Costa Rican Coffee Industry

Coffee production began in 1779 in the Meseta Central in CR. This area contained near perfect soil and climate conditions for the growth of coffee. A native plant of Ethiopia, the blend introduced to CR was first found in Saudi Arabia, hence the name of the type of coffee grown in CR, Arabica. Coffee growing surpassed cacao, tobacco, and sugar in importance to Costa Rica's economy and by the 1830's coffee had become the main agricultural crop of CR. Today, because Costa Rican coffee is so high in quality, it is routinely mixed with inferior beans to make an end product that is up to standard.

Today, according to coffeeuniverse.com, the coffee industry employees over 20 million people, ranks second only to petroleum in terms of dollars worth of the commodity traded, and with an estimated 400 billion cups of coffee consumed every year, it is the world's most popular drink.

Coffee accounts for just under 10% of Costa Rican exports (in value) and is decreasing due to the industrializtion of CR. Because of very fertile land and an abundance of rain fall, CR is an ideal place to grow coffee. To aide in the ease of exporting and to reduce costs, including those of coffee, CR is actively lobbying to join the NAFTA treaty or to sign a similar treaty with the U.S. and other countries where coffee and other products are heavily exported. CR has also been a part of the Free Trade Act of the Americas which has leveled the playing field for coffee growers. Both NAFTA and Free Trade Act have helped reduce the tax and tarriffs that use to be encountered when coffee was exported from CR. This decrease in cost has allowed the industry to grow even larger.

In CR, abother thing that is improving the sustainablity of the coffee industry is the fact that coffee plantations have been forming cooperatives to not only be able to reduce costs in terms of purchasing certain needs of a coffee farm but also in helping to set prices for their coffee beans that will yield a better profit for the growers. Without the formation of these cooperatives, many coffee plantations would fail due to costs exceeding revenue.

It seems as though the coffee industry has greatly benefited from trade agreements made world wide and that the industry will continue to be a mainstay in the Costa Rican economy because of the strides plantation owners are making to increase their efficiency and buying and selling power.