During the first four months of 2021, companies operating in Costa Rica sold $22 million worth of beef to China, this figure represents 54% of the total exported by the Central American country.
Data from the Foreign Trade Promotion Agency (Procomer) show that from January to April of this year, Costa Rican beef exports to China totaled $22 million, to the U.S. $8 million and to Puerto Rico $5 million.
During the first quarter of the year in Costa Rica 99,662 cattle were slaughtered, 4% more than reported in the same period in 2019, which is largely explained by shipments to the market in China.
Although the spread of covid-19 has negatively impacted most economic sectors worldwide, data from the Livestock Corporation (Corfoga) detail that between January and March 2019 and the same period of 2020, the number of cattle slaughtered increased by 3981, from 95681 to 99662.
After the sanitary protocol to sell meat to China came into effect and the industrial plants in Costa Rica were certified, the Central American country's sales to the Asian giant doubled between 2018 and 2019.
Figures from the Foreign Trade Promotion Agency (Procomer) show that in 2018 beef sales to China reached $22 million, while in 2019 they doubled to $57 million.
The requirements for sanitation and traceability are preventing the livestock sector from taking advantage of quotas for meat exports duty free to Europe.
Although the Association Agreement between Central America and the European Union established a quota of 4,800 tonnes per year of rice and a quota of 1,533 tonnes per year of meat, which could enter Europe without incurring tariffs, neither sector has been able to take advantage of them completely.
Between 2012 and 2016 imports of beef in the country doubled, going from $24 million to $50 million, while in the same period local cattle slaughter fell by 17%.
Figures from the Livestock Development Corporation (CORFOGA) indicate that consumption of imported beef has grown steadily in recent years. In 2010 the country imported 4,731 tons, while in 2016 the figure was 9,406 tons.
Increasing the percentage of deliveries and optimizing the use of fodder will help raise productivity and improve conditions for competing with other export markets.
A pilot plan which is being promoted by the Livestock Corporation (CORFOGA) and which is already being implemented in 93 producing farms aims to improve productivity in cattle breeding and milk in the country.
Between January and November 2014, after obtaining sanitary permits, two companies managed to export to beef to China for $9.1 million.
From a statement issued by the Livestock Development Corporation (Corfoga):
In one year, shipments of this product to China grew by 707.1%, making the country the third destination of our bovine meat exports.
The high expectations held by beef producers in relation to exports to China, have gradually been fulfilled, according to the latest annual statistics compiled by the Livestock Development Corporation (CORFOGA), making the country the third most important destination for the product.
Following a lengthy certification process, China has opened up to beef imports from Costa Rica, but farmers say they don’t have enough production.
In a statement from the Ministry of Foreign Trade of Costa Rica (COMEX) it was announced that "The authorities of the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) reported that Costa Rica has been officially included in the list of countries with authorization to export beef to China .... the opening up of China for the export of frozen beef meat is the result of intensive work by the National Animal Health Service, in close collaboration with the Ministry of Foreign Trade of Costa Rica (COMEX) and the Foreign Trade Promotion Office (PROCOMER) to achieve compliance with the requirements for signing the SPS protocols that allow access of Costa Rican agricultural products to the Chinese market. "
The Central American Federation for the Beef Industry is promoting the creation of traceability protocols that would allow them to export meat to the EU.
Regional leaders in the cattle industry and beef marketers "came together to promote the creation of a traceability protocol that would allow them to export meat to the EU."
Christopher Navas, president of the Federation, said: "We met to discuss the problem of the meat sector in Central America, seeing as the agreement for a free association with the European community has been signed, and that gives countries in the region the right to export a quota of meat. However, to do this we have to meet certain requirements. "
Breeders from Central America agreed to request the European Union an annual quota of 30.000 tons, as part of the Association Agreement being negotiated between both blocks.
Aldo Mazzero, president of the Cental American Beef Federation, explained that this topic will be negotiated in the upcoming round, to take place in Belgium between April 19 and 27.
Fearing massive meat imports from South America, they are requesting to increase tariffs from 15 to 45%.
Meat price in the Southern Cone of America is normally half the price of meat in Costa Rica or U.S., but imports from these markets where not possible due to sanitary restrictions. However, these restrictions have disappeared, as Uruguay and large portions of Brazil and Argentina have been declared "aftosa fever free, with vaccination".