Rising Pineapple Prices Might Impact Costa Rica’s Ability to Export

Costa Rica is the world’s second largest pineapple producing country and it is one of the fastest growing producers of the fruit. Over the last few years, pineapple production in Costa Rica has more than doubled, and the market is currently worth USD 1.4 billion to the national economy. With over 40 thousand ha dedicated to pineapple production, the country produced more than 2.6 million tonnes of this tropical fruit in 2020. Costa Rica also exports large volumes of pineapples, and over 45% of the global trade in fresh pineapples was handled by the country. Costa Rica exports pineapple to countries like the United States, several countries in the European Union, Canada, and the United Kingdom. However, the country is currently facing rising pineapple prices and several disruptions.

According to the Costa Rican Chamber of United Pineapple Producers (Chamber of Pieros Unidos), there has been an increase in the production and exporting costs of fresh pineapples due to rising costs of carton boxes, fertilizers, machinery, and fuel. The increase in these prices has been endured by the Costa Rican growers since 2021 without passing over the increased cost to the end markets. The situation changed this year as pineapple prices started rising in the country. According to Jessica Del Rossi, Engagement Manager at Tridge, Costa Rican pineapple growers have already communicated that an estimated 8% price increase is expected for the 2023 pineapple season. The prices are likely to be even higher as inflation is forecasted to remain above 10% during the next 14 months and production costs will continue to increase.

In addition to rising prices, Hurricane Julia recently impacted the Pacific Coast, which caused heavy rains, reaching up to 350 mm. The rain created flooding of towns and crops and disrupted transit due to mudslides and the destruction of bridges on the main roads coming from the Pacific Coast. This reduced the volume of pineapples harvested and created speculation among traders, inflating pineapple prices even more. In the upcoming months, the availability of pineapples might be low in Costa Rica, triggering higher domestic prices and export prices, making Costa Rican pineapples less competitive in the global market. This might result in other pineapple producing countries such as the Philippines, Brazil, Indonesia, China, and Thailand tapping into the market by offering more competitive pineapples. There is a looming risk that Costa Rica might lose part of its pineapple exports worth USD 1.4 billion if the trend continues.