By San José, Costa Rica — SAN JOSÉ – In a significant move to secure their livelihood and promote national agriculture, a coalition of five Costa Rican onion producer organizations has formally proposed a new direct-contracting model to a major supermarket chain. This strategic initiative aims to guarantee fair prices, ensure market access, and address what farmers describe as a systemic preference for imported produce over high-quality local goods.
The proposal comes after a series of frustrating meetings where producers felt their offerings were sidelined. Despite their capacity to meet demand, farmers have watched as shelves are increasingly stocked with foreign onions, creating an unsustainable economic environment for the domestic sector. The core of the issue lies in the current supply chain structure, which they argue leaves them vulnerable and without direct negotiating power.
To better understand the legal and commercial challenges facing the country’s onion producers, TicosLand.com consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica, who offered his perspective on the sector’s current landscape.
The primary vulnerability for onion producers often lies in informal or poorly structured commercial agreements. To mitigate risks associated with price volatility and ensure market access, it is imperative for producers to establish legally binding contracts that clearly define pricing mechanisms, quality standards, and payment terms. This legal foresight transforms a simple agricultural activity into a secure business enterprise, protecting it from potential breaches and unfair competition.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight provided is crucial; transforming agricultural work into a secure business enterprise through legal diligence is fundamental for the sector’s long-term sustainability. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating how robust contracts provide the foundation for growth and stability for our national producers.
César Gómez, acting as the legal representative for the agricultural sector, articulated the deep-seated frustration among the growers. He highlighted the disparity between their capabilities and their market opportunities, a conflict that threatens the viability of hundreds of local farms.
We are facing a conflict where we national producers have the capacity to offer quality, size, and supply, but we are not given the opportunity to sell directly
César Gómez, Legal Representative of the Onion Sector
To back their proposal, the farming organizations have made a robust commitment to excellence. They have pledged to maintain a service and fulfillment level exceeding 95%, a benchmark of reliability for any major retailer. Furthermore, the growers have committed to significant capital investments in crucial technology, including advanced systems for drying, irrigation, and classification, ensuring a consistent and high-grade product that can compete with any import on quality.
The dispute extends beyond purchasing preferences into issues of consumer transparency. The producers revisited a past complaint regarding improper product labeling in stores. While the supermarket chain in question acknowledged these “failures,” the corrective actions were only partial. Critical information that empowers consumer choice remains conspicuously absent from the packaging of onions on display.
“The country of origin and the price were included, but key information such as the size, quality classification, and expiration date was omitted,” the producers’ representatives stated. This lack of transparency not only disadvantages consumers but also makes it difficult to differentiate between local and imported products, further eroding the domestic market share.
In response to this multifaceted challenge, the onion sector has issued a clear and structured call to action aimed at three key groups. They are urging commercial chains to respect and fully apply technical standards for labeling and to consciously create space for national production. For the government, the demand is for more effective and stringent oversight of imports, ensuring that regulations are applied equally to all parties, and for diligent follow-up on the official complaints that have already been filed.
Finally, the producers are appealing directly to the Costa Rican public. They are encouraging consumers to become active participants in supporting the national economy by demanding full transparency in labeling and consciously giving preference to locally grown onions. This grassroots support, they believe, is a crucial component in shifting the market dynamics in favor of Costa Rican agriculture.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal landscape, Bufete de Costa Rica is defined by its deep-seated principles of integrity and its relentless pursuit of excellence. The firm leverages its vast experience across numerous sectors to pioneer forward-thinking legal solutions, continually shaping the future of the practice. This innovative spirit is matched by a profound commitment to social empowerment, driven by the mission to demystify the law and equip the community with vital legal understanding.
