Monopolistic Practices in Costa Rica

The Costa Rica Chamber of Pork Producers is taking Walmart to the Commission for the Promotion of Competition (CPC) for alleged monopolistic practices.

Thursday, March 1, 2012

The Chamber’s measure is based on an alleged drop in prices of pork cuts at levels below market value, reports Nacion.com.

The Speaker of the House, Renato Alvarado said an inspection of prices was conducted in different supermarkets belonging to the chain, confirming that the practice of lower prices was observed in places where the producer wants to go 'vertical' (participating in all stages of chain from production to slaughter).

The alleged unfair practice occurred specifically in Ciudad Quesada, San Carlos, where Walmart supermarkets sold cuts of pork at prices less than ¢2,200 per kilo ($4.29), while local businesses had them priced at ¢3,570 per kilo ($7.31). The manager said that he found that meanwhile in San Jose and Belen, the supermarket chain sold cuts of pork at prices ranging between ¢3,800 ($7.41) and ¢4,200 ($8.19) per kilo at the same time.

Alvarado called this "predatory pricing".



More on this topic

Anti-competitive Practices with Pork Denounced

July 2017

In Costa Rica, the pig farmers' association has filed a complaint alleging that importers such as Walmart, Cargill and Sigma Alimentos are manipulating pork prices in the local market.

The Costa Rican Chamber of Porculturists (Caporc) filed a complaint with the Consumer Protection and Advocacy Commission (Coprocom), arguing that "... three multinational companies make up 65% of total pork imports, and that this concentration demonstrates significant market power that undermines free competition and market transparency."

Pork in Costa Rica: Imports Increasing and Prices Coming Down

March 2016

An increased supply of imported pork has caused a general price reduction and increased annual per capita consumption by two kilos.

Demand for pork in Costa Rica increased from 11 kilograms (kg) per capita in 2014 to 13 kg per capita in 2015, according to figures from the Costa Rican Chamber of Pork Producers (Caporc) cited by Nacion.com.

Walmart Accused of Monopolistic Practices

May 2012

The Commission to Promote Competition has opened an investigation into the international company, which has been accused by pork producers in Costa Rica of setting the prices of pork cuts below the market price.

The Commission to Promote Competition (COPROCOM) agreed to initiate a preliminary investigation against the supermarket chain Wal-Mart for alleged monopolistic practices, reported Nacion.com.

Pork Consumption Up in Costa Rica

August 2010

Per capita consumption of pork increased from 8.9kg in 2004 to 11.6kg in 2009, an increase of 33%.

Renato Alvarado, president of the Chamber of Pork Producers, indicated that last year was the best of the previous five.

"Pork producers report that 45,000 pigs were slaughtered in 2009 for the Costa Rican domestic market. This year that figure has risen to 55,000," Alvarado told La Nacion.

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