Executive Summary:

According to industry sources, the higher cost of resulted in lower input use by producers, negatively. Also, Costa Rican coffee plantations are getting Institute (ICAFE), 40% of the plantations are over trying to obtain financing for a plan to renovate total production and average productivity.

Production: After increasing to 1,867,000 60 kg bags in 2007/2008 (Note: for the purpose of this report bags refers to 60 kg bags) from 1,782,000 bags in 2006/2007, coffee production declined to 1,622,000 bags in 2008/2009.

The steep decline was the result of several factors including aging of the coffee plants, lower use of inputs caused by the higher international price of fertilizers, and negative weather conditions around harvest time, which resulted in the loss of ripe coffee in different areas. Although it is still early in the coffee cycle, the 2009/2010 forecast is for the crop to increase by 6.7% to 1,730,000 bags.

The decline in input prices has allowed producers to improve maintenance of their plantations. A good initial flowering of the plants predicts a higher crop in 2009/2010. Area planted is not expected to change significantly over the next few years, as the downward trend has apparently come to an end, at least under current conditions.

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