Costa Rica: Enhancing logistics to increase export to China

“After the Chinese market opened, everyone was very excited because of the large demand for the Costa Rican pineapples. The exports started growing and we shipped several containers. However, we noticed a slowdown in exports from the beginning of this year. This isn't a market issue, but more a logistics issue of longer transit times than expected. We have been working on this issue for a while now including some mayor players in logistics”, explains José Pablo Rodriguez Cordero, trade commissioner and Asia Regional director from Procomer, China.

According to José Pablo delayed shipments have been the reason why business was slow this year. “Promises were transit times between the 25 to 28 days, but often it took much longer. They offered a transit in Manzanillo in Mexico, from which they were shipped to Shanghai. However, if there wasn´t a connection, the shipment was often delayed a week or even up to ten days. This became impossible for exporters and importers to work with.”

Everyone has been looking for alternatives, as a direct vessel isn't an option yet. “A direct vessel would solve the whole issue, but we believe the Chinese market isn't quite ready yet for these bigger volumes. Luckily, recently we found a solution for now that will reduce the transit times. It’s not a direct vessel yet, but it will definitely help. It will shorten the transit times to give the importers more time to distribute the pineapples with a longer shelf-life after arrival.”

“We believe it’s a great opportunity that this market has been opened. The importers demand our pineapples and we know they will start buying again when the logistics are solved. Exporters are very eager to export to China, they have the capacity and availability.”

He continues that the interest in China for pineapples is huge, the market demands a lot of volume and there isn't enough supply. “I have been present when the first containers of last year arrived after a transit time of 28 to 30 days, and the quality of the fruit was really good. Hopefully, the market starts growing and in the future a direct vessel will be possible.”

Other developments have taken place besides pineapple export, as also the Costa Rican banana export to China has increased. “Even though the biggest volume of bananas is still exported to Europe and North America, we see an increase in export to China. This is happening throughout the whole year and importers say the bananas are well accepted because of their sizes and sweetness. It´s being sold in high-end supermarkets as premium fruit. We benefit from a niche market that is willing to pay higher prices for more premium fruit.”

Export destination Japan has been growing for Costa Rican pineapples and bananas. “We have also started the export of melons to Japan this year. In addition, a new trade agreement has been signed this year with Korea, but it’s still not fully approved yet. The existing trade of pineapples and bananas to Korea still continues with good logistics conditions.”

You can visit Procomer at the exhibition at Hall 3c, booth N08. See contact details below if you would like to make an appointment. Their stand will have the following four Costa Rican fresh pineapple exporters: 

- Upala Agrícola

- Chesnut Hill Farms
- FERTINYC

- Piñas Cultivadas de Costa Rica

“We hope to meet many pineapple buyers at the pavilion, in order for the exporters to start some trials again and see how these new logistics work out. However, definitely within the Asian market, China is the most promising market and the market that needs to be more developed.”

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