The economy of Costa Rica the international market share of Costa Rica's three major agricultural products has decreased.
According to a study by economists, Costa Rican bananas, fruit juices and fruit concentrates as well as coffee are losing international market share in competition with other countries in the past decade, Costa Rican newspaper National reported on December 1. According to the trade map of the World Trade Organization's International Trade Center, Costa Rican bananas accounted for 13% of world trade in 2005 and fell to 10% in 2014. During this period, world banana exports grew at an annual rate of 9.8%, with the unit value per ton of fruit rising from US $346 to US $487.
In coffee, Colombia's international market share fell from 2.9 per cent in 2005 to 1.7 per cent in 2014, mainly due to competitors such as Vietnam and Indonesia, whose coffee exports grew at an annual rate of 11 per cent and 14 per cent, respectively. In addition, coffee exports from Honduras and Nicaragua in Central America, Ethiopia and Uganda in Africa are also increasing. It is estimated that the demand for coffee in the world market is growing at an average annual rate of 9.3%.
The two main products of Costa Rican fruit juices and fruit concentrates, pineapple juice (64%) and orange juice (34%), are also affected by fierce competition. After years of growth, pineapple juice exports declined in 2013 and 2014, mainly because Thailand and the Philippines increased their share of the EU market. Taifei's share of European pineapple juice imports increased from 34% and 5% in 2005 to 36% and 7% in 2013, respectively. The main market for Costa Rican orange juice is the United States, and other countries have also seen an increase in the market share of orange juice in the United States. For example, China's market share has increased from 19.9% in 2005 to 21.5% in 2014.
Economists believe that Costa Rica should increase the added value and differentiation of products, rather than blindly pursuing price to win.
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