Costa Rican Banana Producers and Buyers Await Final Decision on Minimum Official Price for 2024

Following the meeting with Corporación Bananera Nacional (CORBANA) on October 30, 2023 to review the cost model for an average banana plantation, which serves as the basis for the Minimum Official Price set by the Costa Rican government, producers are now awaiting a final resolution from CORBANA and the government. The Minimum Official Price is a legally mandated price that buyers in Costa Rica must pay to banana producers for a standard 18.14 kilogram (kg) box of Class 1 bananas. The revision is crucial in 2023 due to the impact of the appreciation of the currency exchange rate on the sector's competitiveness, given that nearly 50% of production costs are in local currency. After presenting the cost model, there is a one-month period for producers and buyers to suggest changes, followed by discussions among CORBANA, producers, and buyers to determine the recommended price to the Ministries of Agriculture, Economics, and Foreign Trade. However, buyers may express concerns about the risks of making the price too high, affecting the competitiveness of Costa Rican fruit compared to other countries like Ecuador, which uses Costa Rica's minimum official price as a reference in negotiations. CORBANA plays a primary role in researching, transmitting knowledge, and supporting banana producers.