As a result of the blockade that has been in place since July 2020 on the entry of animal products from Costa Rica into the Panamanian market, Costa Rican exports to Panama are reported to have fallen and companies such as Dos Pinos are reporting losses in the millions.
The trade conflict began when Panama informed the National Animal Health Service (SENASA), an agency of Costa Rica's Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
Betting on food that involves an industrial process, focusing on markets that are not saturated and on the trends that predominate among consumers are some of the strategies that could multiply the income of agricultural producers.
It is estimated that the sale of dried pineapple reaches a value on the international market of 1,600% higher than the price achieved by selling it fresh. In the case of dried mango, the difference amounts to 1.512%.
Between 2017 and 2018, milk sales from Costa Rica to Panama fell 24%, explained by increased competition, while exports to Guatemala and the Dominican Republic increased 21% and 13%, respectively.
According to figures from the Promotora del Comercio Exterior (Procomer), between 2017 and 2018 sales to Panama of milk and cream not concentrated and concentrated registered a 24% decline, falling from $7.5 million to $5.6 million.
Costa Rican entrepreneurs are concerned about the impact of the crisis in the neighboring country on food exports, which between 2015 and 2017 grew at an average annual rate of 4%.
According to figures from the Promotora del Comercio Exterior (Procomer), last year Costa Rica's food industry exports amounted to $1.618 billion, which is equivalent to an increase of 4.7% compared to the amount reported in 2016.
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.
In Costa Rica the exporter's union has stated that complying with the new regulations of weighing containers will raise costs and affect their already deteriorating competitiveness.
The new rules for certifying the weight of maritime cargo to be adhered to under the SOLAS convention will come into effect on July 1, 2016, and Costa Rican exporters are already raising their voices to denounce the impact it will have on their cost structure.
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.
The British government has announced a new tax for drinks with high sugar content, excluding milk and natural fruit juices, which will take effect in 2018.
From a statement issued by the Foreign Trade Office of Costa Rica:
The British government has announced the introduction within two years of a new tax on sugary drinks, in order to raise funds for the State and at the same time fight against obesity.
Promotion is being given to exports to China of organic cocoa-based foods, chocolate confectionery, unsweetened cocoa powder and cocoa paste.
From a statement issued by the Foreign Trade Office of Costa Rica:
Western foods are gaining increasing market share in South Korea, whose market depends heavily on imports, which have been boosted by growth in per capita spending on food.
Opportunities in the Arab country have been announced for chutneys, organic coffee, pastries, organic tuna, dried fruits, plants, flowers and foliage.
The Foreign Trade Promotion Office (PROCOMER) has opened a trade promotion office in Qatar. Alvaro Stone, director of Exports at the office, informed Nacion.com that an official has been based in the premises of the Embassy of Costa Rica in that country since late last year.
High potential for online shopping in China has brought up opportunities for segments such as bathing suits, where 60% are imported products.
From a statement issued by PROCOMER:
Japan is one of the main entry points to the Asian region and is also a fashion leader, an industry worth approximately $110,000 million. According to a report by ProColombia, Japan imports more than 60% of its swimsuits and it was also found that consumers pay higher prices for these products, making it an attractive market to service.
There is potential in the Colombian market for exporters of pasta, snacks, biscuits and gravy, through strategic partnerships with supermarket chains.
From a statement issued by the Costa Rican Foreign Trade Promotion Office :
San Jose, February 22, 2016. Building partnerships with supermarket chains represents an option for Costa Rican exporters of food products such as pasta, snacks, biscuits and gravy, to gain admission to that market.
Eleven clusters are operating in Costa Rica, in sectors ranging from digital animation to flowers, food or agricultural products, seeking better operating and financial leverage.
Achieving greater access to credit, winning new customers and suppliers, discussing industry issues and possible solutions, more formalized operation or devising new strategies are part of the benefits of belonging to a cluster, a policy that is actively supported by the Costa Rica Foreign Trade Promotion Office (PROCOMER).
Central American exporters can take advantage of the high prices the fruit is currently trading at in the United States because supply of the fruit from Mexico has been reduced.
From a statement issued by PROCOMER:
The reduced supply of watermelons from Mexico has kept prices high for imported product going to the United States. Since Mexican supply is limited, Central American shippers have the opportunity to leverage a relatively empty market.