The loss of competitiveness facing the food industry is the reason that exports have fallen from $1,124 million in the first ten months of 2013, to $1,051 million in the same period in 2014.
High interest rates, higher inflation, credit constraint in production, lower growth and a sharp reduction in sales are some of the problems facing the food sector which reported a decline of 6.5% in foreign sales.
Foreign sales in the first four months of the year totaled $467 million, below the $543 million generated from sales abroad in the same period in 2013.
The cost of electricity, changes in the exchange rate, the price of raw materials and competition from informal firms are part of the factors that explain part of the drop in foreign sales in this industry.
Loss of competitiveness in the region has been a constant factor in recent years due to problems in infrastructure, transportation and energy costs.
Although the sector's exports to Central America have maintained a relatively stable rate of growth, entrepreneurs say their products have lost competitiveness against the food industries in neighboring countries, due to the high costs of energy, transportation and infrastructure.
Technical regulations on the "General Principles of Good Food Manufacturing Practices" have been updated.
In December 2013, the Institute of Technical Standards of Costa Rica (Inteco) updated and approved a tool which establishes the controls and requirements for all processes in the food manufacturing chain.
From a press release issued by the Institute of Technical Standards of Costa Rica (Inteco):
The nation's most important industry sees its presence in the market threatened by the increasing loss of competitiveness of the Costa Rican economy.
From a press release by the Costa Rican Chamber of Food Industry (CACIA):
Mediocrity in Competitiveness Issues Suffocates Food Industry
• Costa Rica is ranked 97th among 148 countries in terms of infrastructure and 129 in the number of procedures required to start a business, according to world rankings.