by Rod Hughes

Costa’s Rica’s gourmet coffee has leveled off in price on the world market recently, reported the daily newspaper La Nacion. The coveted coffee so beloved of finicky private consumers and the Starbucks chain, shot up 20% over regular coffee beans in 2001 but was only 17% last year.

This country raises a class called Strictly Hard Bean, a high mountain type sought after on the New York Commodities Exchange. But last year’s premium over regular types were the lowest in six years. The record price differential was an incredible 47% in 2002.

Regular coffee prices have risen precipitously in the first years of the new century, from an average of $51.22 per quintal (a specialized measuring unit for coffee) in 2001 to $126.34 last September. Costa Rica’s premium beans became a tasty attraction for those farmers with the right soils and altitude because their coffees were getting even higher prices and last year their finest beans were getting $148.41. Not bad, but the gap is closing.

The New York commodities market is heavily influenced by the fluctuations of regular coffee in the world markets while the volumn of fine premium coffee available remains stable, according to Ronald Peters, executive director of Costa Rica’s Coffee Institute (Icafe). That the gourmet coffee customer deals directly with the exporter also contributes to price stability, he explained.

While this country’s premium beans averaged 22% higher than regular quality in 2006-7, Peters says producers here want to maintain or augment the advantage by brewing up the twin strategy of improving quality even more and marketing it more aggressively.

Certainly, today coffees from Orotina, Coto Brus or Perez Zeledon, for example, are well-known to fine coffee buyers. And this country’s coffees continue to stand up to international competition.

And when the posh British emporium Fortnum and Mason wanted something extra special to celebrate its 300th anniversary, the company chose to distribute small jars of ground coffee from Acosta and Aserri (going on the market for about $2,135 per quintal as contrasted with the current market $114 for plebean coffees).

But with 65% of the nation’s coffee on the gourmet market and 80% of total production being exported, you need all the promotion you can get. And this year’s crop is expected to be 6.5% larger than normal, about 2.5 million quintales to market.

by Rod Hughes

For many years, the Costa Rican Railway System (INCOFER) was moribund except for some banana transport from plantation to port in Limon province. The railway was a victim of truck transport competition and a decrepid infrastucture. Today, INCOFER is planning for the future, thanks to rising diesel prices for trucks and increased government interest.

Officials of INCOFER intend to double the number of boxes of bananas transported by train to the Limon/Moin docks by refurbishing abandoned lines between Rio Frio and Pococí as well as to put the bridge over the Chirripó River back in action. What enables INCOFER, a nationalized company, to do all this is a transfusion from the government of $4.2 million. The goal, according to INCOFER president Miguel Carabaguíaz, is to carry 7 million boxes of bananas per year.

But their ambitions don’t stop with just bananas. They have their eyes on the tremendous export pineapple crop from the San Carlos area. Although pineapple producers are hopeful about this, pointing to diminished fuel costs per ton as well as less wear and tear on deteriorating highways, there is one technical hitch to overcome. After leaving the packing plant on their way to the port, pineapple has to be kept at an even, cool temperature. None of the antiquated railroad cars INCOFER has at its disposal is refrigerated. Pineapple Producers & Exporters Chamber president Abel Chaves says the industry will have to study whether it can give INCOFER refrigeration equipment for its cars and storage terminals.

Still another project is the total electrification of a fast passenger train to link Heredia, Alajuela, Cartago and several suburbs of San Jose together with regular service. Already a small train is serving part of this route but its locomotive is diesel-electric and the Arias Administration wants to make as small a carbon footprint as possible. A $1.2 million contract with the Brazilian company Engevix has already been signed for a feasiblity study on the project. “We won’t have to wait 30 years for this project,” says deputy Minister of Public Works Luis Diego Vargas, “We’re talking 2 or 3 years to be up and running.”

But just the first stage of the new fast line will cost upwards of $90 million. It all depends, says Minister of Public Works Karla González, if the government can convince the banks to finance the scheme. Certainly, she has no doubt that they will get many bids from would-be concessionaires to run the route once it is finished.