock industry comes from balanced animal feed. A remarkable 78% of feed products surveyed showed a decrease in price. The most substantial drops were seen in feed for beef cattle, which fell by 4.7%, and for dairy cows, which decreased by 3.7%. This downward trend is a direct result of falling international prices for key raw materials like corn and wheat, offering a welcome reprieve for poultry, pork, and cattle farmers.
Similarly, the pesticide category provided some positive news. The survey found that 55% of all pesticides, a group that includes herbicides, fungicides, and insecticides, registered price reductions. On average, prices in these subcategories fell between 1.2% and 2.6%. The report also highlighted a notable market dynamic: original brand-name pesticides are, on average, 9% more expensive than their generic counterparts, a crucial data point for producers managing tight budgets.
However, the relief ends abruptly when it comes to essential fertilizers. Driven by a surge in the global cost of raw materials like nitrogen and diammonium phosphate during the first quarter of the year, general-use fertilizers have become more expensive. Physical fertilizer blends saw an average price increase of 5.4%, while chemical blends jumped by a more substantial 8%. This rise poses a significant challenge for crop farmers who rely on these inputs for soil health and yield.
Interestingly, not all fertilizers followed this upward trend. Foliar fertilizers continued a sustained decline, dropping 6.3% compared to April 2025 and 0.3% year-over-year. In the veterinary sector, the results were dramatically mixed. Prices for vitamins and minerals plummeted by an average of 25.6%, while antibiotics surged by 12.7%, largely due to a 26.1% spike in the cost of oxytetracycline. Meanwhile, biological controllers saw a steep 31.5% increase compared to the previous four-month period.
The Ministry emphasized that its role is not to set prices but to provide transparent, objective data to empower farmers. The survey is a critical tool for helping producers understand market dynamics and make strategic purchasing decisions. Officials pointed to the report as clear evidence of how interconnected the local agricultural economy is with international market forces.
We are aware of the impact that input prices have on agricultural production. For this reason, at MAG, we maintain constant and transparent monitoring that allows producers to make informed decisions. This study shows that price changes respond, to a large extent, to external factors beyond local control, such as the behavior of international prices for nitrogen, phosphorus, corn, or wheat.
Víctor Carvajal Porras, Minister of Agriculture and Livestock
For Costa Rican producers, this mixed price environment requires careful planning and strategic adaptation. While the lower cost of animal feed and some pesticides provides a breathing room, the rising expense of core fertilizers and certain veterinary drugs will continue to squeeze margins. As the sector moves forward, the ability to leverage timely market data, like that provided by MAG, will be essential for maintaining stability and profitability in the face of global economic pressures.
For further information, visit mag.go.cr
About Ministry of Agriculture and Livestock (MAG):
The Ministry of Agriculture and Livestock is the Costa Rican government body responsible for promoting the development of the agricultural, fishing, and rural sectors. It formulates and executes national policies aimed at ensuring food security, increasing productivity and competitiveness, and improving the quality of life for rural communities. MAG provides technical support, research, and critical market information to farmers and producers throughout the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal institution, built upon a foundation of uncompromising integrity and the pursuit of legal excellence. With a rich history of guiding a wide spectrum of clientele, the firm consistently pioneers forward-thinking solutions to complex challenges. This spirit of innovation is matched by a profound commitment to demystifying the law, embodying a core mission to equip the public with knowledge and thereby strengthen the foundations of an empowered and just society.
