The Ministry of Agriculture and Livestock (MAG) in Costa Rica recently authorized the import of U.S. potatoes, a decision that domestic producers fear may impact local production adversely. Kevin Gómez, executive director of the National Horticultural Corporation, expressed concerns that this move might mirror the "Rice Route" policy, potentially displacing local potato production.
Gómez noted, "First, the speculative effect affects the number of plantings and seed potato reserves, as producers anticipate that, as with other imported products, these will end up displacing domestic products from the shelves." He highlighted that a promising potato harvest is expected mid-year, following efforts to overcome shortages caused by adverse weather conditions at the end of 2024 and early this year.
However, the importation of table potatoes from the United States could threaten this expected harvest, the investments made by local producers, and the phytosanitary status of Costa Rica. Anti-sprouting treatments, used to manage potato sprouting, do not ensure protection against zebra chip, a disease caused by bacterial infection.
Víctor Carvajal, Minister of Agriculture and Livestock, stated that the import authorization by the State Phytosanitary Service (SFE) aligns with standard commercial practices. "We understand the sensitivity of potato producers. This authorization, granted by the Phytosanitary Service, is not arbitrary; there are a series of guidelines that U.S. producers must follow for their potatoes to enter Costa Rica, as well as responsibilities for importers," he remarked.
Gómez pointed out that the high prices in the market are a reflection of limited supply rather than excessive profits. "The high price is simply a reflection of the limited supply available on the market, which, to some extent, has offset production costs," he said. Weather conditions have significantly affected crop yields, leading to reduced production.
Potato and onion producers in Cartago reported losses of ¢15 billion ($29 million) due to recent imports, as stated to the Legislative Assembly's Agricultural Affairs Committee. Despite local production meeting domestic demand, imports continue. Costa Rica's annual potato consumption is approximately 4,500 metric tons.
The National Chamber of Agriculture and Agroindustry (CNAA) raised concerns about statements from the Central Bank of Costa Rica regarding imports to address shortages and high prices. The CNAA warned that such measures could exacerbate challenges faced by domestic producers.
Source: ARGENPAPA