Dominican Republic MD2 Pineapple Price and Volume Impacted by High Production Costs

The Dominican Republic supplies MD2 pineapples to global markets such as Europe, Middle East, and the US. However, Dominican Republic prices have always been at a competitive disadvantage (about 10-15% higher) compared to Costa Rica. Mainly because large producers in Costa Rica invest in automating production processes, and their plantings have higher yields. However, the Dominican Republic exports to countries with higher willingness to pay, such as Israel - who receives weekly air-freight shipments.

Whilst demand for Dominican Republic pineapples has gone up to pre-pandemic levels, supply is compromised by the ever-increasing production costs and scarcity of materials such as pesticides, fertilizer and fuel due to the ongoing Russia-Ukraine war. Producers are further limited by the higher cost of fuel which compromises air freight competitiveness to the Middle East. These increased production and freight costs could further decrease the competitiveness of Dominican Republic pineapples in relation to Costa Rica.