Coffee specialization in Costa Rica: local overview of international coffee markets

Abstract

The progressive opening of the world economy in recent decades has contributed to accentuate a geographic division between low value added exporting countries and those that export high value added. Coffee is an emblematic case of this international division of labor, not only because developing countries are the producers and developed countries are the consumers, but also because it is the latter that have favored the integration of coffee production to international markets, which, among other things, has allowed them to widely influence the formation of prices and speculate with them, as well as regulate coffee producers through prices and competition. In the case of Costa Rica, focusing on specialized coffee production with the objective of obtaining better prices and being more competitive in the world economy, has not only meant a greater participation of producers in the commercialization processes, but has also implied a greater influence of external agents, such as traders and exporters, externalizing risks to producers and labor, resulting in low salaries, coffee trafficking and high profits for a few.