During the first four months of 2021, companies operating in Costa Rica sold $22 million worth of beef to China, this figure represents 54% of the total exported by the Central American country.
Data from the Foreign Trade Promotion Agency (Procomer) show that from January to April of this year, Costa Rican beef exports to China totaled $22 million, to the U.S. $8 million and to Puerto Rico $5 million.
During the first quarter of the year in Costa Rica 99,662 cattle were slaughtered, 4% more than reported in the same period in 2019, which is largely explained by shipments to the market in China.
Although the spread of covid-19 has negatively impacted most economic sectors worldwide, data from the Livestock Corporation (Corfoga) detail that between January and March 2019 and the same period of 2020, the number of cattle slaughtered increased by 3981, from 95681 to 99662.
After the sanitary protocol to sell meat to China came into effect and the industrial plants in Costa Rica were certified, the Central American country's sales to the Asian giant doubled between 2018 and 2019.
Figures from the Foreign Trade Promotion Agency (Procomer) show that in 2018 beef sales to China reached $22 million, while in 2019 they doubled to $57 million.
In Costa Rica, it is estimated that nearly $6 million is lost each year because of theft and illicit piecing of cattle on the country's farms.
The Judicial Investigation Agency (OIJ) reports 37,427 head of cattle stolen or cut up between January 2007 and November 2018, with a unit value of around $670 (400,000 colones). According to businessmen in the sector, the main problem is that many of the thefts are not reported by the cattle ranchers, making it even more difficult to identify the criminals behind the cases.
The requirements for sanitation and traceability are preventing the livestock sector from taking advantage of quotas for meat exports duty free to Europe.
Although the Association Agreement between Central America and the European Union established a quota of 4,800 tonnes per year of rice and a quota of 1,533 tonnes per year of meat, which could enter Europe without incurring tariffs, neither sector has been able to take advantage of them completely.
Between 2012 and 2016 imports of beef in the country doubled, going from $24 million to $50 million, while in the same period local cattle slaughter fell by 17%.
Figures from the Livestock Development Corporation (CORFOGA) indicate that consumption of imported beef has grown steadily in recent years. In 2010 the country imported 4,731 tons, while in 2016 the figure was 9,406 tons.
Increasing the percentage of deliveries and optimizing the use of fodder will help raise productivity and improve conditions for competing with other export markets.
A pilot plan which is being promoted by the Livestock Corporation (CORFOGA) and which is already being implemented in 93 producing farms aims to improve productivity in cattle breeding and milk in the country.
A study by the Central American Academy has concluded that there are market distortions that explain the low productivity of the sector compared with other producing countries.
Summary and conclusions of "Policies for productive development study. Experiences in the case of bananas and cattle "
Beef cattle shows low and stagnant productivity rates, according to the usual measurement standards in the industry. For bananas, productivity rates are among the highest in the world. Identifying explanatory elements of these results was the objective of this study, using the analytical framework of the Policies for the Productive Development (PDP).
There were 1,575,779 head of cattle on 45,780 ranches, an increase of 14.2% compared to the figures reported in 2011.
From a press release issued by the Ministry of Agriculture and Livestock (MAG):
In our country, the cattle herd is 1,575,779 head of cattle and there are 45,780 cattle farms, these are the results of a livestock survey, presented on Tuesday by Gloria Abraham, Minister of Agriculture and Livestock (MAG) and Leonardo Luconi , President of the Livestock Corporation (CORFOGA).
Following a lengthy certification process, China has opened up to beef imports from Costa Rica, but farmers say they don’t have enough production.
In a statement from the Ministry of Foreign Trade of Costa Rica (COMEX) it was announced that "The authorities of the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) reported that Costa Rica has been officially included in the list of countries with authorization to exportbeef to China .... the opening up of China for the export of frozen beef meat is the result of intensive work by the National Animal Health Service, in close collaboration with the Ministry of Foreign Trade of Costa Rica (COMEX) and the Foreign Trade Promotion Office (PROCOMER) to achieve compliance with the requirements for signing the SPS protocols that allow access of Costa Rican agricultural products to the Chinese market. "
The Central American Federation for the Beef Industry is promoting the creation of traceability protocols that would allow them to export meat to the EU.
Regional leaders in the cattle industry and beef marketers "came together to promote the creation of a traceability protocol that would allow them to export meat to the EU."
Farmers in Costa Rica argue that changing the property tax to one based on a sliding scale would be confiscatory.
A statement from the Legislature reads:
Representatives of national farmers argue that changing the property tax to a system based on a sliding scale, would be confiscatory for many of them.
This is how Leonardo Luconi, President of the Livestock Development Corporation (CORFOGA) described the issue to lawmakers of the Standing Committee on Agricultural Affairs.
A national survey is to establish the current herd numbers around the country, recording sex and age, and other data.
Costa Rica has about 51,158 cattle farms, but there is only up to date information on some 20,680 farms (only 40%), according to the National Animal Health Service (SENASA).
In order to improve policies related to the livestock sector, it is necessary to update the data, said Leonardo Luconi, president of the Livestock Development Corporation (CORFOGA).
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