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.
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.
Because it has become expensive in Costa Rica to produce manufactured and agricultural goods, exports of services are increasingly gaining in market share.
Figures from the Promotora de Comercio Exterior (Procomer) detail that of the total exports in 2018, 56% corresponded to sale of goods and 44% to services. This composition is far from the figures of a decade ago, since in 2008 exports of goods monopolized 62% and services 38%.
During the first two months of the year, Costa Rican exports to countries in the region totaled $393 million, 3% less than what was reported for the same period in 2018.
According to data from the Promotora del Comercio Exterior (Procomer), in the first two months of 2019 Costa Rica's exports increased by 3.2% over the first two months of 2018, going from $1.743 million to $1.800 million.
Although exports have tripled in the last three years, mainly because of increased sales of medical equipment, sugar, ethyl alcohol and meat, the business sector's expectations are not as optimistic.
Data from the Foreign Trade Promoter (Procomer) specify that in 2016 Costa Rican exports to China totaled $46 million, in 2017 registered $111 million, and in 2018 rose to $200 million.
Based on sales of medical and precision equipment, between January and October of this year the country reported $8.908 million in exports, 7% more than in the same period in 2017.
According to the Foreign Trade Promoter of Costa Rica (Procomer), in the first ten months of the year, medical equipment and precision exports represented 29% of total sales and registered an 18% increase compared to what was reported in the same period in 2017.
Because of sales of medical and precision equipment, exports between January and August 2018 increased by 173% compared to the same period in 2015.
According to figures from the Foreign Trade Promoter (Procomer), in the first eight months of 2015 the sales of the Central American nation to Japan totaled $59 million, a figure that has practically tripled, as reported in the same period of this year, when exports reached $162 million.
Explained by better promotional efforts, the proportion of Costa Rican SMEs that export to Asian, South American and Caribbean countries continues to grow.
According to the Foreign Trade Promotion Office (Procomer), last year 86% of companies that sold goods in South America were SMEs, in the case of Asia the proportion reached 81% and for the Caribbean it was 80%.
Lack of electricity and logistics and storage problems at Floridian ports are complicating exports from Central America, especially for perishable goods.
Difficulties faced at ports in Florida and Puerto Rico are affecting the region's exporters, who are looking for alternatives so that their shipments are not affected.
While sales to other regions grew by around 15% between 2012 and 2017, exports to Central American countries show an increase of almost 30% compared to the same period.
Data from Procomer indicates that"...The value of sales by this industry to Central America rose by 28% when comparing the amount accumulated from January to July 2012 with the same period in 2017.Meanwhile, sales to all regions increased by 15%."
Between 2014 and 2016 Costa Rican exports to the South American country fell by 10%, while imports declined by nearly 6% in the same period.
Almost a year after the entry into force of the FTA, the high competitiveness of the Colombian market, mainly in the food and industrial sectors, is hampering growth of exports of Costa Rican goods.Sales from the South American country to Costa Rica have also declined, going from $326 million in 2012 to $292 million last year.
Between July 2016 and June 2017, exports of precision and medical equipment, rubber, agricultural products, and metallurgical products increased by 15%, 8%, 7% and 23%, respectively, compared to the previous 12 months.
The sectors that showed the most notable growth in exports (July 2016 - June 2017 vs. July 2015 - June 2016) were precision and medical equipment, with an increase of US $347 million (+ 14.7%); the agricultural sector, which has continued to improve its performance after unfavorable climatic events in previous periods and showed an increase of US $193 million (+ 7.6%); metalmechanics, which recorded increased sales, of US $72 million (+ 23.1%); the food industry, which sold US $41 million more (+ 4.4%); the electric and electronic sector, which increased by US $34 million (+ 6.4%); rubber which increased by US $19 million (+ 8.5%); and chemical-pharmaceuticals which sold US $15 million more (+ 2.4%).
There only remains a technical visit to be made by Chinese authorities in order to complete the evaluation process and start exporting pineapples to China.
Estimates by the SFE indicate that there are 20 companies interested in exporting pineapples to China.
Abel Chaves, president of the National Chamber of Producers and Exporters of Pineapple (Canapep), told Elfinancierocr.com that"...'Before thinking about production volumes we have to think about how much demand will grow, the pricing scheme that the market will have and the logistics to get the product there.But the answer to whether we can make the cut is yes.'"
Sales by Costa Rica to the EU have diversified because of the entry into force of the AACUE, but the value of exports has decreased and the trade balance is less favorable.
It is not only exports under the Association Agreement that have declined, going from $2,034 million in 2013 to $1,786 million in 2015, but the balance of trade surplus has also been decreasing as well.The surplus fell from $705 million in 2013 to $342 million in 2015, according to figures from PROCOMER.
The Foreign Trade Promotion Office will close the trade promotion office which operated for three years in London and will move to Spain.
According to representatives of PROCOMER, the decision is due to several factors, including greater cultural affinity, prospects for economic recovery and a potential market of 40 million people.
From September 27 to 29 the eighteenth edition of the Buyers Trade Mission will bring together companies from Costa Rica and international buyers from 30 countries.
Business agenda with Costa Rican suppliers, development of contacts with company decision makers, visits to outlets and access to the exhibition area and product testing are part of what is on offer at the trade fair organized by PROCOMER which will be held in the Pedregal Events Centre in the province of Heredia.