The Costa Rican coffee industry is divided in various groups..
The coffee crisis has seriously affected most producers.. specifically those who belong to the group who continue growing coffee at low altitudes, or who do not produce the quality required by top quality demanding customers. Unfortunately these producers who continue to produce mainstream coffee sold at prices of 0.60/lb.or less, may not be around for too long.

Other groups of producers who have invested in upgrading quality, in improving processing, or have adapted their plantations to sustainable coffee farms, and have been  lucky enough to have been discovered by quality demanding consumers, are securing long term contracts at prices close to 1.20/lb and higher.

A large group of producers belonging to the Cooperative sector are also struggling even though they are more vertically integrated, sharing processing facilities, owning transportation companies, and are investing  in seeking efficiencies or transforming their plantations to organic.

These latter two groups of producers will have a higher chance of survival as they can continue growing coffee in a profitable way..

Due to a rich tourism industry visiting Costa Rica every year and a friendly  migrant open door  policy, the price of land in Costa Rica has reached  record high prices. Some of the low grown coffee farms in Tres Rios, Heredia and Alajuela may tend to disappear as large coffee plantations are being plotted for urban development. 

Another factor affecting coffee producers is the high cost of labor. Coffee, being a intensive labor agricultural product, is relying on the availability of low income migrant workers coming very remote areas, or even as far as Nicaragua during the harvest season. In some areas it is difficult to find Costa Rican workers to do the hard work of picking coffee. During harvest season, producers have to offer housing and pay high transportation costs in order to find the hard working pickers who will harvest the cherries from the trees and get them to the processing facilities. Labor in some cases represents up to 40% of the cost of production. Local banks are not eager to get involved in coffee. Multinational companies with foreign financing have an advantage over local independent exporters.

During our visit, we had the opportunity of exchanging ideas, and processes with various producers. We found a great improvement in various aspects which were not present a few years ago:

Producers have invested in modernizing equipment to process their coffees more efficiently, economically and focusing on ecological aspects which contribute to the quality. Every one is seeking a way of selling their coffees with an added value..whether it is certifications from Rainforest Alliance, Fair Trade, SMBC, Utz Kapeh or other entities.

Some producers have done a great job in marketing their estate coffees. Today, more than ever you can find single estate coffees from the diverse regions. Every producer is working hard to differentiate their coffee from the rest.. whether it is in the processing, or in the marketing.. but a serious effort is being done internally, by hosting a million visitors per year, and internationally by participating in several trade shows, hosting Cup of Excellence competitions, and other active involvement in various programs promoted by ICAFE.