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Multiple impacts on exchange rate climate and economy! Costa Rica's coffee industry declines

Published: 2025-12-05 Author:

Last Updated: 2025/12/05, It is understood that Costa Rica's economy is based on coffee production and is famous for its rich coffee tradition and high-quality coffee beans. But today Costa Rica's coffee industry is affected by many problems. Currently, the Costa Rican coffee industry is mainly affected by exchange rate issues, changing government policies, labor shortages and

It is understood that Costa Rica's economy is based on coffee production and is famous for its rich coffee tradition and high-quality coffee beans. But now Costa Rica's coffee industry is affected by a lot of problems.

At present, the Costa Rican coffee industry is mainly affected by exchange rate problems, changing government policies, labor shortages and competition in other American countries, which have led to the continuous decline of the coffee industry for many years. Coffee production has dropped from 3.5 million bags (60 kg / bag) in the 1990s to 1.7 million bags (60 kg / bag) today.

Costa Rica's economy has been growing steadily over the past 25 years, with tourism as the better sector, as well as the pharmaceutical and IT sectors. In 2017, Costa Rica's services accounted for 44.5% of domestic economic output, and despite the outbreak, economic output remained strong.

Moreover, many multinational companies are very willing to recruit employees in Costa Rica. As a result, some people in the industry have pointed out that the children of many coffee farmers now have more job options, and from an income point of view, other industries are more attractive than coffee cultivation. It can be said that Costa Rica is more focused on the development of the service industry, agriculture has been in a secondary position.

In addition, weather changes affect the production and quality of coffee in the country, while geopolitics exacerbate prices such as fertiliser and increase planting costs. Another challenge, however, is labour shortage. in the past, migrants and refugees accounted for 10 per cent of Costa Rica's population, and these migrants could do some harvesting, planting and pruning in rural areas. However, the new immigration policy introduced by the government and the intensification of demographic changes have led to labor shortages.

According to local rural owners, most people from Nicaragua have emigrated to the United States, and many do not want to stay in Costa Rica for seasonal labor. Some farms are well equipped, provide food and accommodation, and are even willing to pay twice the wage, but it is still difficult to hire workers.

At present, there are two voices about the future of the Costa Rican coffee industry. On the one hand, it is believed that the coffee industry still has great potential. If there is more investment and support, the coffee industry can solve the current difficulties and flourish.

However, others believe that with the development and changes of the global coffee market, the Costa Rican coffee industry is at risk of falling behind, especially small farmers and some traditional coffee-producing areas.

In this regard, industry insiders said that mainly the Costa Rican government believes that the coffee industry is not as important as it used to be, and has shifted its focus from agriculture to other economic development. As a result, some large coffee factories face losses, and Costa Rica may end up becoming a small but valuable coffee producer, like neighboring Panama.