Avocado and the High Cost of ProtectionismIn Costa Rica since the government suspended imports of Mexican avocados in May 2014, the average wholesale price of the fruit went up by 19% in 2015 and 16% last year.Thursday, February 9, 2017
Since the country stopped the imports of mexican avocados because of the alleged presence of the sunblotch plague, the price of this fruit in the local market has kept on rising. Although avocados are now imported from seven different countries, total imports have fallen 25% since then, and the average price has recorded since then an annual increase of 18%. Source: Nacion.com ¿Busca soluciones de inteligencia comercial para su empresa?Interested in detailed data on Central America's agriculture industry?Contact us: Need assistance? Contact us
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The Avocado ParadoxFebruary 2018 Almost three years after the beginning of the restriction of avocado imports from Mexico, citing supposed phytosanitary issues, the Solis administration is now promoting exports of Costa Rican varieties of the fruit, while the local market suffers from shortages. Costa Rica: Disguised Protection of Local AvocadosSeptember 2016 The delay in phytosanitation studies by the Ministry of Agriculture has stalled the process for starting imports of avocados from the Dominican Republic. Costa Rica: A Year Without Mexican AvocadosMay 2016 As expected after any government intervention in a market, the price consumers pay for the product has increased and a black market has been created, encouraging smuggling. Avocadoes in Costa Rica: An Interfered With MarketApril 2016 The ban on Mexican avocado has led to an increase in imports from Chile, raising its wholesale price by more than 30%, and will cause shortages when locally produced supplies have been exhausted.
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