Costa Rica Benefits from Stable Coffee Consumption

Coffee consumption was steady in the United Stateswhich represents about $15 per sack over the price
and Europe this year despite the crisis, which hasin the New York Mercantile Exchange, the main
helped Costa Rican producers to overcome thisreference point.
difficult period.  A decline in coffee demand wasCosta Rica sells 51% of its coffee to the market in
expected in major markets due to the crisis, but anthe United States, according to the Foreign Trade
annual survey by the National Coffee Association ofPromoter (PROCOMER) website; another 14% is
the USA (NCA) revealed that there were no changesplaced in Germany, 8% in Belgium and 4% in Italy.
this year. The grain is also exported to some markets outside
The telephone survey was conducted betweenof the United States and Europe.  About 6% of
mid-January and February of this year and it foundexports go to Japan and 3% to Australia, reported
that 49% of respondents consumed coffee daily, aPROCOMER.
figure equal to that in 2008.  Similarly, the averageICAFE estimated that 70% of total Costa Rican
number of cups of coffee consumed per daycoffee exports is being placed in differentiated
remained at 3.3 per person, the poll found.markets.  That is, countries where there are market
However, the NCA warned that it would be difficultsegments that demand high-quality coffee and pay
to increase the average of cups of coffee consumedhigher prices for the grain.
per day.  Therefore, demand cannot be increased inAccording to ICAFE, the sharpest increases in
that manner.  The number of coffee consumersproduction costs occurred between 2007 and 2008. 
must be increased if there is to be an increase inDuring that period, there were sharp increases in raw
coffee demand.materials for production such as fertilizer and fuel.  In
Ronald Peters, executive director of the Costa Ricanaddition, other effects of the global economic crisis
Coffee Institute (ICAFE), explained that demand forare still present in national coffee production.
coffee remained steady in Europe during last yearThe situation would worsen in the event of a
and so far this year, during the height of the globaldecrease in consumption in major importing
financial crisis. countries.  However, the industry is withstanding the
The stable demand and higher prices in quality coffeecrisis better than other sectors because of how
markets allowed producers to alleviate the crisis, butstable consumption has been,  said the ICAFE
they have had to bear a strong effect in productiondirector yesterday.
cost increases, Peters stressed yesterday.Coffee has a major impact on the Costa Rican
So far this year, Costa Rica has placed one millioneconomy because it affects some 52,512 producers
quintals (46-kilo sacks) from the 2009-2010 harvestcurrently registered with ICAFE. For those producers,
on the market for future delivery.  This is almostnews of steady consumption is great news but a
half or the total export volume.marketing strategy must be implemented to increase
The average price of these sales is $151 per quintal,the number of consumers.