Coffee: Bill Rejected

Costa Rican businessmen are opposed to the bill that gives Icafé the authority to impose requirements and controls on the processes of supplying the raw material necessary for grain production.

Monday, January 27, 2020

In the current period, the Legislative Assembly plans to discuss bill 21.163, which aims to transform the powers of the Costa Rican Coffee Institute (Icafé), but the business sector anticipates that the proposed modifications will lead to a rise in the prices of the product.

You may be interested in "Coffee: Regional Sales up to March 2019"

Maurizio Musmanni, president of the Costa Rican Chamber of Food Industry (Cacia), explained to Crhoy.com that "... Never is the time to impose barriers to industrial production. The freedom for the supply of raw materials required by the food industry is vital to sustain competitiveness, so Cacia asks for the help of legislators, to avoid imposing more barriers to the process of supply of inputs. We request that this initiative, which increases the barriers and costs of one of the most important industrial sectors of the country, does not advance."

If the legislative proposal is adopted as it stands, Icafé would be authorized to intervene in processing plants, seize products and impose new obstacles and requirements on the supply of raw materials used by businessmen.

José Manuel Hernando, president of the Chamber of Coffee Roasters, said that "... Currently, roasted coffee is entering the country from other origins, manufactured by world giants of the industry, who produce under more favorable conditions. If we lose our competitiveness, our industry would have to think about producing in another country, taking the employment and added value abroad."

Local producers estimate that if these obstacles are imposed, costs could increase by 20%.

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Coffee: Bill Rejection Increases

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In Costa Rica, the business sector is opposed to a proposed law that would give Icafé the power to impose requirements and controls on the processes of supplying the raw material necessary for grain production.

Since the beginning of the year it was announced that for the current period the Legislative Assembly plans to discuss bill 21.163, which aims to transform the powers of the Costa Rican Coffee Institute (Icafé). At that time, groups of coffee roasters and representatives of industries in the sector demonstrated against it.

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