Costa Rica’s 2024 Coffee Harvest: A Season of Challenges and Innovation

The 2023/2024 coffee harvest season in Costa Rica unfolded as one of the most challenging in recent history, with production levels hitting near-record lows. While Costa Rica is known for its exceptional coffee quality, this year’s harvest underscored the impact of climate, economic factors, and labor challenges on coffee production. Despite these hurdles, Costa Rican farmers demonstrated resilience and innovation in the face of adversity.

Production Decline: The Smallest Harvest in a Century

This year, Costa Rican coffee production has seen a sharp 16% decline, yielding only 1.18 million 60-kg bags, a significant drop from initial projections of 1.44 million. The 2023/2024 harvest is now recorded as the smallest in nearly 100 years, marking a new low for a nation that once harvested more than twice this volume in the year 2000.

Key Factors Impacting Costa Rican Coffee Production

Several interrelated challenges have contributed to this year’s reduced harvest, affecting both coffee quantity and quality across the country.

1. Weather Impact

The 2023/2024 coffee harvest season in Costa Rica unfolded as one of the most challenging in recent history, with production levels hitting near-record lows due to a combination of severe weather conditions, economic pressures, and labor shortages. While Costa Rica is known for its exceptional coffee quality, this year’s harvest underscored the impact of climate, economic factors, and labor challenges on coffee production. Despite these hurdles, Costa Rican farmers demonstrated resilience and innovation in the face of adversity.

2. Economic Pressures

Costa Rican coffee growers have also faced economic strain due to unfavorable exchange rates. When the Costa Rican colón strengthens against the U.S. dollar, growers receive fewer local currency units for their coffee sales in international markets, reducing their overall profitability. A stronger Costa Rican colón against the U.S. dollar has impacted growers’ profit margins in international markets, where demand has softened and prices have fallen. Coupled with high levels of indebtedness, these financial challenges have placed many small-scale farmers in a precarious position, forcing them to innovate in order to stay viable.

3. Labor Shortages

A shortage of available coffee pickers has compounded the difficulty of the harvest. Seasonal labor disruptions, including protests in Panama, have hindered the movement of workers essential to Costa Rica’s coffee industry. Additionally, a decline in migration from Nicaragua, another traditional source of coffee pickers, has strained the labor supply even further.

Positive Developments Amidst Adversity

While this season’s challenges are formidable, the Costa Rican coffee industry has seen positive developments that offer hope for the future.

Deforestation-Free Coffee

In a landmark achievement, Costa Rica recently exported its first batch of deforestation-free coffee to Italy, aligning with upcoming European Union regulations. This milestone reflects the country’s commitment to sustainable coffee production and may open new avenues in international markets as demand for ethically sourced coffee grows.

Improved Worker Benefits

Recognizing the importance of labor, Costa Rica has introduced accident insurance for over 15,700 seasonal coffee workers. This improvement underscores a dedication to worker welfare, ensuring that those who support the industry are better protected.

Agricultural Innovation

In response to climate pressures, many Costa Rican farmers are adopting new techniques, including the use of shade trees and irrigation systems, to help mitigate the effects of erratic weather patterns. These efforts aim to boost crop resilience and reflect a larger movement within the industry to adapt to climate change proactively.

Looking Ahead: A Season of Resilience and Adaptation

Despite the challenges of the 2023/2024 season, Costa Rica’s coffee industry continues to demonstrate resilience. The U.S. remains Costa Rica’s largest coffee market, accounting for 51% of exports, followed closely by the European Union at 35%. As the country adapts to climate and economic shifts, Costa Rican coffee producers are showing the world their unwavering commitment to quality, sustainability, and innovation.

The story of Costa Rican coffee this season is one of endurance, exemplified by farmers adopting innovative agricultural practices, such as integrating shade trees and irrigation systems, and embracing sustainability initiatives like deforestation-free coffee production. With new practices and policies paving the way, Costa Rica is positioned to navigate the complexities of the future coffee market. This year’s harvest, though small, stands as a testament to the strength of Costa Rica’s coffee community—a community dedicated to preserving the heritage and quality of Costa Rican coffee for generations to come.

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