Costa Rican pineapple continues to expand its global presence through a strategy that combines farming expertise, technical skills, and market expansion. Marvin Hidalgo and Franklin Paniagua of Tico Farms, an alliance dedicated to agricultural production and export, explain that their approach is designed to meet the evolving demands of the market.
Hidalgo describes the merger as the coming together of two distinct companies: one with over 20 years of production experience, and the other with a focus on export-oriented commercial structures. This union has enabled them to streamline processes and adapt more efficiently to international demands.
© Tico Farms
Currently, the company exports approximately 500 containers annually, with the U.S. accounting for about 70% of the volume. Europe makes up the remaining 30%, and its significance has grown notably in the past year. "We had no presence in Europe until a year ago, and now it constitutes 30%. It has been very positive," they stated.
The European market, however, presents specific challenges. Unlike the United States, where price dynamics are more variable, Europe requires stability, medium- and long-term agreements, and higher standards. "It is much more demanding in terms of certifications, social and environmental standards," they stated. Additionally, there is a clear preference for a yellower fruit with high aesthetic standards, which forces growers to refine both agronomic management and field selection.
At the origin, production also encounters challenges. Weather conditions, particularly cold fronts and rain, impact crop uniformity. "The natural timing of flowering causes the crop to be uneven, and this remains a significant challenge," Paniagua explained. Additionally, there is a need to implement new technologies, such as drones and improved soil preparation methods, to mitigate the effects of climate change and meet environmental standards.
© Tico Farms
Market prices have declined at the start of this year compared to last year. Nevertheless, forecasts indicate a slight reduction in supply in the first half, which could affect market trends.
Beyond international rivalry, the primary pressure originates within the industry. "We are our biggest competitors," Hidalgo notes, highlighting issues like overproduction cycles. Additionally, there is indirect competition from processed pineapple products, such as juices and frozen formats (IQF), which sometimes absorb some of the supply intended for the fresh market.
Tico Farms aims to strengthen its presence across Europe, particularly in Spain and Italy, while seeking new regional opportunities. "Our main goal is to ensure the end consumer enjoys the best-quality fruit and flavor."
Marvin Hidalgo
Tico Farms
Costa Rica
Tel: +506 883 65443
Email: [email protected]
www.ticofarms.com
