Because the Asian giant is the world's largest buyer of fresh fruit and people are willing to consume new and tropical foods, the region's pineapple producers have the opportunity to increase their business with the Chinese market.
According to a study conducted by the Foreign Trade Promoter (Procomer), China remains one of the largest producers of fruit in the world, but quality remains a problem, so they are interested in imported fruit, added to consumers looking for better quality products as part of the search for a healthier lifestyle.
Although several companies have been affected by the measures implemented by governments in the context of the Covid-19 crisis, Costa Rican exports of coffee, pineapple and bananas have so far not faced difficulties with logistics.
Directors of the Coffee Institute of Costa Rica (Icafé) indicated that so far there have been no problems with the availability of containers and that sales abroad are proceeding normally.
The drop in international prices and the climate difficulties were the main reasons for the 5% reduction in the value exported from Costa Rica last year compared to 2018.
Data from the Foreign Trade Promotion Agency (Procomer) show that between 2018 and 2019, exports of the fruit decreased from $983 million to $930 million, which is equivalent to a negative variation of 5%.
In the first three months of 2019, Central American countries exported $251 million worth of pineapple, and sales to Spanish companies increased 12% over the same period in 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
At the beginning of 2019 there were 44,500 hectares dedicated to fruit cultivation in Costa Rica, however, because of high production costs and a drop in international prices, by 2021 the cultivated area could fall to 38,000 hectares.
Directors of the National Chamber of Pineapple Producers and Exporters (Canapep) explained that the fall in the price of pineapple internationally is because of increased competition, since countries such as Colombia, Ecuador and Panama, have managed to gain market share in the U.S. and Europe.
Climatic and market conditions would be the reasons behind the drop in foreign sales expected for this year by exporters of bananas and pineapples in Costa Rica.
The drought in the Caribbean region, together with the attack of a bacterium on the plantations, will cause a year-on-year drop of at least 15% in banana production in 2019, according to business leaders.
Low international prices, overproduction and greater competition from markets such as the Philippines, is worrying Costa Rican pineapple exporters.
On top of those factors is also the fact that exports to China have not grown as much as expected, due to complications faced in getting the product there in perfect condition.According to the exporters themselves, this difficulty"... is taking Costa Rica out of the market, as it takes between 28 and 30 days to arrive and it is estimated that a maximum of 20 days is required to maintain the quality intact."
In the first quarter of the year, countries in the region exported $261 million worth of pineapples, 18% more than in the same period in 2017, mainly explained by sales to the United States and the Netherlands.
Figures from the Information System on the Pineapple Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Despite the fact that the Costa Rican pineapple sector has faced complaints of alleged environmental damage, sales abroad have continued to grow, and it remains the number two export product.
Between 2016 and 2017 Costa Rican exports of fruit increased from $905 million to $970 million, which represents an increase of 7%.This rise has occurred in the context of environmental and social complaints, due to the use of agrochemicals and their respective implications.
Between January and June 2017 the region exported $514 million worth of pineapples, 8% more than was sold during the same period in 2016.
Figures from the information system on the the Pineapple Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
The 90-day closed season on pineapple crops in the northern part of the country ends on October 25, while farmers report that the ban was not respected and that the stable fly plague persists.
An article on Nacion.com reports that in June and July of this year the SENASA issued bans "... through means of decrees on the demolition of pineapple plants, in both cases for 90 days. This prohibition prevented the re-planting or planting of farms in affected areas. The first prohibition was published in La Gaceta on June 1 and affected the Cutris District in the Canton of San Carlos de Alajuela and the town of San Rafael de Río Cuarto de Alajuela and its validity has already expired.The second decree came out in another issue of La Gaceta on July 24 of this year and will run until October 24, according to the Senasa.This affected the district of Pital del Cantón de San Carlos de Alajuela, which includes, among others, the towns of Los Angeles, Boca Sahino, Boca Tapada, Boca Tres Amigos, Cabra, Canacas, Caño Chu, Cerro Blanco (San Marcos), Cuatro Esquinas,Chaparrón, Chirivico (Coopeisabel), Encanto, Fama (Carmen), Flor, I Greiga, Josefina, Legua, Ojoche, Ojochito, Palmar, Piedra Alegre, Puerto Escondido, Quebrada Grande, Sahino, San Luis, Santa Elena, Tigre, Trinchera, Vegas, Veracruz, Lapuel (partial), Vuelta Tablón and Yucatan."
Costa Rican pineapple producers are opposed to the temporary ban imposed by Senasa on tearing down plants on farms in three locations in the northern zone, arguing that it does not allow for replanting and will affect the 2018 harvest.
The National Animal Health Service (Senasa) argued that it took the decision in order to prevent the spread of stable fly disease, but pineapple producers in Pital and Cutris, Sal Carlos, and San Rafael, in Rio Cuarto de Alajuela, have questioned the measure and say that it will generate significant losses in the current harvest.
Setena has ordered the partial paralysis of pineapple production activities in three farms in the northern zone due to environmental damage, such as the presence of sediments in rivers, ravines and wetlands.
The National Environmental Technical Secretariat (Setena) reported that the farms are Cultivo de Piña La Guaria, Cultivo de Piña La Azucena, and Cultivo de Piña Oficinas Administrativas y Taller de Mantenimiento el Concho.
The Asian country is projecting increasing imports of pineapples at an annual rate of 31% between 2017 and 2021.
A study prepared by Procomer of Costa Rica points out the opportunities presented by the Chinese market for the export of pineapples from Central America, as well as the requirements and permits that must be completed in order to enter the Asian market.
Upala Agrícola, Productos Agropecuarios Visa, Piñales del Caribe and Agrícola Agromonte exported the first 15 thousand boxes of MD2 pineapples to Shanghai.
The company Goodfarmer, one of the biggest distributors in China, will be in charge of selling the 9 containers containing 15,120 boxes of the MD2 variety.