Costa Rica: A study reveals that fair trade would support more than 25.000 producers

The National Coordinator of Fair Trade in Costa Rica (CLAC) and the Inter-American Institute for Cooperation on Agriculture (IICA) have developed a market study on products oriented on fair trade in this country that has shown the great potential of this activity, which could eventually support more than 25.000 Costa Rican farmers.

According to this research, fair trade producers have opportunities to be inserted in commercial activity in the country, both public and private, although these must face several challenges, including the concentration of supply.

This study is part of the project “Linking organizations of small producers to local markets using the fair trade approach” of Fund IICA Technical Cooperation. It describes the supply and demand for marketing products fair trade movement in the Central, North Huetar, Chorotega Central Pacific and analyzed, and focused on 12 products and 16 organizations. Specifically, seven fresh cases were studied: banana, guava, pineapple, mango, papaya, rambutan and peach; five processed: chocolate, sweet granulated, brown sugar, pepper and coffee.

In the private sector distributors, supermarkets, canteens, hotels, specialty shops and consumers were consulted. While in the public sector was asked about the demand of the central government, education, ministries and hospitals.

According to the study, lack of fair trade productive approach persists, however, both the private sector and the public show interest in the products, considering that the purchase price is equal to the present.

From these results, IICA and CLAC will focus on the organization of business meetings with potential buyers in order to establish possible contracts as well as in the design of a strategy to promote the concept of fair trade, said Marvin Blanco, a specialist in agribusiness of IICA.

Fresh produce more demanded is pineapple, with 30,000 units per month, and the processed is coffee, with a monthly demand of 18,500 kilos.

For Coopepiña manager Jose Mario Vargas, the study provides very important information to know the distribution and market trends  and to devise strategies that allow the final producer get a better price.

Institutional Supply Program (PAI) of the National Production Council (CNP) is presented as a potential high-volume market for fair trade products. To access it, the challenge is the consolidation of a joint bid

During the presentation of the study, representatives of the fair trade movement knew the experience of Green Center in marketing distinctive products, sales strategies to retail chains and supermarkets as well as the requirements for system provider affiliated with the Costa Rican Chamber of Restaurants (CACORE).

Fair trade is an approach that promotes social equity through a more equitable distribution of income generated along the chain, for the benefit of small farmers and their families. It contributes to sustainable development by offering better trading and ecological conditions and securing the rights of workers.

Source: IICA