Report Highlights:
Costa Rica's 2003/2004 crop reached 2,119,227 60 kg. bags, 4.5% lower than previously expected. Lower use of inputs by farmers and in many cases abandonment of the plantations, are blamed for lower output. Although the Costa Rican Coffee Institute (ICAFE) does not yet have a forecast of next year's crop, there are indications that production may decline further to approximately 2,050,000 60 kg. bags.
Executive Summary
Costa Rica’s coffee production declined in 2003/2004 for the fourth year in a row to 2,119,227 60 kg. bags.The crop was 4.5% short of last year’s forecast, mainly as a result of reduced fertilizer use and abandonment of plantations by producers.Production is expected to decline in 2004/2005 to 2,050,000 bags, primarily as a result of the continued low use of inputs by producers and the abandonment of areas.Some sources believe that the 2004/2005 crop may remain about the same as 2003/2004 or even increase slightly because of the cyclical nature of coffee production.At this point we believe that unless there is significant upward change in price that allows producers to increase input use, production will decline again.