Report Highlights:
Costa Rica' s 2004/2005 coffee production is expected to reach 1,910,000 60 kg bags, 9.3% below the 2003/2004 harvest. Higher world prices are helping producers recuperate financially. Preliminary estimates of the 2005/2006 harvest indicate that production could increase to 2,050,000 60 kg bags.
Executive Summary
Higher international coffee prices are allowing producers to improve maintenance of their plantations.As a result, coffee production is expected to increase about 8 percent to 2,050,000 60 kg. bags (from now on bags) in 2005/2006.Nevertheless, Costa Rica is a long way from returning to the production levels of the late 90’s, which exceeded 2.5 million bags.According to the Costa Rican Coffee Institute, ICAFE, average productivity has declined 4.2 fanegas per hectare during the last three years (each fanega is equivalent to a 46 kg bag of green coffee).The number of producers and area planted has also declined.Even with better prices, area planted is not expected to grow, although fertilization and cultural practices are expected to improve, possibly resulting in higher production in the next couple years.