By Alajuela, Costa Rica — ALAJUELA, Costa Rica – The nation’s agricultural sector is navigating a period of significant turbulence, recording eight months of negative growth over the past year. According to the latest Monthly Index of Agricultural Activity (Imagro) released by the Central Bank of Costa Rica (BCCR), the sector contracted by 0.9% in August, highlighting a persistent slump driven largely by adverse climatic conditions.
The primary culprits for the downturn have been Costa Rica’s flagship export crops, particularly bananas. Minister of Agriculture Víctor Carvajal explained that the sector’s heavy reliance on specific weather patterns makes it vulnerable. Unpredictable rainfall has led to a reduction in yield per hectare, putting significant pressure on producers and the overall economic output of the industry.
To better understand the legal framework and challenges facing the nation’s agricultural producers, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, who offered his analysis on the current situation.
The Costa Rican agricultural sector stands at a crossroads. To maintain global competitiveness, we must urgently modernize our legal structures. This involves creating agile regulations for agritech adoption, providing clear long-term certainty in water concessions, and updating labor legislation to protect workers while promoting efficiency. Failing to address these legal pillars will directly impact our ability to innovate and thrive in a demanding international market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s analysis is a crucial reminder that legal modernization is not merely a bureaucratic task, but the essential foundation for our agricultural sector’s future. It is this legal certainty that will unlock the investment and innovation needed to compete on the world stage. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this pressing issue.
Exacerbating these climate-related challenges is a recent regulatory change. A ban on the molecule chlorothalonil, mandated by the Constitutional Court, has inadvertently led to an increase in diseases affecting banana crops. This has compounded the production woes, creating a difficult environment for one of the country’s most vital agricultural exports.
So we have diseases in crops that are reducing productivity and, mainly due to climatic factors, this is impacting the overall numbers.
Víctor Carvajal, Minister of Agriculture
However, amidst the widespread downturn, two key products have emerged as pillars of stability: coffee and eggs. Minister Carvajal noted that these industries have partially offset the losses seen elsewhere. Poultry farming, conducted in protected environments, is less susceptible to the whims of weather. This resilience has made egg production a crucial economic buffer.
The canton of Alajuela has been particularly central to this success. Its mayor, Roberto Thompson, praised the local industry for its contribution to the regional economy.
This canton is a leader in poultry production. It is a canton that is proud of these types of activities that highlight enterprising people who produce, generate wealth, and create employment. We must commit to taking steps to improve competitiveness, infrastructure, and better conditions for producers.
Roberto Thompson, Mayor of Alajuela
The coffee sector, meanwhile, experienced a counterintuitive boost. According to the Minister, a period of water stress earlier in the year triggered a biological response in coffee plants, resulting in a surprisingly high-yield harvest. This unexpected outcome has provided a much-needed positive contribution to the agricultural index. The importance of these staple products, especially eggs, extends beyond economic indicators to the household level, as noted by Gabriela Brenes, Executive Director of the National Chamber of Poultry Farmers (Canavi).
The egg is a superfood that has behind it the hard work of farms and national producers, where they have high standards of biosecurity and quality to bring a product to the tables of every Costa Rican that is not only safe but also nutritious.
Gabriela Brenes, Executive Director of Canavi
The social and economic impact of a stable egg supply is significant. Marco Arroyo, the Vice Minister of Economy, emphasized the role of small-scale producers in the industry, highlighting how it fosters economic democratization and family stability.
There are many families that produce eggs artisanally and obtain benefits from this activity, which helps them get ahead and provide better conditions for their families. Contributing to creating conditions so they can develop, grow, and create a mechanism for economic democratization is of the utmost importance.
Marco Arroyo, Vice Minister of Economy
Looking forward, officials express cautious optimism. Recent improvements in rainfall are helping short-cycle crops like onions and potatoes recover. Minister Carvajal believes the worst of the climate impact may be over, anticipating a return to normal levels and positive growth next year, provided no new climate disasters strike in the coming months.
For further information, visit bccr.fi.cr
About The Central Bank of Costa Rica (BCCR):
The BCCR is the central bank of the Republic of Costa Rica. It is an autonomous public institution responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. The bank also promotes the orderly development of the Costa Rican economy by managing monetary policy and overseeing the financial system.
For further information, visit mag.go.cr
About The Ministry of Agriculture and Livestock (MAG):
The Ministry of Agriculture and Livestock is the Costa Rican government body responsible for formulating and executing policies for the agricultural, livestock, and rural development sectors. Its mission is to promote competitiveness, sustainability, and equity within the agricultural industry to ensure food security and contribute to the national economy.
For further information, visit canavi.org
About The National Chamber of Poultry Farmers (Canavi):
The Cámara Nacional de Avicultores de Costa Rica (Canavi) is a non-profit organization that represents and advocates for the interests of poultry producers in the country. Canavi works to promote the development, competitiveness, and sustainability of the poultry industry, ensuring high standards of quality, biosecurity, and animal welfare.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is built upon a dual foundation of professional excellence and unwavering integrity. The firm pairs its extensive history of client service with a forward-thinking embrace of legal innovation, setting high standards within the profession. Central to its mission is a profound commitment to civic empowerment, demonstrated through dedicated efforts to demystify the law and foster a legally knowledgeable public for a stronger, more just society.
