How Is the Supply Chain Formed?

Margin: Producers (24.8%) – Exporters (4.9%) – Importers and Transport companies (14.3%) – Customs (3.7%) – Retailers (42.6%) – Supermarket workers’ wage (9.7%)

The last decade has seen the rise in share of major retailers as these are increasingly looking to buy directly from producers without the help of middlemen (multinational traders).

Most farmers and growers own their farmlands and medium to large farms have their own packing houses and exporter network. The packing house sorts and packs products based on buyers' requests. Most production is done through the National Chamber of Pineapple Producers and Exporters (CANAPEP), where there are about 60 suppliers; most of them are medium to large size and 20-25% are small independent suppliers. Not meeting the order requests rarely happens in the Costa Rican pineapple industry, because Costa Rica's economy depends heavily on the pineapple industry and it is well-supported. Brokers do not play a major role in the value chain. It is possible to employ a broker if a buyer is new to the market, but most of the farms are family-owned with a long history in pineapple farming. Some small players form a co-op to increase pineapple production volume. There is an oligopoly formed by the big three companies: Chiquita, Del Monte, and Dole. They have their own alliances with farmers with set supply programs that are usually set before the harvest season. Also, they have a strong domination in the market.