Citrus Production and Markets in Costa Rica

Costa Rica is a small Central American country with a territory of 51.100 square kilometers, which is slightly smaller than West Virginia. Even though the population is of less than 5 million citizens, it is one of the most developed countries in the region. Costa Rica has in place important legislation for the protection of its natural landscapes and resources, which makes of the country a renowned center for ecotourism and agricultural development. With a gross domestic product (GDP) of more than US$70 billion, Costa Rica’s economy is divided into 6% agriculture, 19% manufacturing, and 75% services. Within the national economy, the most important agricultural products include bananas, pineapples, coffee, melons, sugar, corn, rice, beans, and beef. This article explores the status of Costa Rica’s agriculture industry.

Citrus Production and Markets in Costa Rica

Costa Rica’s most important economic partner is the United States, with whom the Central American country conducts almost half of all its international trade. These close economic ties are mainly due to the Central America & Dominican Republic Free Trade Agreement (CAFTA-DR) with the US, which entered into force in 2009. Costa Rica is an important supplier of fresh fruits to North American markets, particularly citrus products. During the 2014/15 season, Costa Rica experienced one of its worst citrus crop yields in recent history due to unfavorable weather conditions. However, the domestic market has managed to regain its footing with a total output of 8.2 million boxes of citrus during 2015/16. This positive output of 8.2 million boxes is expected to continue into the following 2016/17 season and eventually increase to 8.5 million boxes of citrus in 2017/18, if the weather conditions continue being favorable.

The most productive regions in Costa Rica for citrus cultivation are located along the central valley and the northern provinces bordering Nicaragua. Within Costa Rica’s seven provinces, orange production takes place in Alajuela, which is located between the central valley and Nicaragua, Guanacaste, which runs along the northern Pacific coast all the way to the Nicaraguan border, and the central valley around the capital city of San Jose. Citrus production in Costa Rica normally takes place during the first semester of the year and production peaks during the months of March and April.

Given the substantially lower costs of managing a farm in Nicaragua, some Costa Rican producers and farmers have extended their citrus operations across the border. Once harvested, the oranges are brought across the border into Costa Rica for processing and commercialization. During 2014, Costa Rica imported almost 57.000 metric tons of oranges from Nicaragua. Meanwhile, in 2015, Costa Rica imported some 35.000 metric tons of fresh oranges from its northern neighbor. Overall, Costa Rican producers harvest about 21.000 hectares of land throughout the national territory as well as southern Nicaragua, which amounts to approximately 7 million orange trees.

A significant amount of Costa Rica’s orange output is ultimately processed into fresh orange juice for export, mainly towards North American markets. During 2015, Costa Rica exported some 25.500 metric tons of orange juice valued at US$37.1 million.

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