2024 has been a decisive year for cassava exports in Costa Rica, with an expanding market and sustained demand driving the sector's development, although also obstacles that have had an impact on the production and competitiveness of exporters.
"One of the main factors that have marked Tropifoods' performance has been the commercial strategy of having exclusive distributors for each country. This strategy has allowed us to strengthen our presence in important markets, such as France and Italy, facilitating sales to customers who cannot afford full containers. Also, a digital platform in France has been developed to educate consumers about cassava, its nutritional value, and its versatility in the kitchen. We want Europeans to start getting to know the product; we have to take advantage of the demand for gluten-free products," says Joshua Guerrero, operations manager of Tropifoods Costa Rica.
Despite its growth, the sector faces significant challenges. The fluctuating exchange rate in Costa Rica has taken a toll on the profitability of exporters, making products more expensive abroad and reducing the profit margin. "The government maintains an artificially low exchange rate which is making things harder for the export sector," says Guerrero.
The weather has also been a determining factor. "Due to the most severe winter of the last five or six years, harvests have been delayed and production costs have increased by 30-40%. This has led to shortages in major markets and production costs rising by 45% from week 50 of 2024 to week 2 of 2025. This trend is expected to continue until week 10 or 11. Moreover, the rains have made harvesting more difficult, forcing more staff to be employed and increasing drying times from 7 to 14 hours, and this has resulted in higher production costs. While we used to need 10 people to harvest, now we need 25," says Guerrero.
The 45% increase in production costs has had a direct impact on the sector's profitability. "We aren't selling at a higher price to earn more, it's just that costs have inevitably gone up," say the producers, who have been forced to adjust their strategies to maintain competitiveness without fully passing these increases on to the final price.
"The migration of Nicaraguan workers to the United States has reduced the availability of labor in Costa Rica, and agricultural production has been affected. This exodus has made it hard for farms to hire workers, increasing costs and delaying harvests, and this has had a direct impact on the competitiveness of the export sector. It's no longer as easy as it used to be to find workers," he says.
To improve its competitiveness, Tropifoods, together with other exporters, is investing through the chamber of root and tuber exporters (CERYT) in seed improvement and techniques to increase productivity per hectare. Diversification with cassava by-products, such as flour or chips, is also being considered to seek new market opportunities.
Another important challenge is logistics. "During the melon and watermelon season, finding space on the shipping lines becomes harder, and that takes a toll on export times. Despite this, Tropifoods has ensured stability through structured planning to guarantee a continuous supply of the product. We always make sure that our customers receive their cargo, even in the most difficult times," says Guerrero.
For more information:
Joshua Guerrero Medina
Tropifoods
Pital de San Carlos and Escazú Village Torre 2
Costa Rica
Tel.: +506 70133700
[email protected]
www.tropifoods.com