Frozen Fruit Export: Growth is Stagnating

The strong growth reported in past years in foreign sales of frozen fruit from Costa Rica has declined, a situation that businessmen believe is because of market saturation.

Tuesday, May 14, 2019

According to data from the Foreign Trade Promoter (Procomer), between 2016 and 2017 foreign sales of frozen fruit grew 21%, from $65 million to $79 million, but for the period between 2017 and 2018 the increase was just 1%, going from $79 million to $80 million.

Luisa Chacón, general manager of Frutera La Paz, said Nacion.com that "... five or six years ago the sector grew exponentially, at annual levels of 6%. But, for the last three years, the increase barely began to be between 1% and 2% each year. The slowdown is because of the installation of new companies in the field and, basically, are the pineapple and banana products with which you can maintain activity throughout the year, because melons, mangoes and others are seasonal.

You may be interested in "Frozen Fruit: Export Price Goes Down 29%"

Rónald Segura, head of Costa de Oro Internacional S.A., explained that "... internal competition has affected the profitability of the sector. The new firms appeared in the market with the same products and in the same "niches" or segments, which saturated the offer."

CentralAmericaData reports detail that in recent years the average price of Central American sales has been recording a downward trend, since between June 2016 and September 2018 fell from $1.60 to $1.14 per kilo.

The report adds that from January to September 2018 Costa Rica remained the largest exporter of frozen fruits in the region, with $59 million. It is followed by Guatemala with $9 million and El Salvador with $3 million. Panama, Nicaragua and Honduras did not record exports.

More on this topic

Frozen Fruit: Export Price fell 10% in 2018

August 2019

The reported decline in the value of frozen fruits exported from Central America is partially explained by the fall from $1.34 to $1.21 recorded in the price per kilo between January and December last year.

Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]

Frozen Fruit: Record Sales in 2017

April 2018

Explained by sales to USA, last year Central American countries exported $115 million worth of frozen fruit, 50% more than in 2016.

Figures from the Information system on the Frozen Fruit Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]

Boom in Frozen Fruits

May 2016

In four years Costa Rica has doubled its exports of frozen fruit, going from sales of $36 million in 2011 to $71 million in 2015.

An article on Elfinancierocr.com reports that the reason for this growth , "... could be a reduction in the supply of these products by Asian businesses, according to the CEO of the company Frutera La Paz, Luisa Chacon."

Guatemala: Export figures up to September 2015

November 2015

In September, exports sent by the chemical industry recorded a growth of 28%, followed by fresh and frozen fruit, which grew by 14%.

From a statement issued by the Guatemalan Exporters Association:

Total exports from January to September 2015 reached US $8.297 billion, which means 1.7% (US $136 million) more than was exported in the same period in 2014.

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